Earnings call transcript Q2 2023

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Operator

Good day and welcome to the Bunge Limited Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note today’s event is being recorded.

I would now like to turn the conference over to Ruth Ann Wisener. Please go ahead.

Ruth Ann Wisener

Thank you, operator and thank you for joining us this morning for our second quarter earnings call.

I to let accompany started, we know get slides have our we want you to that Before discussion. Events These Investors can Presentations. under section the and of our be website at found in bunge.com to of on posted as the Reconciliations website measures most comparable measure our GAAP directly well. are financial non-GAAP remind industry future that I’d current reflect and Slide view like conditions. events, presentation today’s with to you that to to financial Bunge’s and performance includes direct respect X you forward-looking statements to various subject and uncertainties. These are forward-looking risks statements Bunge cause has review in to and information those its reports SEC concerning presentation on the you provided additional to these from file factors. factors actual materially this encourage with that differ in could contained we results

Officer; Neppl, On Officer. and Financial the this Chief John are call Chief morning Greg Heckman, Executive Bunge’s

turn Greg. call now the to over I’ll

Gregory Heckman

you, Good Ann. thanking quarter. team for to everyone. throughout dedication want the I the Ruth Thank focus and their start by morning,

proves our on moves operationally. execute that our eye clearly on the Our agreement can continuing keep strategic while the ends a had combination Viterra business We big over chain. we on continuing business, to performance serve into ball this entering and like quarters, at outstanding several in value our going lot day-to-day team stayed delivering customers our to of results and the both sharp past with

team, the same proud At extremely for I, capitalized John future. to entire are franchise on work. time, Bunge and leadership we with enhance the this unique of the opportunity along this the

on the transaction preliminary statement with proxy continue our proposed with our filed week. in to combination We make Viterra progress and last connection

built pressing across feed, of a our to bring the XXst of the fuel. teams most together to needs create We’re some premier and company Agribusiness solutions address assets to century food, excited and

our being were later They second the as a were with in environment the we showed quarter, able the available. connectivity In use job opportunities team conditions and margins managing against our to agility. value quarter. a to changed footprint chain great particular, of it downside to optimize smart dynamic did the and Turning and that was market

opportunities, timing While appear. opportunities the predict provide for where volatility the can chain it’s within to those upside will value difficult and

However, create our long-term. the that over rapidly confidence gives changing environments in us can value ability we to execute

We our and reduced reliability downtime the investments also from saw with across benefits improved maintenance of platform. productivity in amount and our unplanned

our and outlook and Looking curves ever the year, geopolitically today share. we’ve ahead to environment, the EPS on is as increasing as market the based least the macro adjusted to forward $XX.XX at of geopolitical remainder complex and full-year which from on per environment we’re seen, a

I’ll hand some the then call now over in more thoughts. detail, we’ll John? with to financial walk our outlook and additional and to John through results close

John Neppl

everyone. good Thanks, morning, Greg, and

turn the to slide earnings X. Let’s highlights on

the to in second Our $X.XX per of reported was share earnings compared $X.XX second quarter XXXX. quarter

positive results impact $X.XX included difference items. timing share related $X.XX per and Our a per of one-time reported of share mark-to-market a negative to

last and year. $XXX million were was last results compared Adjusted year. was the the prior million Agribusiness core versus the $XXX in adjusted or segment $X.XX EPS in up EBIT, versus quarter in earnings interest before million quarter $X.XX year. taxes, Adjusted of $XXX to

and contributed destination processing, crush all in across in Brazil in performance Asia. driven reflected part In the results results chains, origination, soybean and our by better in Brazil higher value quarter which strong higher year-over-year operations to Europe crush

freight strong oils entered a operations, comparisons were difficult than and at of portion a higher in had quarter the and In locked prior grains by financial lower merchandising, our which higher results significant results in with were as results global more the particularly to margins. capacity In we services offset U.S., in higher also year. our ocean

last its oils Refined year. slightly than results though lower strong performance continued were of trend Speciality and

fuel by demand and Our slightly Europe, food America results results across lower in North were South Asia. America offset service by and driven

negatively quarter the period low American from the results by were Segment effective supply our were during which of operations, Milling, South high year the our chains in risk small driven by management of results market Argentine a benefited in impacted volatility. primarily prior In wheat crop.

The quarter insurance reflected our related and initiatives corporate Lower and in growth Ventures. in program will productivity investments planned increase in expenses related other the results in that periods. off pay Bunge to primarily future captive

of Results evaluation and venture included million the from a bioenergy on joint sugar allowance. non-core our $XX benefit reversal

higher In sugar than prices. addition, prices that reflected offset lower more improved results ethanol

items, offset average is for higher to million expense higher interest last rates down was income. Adjusting compared year, net interest notable were by variable quarter as slightly $XX in the

income For increase higher The mix. year, as as to year. in million the compared prior $XXX change was six the pre-tax million was in months XXXX, due expense well earnings in the income $XXX primarily a tax geographic of to

XX adjusted months. can Let’s with our four slide over see turn past to and where EPS years, along X you EBIT trailer the the trends

rapidly continues performance, internal our market conditions have the when executing of improve especially also variety team changing while a excellent to to on deliver considering Our faced, capabilities. initiatives we

allocation details After we $XXX million to allocating billion generated from of approximately CapEx, sustaining have we safety, had $X.X environmental funds of includes and our year-to-date. X capital Slide health which related adjusted the in in we that $XXX maintenance, $XXX flow CapEx, million of amount, million productivity discretionary billion approximately Of in approximately cash retain growth paid and dividends, flow. available. common million leaving invested $XXX $X.X cash and this operations

a We with discussions of Viterra. year have as purchased this to not our combine shares result any

possible, expect the expanded Viterra repurchases soon of we portion with transaction, be of date. the program has prior executed be meaningful and However, these market months within our our completed of to close be We a repurchased remainder board $X announced will existing share to to billion. recently that as XX to want we the that that as in

or reflects to Slide approximately by This retained use while exceeded in Readily-Marketable billion. capital at reducing debt. shown As fund of net RMI, cash our X, Inventories, $X.X quarter-end our debt flow working

billion providing to manage to At with $X.X secured quarter-end capital needs. facilities in unused on-going key we all $X position. working And Viterra. billion combination partners, banking of a of the our and liquidity credit committed loan highlights form fund term commitments Slide liquidity with our also our sample our our X unavailable, recently was

turn ROIC trailing capital well ROIC capital X%. to Please months XX.X%, Slide our weighted adjusted was X.X%. XX.X%, XX average cost was our cost suggested above also to to XX. The average RMI well weighted above

Moving a produced billion to XX.X%. Slide we trailing yield approximately of of XX, cash XX months, cash $X.X for the discretionary and flow flow

XX and XXXX Please turn outlook. Slide to our

remarks, outlook curves, $XX.XX to in per adjusted share. we the least year the increased half results Greg have into current the in As at mentioned his environment four our first taking XXXX EPS account margin year of and full

more are better year offset results down In than results be prior higher in year, Agribusiness, outlook, last full to merchandising. in from processing low forecasted are though results our by than slightly as

depending outlook. how to However, upside be our over market conditions the on of evolve segment could there remainder year, the

expected are Specialty results a significantly full are lower be our outlook Refined to expected year than Oils, from full performance. In prior In year. our line year year’s in Milling, to strong from down and prior up and be prior results last record with outlook

venture results year. the in are expected sugar and bioenergy with In line are year. other joint expected our full with last line in be be to results last Corporate Non-Core year and in to In

$XXX expects million. which XX% range expense to of million down an dollars, to in outlook company tax XX%, for prior of from following the the the range XXXX; to effective net million $XXX million rate our of adjusted the $XXX interest annual $XXX is Additionally, in

depreciation reflecting purchase Capital million expenditures in of million. amortization the the from billion, prior the our to and range up of to $X.X outlook oil billion during U.S. $XXX $X are refinery $XXX which quarter approximately is second a

With that, some to things closing comments. I’ll over Greg turn back for

Gregory Heckman

Thanks, John.

Q&A, offer to want few Before turning closing to thoughts. I a

to serve farmers remain the and of needs top strategic executing consumers, the priorities we market ahead, in of both better on Looking environment. regardless our focused customers,

we’re the the more last then for managing fuel security, challenges, we’ve in production. sustainable food feed and several including and market seen volatility access, demand through and all increasing Over years, food market,

grow, and low chains. Bunge broadly GHG of play. emissions, we the product major address carbon more As role Viterra, value combined crops. Together as a in be and industry, take to an work reduce challenges, platforms to rapidly effort important to it collective a utilize to traceability continues our will support capabilities full to world’s with importantly, agriculture transparent has such promoting acceleration regenerative and includes and to will and able efficiently these our more sustainable This expand the across streams, practices sustainable to end-to-end population

to the regenerative partnership already support support large Brazilian The and offering During tools, than program the scale in low carbon the covering transition quarter, hectares. more Orígeo, with creation agriculture, of enrolled we program has farmers, farmers Brazil, announced in a agricultural services. technical XXX,XXX to products, in

farmers strengthen U.S. that connection farmers value increase implementation of products. U.S. across create in a to agreement lower value launched with sustainable our chains. commercial also Solutions development strategic Bunge’s farming We will Ag the support Nutrien alliance participants in in and This all of for alliance help will further the carbon with practices the

as sustainable the continue overall, to to deliver looking of execute ways world essential the and process to And while M&A purpose food, to improve. we’re work to farmers for We and our connecting opportunities with of positioned fuel we and pipeline combining bolt-on to consumers Viterra. deliver through feed, evaluate on of always on well our

that, to we’ll turn Q&A. And with

Operator

ahead. with Thank from first Ben [Operator Instructions] Theurer Today’s you. go question comes Barclays. Please

Benjamin Theurer

the very of first strong Good morning, Greg, on John results all. congrats

Gregory Heckman

Thanks, Ben.

Benjamin Theurer

general little that you conditions. a two-sided question. that of upside. market thanks of the could to release, and the increase upside potential We higher the commentary talked in maybe Obviously, weather. about in just implying are what’s the earnings like the here? about light in clarity conditions it’s guidance the the There’s stress. geopolitical on to in the select Also you’ve potential and market into the a drive for Nino in. So coming really factors bit kind talk ask about understand But El which is it. What talked on like like on you’re depending I And you

what this does role at to earnings kind target? $XX.XX potentially combine that you. and how boost you all Thank So is least above play of help a

Gregory Heckman

Sure.

intact. miss as here to at Look, start But evaluate the landscape least look, $XX.XX. I go be about the And, we in what’s meal continue me plus the good the demand if the forward. we if can trying think oil add Let to and I we’re here. John you and feel size also drivers anything of on

stable. little and not globally between poultry, tighter. and as competitive is like as the it’s pork going to are numbers be looks look It You wheat a

just So far demand for And fuel the solid. remain help inclusion food and in both as as should that rations. meal generally, oil

this merchandising So those are opportunities about always going within when one only the tough to the look, but upside the and happen. it, forecast. to timing in team the you within Not here where we’ve is last challenges the and of on rate, chain think that’s years value of when But heck opportunities job executing. think I a seen again quarter a what that the home and last this four it the and there bringing does

we’ll so focus that. to continue on And

still I the China, recovery. opportunity for there’s there improved think with demand the

we’re out here the play So in of then that’s on world. watching. the call in one having And in the now dislocation the we’re Argentina we’re the small to crop And to capacity half. rest from start seeing second

that’ll So So a bit upside out? that how really, a with possible little with to dislocation there. key will watch margins play crush be

seeing lastly, And talked the stronger just run oil starting then time in for U.S. demand RD better, it to little I capacity that’s think the we starting continued. And was the saw we here last all a

in run be we’ll they So how the second closely half. watching

more are in those get always now corridor And make more those the course, course, the some humanitarian That’s to Ukraine North of of out then, out weather So and important. think key crop America. I difficult We’ve again, is in closed got this there. And of it volatility to of making supplies dislocation. flags. creating

situation course, Of land. to can bring job change, rapidly. pretty will it and over that pretty, its out could do market try what the But

another continue watch. one that’s So we to

John Neppl

in Ben, fairly QX; also I’d terms into crush. were Yes, that of we add coming covered

in QX, come So margins in Brazil more we’re upside, weak right a are if And there’s open our in lot likely capacity. to of now. terms more crush, where it’s upside in pretty

eye going be to on there well. an is keep improvement obviously we’ll that so And Any as helpful.

Benjamin Theurer

just then And Okay. quick follow up. one

demand do You December, back I no itself capacity. just for you to like the a How role talked the what final EPA. the November, about market decision, mean, and came the decision renewable going change we feel to got play obviously, forward providing? major the you’re but like that’s about diesel out feedstock the how final for from go

John Neppl

still look look of things Yes, are thresholds, I the you, on we’ve this is when based going of when modeled kind of think crush the things to going one Ben, what’s done modest John, what’s be forward, tight. been is forward, RVO What fairly be you announced in pretty on utilization it’s based things and in the capacity would terms in very needed consider are going RD and I numbers industry, feedstock. terms to still of capacity, tight

feel business feel and and so of where a So it’s about that. in to seeing And, feel pretty about increase the good good headed. bullish. and and we volume lot about energy commitment obviously we’re we’re do space We good that still the the

Benjamin Theurer

I’ll Thanks. Perfect. it pass on.

Operator

Thank you. comes Please America. our with next And question ahead. Salvator Tiano of from today go Bank

Salvator Tiano

you thank Yes, much. very

ask about extremely processing well. the So performed firstly, I just business wanted to

that If helps it this higher more bit performance the did come little margins? Brazil trading was there? in tell you this, can about better environment a us you was expectations, Or oilseeds your from for crush

Gregory Heckman

little bit a of Yes, both.

into good of came team us out capacity during margins. getting crush the the the of the when we a you If job done quarter, some pretty had hedged look

things during on being recover. have very when had period team, then a of capacity quarter, and we And as open Argentina in crush So I what have very that we down, weaker the we the felt to the was participate. numbers patient. did a to we there for And got things good what think, job saw slowing on time did didn’t

we they out being also late very open things covered. great the hedging a as were the to quarter with patient did job So in capacity did and that have

and is there good. and The tail the origination we you the in not know did of course an great America down also and Vietnam. of footprint the hour Also there Asia in only China destination Brazil origination but feeds our We very got benefit a crushing in crush in as the soybean team and job. end in that Europe harvest South our in

the the not origination executed and and course big the And and managing export got as logistics that the a and in that our demand very the bean benefit we it’s got then on the team well. harvest job the corn handle Brazil corn had we of to the of as the on did that value up only good very we side handling were about footprint to exports there. as harvest demand pretty in right on from be a crushing storage bean in is but domestic chain well well and set things corn thought we the So as talked into then back going stressed

So it’s good opportunities. the execution just real across

Salvator Tiano

Speciality Perfect. good, North little look was how Thank demand? you does markets market, a versus about bit think a let when ask you. your And I know Oils the little years ago I demand you also wanted America to food few end business feel a you we especially bit how about end versus do can can the today Refining us just fuel

Gregory Heckman

going we're a specialty still even Sure. though is the into Look, great the to oil Over do fats fuel the the And XX% and continues customers. the that channels there the challenges of from RSO to job oils, think and growing very supply pandemic oils saw specialty what our for I and customers there. benefiting were serving back of our team and is chain on food we the our us. important we

the growth we've around value seeing fuel customers, in so with supply continue these them chains and to of demand. And with help grown innovate we're some key as switch we and the those

and the refinery food different down customers on I in that’s think we customers those bring that in food continuing have great excited that. a our great addition serve Fuji our tropical folded a we approved, into job we them been Louisiana about to and network America been you customers North new to so teams remember bought done here and we’ve oils those that and kind of all providing get seed as our of getting from

or volume the in the environment we’ve switching, there. continues in not We’ve And us food consumer seen little the foods demand the of channel just total that’s a service of the right, packaged but switch little the overall QR has bit strong. switching for overall in into we’ve but private seen necessarily And from more oil [Ph] seen America into but negative be from brands some overall on remained label. demand is side a maybe switching QSR, North foods bit packaged doing some the to

Salvator Tiano

versus may fuels, I compare you oil as refined quarters positive selling little sold how the diesel versus ask we if there that for crude oil bit is sell the oil go what’s shift a volume general that volumes And a just clarity refined also Perfect. fuel as that towards on renewable more volumes about to do your are crude and as and the in renewable in more do you’ll think into oil.

Gregory Heckman

come I right the I the there built much as think know beginning. hasn’t as in pre-treatment up industry’s been

mix any changes seen crude. haven’t refined we in So versus of big the

but you any that crude we’re in think going coming I may crude increased. move our we’ve all grow down, mean maybe mean see don’t we some growth. refined I but demand really that’s switch for demand see comes of oil amount and years looking XX about to back switch the the But move big go to don’t talked from doesn’t here as that that forward will of the beyond in book. the in I and I refined think think XX. in pre-treatment see out see overall expect

Salvator Tiano

you very much. Thank

Operator

today Thank Bienvenu you. go comes from with And Stephens. Please question Ben our ahead.

Ben Bienvenu

little the year a the on little Hey half I was ask it XQ meal the as more question maybe segment. can from the unique looks the because in the curves looked at a you constructive the you just the of factors are exceptional you want versus inherently just on to quarter tease second though as of processing to half, kind business for the that’s so bit thanks what predict When and are quarter back congrats quite back-half exceptional. you uncertainty about of Spider-Man good quarter. the the look to oil as follow-up back and was kind the in morning out another to second positive, said recurring difficult broadly

Gregory Heckman

Yes, the XXXX had there. XX tons well, focus second in you where low in harvest, here half The course, here probably And the the think comes in had it’s in Brazilian think I I of the right? in quarter, really was, the that XXs. last Argentina the crop origination and of to to we million second XXXX

that crush meal in export missing And oil. that to so feel really that going Argentina, we’re of and

will plays that that key QX So of and the how be QX. balance here out the for

crush And QX to for the make in is, then the some crop of to like, margins America continuing looks America in the the, there. is to crush and that demand And bean which crop in primarily North demand beans U.S., South support being it constructive China the and the in other the to by keeps probably come seeing filled the there home the U.S. global

be those things So are, watch key as some well. to of the

Ben Bienvenu

a oriented. Okay. Fair bit term longer is enough. second little My question

your presented pretty constructive. you forecast long about talk it’s went filed those the kind deal. they, those Can guys a proxy for interesting forecast, justification there last the you that around were they to things the, period, could into you give recognizing hard the board, the of as in were week a those value assumptions long-term a curious, that the, there. little of of confidence the us to The but in criteria level of the forecast some look business statement You presumably, time forecast, context number if late presented, I’m

incremental arrived and as synergies of the above shed million XXX can beyond light there the you second the of the at well, as how were that some on then synergies you And that would to proxy, out and kind be called well. interest extent you in

John Neppl

in and Sure. to $XX $XX range strategic long can plus year in that. to our out of XX the forecast into $XX, ‘XX of there’s terms forecast, a the the, in Ben, ‘XX. rolled upside, probably terms our in ago terms the is what getting I financial take we Yes by the of the XXXX, model principally share a

off very still and outlook, like we of that that’s the same, much largely same of was basis our the So driven intact. forecast feel

so them, a obviously largely this lot a on right already And tweaked do had forward and there have bit we we didn’t recreation to track. and little but numbers to of here develop to, those

a Viterra, don’t don’t, With don’t respect they they forecast, forward to they one. they have do, do didn’t

something did as would of that felt we indication So we, pretty to next move was put we that outperform goal over forward. outperform, baseline the a and years, good for several our we together them obviously, be

disclosed purely the of about what $XX on cost. saw announcement, way that standpoint. cost-related, In commercial operational where we we, things combined that time the around million call the synergies, an and company the going In the commercial of proxy, we’re also terms none weren’t had operate and what is a made procurement includes we synergies opportunity of that standpoint was but of at from would forward so transaction standpoint, what kind we synergies, we XXX we and focused that million but we from some included had, opportunity going solely the we we, things logistics to have operating consider going to

in but forward. the our still commercial upside used that number we still, a calculation, what accretion So not in than going we we used the in modeling announcement including original side we in the and our what used bigger and see what

Ben Bienvenu

John so you Thanks I appreciate that’s Well, taking my great. much, questions. Greg,

Gregory Heckman

Ben. Thanks

Operator

from Thank question you with Gupta Please next UBS. Manav .And our comes ahead. go

Manav Gupta

month to acquiring announcement guys, ago, a in your you So Argentina, you where question relates my Chevron. businesses made partner about with some an are

feedstock. thought obviously help need process broader acquisition. They to the wants much So Chevron go us of this behind is sustainable a in bigger will understand aviation lot And question fuel. the the,

Chevron partnership now? is right where your it see you with extending do beyond So

Gregory Heckman

It you And leveraging with very well But a relationship. for, just aviation identified renewable like-minded that collectively. but long-term as diesel, our we another low love not fuel. the maybe to -- seed that CI we’re individually beginning invest example opportunity We partnership at strengths each our sustainable about we’re say, could has of as Yes. an think create of I that in only Chevron. an as feedstock that’s novel

you’ll see opportunities, America, we because market pleased look for but a as investment, needs both things we’re continue And of just by serve Argentine meet globally, in marketplace And the will shown those partner have at that to so to really the opportunities North Chevron do the us not work. There of to to and with. like to will food can innovation. fuel. continue The a number these be look just

John Neppl

say Yes. will I to very oil add of to soybean transition feedstock, with they is here more CI Chevron right diesel the We’ll I on absolutely that. top over SAF I’d much a renewable on that, that Manav, as support SAF side and would both as and necessary a providing feedstocks think today time lot low to a we’re look well. long-term doing focus. be And more do what the of

Manav Gupta

cost We the spread quick a the agree. seen a soy like very looks It rebound great follow-up in strong partnership. U.S. we My in have is

are at regions The a other but responding, pace. slower

has better U.S. faster bit So crush spread places? than help little us a understand much why so other the rebounded

Gregory Heckman

responded. I Well, the some We concerns. marketing saw how weather of think some farmer it

the crop. markets created somewhere opportunity for concerns, market of You producer saw weather on rally that and to the an their those

crop. the beans even available made in old though that So the we’re here

and And course, has in of then, there. hung oil the mill demand

growing, we’re channel demand seeing environment. demand still are hung about, energy the animal Animal the food And switching, there on demand, talked we why is and the improved numbers so side, just profitability has the then the in a bit. little food As demand good a has oil there.

Manav Gupta

Thank the you responses. detailed for

Operator

comes go Thank you. next Adam ahead. from And Samuelson our Sachs. of Please Goldman question

Adam Samuelson

Yes. prepared be about maybe What the that do being question the seems won’t you less alluded at North Brazil you robust. crush think from forward be and the Argentina is bit this -- seeing you’re strength there. in being good The curves little seeing the America? to margin demand not export Thank in holding oil healthy. margin just up back juncture crush Maybe last competition Brazil margins Manav’s and you, everyone. remarks morning, a still to on following

plus Brazil So an what’s does it seem second holding to or back guidance? to of in because in particular half important upside the source the be

Gregory Heckman

pretty has been Brazil Yes. until recently. good

the are going we’re Brazil, half. to But less there in we we’re we feel in possible. Argentina, devaluation think shortage in to overall. Look, as see an starting encouraged we’ve election up coming I feel second but the Argentina and is it here So and really from of not pressure just beans got

But So well. Brazil think being the there’ll system, as energy Argentina be lower has it Europe, out in Europe up. just will from in be we’re than for exports to pressure encouraged I an global and QX. got costs got oil more less of step We

it’s think an I So encouraging setup.

John Neppl

Yes.

there Adam, we’ll how top good down origination QX. on through go slowed we I the And be or has think of of really that, we year, in since as have it a strong and will farm that not then QX. in balance bit, transpires see the whether liquidity

some is now. plays there BXX, heavy where right certainly oil see line in But up, upside. year. soybean demand the point little the out to balance things that to But And we’ll Brazil a Greg’s how be an area earlier, of could

Adam Samuelson

be Brazil quarter. the a that And side appear corn. I in for certainly, All right. That’s on on nice second ask to the or could And very was a if just origination helpful. follow-up contributor

last some you from that can have see be and half what the We Just of origination a on a quite still be is in should of that, clear year? pressures, and didn’t crop a second absolute half logistics pretty both assumed in that the contributor that year-over-year with actually year. corn large the healthy perspective second

Gregory Heckman

That, as in some corn got as Ukraine we’re markets book with final the from in the as was shift play dislocations. in definitely that we well forecast the as the that crop and of as that contribute be. U.S. the advantage QX. forecasting for as could saw on to our get there that team the as of the we’ve is our will what’s what of upside of things Brazil from it expect was we adjusted. U.S. out to for And helped what merchandising, of course, execution take second then, Yes, we although course, can that we going harvested is And and shift always see. forecast crop development the things of half, get there in around, we as size the other some And and continued be demand

Adam Samuelson

very on, pass it all That’s I’ll thanks. helpful.

Gregory Heckman

Thanks, Adam.

Operator

next comes with go our Morgan Please And you. ahead. Stanley. question Haynes from Steven Thank

Steven Haynes

Hey probably expecting taking is to capacity given the of Coast you a the see yield triple on U.S. way it to question. question on the up? the And thoughts thanks more West kind your finding in just eliminates wanted soymeal that on to years where I on end of Coast mill of any for some some excess coming its kind plans it’s Or ask JV kind targeting and soy where that from But generally you with production my destinations. China? are overseas. specifically, West

Gregory Heckman

It’s a produce. the things Asian our to about meal as got general. merchandising. have meal a one our granularity customers. the more and in buy demand actually to lot Yes. we than in definitely reminder, distribution serve our the market market team, And in from of we’ve we of capillarity We and great market Today,

meal of So to we’re handling Longview excited about that add capacity. investment out

and Chevron help U.S crush with where more. customers handle we as talked a So we’ll additional which efficient, the already, the here be we’re the able our some serve JV. makes market also going also end to on expanding about will provide us be more of It where to Destrehan, in comes and those

to have we’re there swing Orleans. But New at will you -- remember Our soft. crush if right we’re there right,

meal parallel the off that and this markets. demand to those is flows the investment kind P&W into that about able in meal Asian if so again export you get a of to that West it think naturally So

Steven Haynes

you. Okay, thank

Operator

from comes next our question go JPMorgan. Thomas Thanks. ahead. Palmer Please today of And

Thomas Palmer

thanks Good the morning for question. and

about today Your quite upside positive tone I guidance. think what has call-outs a few drive with been to could

end So are $X.XX. at just maybe by EPS second think I same major But don’t there concerns by side. any on $X your beat boosted over Low in of half. the time, was guidance the the you

expectations, risks at look should are half the towards I’d least thought emerging your ask, second I So monitoring there relative we the of be we that as year? to

Gregory Heckman

been thought our things of and the of in was the think little one, might that always that managing QX. probably were; fell there into have There I QX. timing some volatility we’re from that a dislocation, bit earnings went the

maybe into the didn’t transfer XXX% that’s why year. So of that

but look, the of of and efficiently, you not two that the that in have out volume, extreme corridor to feed the market then This right? it only humanitarian effect what And demand. Ukraine world volatility, has the origins on costs supply can getting other

the possible out And the bean you’ve demand how then, on playing side. got the in what with and cycle to devaluation. situation Argentina the China just develop. still will that And the of overall election then be weather North continue got with America, corn course, a supply the You

don’t So throw I when go we’ve look how affect as ahead seen can then as as it that macroeconomic a ever said the the interest on and you at probably that and environment, and I exports if geopolitical FX you can think standpoint, effect as well from complex and rates quite well.

a pretty environment. It’s interesting dynamic

great shown team the think the the been to footprint delivering. we’ve job we’ve team of I really great from. it. whatever And few got there’s great operate definitely a And But here doing uncertainties glad challenge a that’s has in half. the running We’re that that’s what second this that global

John Neppl

And market if move crush get and into given up. quarter the I coming came in of tightens a upside think we crush margins the how bit Yes. our QX, locked probably QX into the quite with Tom, won’t maybe

where us open, is strong Brazil areas it’s the but things still curves QX and where been course, provide if of again, is we liquidity. to least improve, there. Of some been there’s the not And upside. fairly super that’s take amount going But then

Thomas Palmer

just the flow-through that. Okay. on for moving pieces. earnings a these maybe on of follow-up Thanks And

there If lower cadence year. guidance, the go just seems But your of things of of it’s quarters? about think about right, more end I if second balanced of weighted how we half to it be better, the guidance, fourth quarter. that would would kind it the that we the it between be if the think is of just favorability? like As mean two baseline

John Neppl

a towards Yes, we’re fourth little more today. weighted quarter

So QX It’s high the about what already what QX know maybe close bit XX, we and in low just XX, we QX think we forecast of and kind just to way XXs today, a the about between is how QX we weighted to put probably given it. it’s XXs, see.

Thomas Palmer

thanks a lot. Okay,

Operator

comes Please question Andrew BMO. next Thank from And today with our you. Strelzik go ahead.

Andrew Strelzik

guidance questions. or first the basis. be on at some typically decade is annual XX%, this. morning. like around year just $XX.XX XX%. good But Thanks guess of over XX% the would would Last for of was touched the year so, your And you like I half on more this you Hey last what taking earnings the or an XX% and generate

much first does sense the I would being guess, mean, at of redundant, make this that crop U.S. kind particularly understanding. absent year so be So weighted more poor half risk I of it

and You broadly a just between bit than more of shift called out little XQ XQ, timing but that. maybe

John Neppl

half can a more pop yes, a here. start, toward Yes, Look the little think in We closer first Andrew, year is bit I can of every the different. little last to year. Greg XX-XX. still we But year weighted were and I were

feel that probably really really the good about more had, between half any an is second trend of dynamics earnings half. in it half indication sort and unusual than we the first an think half, we I are the of of second uncertainty first it’s

That’s looking Greg the parts crops just in as how forward curves firm to of weaker hoping today. some that out, things playing alluded kind think we’re uncertainty, at, world up. geopolitical look just of the I

in impacted bit than wouldn’t Europe see. to market probably strong that half the But caused sort that little first in point think just of given forward we’ll point origination the in Greg’s we I we to Brazil our how global shift I crush don’t point, and other more in and China. But to can a I results that earn to us know any pulled the or

upside, hope keep things. I think that have we and to we’ll watching some

Andrew Strelzik

thank then Okay. other That’s And my helpful, question. you.

at looking you’d referenced to bolt-on capital expected on still been You M&A you’ve that in really come XXXX. of and a lot spending obviously, growth

is opportunities now? better How number look? how So those operating one, maybe market I a with right guess, the M&A do environment,

realize change still you capital XXXX strong you projects? timeline Are it given environment, does of to it really would the which thinking is Does Thanks. And that? kind number them the pull two that to the start those timeline for forward? returns on

John Neppl

going pretty I’ll say I much growth But Yes. but would can It good multiyear here. to pipeline, about timing. our and I still very hop our we say would realize be projects, CapEx start in then of to Greg capital is in those on XXXX, track capital, as builds, -- them still terms our are is we start XXXX a those. big lot of feel

still our assumptions about we feel good projects and those our of have in the very view challenging constantly what and We’re pipeline.

are how In terms is M&A ready and for one about obviously, together. priority organizations integration side, Viterra of the our the run to side going thinking number on the Viterra, getting planning

We’re number doing ready for our side, preplanning getting priority. on some our one That’s that.

same and said finding changed to smaller M&A the a bolt-on that. be But that before, Viterra view of CapEx bolt-on our things. at time, hasn’t still smaller the of as to on pipeline pipeline the good going we’re M&A. And growth is additive we

pretty continue actionable. So be busy well. certainly, we things active But on, a of on not as we be continue maybe There’s them to front going lot that to of all there.

Gregory Heckman

Yes.

John it. think I much pretty covered

you asked Just environment. from an the one thing

a for is -- complexity the as definitely We’re highest spoken as anyone got has long environment definitely that well the time. for than rate interest to you’ve everyone, seen we’ve

that opportunities to look and M&A And bolt-on so is things at. creating on the some

Viterra anything way the John of that. in priority, our is absolutely number and as But said, get one let we won’t

Andrew Strelzik

very you Thank Great. much.

Gregory Heckman

Thanks Andrew.

Operator

next Research. ahead. our with today go comes question Thank Margolin you. Please Wolfe from And Sam

Sam Margolin

in be uncertainty say, because Hi, it maybe supply on that’s Got of to U.S. demand accruing where as and little to crush, effect the and this bit phrase of I’ll way. crop a referred But a the a you’ve you call the follow-up some different oil the number is. seems in everybody. of on uncertainty a U.S. soybean times to

that enough I that whereas a seems light crop have that nothing seen so you here? Do normally, input. before maybe know way? you or you’ve you because uncertainty? might to soybean like would is compress is this or there expect to Or something don’t be crop is see it something low it shift to a don’t with flag paradigm crush Or And -- see it crops the

Gregory Heckman

Yes.

been that’s seeing from now, demand the in share and higher to oil historically, with been of renewable specifically, meal for long America think kind of -- I that the driver right, has a diesel laggard And and Meal additional a demand think kind carry biofuels switch we’re in to we stay. but oil and and the North general, there energy there now time. this has is

will comes South home, as will beans its crop more and probably the from for probably work U.S. But stay demand beans market to American the the going fed help meal the on. will do global more oil. we’re already And where that market, and the the it and crush be seeing, the that is balance demand at that of

Sam Margolin

follow-up. a Okay. That’s helpful. And just then

You manage crush well. the volatility in really

of $X.XX -- year you Is talked is, more the little and competitive would and and You you don’t limited a the by exposure it’s or play locked pretty end open. forward smash your high how $X.XX liquidity But for a sort you’re is the had kind of to back upside? maybe but the you a say, you like in it about strong. curve degree reasons, you the of in this give say, level is for away us to want of hedge crush would only

Gregory Heckman

But earnings well I’m the our Look, of And the on but Yes. the liquidity and those those risk being in than them assets. further we’re information, constantly really we’ll in there, you’re evaluating public out. the milling hedge our there, margins proprietary right information assets. S&Ds. the And the margins at as are are right, more is there proud only team only the this, close not thoughtful, is export very but that’s as when And crushing, when out. at there not looking and

stay It our managing lenses. And team focused. is our on power, also always on I depends those and earnings environment we we that risk, through the in. like on push very operating focused two feel to we’re everything depends the And continue and it

So real the team of assets. on the absolutely proud in risk managing staying focused these

John Neppl

general Sam, talk it’s I’d about terms. coverage we by obviously, add that just geography. But the in

we the opportunity. is see So by value chain how

vary can chains. value it between So

forward destination crush China. see can curve. depending or Europe versus in how on America South the versus we Coverage see we vary forward how U.S. or going the market the So

but discipline opportunities the I of all they’re shown a generally organization Greg’s -- all, practice has sometimes a the done think successful. very when the I But think been job Liquidity speaking, point, we’ve So team that there. be be in has taking the to in -- great constraint. we can to

Sam Margolin

Understood. Thank you.

Operator

ahead. our comes Moskow from you. CD go Please Colin. Robert Thank next And question with

Robert Moskow

just follow-ups. couple a Maybe there. Hi, of

I to demand what You mentioned in packaged see in any still outlook in then follow-up. food the just you want do more demand restaurant kind or air. currently, on know, China quick the a in have up demand livestock, and of versus color is China you

Gregory Heckman

is and our being numbers support animal margin customers have we’re hold talked accordion. and continued like agile. the think compression of an spot. up have over to down. up some despite one that that very the The They’re set kind of are there business, team way team Yes, being the there. But about there And been the margins up I very

been lock some standpoint, growth. they be we’ve And when continues additional we to From margins those to so able there. demand a there think are

the we’re ground places there is kind although is traffic sees and domestic seeing we’re still business we domestic really the as lacking that the more kind up. our the or demand our of what anecdotal, think is serve are that tourists the of down, I are traffic What back. on travellers team

where So come from. the upside to that’s would have

Robert Moskow

costs? little balance Got if your a debt procurement you how competitive I’ve is if how the talk was heard Are about impacted this about wondering helped And you’ve more also, sheets even I does it’s it how willing Brazil, your does them their impact used recently, know second in rising don’t by sellers? in make growers? I it it quarter. bit And in practices advantage. in maybe a sheet talk but imagine it. real And higher you And could a balance environment, you I rate interest would

Gregory Heckman

bit. maybe maybe talk competitive in right. is us. for the I’ll a Yes. macro, think a little to you’re exactly I advantage will and drill It But -- it John

that the customers well relationship as we have customers, We origination consuming are as our a nonbank our with lender, right?

Their move. don’t facilities

we long-term relationships, are don’t move. be These and facilities successful. want Our to help them

finance the market, banks is thing alternatives some people. commodity of in look other financing and from on happened credit years and the with for off that tighter competitive commodity rates a if the of backed standpoint, then at many the aren’t have The last higher interest things you some there have few with as the

of So or if we our partners do even whether farmer with as with that it’s our one role play our our users. some resellers, services, end investments minority origination of with the long-term it’s

this ROIC this do operate It blood team important on a and working John very it’s industrial bit in working great is, and constantly the that focused sheet, capital. we’ve balance get of like because the team liquidity the business, to business, a we focus is our they ensuring the The different of electricity. in that return So a and sure capital an is job making and business. And it’s why on that on veins got it’s an thing. protecting do and that’s than

John Neppl

ultimately helped to I profile industry, on going Yes. interest over standpoint from that just is we’ve of market the be rates. add, last an strengthened as and the credit the would because us structure couple average our the it’s Rob, industry years, advantage

as borrow spread well extent talked it. being fund Greg financing appropriate than can in does we of others, and terms money to the on the of the an that the to And with and advantage that cheaper it somewhat to able give RMI producers us should about the provide

acquisition, feel that’s very we’ve us. -- ultimately, Viterra through like the been as we credit for that’s obviously, And also -- positive viewed

we we that borrow maintain to have that advantage market that liquidity and that money cheaper extend in need. the should again, So

Robert Moskow

And it sell like themselves, the willingness that? this influenced at to not has Or their farmers is all?

John Neppl

there? in it. the add you of tighten is that ultimately relationship done And it’s cost the economic what I Greg, they’re know important with certainly But to is animals, have want our Well, else farmers. to to structure, I anything we’ll do market the and don’t them. think for cost us carry carry certainly,

Gregory Heckman

out Vietnam. and were we’re we’re right, not destination Asian that Europe in-country China No, only markets originating our always but serving demand, markets, Yes. our and those markets for of where in Brazil

seen marketing risk. there on when when want to and there, XX, we have farmers like they ability to yet, our and their market much liquidity we haven’t capacity hedge even the they the So be to but to when provide they’re go want to that

on to growth. risk want the help our profitability our stay accomplish not their in customer, and successful, in and this but their only we So consumers, farmer goals their helping be environment focused customers, manage them

Robert Moskow

Thank great. That’s you.

Gregory Heckman

Thank you.

Operator

comes today at our question MKM. Please ahead. And next Thank Brian from Roth Wright you. go

Brian Wright

approval update Can you term pathways process? regulatory provide maybe some morning. this an your good And and Viterra the process? for color on milestones Thanks on

Gregory Heckman

we’re on. early yes, So

just are think proxy, filings. we and the I we we about talked regulatory doing filed the

the process. and to we bases So early are complementary. asset very on continue the engage, in But highly

forward we look So engaging the to facts. on

Brian Wright

you. Thank

Operator

concludes this gentlemen, session. turn remarks. Greg back the to closing like Heckman for our and ladies And you. question-and-answer over Thank any to conference I’d

Gregory Heckman

everyone, Thank for Bunge. your interest you, in

stage on, We’re time. a the really next and to forward the the look excited with you of about where week. we at in we’re Have that company growth path speaking of great we’re and

Operator

today’s This We you sir. you, for conference call. thank attending all concludes presentation. Thank today’s

have a wonderful You and may your disconnect now day. lines,

Bunge Limited (BG) 2 Aug 232023 Q2 Earnings call transcript