BG - Earnings call 3 2023

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Operator

Good day, and welcome to the Bunge Limited Third Quarter 2023 Earnings Release and Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ruth Ann Wisener. Please go ahead.

Ruth Wisener

Thank you, operator, and thank you for joining us this morning for our third 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 financial to of on current forward-looking to and statements presentation posted as performance Slide the Reconciliations and website future with measures most comparable respect you measures our direct GAAP to like Bunge's includes remind conditions. that view directly to well. I'd X reflect are financial you events, industry today's non-GAAP that These are statements subject forward-looking and to uncertainties. various risks factors. file additional the cause Bunge in materially this to has provided information to these we results concerning its from could reports that and on contained in you presentation with factors those differ SEC encourage actual review

morning Heckman, to over Officer; call Financial Greg Chief Neppl, the Chief John I'll Bunge's now the On Officer. and this turn Executive Greg. call are

Gregory Heckman

you, Thank the everyone. want dynamic environment. by thanking to and by results this outstanding highly performing start delivering of morning, Ruth Ann, quarter in well exceptionally for I team good another

in the focused make remains progress of our adapting the on team and integration footprint conditions on changing with utilizing farmers day-to-day time, to business, market global both and meet customers, Viterra. same to the planning executing our team to needs continued effectively our consumers. At Our our good

the for the and how overwhelming shareholder team, this receiving cultures During combination work significant the to it are confidence process, milestone merger. our reached teams similar a our reinforcing in October, increasing opportunity the Viterra will had approval with in the and create. We our value

close the appropriate regulatory the and transaction to to engage expect continue with We in mid-XXXX. agencies

separate forward a bringing continue and together our to we're we create company. will close, until to companies While to operate solutions teams assets as Agribusiness premier X we looking

strong driven Turning operating to refined oils specialty processing. third We by and and results, delivered quarter. the

sugar our strong saw also in more detail. cover performance results financial will in business noncore John We our

of of million approximately outlined progress the transaction. making quarter Bunge reported plan Viterra meaningful results, we announcement $XXX since we against second addition, the the common In we repurchased repurchase shares, following

Looking we at market year depending how expect the we what $XX.XX XXXX we conditions upside. on of potential continue thoughts. over EPS the John? the market we'll to our the today, call forward results to in now and the and hand ahead curves remainder of on adjusted some and least to John full with based and the year detail, then outlook walk more for evolve, now in see financial I'll to close through and see additional

John Neppl

everyone. morning, good and Greg, Thanks,

the turn Slide earnings highlights X. Let's to on

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

results American expense results by value to value corn primarily chain. crop America North in higher specialty to captive lower Better performance Asia merchandising, quarter results Asia, higher soft India in in in ethanol wheat in results global in largely results our were chain, lower our also last in which than versus driven in Viterra. Adjusted oils from Agribusiness venture a North benefited more by and and Higher Results large slightly were to primarily in higher. or were soy Adjusted the driven offset lower in mark-to-market primarily Brazilian with per favorable combination processing, costs quarter $XX Europe improved the in Our U.S. average by acquisition joint year higher last third South by and crush. In were $XXX year. seeds year. was were were more results to reported growth agreement were results the primarily offset of EBIT, than Net million The performance. due merchandising. In our our impact margins earnings mix. more in reflecting our South channel last results as Higher million as line improved Europe offset $X.XX America per was improved share, results business results financial announced to quarter driven and the prior origination, wheat and Brazil operations, Ventures accruals. Lower integration offset lower the in safrinha taxes, by noncore down in by $XXX the million results were core segment were interest higher a versus $XXX drought compared results other of of performance-related related were in before lower year refining in Milling, of was due also include adjusted with interest million led rates. $X.XX our primarily year, as business higher soy a processing compared sugar global initiatives Argentina. variable in the and prices. in performance and was share to $X.XX contributed combination higher primarily increase and related compensation our higher in insurance expenses negative corporate difference America. by associated lower. In negative to timing impacted program. reflected Results the than with services as well results offset Bunge corn more bioenergy sugar interest prices, investments Results costs which $X.XX of in in last EPS by were

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

cash the of flow discretionary we of generated and growth includes with EBIT X trailing flow. In details team's we environmental we from continued $XXX time the total significantly bringing of repurchased reflecting our August. nearly which our retained $XXX to Of months, million us leaves and on repurchased maintenance, a approximately this Bunge Let's authorization. productivity billion over approximately amount in year variety years, XX safety, $X.X the of health sustaining turn also of $XXX an $XXX we this excellent to delivering performance our $X.X while and common amount, we shares to on dividends, October, of This year-to-date. in related leaving Slide early cash adjusted of Bunge million million the you QX $XXX is available. $XXX shares, funds million $XXX CapEx, initiatives. Slide repurchases along million million of in additional capital growth $X up our allocation operations from invested since see X, $XXX existing past X trends paid that million in After billion where productivity adjusted billion EPS had and can million reported earnings with billion allocating remaining CapEx, $X.X last which

Viterra We complete to transaction, expect of the of completed of with close prior the be XX authorization to remainder that date. months half about the within to the

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

turn $X.X to credit and ratio, XX. our X.Xx the adjusted available, Slide all our liquidity debt providing ample quarter. Slide leverage EBITDA liquidity manage end, end our facilities At to reflects adjusted of net at was adjusted needs. Please position. was to quarter of Our which unused third ongoing committed billion capital X our us the highlights

cost trailing well average capital was of above XX.X%, weighted ROIC above of of XX X.X%. capital months, of cost also adjusted the was well our weighted XX%, our For ROIC average X%. RMI adjusted

Slide to XX. Moving

we the on flow $X.X outlook. turn For cash billion flow XXXX trailing XX to Please and XX of cash of discretionary produced our months, a XX.X%. approximately yield Slide

offset full evolve account taking results remarks, Greg outlook depending year-to-date year. In conditions in forecasted how up forward mentioned to XXXX on $XX.XX results year year prior and potential down expected to expected environment and margin as are in and to into least are outlook our Refined balance increased year. performance. In in be year year higher our the down results to year, with specialty his full our we've merchandising. and year. last be Bioenergy record full and at line are outlook and market Agribusiness, are up As year be venture line in In results Sugar prior are with up from the from processing in by EPS year current expected lower than results over from the in be noncore, adjusted and and in full to strong oils, upside a curves, the results our prior from Milling, with joint In forecast last Other are results outlook largely year. last last be full expected from our higher our outlook year's In significantly prior to results prior prior of Corporate

which in in expects is of depreciation tax $XXX Additionally, range the billion $XXX our I'll of billion to and the $XXX million. Capital is falling of prior the over million $XXX $XX million, closing effective $XXX XXXX, expense the which from $X annual to back company XX%, range an net from up turn to in prior adjusted Greg that, $X.X million outlook. amortization to With some our for million, million rate of for things comments. outlook approximately expenditures XX% range of and down to a interest

Gregory Heckman

John. Thanks,

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

industries. Global of So will remain to meet the looking in to essential food that solutions for to need world the to and our grow fundamental and to supply longer demand business population continue drivers sustainable term, fuel the means place. feed, and look the at Bunge the to products services continues

with and regardless connectivity in provide a both serve crops, and strategic us creating This combination us across with assets, will environment. more diversification will we're greater farmers allow with and Viterra to help market enhanced growth and platform optionality capabilities Our needs even customers, long-term our better chains. value consumers of accelerate the with geographies of us across efficiencies,

we're of sustainability-oriented regenerative investing products. In concentrate including Morristown, customers customers our Brazil. the acquisitions, and and Indiana, an and on in capabilities our from with CJ India. To facility integrated continuing our crops, relationships multiple a begin value countries, agricultural deepening soy digital well to global with protein progressing our innovative chain, acquire demand both footprint regenerative continue growth Selecta, in highly in Brazil, meet and multi-oil manufacturer helping chains on leading our agreement exporter and sustainability also other to reached agricultural practices. soy concentrate at and executing bolt-on in new progress our we projects CI Construction enhancing in strengthening we're customers the important serving to and ready and addition, to customers In sustainable, with initiatives, is we're nearly efficient low for our targeted protein programs help plant expand to ends build greenfield supply on multiple of

fuel know tomorrow, company, deforestation of there's traceability still of collaboration free leading energy, Asian world's of to food as also security a the be we solutions Bunge pressing Bunge deliver to continue and proud world. I and to continue connecting instance, by we're to partners we turn For do consumers issues. develop and Bunge innovation from the farmers will mission for to Food, key deliver collaboration, soy commitment And find and announce with feed to to positioning We're the of critical as on to much solution a making, to Q&A. black team with together food, and the that, work feed impressed CP the to food a progress the essential chain but Brazil. most our we'll

Operator

first The comes with Strelzik BMO. Instructions] question from [Operator Andrew

Andrew Strelzik

more was alluded my some thinking for than opportunities you quarter of year. So last really that talked believe there's some about to upside them, in the you one, the I when XQ. in I was even was guess more And XQ first the upside there of

opportunities about months dislocations, X thinking those opportunities, Can at are about ago to upside or up evolved you talk all potentially potential? those where you have what how some China. merchandising you're relative the seeing You of were talked shaping

Gregory Heckman

Sure. ability team the And dynamic, QX here. saying years I'd really the give to by been just execution the the It solid confidence raise continues strong start deliver to has this really and to then by be key the the the us execution. but fantastic

lot a seen as overall, Argentina as first the soybean QX. of that play a the tight go of been That's really over go that's I'm we to QX. the But to quarter visibility right ahead course, with the expected than of we on for demand -- and we QX still us lock that crush the into back We crush really on kind of globally, last the seeing improving. sorry, margins allowed and through not situation develop we've and as quarter of the develop really year. improve of and recently of on side. the back do expect got We're, QX same So first to out in less about crop to that we're half to end

call the rest provide crush for to so the to in of on that. And and step globe have we did

see from has, also and crush reformulation continue driven fuel. imports. in opportunities, as And but volatile, North America, We while oil gross it actually as pulling demand that only both strong, been to that's volatile, well strong food have and not but and has seen course, been pulling we've oil the of for been very margin

that's -- kind of here continue be think going the that drivers see I So to those to in are QX. we'll

Andrew Strelzik

Okay. I'm about super consistently the of curve. certainly curious crop. there's you stronger a you how of oils maybe conversation durable we what's guess have as market anticipated. Great. another U.S. then in I been going guidance. follow-up asking given that, Brazil's and out crush That's than for has about the to lot And a as helpful. think year kind margins just not to Refined think big next from to this year, But what's I'm Certainly, and not.

are about similar what how could So be different versus thinking in or -- 'XX? you 'XX

Gregory Heckman

You bet.

weather what look think look an America another favorable not like the El up until they're That's similar while crop. planning the for the will patterns starting. really with I Nino. be is South South at how we get American And setting is

on in meal as crop well we what again, So America, data this soybeans China, on see had can if make but That globally get But even see oil. and exports and think If see twice be I crop that see need a on then think back but XX above and about record we in as crop. crop, we weather year. to We another U.S. saw that the levels, Brazil for to soy Argentina a it's could good crops. you a strong production the Brazil. would happen to in see record starts very exports South we competitive do that

get but So that not or that will be to going remember, April the we're we watch, later. one until

this will continue through So tightness QX.

to we on as to that probably soybean so second we'll stock. be China when see kind weather of And see prices look we we've But get where they'll and savvy the plays on visibility, half, in here able half. to it imports depend China, flat up. at really ultimately is be be out reload buyer very others and first imports the a the And more lock seen and then corn we'll can how in

surprises there upside be any the and could also think on on volume I supportive So to be the merch side.

Operator

Bienvenu Ben Stephens Inc. from is question with Next

Ben Bienvenu

I want to ask about the buyback.

than and $XXX about good buyback? Is to you within XX closing. of forward? close. you quarter billion kind kind made more like are kind quarter, of end of of getting the to looks months how that You your When already, Viterra goal since the flow million time in it of $X balancing progress line flows it more about thinking relates the think of the cash cash pulled as And deploying

John Neppl

as think fairly now, time steady. I line of the Look, Yes. we're keeping

get the the we'll share ultimately, close, shake that with M&A we we've impact be want and already. transaction, we Selecta, projects how committed near the pipeline we've look in side as to to are that, going a balance pull to and We had underway, year. we'll CJ here we the relates XXXX, We when certainly greenfield But on try lot come not, related close well. of robust billion. similar opportunities so XXXX. go pretty to of that ratio higher got it next some target $X we we things to certain a in given will whether as as as at then to at leverage announced Viterra increases that and even big steps But CapEx do still other that a year close that up. buybacks slightly that. generation And you execute. could But have might or see of That's projects into Now the CapEx might We'll out that cash timing hitting and made CapEx the to well. remain accelerate or maybe significant draw forward obviously,

Ben Bienvenu

next Okay. Great. And Greg, Andrew's around revisit question year. just to then,

half Could the we through You in or the then drivers the expect that as out the a XQ as just paying strengthen comment positives and Could negatives that year about to you quarter. potential year. crush we kind move the thinking or to first made about mentioned that attention of the at you of potential some And firm stack are just to into so mindful some next see you there? you curves of the of the you of them. fourth be I can guess side and talk play drivers on panning you XXXX, positives guys of of each ledger, now, upside

Gregory Heckman

first in the South half, expect American the and say we the we then I'd tightness size Sure. that the about talked crop. of

Of course, helped balanced and and And saw our remember our year that being deliver we is is while kind of has footprint for footprint. South Brazil. us global complete most globally what especially pretty America good this

crop export some crush our record actually export North America -- on bean was more which beans good well franchise the made bigger America. exports, America South as more for U.S., at franchise in system. as system our our competitive the is which there in home North It So kept crushing our than versus

So franchise. crush was again, that our positive for

crop America, year. would a next there And if you bigger South then will see year which contributor this So Brazil. drag Argentina, same has in that been have record in another benefit a be

weather. where are the watching those we're So

that with right, think the things I create in I are the or mean things uncertainty conflicts 'XX and the think going on, the geopolitically, visibility you policies, that oil confidence absolute in could half, about are those got will focused when the staying execute flows. in second control. that say I I've we that to can is in the by dislocations the crops What create our team the things on less and

got around seen develop. government that SAF being biofuels developed. But up we've And can regulators definitely as be policies the thing supply ramp one policies markets that's -- want appears the demand. there, the think Of you've we the show to we'll to and it we've course, even believe adjusted I that and eventually RD that got these we

out, export those on So seen we've beans but that watch kind in touched right? demand firmly serving corn, benefited it's exactly river demand China tough in to always very It when right. exports to for the which just I seeing the ties on again predict, it's serving supply be year, a corn. And that and merch third-party sort We've another this And of right markets piece, and the levels then the and South themselves but make place. And weather, then up and is And we're it to some processing. around to be the important and then that the as then freight river the good volatility our this and it and thing wheat -- competitive U.S. crushing in overall it industry customer didn't for in Nino. got hurt as is was then lastly, channel opportunities. customers low on our not crushing, There'll with merchandising our levels, and does new to El in dry America. U.S. should now. We're but the what

but there. dislocation, gets the second of upside this a little confidence clear lot A it execute, So less team in to definitely the be can half. there in

Ben Bienvenu

Congratulations Fair Thank. on quarter. Great. enough. Okay. the

Gregory Heckman

Thank much. you so

Operator

with comes Manav next from Gupta question The UBS.

Manav Gupta

you're present deal. the period still have even had they is of with shareholders speak become the to long-time -- to the a they proposition Viterra wanted once hold shareholders understand negotiating bigger ask where and you to stock you Bunge chance I through over. could But so the way on can a your I lock-in

Gregory Heckman

Yes.

Let me John. start,

is that the in got You Viterra we and in can that about shareholders CPP they've business Look, of things the and really great BCI. finish. what's I excited Glencore X funds think the in deal really Canadian this know great one pension were

So equity. they wanted

to buy ultimately them term more we on in wanted essential believe they because the equity the the plays they industry, the that combination. the gave power They want they industry equity investment. than want role on the and be for to more important fact, ability In add in they to able long of and to the believe

agreement. They seats So they'll X going so are out seats our is will shareholders. each, XX to board that all X board have of laid in our have new be the from

only together, excited So we're this bring Board we're bases bring But those and to able new together really knowledge in help transaction. experience not the to to excited and be the members we to get in business. close able to drive once that this asset are and teams that

of just the about all aspects really excited So combination.

Manav Gupta

the up B, be are producers PTU Perfect. these oil. tallow units They you question of understand hard-to-process for here as more PTUs, see to very the My asking reason I the feedstocks. oil that are is, other and versus A, PTUs for they're demand quick it. mark, struggling. of what a little may new through soybean to is, be I'm some the some unrefined refined And some soybean follow-up not from And what would with running have wanted not a of this the is up better we coming unrefined the heard

that understand the soybean to some demand there side? PTUs, that with refined possibility the a is growth see trying just continue oil So even to on we

John Neppl

Yes. is John. This

but I pretreatment I -- soybean has about And refined, is think production would think producer have run there but we away on, producers the necessarily expected. been anticipated over may existing RD haven't units new the transitioned. comes right more as capability, slower that it's really -- long now it RD oil it new the crude from to that than have ultimately shift

today can as growth and But a new as to we've either place whether also, we'll have there's refined soybean we said expect that we even on and for we solution be supply feedstocks low around as as the And things comes we similar our well, way, some be oil. the production pretreatment. heard to have steady we customers fairly has think so chain it's while, they be we we've certainly, believe continue the energy great we with in on everything a a CI demand provide So work for need. if -- and refined or that, crude before, can

Gregory Heckman

And Yes. one I'd thing. just add

will our that, around right, value between it margin, chain. that You move said

and And units see may other that that refined some move dialed then of time the that for the get with some You hear you of hit they the does part refined from as up an of also running some crush it catalyst folks from of And is into in. the would are what on part I for take some oil. oil crude oils a just difficult, we dilution. important yes, say handle that these using demand back the to get more these

So term we in long play feedstocks. as bring role a they other even

Operator

The with Ben question Barclays. from next Theurer is

Benjamin Theurer

Greg, John, congrats on the results.

John Neppl

Thank you, Ben.

Benjamin Theurer

that you following care i.e., that for quickly Brazil, detail that assumptions much can how there CJ number? pay like provide, allocation so any Is just Selecta. we next announced year? you're can more up of within in I going you disclose for factor in our So you capital on acquisition that that to kind

John Neppl

$XXX Yes, Ben. it's about million,

Benjamin Theurer

Perfect. Okay.

putting obviously, light thanks into it that clarification for of So a CapEx from context and that, in perspective. and

million get that billion add said billion, year, you a next us $XXX to $X to maybe $X close $X.X more So of to the buyback. we gets on maybe little a billion, bit bit

the dividend about year? you're might assume that Just on the your dividend we and CapEx forward? How for have generation should the that. think which flow CJ buybacks. to to going that going be in cash the past, the not about acquisition plus given think tried cash growth you've increase policy, next outlay plus we Selecta if to the side Fair So

John Neppl

say ready yet. Well, that we're I don't think to

we we us that toward are going our return look with take outlook, we part mentioned the of we look. think share we the when close and transaction, assess the gives May. hard our generally our with get that to $XXX adjust committed that goal We to by of shareholders. forward, on and had our dividend time QX, the have done but we'll buyback. And we as that then timing as important to everything an that get I we some review other time is And million in a historically, to

the do early a for capital thing too good this have lot a look. of probably we'll take certainly year. We'll tell, allocation. It's same to but So we opportunities

got problem lot a it's of ahead us. opportunities great a So of we've because good to have

again, well. but early, We are that's committed important as to but dividend to -- we So our know shareholders. our

Benjamin Theurer

impact and specific? little industry help a Okay. you be potential what mentioned And us bit a the hopefully obviously, with But Bunge in on extremes, supply, Can of upcoming could et whole then maybe Perfect. last between times surprise X risk the with political it also couple you've expectation there's weekend. for getting lingering in of Argentina, the well, of, over cetera. the outcome better like the in elections the understand a the the for as and

Gregory Heckman

saying political not probably I'm start procrastinator. I'd great Yes. a by

make in say, long forecast time. So we've been I will will Argentina a a very -- I

very It's takes election. It a different and their important goals. the there. light them to worked partner November lot to of of I the while not and following doesn't a happen And regardless with a charge with be closely government to overnight. be accomplish think industry. in who's It a so government. We've have worked we we'll we effectuate help switch. regimes Agriculture And a want is change the to good

Benjamin Theurer

guess, I much can now. for that's Congrats. say Okay. as you

Gregory Heckman

Thank you.

Operator

Goldman next from with The Adam Sachs. Samuelson question you. comes Thank

Adam Samuelson

kind juncture. South seem this at I and this business recent of as of look you America the consistent the peak, operating its raised to outlook mean, the business couple performance imply been a more Brazil. a And back to specialty going oils. Maybe we again. particularly at the in source at pretty It's refining years of performance for doesn't upside

hold in I and medium to that kind would understand from how pretreatment earnings the crush more you are I'm or the premium on over business time kind you -- of refining And how of unit. U.S. updating some specialty back the oils, term of what further the so a contribution just to outlook view Or about refined -- you think the constructive medium-term the trying and works. But this go depending medium-term profit as potential expectations of taking from maybe here? might in

Gregory Heckman

Yes. One a supply management, thing, and the of through years innovation. few with with on last done customers working business, the everything, segmentation, working to improve I And a lot the switching value I customers work everyone great we're our really on risk well industries or the we global we're should went that's probably chain chains how a customer integrated clarify our as how of, mean, as and have and with on we're with lot the of problems how oils. that remind

tropical this in refinery food right Avondale we over and that food, still though us seeing to import industry the serve as into there's goes some of to Louisiana that's feed to additional to we're year But reformulation. remember, America. is and the added fuel very North and even going allowing oils and network, We Now there. strong seed that or here integrated food XX% that XX% in our customers

brands, in both well. there's for executing the very overall, customers. as famous energy a brands as you underlying service well the strong demand some our but are So as the And business well that's food that great is the brands CPG well that important, know that's space of the there

Adam Samuelson

a talk Okay. already believe of you That's you to back with the over of producers I just CJ Selecta acquisition. Can Soy relationship concentrate major kind is one going maybe how helpful. the also Brazil. have protein Imcopa, And about who -- in just then

of that of of the broadly, do term? does with that how growth think acquisition how you about more I And of guess relationships with that already Selecta So category one major long-term ingredient kind the you have in longer the of kind kind other market? players of fit

Gregory Heckman

Yes.

industry it's allows for a think GMO nice I right, to our on on a -- working to great it's run to add continues programs, non-GMO the supplier growth. programs fit, programs us us whether producers -- to which have is that big running the value Selecta even feed and the the aquaculture, or the with

all lower kind growth and strategically, of in do growth pet. ultimately up. with it's with aquaculture. to right, So of in as in direct seeing products And traditional South definitely is chains build supply our have we in going And but the bring meat that to seeing then traditional grow, low-cost and connection want of And continues those great meats grow soft, and America verifiable the what we a customers strong. We're position use see we a farmers them extending dairy. said, footprint North as that We're in as to because America as with CI we complementary. Morristown to for growth transparent, be been market course, then, to

and have of That term of So we other didn't we is Selecta. place one with of last a that want those regenerative Brazil is an with in farmers. adding right kind origination footprint, of and UPL, adjacency. It we'll win. practices to able course, of natural partner, a to our of to those long serve of to was then, a It's able practices some this also much have producers. our another area all just bring be our we And be to the Origio,

build it's we're and our about do really, we've really where out at footprint got what gaps continuing stay to focused. and So those good

Operator

of Tiano with comes Bank question from next Salvator The America.

Salvator Tiano

Yes.

I was firstly, Korea, $XXX I think million. so. to correctly, some about want the I to because was from clarify $XXX million you ask mentioned firstly, So I CJ acquisition. price million, or If also heard under $XXX reports wanted the it And

mentioned? the else anything difference the given profitability, the or of are a said is that's discuss And metrics, volumes relevant? that a to So some bit it substantial you what contribution being the perhaps processed that what's can price the expected seller the you acquisition, between and little

John Neppl

Yes.

Korean is of owners only Salvator JV. that announced the the thing, XX% own First

proceeds just returns they it, they accretive So on be reporting were their in how the overall, to the return, but project, expecting going about With low teens and were to on mid-teen early think to getting we're receive that respect to on day X. it will transaction.

serve operation. growing about with mean, for for do over plant, I able complementary that destination has our grow of today, be of that can of terms we that to it, what we should think in example, we as that the out also goal what time, been kind to asset. European but Greg a to I a that talked very It's market, markets In is do

And a we very so we're day pretty accretive be think good for will optimistic about it. X, -- project But us. it

Salvator Tiano

they ask that for great. things average just really non-U.S. follow are today and bit Perfect. QX? just key margins crush your wanted And a I been haven't regions little give on in you can to update were up about versus international And if where where us an

Gregory Heckman

Sure.

good volumes And in ran have has there. our year last better China, spot. very all commercial between team we We've logistics for at record industrial us. look a year margins But our a had year. If you coordination been very a volatile great a year and actually It's team China, than job. fantastic done QX, crush

And so to continue hold numbers in animal China.

it QX. Argentina. while spot, that very We be like talked of some about carry continue to into looks So it will

right Of course, X got selling now about you've there. farmer

demand And really very improve and we So Argentina continues global tough was crop. what good to new record of we've end get until crop. then in be margins to the situation. that's that Brazil, and nonevent, a back seen

to farmer pretty the crop then little there. situation been there American selling been weather America, were was has be selling kind sporadic America selling But on going crop ensure North slow. Now a old home in and to that came developed a and has that the better some South then saw new crop farmers in watching North as of we crop

long to BXX So term, BXX add Brazil, there that to we well. In and each I April from then will X% think switched be the year as key watch demand. in we'll

return, volatility seen as then been this sensitive, and look, North of we've oil and as of if some and oil where pipeline in right? lot that Argentina. feel been Sunseed the a added also supply, pretty That a that demand. Europe We've definitely world we've we've energy to coming in at not crush America, been the And of really and the there. you demand, soft starting that's we're is remained and there's seat production that's margins, seen that's Ukraine in expense well. So of good kind get And of they where you're oil demand meal really to way. I and to look look you to to it's seen has we're that start out oil the of little if in at crop expected and it then running. serve seeing what get meal Canada, seeing it good look strong be opportunities you draw canola rest continue bigger think there loosen demand, the seen corn people had or the switch that down stocks strong tight. and better We've margins, than anyone now will is if And with the But pretty up globally,

So supportive well. as that's been

Operator

The JPMorgan. next with Thomas from question Palmer comes

Thomas Palmer

Because the and weakness pretty picture, quarters I'll out so? demand? what it least pricing but seeing. know Is in or overall follow oil you do look referenced at is kind as suggest -- this And over eroding more what some you're Do of demand out did degree seeing the soybean you in see we or in couple it, think of U.S. kind terms past Maybe some have positive X supply over would imbalance. up driven? of like just we on you how you're is playing sound month on next I but seen the of pricing we're of it anything this

Gregory Heckman

Yes.

said, Food will come demand grow there. we RD be market balanced. in choppy In do hard. got as and But global things stocks that are some to see is fuel, online. projects held continue long-term It there on depending the is Crush a adjustment. running. some of online are We've oil new little running to I we crush have how will coming drivers think the fundamental As has demand. of we more to going know fairly

going from production that, tighten RINs is nearby stepped the palm the around how probably oil on softness, If then in you meal situation. still and producing and first in. get driven tighter global that to some of half And demand the look up was a in

a continue meal as the don't or move so oil battle bit think a straight to is it's going forward. we will to line And crush. a I to carry either be going of one they be to whether on

Thomas Palmer

presentation, your have smaller then to do M&A. you And on M&A side, in reference just the the scale

Just they interest sense, any make of rate seeing conditions in terms update expectations? then And you appropriately business. the Do you areas or in in might market environment? of of assets seller businesses that reflect terms what are your think

Gregory Heckman

create closed the and disciplined, Well, process. the do deal or stay conflict slowdown I'd going to And any regulatory just to really through say, we're not going look, right? we're would to that so anything Viterra get

frankly, some those So about a we have one. win. to target think continue for strengths It's to and years. the in in And that's areas our But we where a see been number to targets need be we fill that's Selecta great a why we was where growth And where otherwise, CJ example. long-term how it's quite right things.

weren't disciplined that come when at want challenging Our do those at way the and price, right we've price. and had team, at we're those to and when assets along be available patient That do deals they're updating right them right will continue right And we relationships. available our a do to chance to and those the constantly then we've price, and the deals. the stayed developing we list do

Operator

from comes Wolfe question next Research. Sam with The Margolin

Sam Margolin

to go market. to grains Viterra, I could, back in want start I the to if

You said some that opportunities there's -- you right now. mentioned

talk pretty of when opportunity I think you're structure in part the It's your contango. conversations as to time within referenced. has you whether like talk about maybe their might capital referring to wonder of material between merger significantly operations Viterra's close. that like a deal if it dynamic are corn. closes can seems generate this And the lot structure the of an them And of to about you be I and with at Viterra market and now cash the you

Gregory Heckman

get until deal closed. Yes. we have to Yes. the separately can Unfortunately, operate still we

about together, in did origination about, So about then talk And of as you you've get to called opportunity system, get it's being diversification think And we're that storage, is we I with storage part we the most the that exactly contango is right, when processing carrier competitors. are for continue combination the our comes part to out that's when of be with there's think and and we of one great in we in all excited combination. business that the and a offset. distribution strengths diversification their these being But run assets different places. we'll things right, that into our future, is definitely their get storage when and combination handling that the good a the

yes, be for their the crops in good should big system outside So here. definitely looking

Sam Margolin

Okay.

bit a of This more a little tough was be one Sorry, that straightforward. one. might

and the how I of as might that and operating higher a then can even to now and front volatility. of lot when recently, You really outlook you structure lower mean it of influencing could really curve. maybe of for you board and than here has crush might attention out earlier comments? there's a like seems and your Sometimes talk high But be pretty stable, on a And of now. month is been, around about some it the right? opposed environment that kind crush kind volatile, your mean then it sort be in better actually for it's a I always crush market crush sense it's board is probably just is backwardation. and investor the curve crush anxiety deep

Gregory Heckman

the probably there, think quarter with there's always second in out, the to and of much, as in first liquidity first but and is that X quarter not the these about. some One, days, kind of visibility is Sam, then and the the crush in markets. most ag markets things the XX historical curve, the that's liquidity

that That's So a and little such out. better yes, when signals, farther market there's environment. is liquidity the getting more more more we're operating a visibility

think in getting global maximize we execute And be the until crush after even QX, the and is in ultimate receive crush our doing what the value drivers and ship what the continue out right will think the when that the money Board, that's upside upgrade being why Now to up cash how there a of calculation, execution, has fantastic the board out say job. the what It's up each we cash stakeholders. And in our oil crush I is. you've If ends been how ultimately, opportunity ship there's of realized course, I it's team to the and around what execute and locked legs meal or of for footprint. to ourselves the the and seen the opened we is I of legs we ultimately but those -- the still in, the crush would that we hedged the ultimately get market. on quality cash teams part hedged margins the as cash to have line it dislocation also all the some bring beans bottom of other on we changes our see the are and see in execution it will be improve in we the as open is

Operator

question next The Haynes comes from Steven Morgan Stanley. with

Steven Haynes

of into adjustments, maybe policy equation DX RINs Can some part some of second like than expect? why seems policy. you in when Wanted out. of is And you compression I kind a of RINs. of the weakness a you the compressing rather also on the balance provide could right that you about of soybean back of rough do of it think take maybe what oil some kind help kind talked come RD just And just and now, margins? mean to time back this soy weakness kind you have flowing the the of maybe for the in if oil the line yes, And thoughts possibility like to then the you just some market for could shape? which some

John Neppl

think low related of then do and some to RINs with John. certainly, the U.S. it. you that's imported carrying relatively the to Look, that has into out being with came that This biodiesel DX RVO RINs, I is Yes. have

producer's coming at And policy in for a little have the blenders will think a ultimately, now. heavier positive point. credit credit and But a so a RIN impact the right values switched from should feels us for we that's -- market that I change where XXXX, to

then in And RVO RD capability their California to EPA that adjust produce watching harder is industry's ultimately, target a if the would that's capable if be what -- they'll that industry what of based a be that positive and take what ability be takes the to So similar requirements we'll blending the the on than maybe lot is more stance, But well, levels. California producing with certainly -- do implied RVO as then will does production RVO think certainly. closely. look at imply. a we the EPA seen,

will bit that I be transition But a think we'll ultimately, forward so year. well. of watching be And going as a XXXX

term, But on direction. very we'll see think I how positive out. the Here, things still long shake we're

Operator

turn This question-and-answer Greg over Heckman concludes closing would session. remarks. to like back the any our for to conference I

Gregory Heckman

that and thank us to I'd appreciate and on to confident complicated just control joining to you you. for in continue All of support for be the what right. and to execution can't thank great the I'd forward be interest a focus things continues But Thank Bunge. everyone world. to team like our Look we today, I your the Again, great like execute. again. ability we to day. a seeing Have and

Operator

The Thank today's concluded. you attending for presentation. has Thank now conference you.

You may now disconnect.

Bunge Limited (BG) 26 Oct 232023 Q3 Earnings call transcript