Bunge Global SA (BG)

Viterra Acquisition Progress
Q: What's the status of regulatory approvals for Viterra deal?
A: Bunge is making progress with the Viterra acquisition, having received clearances from the majority of jurisdictions. They are currently engaging with the EU, Canada, China, and a few others, expecting to conclude the process in the next several months. Discussions are confidential, but any required divestitures are not expected to have meaningful financial impact. -

Viterra Financial Performance
Q: How has Viterra's recent performance met expectations?
A: Viterra continues to perform well, and Bunge remains confident in the transaction. While they cannot share specifics due to operating separately until close, Bunge is impressed with Viterra's capabilities and believes the transaction will enhance future growth. -

Conservative Guidance Explanation
Q: Why does guidance seem conservative despite strong crush margins?
A: Bunge raised full-year guidance to approximately $9.25 per share, reflecting overperformance in the first half. Although Q3 margins are visible and some have been locked in, Q4 margin curves are very inverted with little visibility. The company remains cautious due to spot behavior of farmers and consumers, which justifies the conservative guidance. -

Share Repurchase Plans
Q: Will share buybacks continue before Viterra closes?
A: Bunge is unlikely to repurchase shares prior to the Viterra transaction closing due to leverage commitments and targets. They remain committed to the repurchase program and expect to execute it post-close, potentially utilizing proceeds from the sugar business sale. -

Non-Core Business Divestiture
Q: How did the sugar business sale come about, and are you satisfied?
A: Bunge had planned to exit the sugar business and, when timing and values aligned, proceeded with the sale. They are pleased with the transaction price and anticipate closing it by year-end, which will unlock capital and resources. -

Merchandising Earnings Outlook
Q: Has the outlook for Merchandising earnings changed?
A: Bunge acknowledges that Merchandising earnings have been below the normalized range of $75 to $100 million per quarter due to challenging market conditions with slow farmer selling and reduced margins. However, they view this as a market transition phase and expect opportunities to improve as markets rebalance. -

Capital Expenditure Plans
Q: What are your CapEx plans for 2025?
A: Bunge expects 2025 capital expenditures to be around $1.9 to $2 billion, up from the high end of the $1.4 billion range in 2024, as major projects reach full swing. They anticipate a significant drop, potentially up to 50%, in CapEx by 2026 as these projects near completion. -

Farmer Selling Trends
Q: Where are we in farmer selling slowdown?
A: The transition to lower prices has led to slower farmer selling, but Bunge expects improvement as new crops are produced and farmers adjust to market conditions. Factors like weather and currency will influence future selling, but the company believes the situation is unfolding as expected. -

Managing Challenging Margins
Q: What internal levers can you pull in tough margin environments?
A: Bunge leverages its global platform to operate flexibly, running assets hardest where margins are favorable. The company's improved execution and discipline allow it to manage risks appropriately and capitalize on opportunities despite challenging conditions. -

Refined Products Performance
Q: What's driving outperformance in Refined Products?
A: Bunge's Refined Oils segment exceeded expectations due to factors like stronger energy demand in the U.S. and tight cocoa butter supply benefiting tropical oils. The team effectively capitalized on these opportunities, resulting in better-than-expected performance. - -

Coverage for Q3 and Q4
Q: How covered are you for Q3 and Q4?
A: Bunge is largely covered for Q3, particularly in canola and soy, with some exposure in sun due to crop effects. This coverage supports confidence in the near-term outlook, although visibility for Q4 remains low due to inverted margin curves. -

Argentina Performance
Q: What happened in Argentina in Q2, and what's the outlook?
A: Despite some opportunities from sporadic farmer selling, margins in Argentina were not as robust as some expected. Slow selling and government policies affected performance. For the second half, the outlook depends on farmer behavior and policy developments. -

Financing Viterra Acquisition
Q: How are you approaching financing for the Viterra deal?
A: Bunge has syndicated debt commitments in place to finance the Viterra acquisition. They are set in terms of initial financing allocation and have planned for any adjustments post-close. The company is prepared for the transaction without needing pre-financing. -

Decoupling Internal Improvements
Q: Can you decouple internal improvements from market environment?
A: Bunge believes its operational enhancements over the past years have made it a stronger company, less dependent on market conditions. They continue to focus on continuous improvement, asset optimization, and executing well even in challenging environments. -

Farmer Selling Impact on Merchandising
Q: How does farmer selling affect Merchandising?
A: Slow farmer selling has pressured Merchandising margins as producers hold onto inventory in a lower price environment. However, Bunge expects that as farmers adjust to new price levels and crops develop, marketing activity will increase, improving Merchandising prospects. -