Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$102.18Last close (Oct 25, 2023)
Post-Earnings Price$104.99Open (Oct 26, 2023)
Price Change
$2.81(+2.75%)
- Strong progress on the Viterra acquisition, with significant shareholder support from Glencore and Canadian pension funds who are committed to becoming long-term shareholders, seeking more equity, and will occupy four of twelve board seats upon closing, enhancing Bunge's strategic position in the industry.
- Strategic acquisition of CJ Selecta in Brazil for approximately $600 million, strengthening Bunge's position in the soy protein concentrate market, demonstrating disciplined capital allocation focused on growth opportunities.
- Improved global crush margins and strong oil demand, particularly in China where Bunge had a better year than last year with record volumes in Q3, and in North America, allowing Bunge to lock in higher margins for Q4, driven by increased soybean demand and strong execution by the team.
- Significant Capital Expenditure Including a $600 Million Acquisition: Bunge plans to acquire CJ Selecta in Brazil for approximately $600 million, which, along with higher capital expenditures, may impact cash flow and capital allocation strategies in 2024.
- Potential Limitations on Dividend Growth: Due to substantial cash outlays for acquisitions, increased capital expenditures, and share buybacks, there is uncertainty about dividend growth next year, and it might not be on the growth side as in previous years.
- Political and Operational Risks in Argentina: The upcoming elections in Argentina pose political risks that could affect the company's operations, adding uncertainty to future performance in the region.