In This Article:
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Reported EPS (Q4 2024): $4.36 compared to $4.18 in Q4 2023.
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Adjusted EPS (Q4 2024): $2.13 compared to $3.70 in the prior year.
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Adjusted Core Segment EBIT (Q4 2024): $548 million, including $52 million from Ukraine business interruption insurance recovery, versus $881 million last year.
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Share Repurchases (2024): $1.1 billion.
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Adjusted Funds from Operations (2024): Approximately $1.7 billion.
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Capital Expenditures (2024): Approximately $1.4 billion.
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Net Debt to Adjusted EBITDA Ratio (End of 2024): 0.6 times.
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Cash Balance (End of 2024): Approximately $3.3 billion.
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Adjusted ROIC (2024): 11.4%.
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2025 Full Year Adjusted EPS Outlook: Approximately $7.75.
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2025 Capital Expenditures Forecast: $1.5 billion to $1.7 billion.
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2025 Adjusted Effective Tax Rate Forecast: 21% to 25%.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bunge Global SA (NYSE:BG) is making significant progress on growth projects and strategic initiatives, including the business combination with Viterra and the acquisition of CJ Selecta.
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The company has received regulatory approval from the Canadian government for the Viterra transaction and is in the late stages of the regulatory process in China and Europe.
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Bunge Global SA (NYSE:BG) has completed the sale of its sugar and bioenergy joint venture in Brazil to BP, streamlining its business and allowing for expanded stock repurchases.
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The company returned $1.1 billion to shareholders through share repurchases in 2024, emphasizing its commitment to capital allocation strategies.
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Bunge Global SA (NYSE:BG) is advancing its sustainability priorities, achieving 100% traceability and monitoring of soy purchases in Brazil's priority regions.
Negative Points
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The fourth quarter results were below expectations, particularly in South America, due to challenging market conditions impacting industry margins.
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The company is facing increased geopolitical uncertainty, which limits forward visibility and affects its ability to provide a comprehensive outlook.
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Bunge Global SA (NYSE:BG) expects lower margins in North America and Europe, which could offset improvements in South America.
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The company is experiencing higher corporate expenses driven by performance-based compensation and project-related costs.
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There is uncertainty around US biofuel policy, which could impact refining premiums and demand for soybean oil.
Q & A Highlights
Q: Can you provide more details on the 2025 guidance and the factors influencing it, including any conservatism built into the guidance? How are you accounting for policy uncertainty, particularly regarding 45Z? A: (Gregory Heckman, CEO) The 2025 environment has less visibility due to trade disruptions and US biofuels uncertainty. However, global oil supply and demand are constructive, with soy taking a larger share of global flows. We expect improved performance in South America, offset by lower margins in North America and Europe. (John Neppl, CFO) We assume lower US crush margins and more challenging refining premiums due to policy uncertainty.