Bunge Limited (BG): history, ownership, mission, how it works & makes money

A Brief History of Bunge Limited

Company Overview

Bunge Limited, a global agribusiness and food company, has been a key player in the agricultural sector since its establishment in 1818. Originally founded in Amsterdam, Bunge has grown to operate in over 40 countries worldwide, specializing in the sourcing, processing, and distribution of agricultural commodities.

Recent Financial Performance

As of September 30, 2024, Bunge reported net income attributable to shareholders of $221 million for the third quarter, a decrease from $373 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net income dropped to $535 million from $1,627 million year-over-year. The decline was attributed to lower earnings before interest and taxes (EBIT) across core and non-core segments.

Segment Performance

Bunge's operations are divided into four main segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment generated $28,689 million in net sales for the nine months ended September 30, 2024, a decrease of 10% compared to the previous year. The decrease was primarily due to lower average sales prices in soybean oilseed processing.

Recent Acquisitions and Dispositions

In 2024, Bunge announced the sale of its 50% ownership interest in BP Bunge Bioenergia for approximately $828 million, a transaction that closed on October 1, 2024. This decision aligns with Bunge's strategy to streamline its operations and focus on core competencies.

Shareholder Returns

During the nine months ended September 30, 2024, Bunge repurchased 6,440,930 shares for $600 million as part of its ongoing share repurchase program, which was expanded to a total capacity of $2 billion in June 2023. The company also declared dividends amounting to $2.0225 per share for the first three quarters of 2024, compared to $1.9125 in the same period of 2023.

Outlook

As Bunge moves forward, it continues to adapt to market dynamics and pursue strategic growth opportunities while managing its operational efficiency and shareholder value.

A Who Owns Bunge Limited (BG)

Current Shareholder Structure

As of 2024, Bunge Limited (BG) has a diverse shareholder structure, with significant ownership concentrated among institutional investors. The following table summarizes the major shareholders and their respective ownership percentages:

Recent Share Repurchase Activity

Bunge has been active in repurchasing its shares. As of September 30, 2024, the company has repurchased a total of 13,957,906 shares for approximately $1.4 billion. The remaining capacity under the share repurchase program is $800 million .

Dividend Distribution

Bunge Limited declared a cash dividend of $2.72 per share, distributed in four equal quarterly installments of $0.68 per share beginning in Q2 2024 . The total dividends paid to shareholders for the nine months ended September 30, 2024, amounted to $380 million .

Financial Performance Overview

For the nine months ended September 30, 2024, Bunge reported a net income attributable to shareholders of $535 million, a decrease from $1,627 million in the same period of 2023 . The diluted earnings per share for the same period was $3.73, down from $10.71 year-over-year .

Market Capitalization

As of September 30, 2024, Bunge Limited had a market capitalization of approximately $15.5 billion .

Debt and Financial Obligations

Bunge's total debt as of September 30, 2024, was $6,195 million, an increase from $4,882 million at December 31, 2023 . The company's long-term debt, including the current portion, was reported at $5,440 million .

Ownership Changes and Strategic Moves

On October 1, 2024, Bunge completed the sale of its 50% ownership stake in BP Bunge Bioenergia, realizing approximately $828 million . This strategic divestiture reflects Bunge's focus on optimizing its portfolio and enhancing shareholder value.

Conclusion of Ownership Analysis

The ownership landscape of Bunge Limited is characterized by a strong presence of institutional investors, active share repurchase programs, and a commitment to shareholder returns through dividends. The company's financial performance, though experiencing some decline, remains robust, and strategic moves are being made to enhance value for shareholders.

Bunge Limited (BG) Mission Statement

Mission Statement Overview

Bunge Limited aims to connect farmers and consumers globally, delivering essential agricultural products and services. The company focuses on sustainability, innovation, and operational excellence to create value for stakeholders.

Financial Performance

As of September 30, 2024, Bunge Limited reported a net income attributable to shareholders of $221 million for the three months ended, a decrease from $373 million in the same period of 2023. For the nine months ended September 30, 2024, the net income was $535 million, down from $1,627 million year-over-year.

Segment Performance

Bunge operates across several segments, including Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The total segment EBIT for the three months ended September 30, 2024, was $407 million, a decrease from $584 million in the same period of 2023. The nine months ended September 30, 2024, saw total segment EBIT at $1,025 million, down from $2,382 million in 2023.

Debt and Liquidity

As of September 30, 2024, Bunge reported total debt of $6,195 million, an increase from $4,882 million at December 31, 2023. The company maintains a strong liquidity position with $5,665 million in unused committed borrowing capacity from revolving credit facilities.

Equity and Share Repurchase

As of September 30, 2024, total shareholders' equity was $10,135 million, a decrease from $10,851 million at December 31, 2023. The company repurchased 6,440,930 shares for $600 million during the nine months ended September 30, 2024.

Conclusion on Mission Statement Alignment

Bunge Limited's mission statement reflects its commitment to sustainability and value creation, as evidenced by its financial strategies and segment performances. The company's focus on operational excellence is seen in its management of debt and liquidity, aligning with its overarching mission to connect farmers and consumers effectively.

How Bunge Limited (BG) Works

Overview of Operations

Bunge Limited operates through four reportable segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. These segments are classified based on their economic characteristics, product types, and distribution methods.

Financial Performance

As of September 30, 2024, Bunge reported the following financial results:

Segment Performance

The core segments of Bunge Limited demonstrated varied performance for the nine months ended September 30, 2024:

Liquidity and Capital Resources

As of September 30, 2024, Bunge reported the following liquidity metrics:

Debt Structure

Bunge's debt as of September 30, 2024, includes:

Shareholder Equity and Dividends

As of September 30, 2024, Bunge reported the following regarding shareholder equity:

Cash Flow Analysis

Bunge's cash flow for the nine months ended September 30, 2024, is summarized as follows:

Recent Developments

On June 12, 2023, Bunge announced an expansion of its share repurchase program by an additional $1.7 billion, bringing total capacity to $2 billion. As of September 30, 2024, Bunge repurchased a total of 13,957,906 shares for $1.4 billion, with $800 million remaining for future repurchases.

Bunge is also involved in a significant acquisition, having completed the acquisition of Viterra, which will impact its financial structure and operational capabilities moving forward.

How Bunge Limited (BG) Makes Money

Revenue Segments

Bunge Limited operates through several key segments, primarily Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The following table summarizes the net sales from these segments for the three and nine months ended September 30, 2024, compared to the same periods in 2023.

Agribusiness Segment

The Agribusiness segment is the largest contributor to Bunge's revenue. For the three months ended September 30, 2024, the segment generated net sales of $9,292 million, down from $10,082 million in 2023, primarily due to lower average sales prices across regions. The nine-month results also reflect a decrease to $28,689 million from $31,809 million.

Refined and Specialty Oils Segment

This segment reported net sales of $3,158 million for the three months ended September 30, 2024, down from $3,601 million in 2023. The nine-month net sales decreased to $9,519 million from $11,090 million in the previous year.

Milling Segment

Net sales from the Milling segment were $407 million for the three months ended September 30, 2024, compared to $479 million in 2023. For nine months, sales fell to $1,189 million from $1,484 million.

Sugar and Bioenergy Segment

Sales from this segment decreased significantly to $38 million for the three months ended September 30, 2024, down from $56 million in the previous year. For the nine-month period, sales were $130 million, compared to $192 million in 2023.

Financial Performance

Bunge's total net income attributable to shareholders for the three months ended September 30, 2024, was $221 million, a decrease from $373 million in 2023. For the nine-month period, net income decreased to $535 million from $1,627 million.

Cost Structure

For the three months ended September 30, 2024, Bunge's cost of goods sold was $12,136 million, compared to $13,182 million in the same period of 2023. The gross profit for the same period was $772 million, down from $1,045 million year-over-year.

Debt and Liquidity

As of September 30, 2024, Bunge's total debt was $6,195 million, an increase from $4,882 million at December 31, 2023. The company's working capital as of September 30, 2024, was $8,228 million, a decrease from $8,379 million at the same time in 2023.

Shareholder Returns

Bunge has a share repurchase program with an aggregate unutilized capacity of $800 million remaining as of September 30, 2024. The company repurchased 6,440,930 shares for $600 million during the nine months ended September 30, 2024. Dividends paid per share for the three months ended September 30, 2024, were $0.68, compared to $0.6625 in the previous year.

Article updated on 8 Nov 2024

Resources:

• Bunge Limited (BG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bunge Limited (BG)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Bunge Limited (BG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.