Bunge raises EPS outlook through 2026


By Lisa Berry, Food Business News  



ST. LOUIS — Building on its increased mid-cycle earnings baseline of $8.50 per share, approximately $3.3 billion of projected future investments in growth capital expenditures and M&A, and an allocation of approximately $1.25 billion for share repurchases, Bunge introduced an earnings framework of approximately $11 per share by the end of 2026 in its discussion of second-quarter results on July 27.


“The incremental earnings from capital that we’re deploying should enable us to perform at a higher level in a mid-cycle environment,”  Gregory A. Heckman, chief executive officer, said during a July 27 conference call with analysts. “As a result, we’re providing a four-year earnings growth framework of approximately $11 per share by the end of 2026. This growth framework includes the increased earnings baseline of $8.50, plus the future benefits of investments in the business and share repurchases.” 


Based on the strength of second-quarter results and the current market environment, Bunge increased its full-year 2022 earnings per share outlook to at least $12 per share. 


“Taking into account our second-quarter results, the current market environment and forward curves, we’re increased our full-year adjusted EPS outlook to at least $12 per share, a 50¢ per share increase over our previous outlook, with potential upside depending on market environment and supply and demand balance,” said John W. Neppl, executive vice president and chief financial officer.


In the second quarter ended June 30, Bunge posted net income of $206 million, equal to $1.34 per share on the common stock, which was down 43% from $362 million, or $2.37 per share, in the previous year’s second quarter. The most recent quarterly results included charges of $233 million related to a mark-to-market timing difference and $68 million in other charges.  Adjusted earnings were $2.97 per share, up 14% from $2.61 in the previous year’s second quarter. Net sales in the second quarter were $17.93 billion, up 17% from $15.39 billion in the second quarter of the previous year...