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The
war exacerbated already thin supplies of grain and oilseeds
after weather-reduced crops in South America and other key
production areas, boosting demand and lifting crop processing
margins for Bunge.
The results mirrored the robust earnings reported by rival
Archer-Daniels-Midland Co on Tuesday.
Bunge shares rose nearly 2% in premarket trading.
Bunge's results highlighted how global grains merchants have
weathered surging crop prices and supply chain disruptions
triggered by the Russia-Ukraine war. The two nations supply
nearly a third of the world's wheat exports, a fifth of globally
traded corn and around 80% of sunflower oil.
Bunge's agribusiness unit, its largest one, reported a 7% drop
in volumes and a nearly 15% rise in net sales on the back of
strong soybean crushing margins in the United States, Europe and
Brazil. Weaker softseed crushing results in Europe and China
partly offset those gains.
The company's refined and specialty oils unit saw adjusted
earnings jump 45% on stout food and fuel demand in North
America.
Bunge's milling segment profit increased fourfold from a year
earlier, propelled by higher margins and volumes in the U.S. and
South America.
Certain mark-to-market impacts, which the company describes as
temporary, cut net income to $4.48 per share in the quarter
ended March 31, from $5.52 last year.
Excluding the one-off items, earnings were $4.26 per share,
compared with $3.13 per share a year earlier, topping the
consensus analyst estimate of $2.94, according to Refinitiv IBES.
Bunge raised its full-year adjusted earnings guidance to $11.50
per share, from $9.50 previously, in response to the strong
quarter and a favorable crush margin outlook.
(Reporting by Ruhi Soni in Bengaluru and Karl Plume in Chicago;
Editing by Shailesh Kuber and Chizu Nomiyama)
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