Bunge's third quarter below last year, full year projected higher

US-based agricultural commodities trader Bunge Limited reported Wednesday lower year-on-year third quarter profits but is raising its full-year profit outlook.

Bunge reported an adjusted net income of $380 million, or $2.49 per share, in the third quarter of 2022 ending on September 30, down 41.8% from $653 million, or $4.28 per share, recorded in the same period last year.

On an adjusted basis, excluding certain gains/charges and mark-to-market timing differences, share values equate to $3.45 and $3.72 respectively.

In the company's core agribusiness unit, full-year results are expected to be up from our previous outlook but remain down from last year due to lower expected performance in merchandising, which had a particularly strong 2021, Bunge said.

For milling, full-year results are expected to be in line with their previous outlook and significantly higher than last year.

In refined and specialty oils, full-year results are expected to be up from Bunge's previous outlook and significantly higher than last year.

"We are also enhancing our capabilities and assets to position Bunge for continued growth. We are investing in our core oilseed business as well as the growing opportunities in specialty fats and oils, renewable feedstocks and plant-based proteins,” Greg Heckman, Bunge’s Chief Executive Officer said.

The St Louis-based commodities trading house is increasing its full-year 2022 earnings per share (EPS) outlook to at least $13.50 to reflect third quarter results and the current environment.

Additionally, the company now estimates an adjusted annual effective tax rate of 16%, net interest expense of $300 million, capital expenditures of $600 million, and depreciation and amortization of $400 million for 2022.