• Reported EPS: $1.68 for Q1 2024, compared to $4.15 in Q1 2023.

• Adjusted EPS: $3.04 for Q1 2024, versus $3.26 in the prior year.

• Adjusted EBIT: $719 million in Q1 2024, down from $756 million in Q1 2023.

• Net Interest Expense: $66 million in Q1 2024, slightly down from the previous year.

• Income Tax Expense: $117 million for Q1 2024, decreased from $183 million in Q1 2023.

• Effective Tax Rate: Approximately 32% for Q1 2024.

• Adjusted Funds from Operations: $514 million in Q1 2024.

• Discretionary Cash Flow: $413 million available after allocations in Q1 2024.

• Capital Expenditures: $101 million allocated to sustaining CapEx in Q1 2024.

• Share Repurchases: $400 million of Bunge shares repurchased in Q1 2024.

• Adjusted ROIC: 17.7% for the trailing 12 months.

• Adjusted Annual Effective Tax Rate Forecast: 22% to 25% for 2024.

• Net Interest Expense Forecast: $280 million to $310 million for 2024.

• Capital Expenditure Forecast: $1.2 billion to $1.4 billion for 2024.

• Depreciation and Amortization Forecast: Approximately $450 million for 2024.

• Warning! GuruFocus has detected 7 Warning Signs with HAS.

Release Date: April 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q & A Highlights

Q: Can you discuss the first quarter results in the context of the full year and the unchanged outlook? Do you see the environment for the balance of the year as weaker than previously expected? A: Gregory A. Heckman, CEO & Director, Bunge Global SA, explained that the outlook remains unchanged with an expected full-year adjusted EPS of approximately $9, seeing the year split roughly 50-50 between the first and second halves. The first quarter was stronger than anticipated, which might lead to a softer second quarter, but the overall expectation for the year remains consistent.

: What is your perspective on oilseed processing margins globally? A: CEO Gregory A. Heckman noted that oilseed processing margins vary globally. In the U.S., margins are okay in the near term but weaker moving forward. Europe and North America are led by strong oil legs despite lower soy seed margins compared to last year. In Argentina, margins are expected to improve later in the year as the harvest progresses and government policies potentially influence farmer selling behaviors.

Q: How do you view the demand for renewable diesel feedstocks, particularly vegetable oils versus waste fats and oils? A: CEO Gregory A. Heckman highlighted that while soy seeds are down from last year, they remain strong in Europe and North America, driven by robust oil demand. He also mentioned the significant role vegetable oils are expected to continue playing in renewable diesel, despite the increasing supply of waste fats and oils.