Agricultural commodities trader Bunge Ltd has reported fourth-quarter profit above estimates, as robust soy crushing margins and global demand for crops bolstered its core agribusiness.
Tight global crop supplies and strong demand have benefited supply chain middlemen including Bunge, which make money by processing, trading and shipping crops around the world. The supply chain middlemen tend to thrive when crises like droughts or war trigger shortages.
The quarterly earnings showed the resilience of global crop merchants in the face of increasing energy costs and supply chain disruptions, such as reduced exports of Black Sea grain due to Russia's invasion of Ukraine.
Greg Heckman, chief executive officer of Bunge, commented, "Our team delivered another strong quarter, capping off an exceptional 2022 for Bunge. Our global platform, approach, and focused execution demonstrated the adaptability of our business, allowing us to successfully navigate a dynamic market.
"Over the course of the year, we made progress on executing our strategy to strengthen and expand our core business while positioning us to benefit over the long term from the growing demand for food, feed and renewable fuel."
Read More: Bunge To Build $550m Soy Processing Facility In Indiana
Net sales totalled $16.66 billion in the fourth quarter, compared with $16.68 billion a year earlier.
The Chesterfield, Missouri-based company reported adjusted earnings of $3.24 per share. Analysts on average had expected a profit of $3.22 per share, according to data from Refinitiv.
The company expects full-year 2023 adjusted earnings of at least $11 per share, while analysts expect $12 per share.
Heckman added, "Looking ahead to 2023, we expect the favourable market environment we experienced last year to continue.
"With our critical position at the centre of the global agribusiness supply chain, we remain well positioned to capitalise on the upside opportunities ahead of us as we continue to help our customers at both ends of the value chain manage risk and find solutions to their essential needs."
Read More: Grain Giant Bunge To Buy 49% Of BZ Group To Boost French Exports
News by Reuters, additional reporting by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.