HomeFoodBunge champions continuous improvement | Food Business News

Bunge champions continuous improvement | Food Business News

ST. LOUIS — The transformation that started three years in the past at Bunge Ltd. is creating the collaborative international tradition that firm executives believed would maximize the worth of the corporate. It is that this transformation that additionally helped information the St. Louis-based firm to robust fiscal 2021 outcomes.

Bunge internet revenue within the yr ended Dec. 31, 2021, was $2.08 billion, equal to $13.64 per share on the frequent inventory, up 80% from $1.16 billion, or $7.71 per share, in fiscal 2020. Sales in 2021 had been $59.15 billion, up 43% from $41.4 billion. On an adjusted foundation, earnings per share had been $12.93 in 2021, up from $8.30 in 2020.

Shares of Bunge climbed to a 52-week excessive of $103.53 in mid-day buying and selling on the New York Stock Exchange on Feb. 9, the day outcomes had been introduced, earlier than falling again to shut at $99.60, down from the day past’s shut of $100.96.

In a Feb. 9 convention name with securities analysts, Gregory A. Heckman, chief govt officer of Bunge, mentioned the corporate has begun to reap the rewards of a method that now has all areas of the corporate pulling in the identical route.

“Bunge had an industry-leading portfolio with assets in some of the best locations around the globe, but we also had individual assets and businesses that did not fit the company’s goal of growing our relevance with customers at both ends of the supply chain,” Mr. Heckman mentioned. “And after a number of divestitures, we now have a footprint that’s stronger than ever and a solid base on which to grow.”

As an instance of its strong base, Mr. Heckman pointed to the plant-based lipids platform that Bunge is constructing by the mix of Loders Croklaan and the legacy Bunge Oils enterprise.

“The Loders tropical oils portfolio and innovation capabilities, supported by Bunge’s strength in supply chains and seed oils is a proposition that resonates with customers,” he mentioned. “While the entire oils segment delivered a record year, 2021 was also the best year for the former Loders business.”

Mr. Heckman mentioned Bunge has taken an identical methodical method in evaluating the way it can enhance monetary self-discipline inside the group.

“We’ve rewired our systems so we have better visibility to our data, and we used that information in a structured way to make better commercial, risk management and capital decisions,” he mentioned.

Another space of success for Bunge has been the corporate’s management’s willingness to embrace the spirit of continuous improvement. Mr. Heckman mentioned that in 2021 Bunge achieved data in complete crush quantity, refining efficiency and port volumes. The firm additionally had greater than 100 capital expenditure tasks every exceeding $1 million.

Adjusted section EBIT inside the Agribusiness unit totaled $2.13 billion in 2021, up 22% from $1.74 billion in fiscal 2020. Fiscal 2021 outcomes included a $35 million fastened asset impairment cost associated to an oils facility in China. Net gross sales within the division elevated 45% to $46.64 billion from $30.05 billion, whereas volumes had been narrowly decrease, easing to 142,013,000 tonnes from 143,054,000 tonnes.

In the Refined and Specialty Oils unit, adjusted section EBIT totaled $534 million, up 82% from $294 million in fiscal 2020. Net gross sales within the division elevated 39% to $13.33 billion from $9.6 billion. Volumes, in the meantime, had been decrease, falling to 9,202,000 tonnes from 9,529,000 tonnes.

Adjusted section EBIT inside the Milling unit was $86 million, down 12% from $98 million in fiscal 2020. Fiscal 2021 outcomes included $170 million of impairment costs on the classification of the corporate’s Mexican wheat milling enterprise as held-for-sale. Net gross sales within the division elevated 18%, climbing to $1.91 billion from $1.62 billion. Volumes improved to 7,189,000 tonnes from 6,091,000 tonnes.

In the fourth quarter of 2021, Bunge internet revenue was $231 million, or $1.52 per share, down 59% from $559 million, or $3.74 per share, the yr earlier than. Sales had been $16.68 billion, up 32% from $12.61 billion within the ultimate quarter of 2020. Adjusted earnings per share had been $3.49, up from $3.05.

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