Bunge Global SA
For the period ended Jun 30, 2024. Filed Aug 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 1, 2024
BG$99.10+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-24.
0001996862-24-000094
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0001996862-24-000194
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 92 previous paragraphs and 111 current paragraphs.
43 unchanged; 39 reworded; 20 added; 10 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Second Quarter 2024 Overview
Current report
Agribusiness segment Net sales decreased 11%, to $9,657 million for the three months ended June 30, 2024. The net decrease was primarily due to the following:
Current report
Cost of goods sold decreased 5%, to $9,368 million for the three months ended June 30, 2024. The net decrease was primarily due to the following:
Current report
Segment EBIT decreased 82%, to $138 million for the three months ended June 30, 2024. The net decrease was primarily due to the following:
Current report
•In Merchandising, a decrease of 92% was primarily due to lower Gross profit, driven by decreased results across all of our businesses.
Current report
Agribusiness segment Net sales decreased 11%, to $19,397 million for the six months ended June 30, 2024. The net decrease was primarily due to the following:
Current report
Cost of goods sold decreased 6% to $18,654 million for the six months ended June 30, 2024. The net decrease was primarily due to the following:
Current report
•In Merchandising, Cost of goods sold decreased 1%, primarily due to lower Net sales, as further described above.
Current report
Segment EBIT decreased 72% to $416 million for the six months ended June 30, 2024. The net increase was primarily due to the following:
Current report
•In Merchandising, a decrease of 57% was primarily due lower Gross profit, driven by lower results in our global corn and global wheat businesses.
Current report
Segment EBIT decreased 15% to $185 million for the three months ended June 30, 2024. The decrease was primarily due to lower Gross profit driven by lower margins in our soybean oil refining businesses.
Current report
Refined and Specialty Oils segment Net sales decreased 15%, to $6,361 million for the six months ended June 30, 2024. The decrease was primarily due to lower average sales prices in all regions, driven by prices stabilizing and increased supply, partially offset by increased volumes due to expanded capacity at our Avondale refinery.
Current report
Cost of goods sold decreased 17%, to $5,687 million for the six months ended June 30, 2024. The decrease in Cost of goods sold was primarily due to lower prices in all regions, as described in Net sales above, in addition to more favorable mark-to-market results.
Current report
Cost of goods sold decreased 30%, to $656 million for the six months ended June 30, 2024. The decrease was primarily due to lower sales prices, as described for Net sales above, in addition to more favorable mark-to-market results.
Current report
Corporate and Other EBIT remained flat, a loss of $155 million for both the three months ended June 30, 2024 and June 30, 2023. Although Total Corporate and Other EBIT remained consistent between periods, SG&A expense increased by 18%, primarily driven by increases related to acquisition and integration costs associated with the announced acquisition of Viterra. The company recognized acquisition and integrations costs of $62 million, and $18 million for the three months ended June 30, 2024, and 2023, respectively. The increase described above was offset by impairment charges in the prior year of $16 million, in Income (loss) from affiliates, related to the impairment of a minority investment in Australian Plant Proteins, a start-up manufacturer of novel protein ingredients.
Current report
Segment EBIT decreased 20%, to a loss of $283 million for the six months ended June 30, 2024. The decrease was primarily driven by an increase in SG&A expense resulting from increased acquisition and integration costs associated with the announced acquisition of Viterra. The company recognized acquisition and integrations costs of $123 million, and $18 million for the six months ended June 30, 2024, and 2023, respectively. The increase described above was partially offset by impairment charges in the prior year of $16 million, in Income (loss) from affiliates, related to the impairment of a minority investment in Australian Plant Proteins, a start-up manufacturer of novel protein ingredients.
Current report
Segment EBIT decreased 141%, to a loss of $21 million for the three months ended June 30, 2024. The decrease was due to less favorable results from our investment in BP Bunge Bioenergia, primarily resulting from the release of a tax valuation allowance in the prior period, higher foreign exchange losses on U.S. dollar denominated debt of BP Bunge Bioenergia in the current period, and lower gross margins compared to the prior year due to lower ethanol prices.
Current report
Segment EBIT decreased 96%, to $3 million for the six months ended June 30, 2024. The decrease was due to less favorable results from our investment in BP Bunge Bioenergia, primarily resulting from the release of a tax valuation allowance in the prior period, as well as higher foreign exchange losses on U.S. dollar denominated debt of BP Bunge Bioenergia in the current period.
Current report
Other current liabilities- Other current liabilities were $2,923 million at June 30, 2024, an increase of $10 million from $2,913 million at December 31, 2023, and a decrease of $79 million from $3,002 million at June 30, 2023. The increase from December 31, 2023, was primarily due to higher accrued dividends (see Note 17 - Equityfor further details) and a $103 million refundable deposit received in relation to the planned sale of BP Bunge Bioenergia (see Note 2 - Acquisitions and Dispositionsfor further details), partially offset by a decrease in accrued liabilities due to variable compensation accrual timing and income taxes payable. The decrease from June 30, 2023, was primarily due to significantly lower unrealized losses on derivative contracts, partially offset by higher accrued dividends and a refundable deposit received in relation to the planned sale of BP Bunge Bioenergia as discussed above.
Current report
We paid a regular quarterly cash dividend distribution of $0.68 per share on June 3, 2024, to shareholders of record on May 20, 2024. On May 15, 2024, shareholders of Bunge Global SA approved a cash dividend distribution in the amount of $2.72 per share, payable in four equal quarterly installments of $0.68 per share beginning in the second quarter of fiscal year 2024 and ending in the first quarter of fiscal year 2025. The $0.68 per share dividend distribution represents a $0.0175, or 3%, increase from the Company's previously approved quarterly cash dividend declared prior to the Redomestication of $0.6625 per share.
Removed paragraphs (10)
Previous report
First Quarter 2024 Overview
Previous report
Agribusiness segment Net sales decreased 10%, to $9,740 million for the three months ended March 31, 2024. The net decrease was primarily due to the following:
Previous report
Cost of goods sold decreased 8%, to $9,286 million for the three months ended March 31, 2024. The net decrease was primarily due to the following:
Previous report
Segment EBIT decreased 61%, to $278 million for the three months ended March 31, 2024. The net decrease was primarily due to the following:
Previous report
•In Merchandising, an increase of 44% was primarily due to higher Gross profit, driven by increased results in our ocean freight and global oil businesses.
Previous report
Corporate and Other EBIT decreased by 60%, to a loss of $128 million for the three months ended March 31, 2024. The decrease was primarily driven by increased SG&A expense, including $61 million related to acquisition and integration costs associated with the announced acquisition with Viterra.
Previous report
Segment EBIT increased 26%, to $24 million for the three months ended March 31, 2024. The increase was due to more favorable results from our equity investment in BP Bunge Bioenergia, primarily resulting from higher sugar sales prices and volumes, partially offset by lower ethanol prices.
Previous report
Other current liabilities- Other current liabilities were $2,595 million at March 31, 2024, a decrease of $318 million from $2,913 million at December 31, 2023, and a decrease of $521 million from $3,116 million at March 31, 2023. The decrease from December 31, 2023, was primarily due to lower accrued liability balances, as a result of the timing of payments related to the variable compensation plan, as well as lower unrealized losses on derivative contracts. The decrease from March 31, 2023, was primarily due to significantly lower unrealized losses on derivative contracts.
Previous report
Investing: Cash used for investing activities was $396 million for the three months ended March 31, 2024, a decrease of $441 million, compared to cash provided by investing activities of $45 million for the three months ended March 31, 2023. The decrease was primarily due to higher net payments for investments and higher capital expenditures.
Previous report
We paid a regular quarterly cash dividend of $0.6625 per share on March 1, 2024, to shareholders of record on February 16, 2024. Any future determination to pay dividend distributions will, subject to the provisions of applicable law, be at the discretion of the Board, and the approval by shareholders at a general meeting in accordance with Swiss law as described in Note 17 - Equity.
Reworded paragraphs (39)
Previous wording
Net Income (Loss) Attributable to Bunge - For the three months ended March 31, 2024, Net income attributable to Bunge was $244 million, a decrease of $388 million compared to $632 million for the three months ended March 31, 2023. The decrease for the three months ended March 31, 2024, was due to lower Segment EBIT in our Core segments and Corporate and Other, as further discussed in the Segment Overview & Results of Operations section below, partially offset by lower income tax expense as discussed further below.
Current wording
Net Income (Loss) Attributable to Bunge - For the three months ended June 30, 2024, Net income attributable to Bunge was $70 million, a decrease of $552 million compared to $622 million, for the three months ended June 30, 2023. For the six months ended June 30, 2024, Net income attributable to Bunge was $314 million, a decrease of $940 million, compared to $1,254 million for the six months ended June 30, 2023. The decrease for the three and six months ended June 30, 2024, was primarily due to lower Segment EBIT in our Core and Non-core segments, as further discussed in the Segment Overview & Results of Operations section below, partially offset by lower income tax expense as discussed further below.
Previous wording
Earnings Per Share - Diluted - For the three months ended March 31, 2024, Net income attributable to Bunge shareholders - diluted, was $1.68 per share, a decrease of $2.47 per share, compared to income of $4.15 per share for the three months ended March 31, 2023.
Current wording
Earnings Per Share - Diluted - For the three months ended June 30, 2024, Net income attributable to Bunge shareholders - diluted, was $0.48 per share, a decrease of $3.61 per share, compared to income of $4.09 per share for the three months ended June 30, 2023. For the six months ended June 30, 2024, Net income attributable to Bunge shareholders - diluted, was $2.17 per share, a decrease of $6.07 per share, compared to income of $8.24 per share for the six months ended June 30, 2023.
Previous wording
EBIT- For the three months ended March 31, 2024, Total Segment EBIT was $433 million, a decrease of $453 million compared to Total Segment EBIT of $886 million for the three months ended March 31, 2023. The decrease in Total Segment EBIT for the three months ended March 31, 2024, was due to lower Segment EBIT in our Core segments and Corporate and Other activities, as further discussed in the Segment Overview & Results of Operations section below.
Current wording
EBIT- For the three months ended June 30, 2024, Total Segment EBIT was $185 million, a decrease of $727 million compared to Total Segment EBIT of $912 million for the three months ended June 30, 2023. For the six months ended June 30, 2024, Total Segment EBIT was $618 million, a decrease of $1,180 million compared to Total Segment EBIT of $1,798 million for the six months ended June 30, 2023. The decrease in Total Segment EBIT for the three and six months ended June 30, 2024, was primarily due to lower Segment EBIT in our Core and Non-core segments, resulting from lower gross margins, as further discussed in the Segment Overview & Results of Operations section below.
Previous wording
Income Tax (Expense) Benefit -Income tax expense was $117 million for the three months ended March 31, 2024 compared to $183 million for the three months ended March 31, 2023. The decrease was primarily due to lower pre-tax income in 2024, partially offset by unfavorable discrete tax adjustments in 2024.
Current wording
Income Tax (Expense) Benefit -Income tax expense was $30 million for the three months ended June 30, 2024 compared to $198 million for the three months ended June 30, 2023. Income tax expense was $147 million for the six months ended June 30, 2024 compared to $381 million for the six months ended June 30, 2023. The decrease for the three and six months ended June 30, 2024 was primarily due to lower pre-tax income in 2024, partially offset by unfavorable discrete tax adjustments in 2024.
Previous wording
Liquidity and Capital Resources – At March 31, 2024, working capital, which equals Total current assets less Total current liabilities, was $8,311 million, a decrease of $321 million, compared to working capital of $8,632 million at March 31, 2023, and a decrease of $352 million, compared to working capital of $8,663 million at December 31, 2023. The decrease in working capital at March 31, 2024, compared to March 31, 2023, was primarily due to lower Trade accounts receivables, net and Inventories balances, partially offset by lower Trade accounts payable balances, all of which were primarily driven by lower commodity prices. The decrease in working capital at March 31, 2024, compared to December 31, 2023, was primarily due to higher Trade accounts payable balances as well as higher Short-term debt balances, partially offset by a higher Inventories balance as a result of increases in inventory volumes driven by the timing of the South American harvest.
Current wording
June 30, 2023, and a decrease of $817 million, compared to working capital of $8,663 million at December 31, 2023. The decrease in working capital at June 30, 2024, compared to June 30, 2023, was primarily due to lower Inventories balances, Trade accounts receivables, net and Other current assets, partially offset by lower Trade accounts payable balances, all of which were primarily driven by lower commodity prices. The decrease in working capital at June 30, 2024, compared to December 31, 2023, was primarily due to lower Cash and cash equivalents and Trade accounts receivable balances, partially offset by higher Inventories balances as described within the Liquidity and Capital Resources section below.
Previous wording
Our operations are organized, managed and classified into four reportable segments based upon their similar economic characteristics, nature of products and services offered, production processes, types and classes of customer, and distribution methods. We further organize these reportable segments into Core operations and Non-core operations. Core operations comprise our Agribusiness, Refined and Specialty Oils, and Milling segments. Non-core operations comprise our Sugar & Bioenergy segment, which itself primarily comprises the Company’s 50% interest in the net earnings of BP Bunge Bioenergia, a joint venture with BP p.l.c. ("BP").
Current wording
Our operations are organized, managed and classified into four reportable segments based upon their similar economic characteristics, nature of products and services offered, production processes, types and classes of customer, and distribution methods. We further organize these reportable segments into Core operations and Non-core operations. Core operations comprise our Agribusiness, Refined and Specialty Oils, and Milling segments. Non-core operations comprise our Sugar & Bioenergy segment, which itself primarily comprises the Company’s 50% interest in the net earnings of BP Bunge Bioenergia, a joint venture with BP p.l.c. See Note 2 -Acquisitions and Dispositionsfor details regarding Bunge's planned disposition of its 50% interest in BP Bunge Bioenergia.
Previous wording
•In Processing, Net sales decreased 12%, primarily due to lower average sales prices experienced in all regions for our global soybean oilseed processing businesses as well as our Europe softseed businesses, driven by relative price stabilization as a result of supply and demand rebalancing. The above decreases were slightly offset by higher volumes primarily driven from increased activity in our Europe softseed business at our Ukrainian facilities.
Current wording
•In Processing, Net sales decreased 15%, primarily due to lower average sales prices experienced in all regions for our global soybean oilseed processing businesses as well as our Europe softseed businesses, driven by relative price stabilization as a result of supply and demand rebalancing. The above decreases were slightly offset by higher volumes primarily driven from increased activity in our Europe softseed business at our Ukrainian facilities.
Previous wording
•In Merchandising, Net sales decreased 7%, primarily due to lower average sales prices in our global wheat, corn, and oils businesses. This decrease was partially offset by an increase in volumes, primarily due to fewer supply constraints compared to the prior period in our global corn, wheat, and oils businesses as well as an increase in our ocean freight business sales resulting from stronger execution.
Current wording
•In Merchandising, Net sales increased 1%, primarily due to an increase in volumes, due to fewer supply constraints compared to the prior period in our global corn, wheat, and oils businesses. This increase was partially offset by lower average sales prices in our global corn, wheat, and oils businesses.
Previous wording
•In Processing, Cost of goods sold decreased 7%, primarily due to lower Net sales. The decrease was partially offset by unfavorable mark-to-market results in the current period as well as the lack of mark-to-market gains from the recovery of inventory in Ukraine recognized in the prior period.
Current wording
•In Processing, Cost of goods sold decreased 10%, primarily due to lower Net sales. The decrease was partially offset by unfavorable mark-to-market results in the current period as well as the lack of mark-to-market gains from the recovery of inventory in Ukraine recognized in the prior period.
Previous wording
•In Merchandising, Cost of goods sold decreased 8%, primarily due to the lower Net sales as well as favorable mark-to-market results.
Current wording
•In Merchandising, Cost of goods sold increased 9%, primarily due to unfavorable mark-to-market results as well as by higher sales volumes as described in Net sales above.
Previous wording
Other income (expense) - net was income of $53 million for the three months ended March 31, 2024, compared to income of $11 million for the three months ended March 31, 2023. The increase was primarily in our Processing business, due to gains in Argentina related to foreign currency positioning.
Current wording
Other income (expense) - net was income of $56 million for the three months ended June 30, 2024, compared to income of $7 million for the three months ended June 30, 2023. The increase was primarily in our Processing business, due to gains in Argentina related to foreign currency positioning.
Previous wording
Foreign exchange (losses) gains - net decreased 259% to a loss of $62 million for the three months ended March 31, 2024. The net loss in the current year was the result of losses in our Processing business, primarily due to the impact of a stronger U.S. dollar on U.S. dollar-denominated loans payable in non-U.S. dollar functional currency operations.
Current wording
Foreign exchange (losses) gains - net decreased 304% to a loss of $101 million for the six months ended June 30, 2024. The net loss in the current year was the result of losses in our Processing business, primarily due to the impact of a stronger U.S. dollar on U.S. dollar-denominated loans payable in non-U.S. dollar functional currency operations.
Previous wording
•In Processing, a decrease of 72% was primarily due to lower Gross profit, driven by lower margins in our global soybean oilseed processing businesses as well as lower foreign exchange results as described above, partially offset by an increase in other income as highlighted above.
Current wording
•In Processing, a decrease of 75% was primarily due to lower Gross profit, driven by lower margins in our global soybean oilseed processing businesses as well as lower foreign exchange results as described above, partially offset by an increase in Other income (expense) - net as highlighted above.
Previous wording
Refined and Specialty Oils segment Net sales decreased 17%, to $3,240 million for the three months ended March 31, 2024. The decrease was primarily due to lower sales prices in all regions, driven by relative price stabilization and increased supply. Sales volumes were consistent with the prior period.
Current wording
Refined and Specialty Oils segment Net sales decreased 13%, to $3,121 million for the three months ended June 30, 2024. The decrease was primarily due to lower sales prices in all regions, driven by relative price stabilization and increased supply, partially offset by increased volumes due to expanded capacity at our Avondale refinery.
Previous wording
Cost of goods sold decreased 19%, to $2,881 million for the three months ended March 31, 2024. The decrease was primarily due to lower prices in all regions, as described for Net sales above, as well as favorable mark-to-market results.
Current wording
Cost of goods sold decreased 14%, to $2,806 million for the three months ended June 30, 2024. The decrease was primarily due to lower prices in all regions, as described for Net sales above, partially offset by unfavorable mark-to-market results.
Previous wording
Segment EBIT decreased 3% to $226 million for the three months ended March 31, 2024. Although Gross profit was higher compared to the prior period, unfavorable Foreign exchange (losses) gains -net, primarily driven by the devaluation of the Egyptian pound, resulted in an overall decrease in results.
Current wording
Segment EBIT decreased 9%, to $411 million for the six months ended June 30, 2024. Although Gross profit remained consistent between periods, the decrease was primarily due to unfavorable Foreign exchange (losses) gains - net, driven by the devaluation of the Egyptian pound in the first quarter of 2024.
Previous wording
Milling segment Net sales decreased 26%, to $381 million for the three months ended March 31, 2024. The decrease was primarily due to lower sales prices in both our South American wheat milling and North American corn milling businesses. These decreases were partially offset by a slight increase in volumes across both regions.
Current wording
Milling segment Net sales decreased 18%, to $401 million for the three months ended June 30, 2024. The decrease was primarily due to lower sales prices in both our South American wheat milling and North American corn milling businesses. These decreases were partially offset by an increase in volumes across both regions.
Previous wording
Cost of goods sold decreased 34%, to $321 million for the three months ended March 31, 2024. The decrease was primarily due to lower sales prices, as described for Net sales above, as well as favorable mark-to-market results.
Current wording
Cost of goods sold decreased 26%, to $335 million for the three months ended June 30, 2024. The decrease was primarily due to lower sales prices, as described for Net sales above, as well as more favorable mark-to-market results.
Previous wording
Segment EBIT increased 267%, to $33 million for the three months ended March 31, 2024. The increase was primarily due to higher Gross profit driven by South America, as described above.
Current wording
Segment EBIT increased 171%, to $38 million for the three months ended June 30, 2024. The increase was primarily due to higher Gross profit driven by South America, as described above.
Previous wording
Interest income decreased 2%, to $42 million for the three months ended March 31, 2024. Interest expense decreased by (4)%, to $108 million for the three months ended March 31, 2024. Interest income and Interest expense are consistent with the prior period as a result of similar debt levels across periods.
Current wording
Interest income decreased 8%, to $37 million for the three months ended June 30, 2024. Interest expense decreased by 5%, to $123 million for the three months ended June 30, 2024. Interest income and Interest expense are consistent with the prior period as a result of similar debt levels across periods and interest rates remaining substantially flat.
Previous wording
Working capital was $8,311 million at March 31, 2024, a decrease of $352 million from working capital of $8,663 million at December 31, 2023, and a decrease of $321 million from working capital of $8,632 million at March 31, 2023.
Current wording
Working capital was $7,846 million at June 30, 2024, a decrease of $817 million from working capital of $8,663 million at December 31, 2023, and a decrease of $1,063 million from working capital of $8,909 million at June 30, 2023.
Previous wording
Cash and Cash Equivalents - Cash and cash equivalents were $2,939 million at March 31, 2024, an increase of $337 million from $2,602 million at December 31, 2023, and a decrease of $113 million from $3,052 million at March 31, 2023. Cash balances are managed in accordance with our investment policy, the objectives of which are to preserve the principal value of our cash assets, maintain a high degree of liquidity, and deliver competitive returns subject to prevailing market conditions. Cash balances are typically invested in short-term deposits, money market funds, and commercial paper programs with highly-rated financial institutions and in U.S. government securities. Please refer to the Cash Flows section of this report, below, for details regarding the primary factors giving rise to the change in Cash and cash equivalents during the three months ended March 31, 2024.
Current wording
Cash and Cash Equivalents - Cash and cash equivalents were $1,161 million at June 30, 2024, a decrease of $1,441 million from $2,602 million at December 31, 2023, and a decrease of $169 million from $1,330 million at June 30, 2023. Cash balances are managed in accordance with our investment policy, the objectives of which are to preserve the principal value of our cash assets, maintain a high degree of liquidity, and deliver competitive returns subject to prevailing market conditions. Cash balances are typically invested in short-term deposits, money market funds, and commercial paper programs with highly-rated institutions and in U.S. government securities. Please refer to the Cash Flows section of this report, below, for details regarding the primary factors giving rise to the change in Cash and cash equivalents during the six months ended June 30, 2024.
Previous wording
Trade accounts receivable, net - Trade accounts receivable, net were $2,285 million at March 31, 2024, a decrease of $307 million from $2,592 million at December 31, 2023, and a decrease of $504 million from $2,789 million at March 31, 2023. The decrease from December 31, 2023 and March 31, 2023, was primarily due to decreased Net sales in the current period driven by factors described in the Segment Overview & Results of Operations above.
Current wording
Trade accounts receivable, net - Trade accounts receivable, net were $2,277 million at June 30, 2024, a decrease of $315 million from $2,592 million at December 31, 2023, and a decrease of $322 million from $2,599 million at June 30, 2023. The decrease from December 31, 2023 and June 30, 2023, was primarily due to decreased Net sales in the current period driven by factors described in the Segment Overview & Results of Operations above.
Previous wording
Inventories - Inventories were $7,505 million at March 31, 2024, an increase of $400 million from $7,105 million at December 31, 2023, and a decrease of $1,447 million from $8,952 million at March 31, 2023. The increase from December 31, 2023 was primarily due to increased volumes in conjunction with the timing of the South American harvest. The decrease from March 31, 2023, was primarily due to lower average commodity prices partially offset by higher volumes as of March 31, 2024.
Current wording
Inventories - Inventories were $8,057 million at June 30, 2024, an increase of $952 million from $7,105 million at December 31, 2023, and a decrease of $749 million from $8,806 million at June 30, 2023. The increase from December 31, 2023 was primarily due to increased volumes in conjunction with the timing of the South American harvest, partially offset by lower average commodity prices. The decrease from June 30, 2023, was primarily due to lower average commodity prices partially offset by higher volumes as of June 30, 2024.
Previous wording
RMI comprise agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, palm oil, corn, and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. Total RMI reported at fair value was $6,218 million, $5,837 million, and $7,231 million at March 31, 2024, December 31, 2023, and March 31, 2023, respectively (see Note 5 - Inventoriesto our condensed consolidated financial statements).
Current wording
RMI comprise agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, palm oil, corn, and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. Total RMI reported at fair value was $6,776 million, $5,837 million, and $7,196 million at June 30, 2024, December 31, 2023, and June 30, 2023, respectively (see Note 5 - Inventoriesto our condensed consolidated financial statements).
Previous wording
Other current assets - Other current assets were $4,011 million at March 31, 2024, a decrease of $40 million from $4,051 million at December 31, 2023, and a decrease of $236 million from $4,247 million at March 31, 2023. The decrease from December 31, 2023, was primarily due to lower unrealized gains on derivative contracts at fair value, as well as a decrease in both secured advances to suppliers and prepaid expenses. The decrease was partially offset by an increase in margin deposits and marketable securities and other short-term investments. The decrease from March 31, 2023, was primarily due to significantly lower unrealized gains on derivative contracts, partially offset by increases in margin deposits, marketable securities and other short-term investments, and secured advances to suppliers.
Current wording
Other current assets - Other current assets were $3,957 million at June 30, 2024, a decrease of $94 million from $4,051 million at December 31, 2023, and a decrease of $508 million from $4,465 million at June 30, 2023. The decrease from December 31, 2023, was primarily due to a decrease in secured advances to suppliers, lower unrealized gains on derivative contracts at fair value and a decrease in prepaid expenses. The decrease was partially offset by an increase in margin deposits and prepaid commodity purchase contracts. The decrease from June 30, 2023, was primarily due to significantly lower unrealized gains on derivative contracts, as well as a decrease in secured advances to suppliers, partially offset by increases in margin deposits, marketable securities and other short-term investments, and prepaid commodity purchase contracts.
Previous wording
Short-term debt - Short-term debt, including the Current portion of long-term debt, was $1,016 million at March 31, 2024, an increase of $214 million from $802 million at December 31, 2023, and a decrease of $392 million from $1,408 million at March 31, 2023. The higher short-term debt levels at March 31, 2024 compared to December 31, 2023 were due to higher borrowings by Bunge operating companies on local bank lines of credit to meet working capital funding requirement. The lower short-term debt levels compared to March 31, 2023 were driven by timing of payments due as well as an overall reduction of the Current portion of long-term debt.
Current wording
Short-term debt - Short-term debt, including the Current portion of long-term debt, was $954 million at June 30, 2024, an increase of $152 million from $802 million at December 31, 2023, and an increase of $283 million from $671 million at June 30, 2023. The higher short-term debt levels at June 30, 2024 compared to December 31, 2023 and June 30, 2023, were due to higher borrowings by Bunge operating companies on local bank lines of credit to meet working capital funding requirements.
Previous wording
Trade accounts payable- Trade accounts payable were $4,503 million at March 31, 2024, an increase of $839 million from $3,664 million at December 31, 2023, and a decrease of $973 million from $5,476 million at March 31, 2023. The increase from December 31, 2023 was primarily due to higher inventory volumes in conjunction with the South American harvest. The decrease from March 31, 2023, was primarily due to lower average inventory prices during the current period.
Current wording
Trade accounts payable- Trade accounts payable were $3,429 million at June 30, 2024, a decrease of $235 million from $3,664 million at December 31, 2023, and a decrease of $819 million from $4,248 million at June 30, 2023. The decrease from December 31, 2023 and June 30, 2023 was primarily due to lower average inventory prices during the current period along with depreciation of the Brazilian Real and timing of payments, partially offset by increased inventory volumes in South America as discussed above.
Previous wording
Our total debt was $5,095 million at March 31, 2024, an increase of $213 million from $4,882 million at December 31, 2023, and a decrease $625 million from $5,720 million at March 31, 2023. The higher total debt levels at March 31, 2024 compared to December 31, 2023 were primarily due to an increase in short-term bank borrowings as described above. The lower total debt levels compared to March 31, 2023, were due to an overall reduction of long-term debt, including the current portion driven by higher cash provided by working capital changes.
Current wording
Our total debt was $5,040 million at June 30, 2024, an increase of $158 million from $4,882 million at December 31, 2023, and an increase of $91 million from $4,949 million at June 30, 2023. The higher total debt levels at June 30, 2024 compared to December 31, 2023 and June 30, 2023 were primarily due to an increase in short-term bank borrowings as described above.
Previous wording
(1)Includes $190 million of local currency bank borrowings in certain Central and Eastern European as well as Asia-Pacific countries at a weighted average interest rate of 11.71% as of March 31, 2024.
Current wording
(1)Includes $376 million of local currency bank borrowings in certain European, South American, and Asia-Pacific countries at a weighted average interest rate of 21.16% as of June 30, 2024.
Previous wording
In addition, Bunge's operating companies had $1,010 million and $797 million in short-term borrowings outstanding from local bank lines of credit at March 31, 2024, and December 31, 2023, respectively, to support working capital requirements.
Current wording
In addition, Bunge's operating companies had $949 million and $797 million in short-term borrowings outstanding from local bank lines of credit at June 30, 2024, and December 31, 2023, respectively, to support working capital requirements.
Previous wording
As described in Note 2 - Acquisitions and Dispositions, Bunge has secured a total of $8.0 billion in Acquisition Financing. For further details on the Acquisition Financing, refer to Note 13 - Debt. Bunge intends to use a portion of the Acquisition Financing to fund the cash portion of the Transaction Consideration and the remainder repayment of certain indebtedness of Viterra which is expected to be repaid at closing.
Current wording
As described in Note 2 - Acquisitions and Dispositions, Bunge has secured a total of $8.0 billion in Acquisition Financing. For further details on the Acquisition Financing, refer to Note 13 - Debt. Bunge intends to use a portion of the Acquisition Financing to fund the cash portion of the Transaction Consideration and the remainder for repayment of certain indebtedness of Viterra which is expected to be repaid at closing.
Previous wording
Total Bunge shareholders’ equity was $10,551 million at March 31, 2024, compared to $10,851 million at December 31, 2023, a decrease of $300 million. The decrease was primarily due to $400 million in repurchases of registered shares, as described in Note 17 - Equity, and $140 million of loss in Other comprehensive income (loss), as described in Note 17 - Equity, partially offset by $244 million of Net income (loss) attributable to Bunge.
Current wording
Total Bunge shareholders’ equity was $10,002 million at June 30, 2024, compared to $10,851 million at December 31, 2023, a decrease of $849 million. The decrease was primarily due to $400 million in repurchases of registered shares, $392 million of loss in Other comprehensive income (loss), and $385 million of declared dividends to shareholders, as described in Note 17 - Equity, partially offset by $314 million of Net income (loss) attributable to Bunge.
Previous wording
Share repurchase program- As noted in Note 2 - Acquisitions and Dispositions, on June 12, 2023, Bunge Limited's Board of Directors approved the expansion of an existing $500 million program for the repurchase of Bunge’s issued and outstanding shares. At the time, approximately $300 million of capacity for the repurchase of Bunge shares remained available under the existing program and Bunge Limited's Board of Directors approved the expansion of the program by an additional $1.7 billion, for an aggregate unutilized capacity of $2.0 billion at June 12, 2023. The program continues to have an indefinite term. During the three months ended March 31, 2024, Bunge repurchased 4,376,974 shares for $400 million. As of March 31, 2024, 11,893,950 shares were repurchased for $1.2 billion and $1.0 billion remained outstanding for repurchases under the program.
Current wording
Share repurchase program- As noted in Note 2 - Acquisitions and Dispositions, on June 12, 2023, Bunge Limited's Board of Directors approved the expansion of an existing $500 million program for the repurchase of Bunge’s issued and outstanding shares. At the time, approximately $300 million of capacity for the repurchase of Bunge shares remained available under the existing program and Bunge Limited's Board of Directors approved the expansion of the program by an additional $1.7 billion, for an aggregate unutilized capacity of $2.0 billion at June 12, 2023. The program continues to have an indefinite term. During the six months ended June 30, 2024, Bunge repurchased 4,376,974 shares for $400 million. As of June 30, 2024, 11,893,950 shares were repurchased for $1.2 billion and $1.0 billion remained outstanding for repurchases under the program.
Previous wording
During the three months ended March 31, 2024, our cash and cash equivalents and restricted cash increased by $330 million, compared to an increase of $1,905 million during the three months ended March 31, 2023.
Current wording
During the six months ended June 30, 2024, our cash and cash equivalents and restricted cash decreased by $1,422 million, compared to an increase of $208 million during the six months ended June 30, 2023, as further explained below.
Previous wording
Operating: Cash provided by operating activities was $994 million for the three months ended March 31, 2024, an increase of $63 million, compared to cash provided by operating activities of $931 million for the three months ended March 31, 2023. The increase was primarily driven by higher cash provided by working capital changes, as a result of commodity price fluctuations, partially offset by lower reported net income, as described above, during the three months ended March 31, 2024 compared to the three months ended March 31, 2023.
Current wording
Operating: Cash used for operating activities was $480 million for the six months ended June 30, 2024, a decrease of $952 million, compared to cash provided by operating activities of $472 million for the six months ended June 30, 2023. The decrease was primarily driven by lower reported net income and more cash used for working capital funding, driven by increased inventory volumes and the timing of payments, partially offset by lower average inventory prices, during the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Previous wording
Certain of our non-U.S. operating subsidiaries are primarily funded with U.S. dollar-denominated debt, while currency risk is hedged with U.S. dollar-denominated assets. The functional currency of our operating subsidiaries is generally the local currency. The financial statements of our subsidiaries are calculated in the functional currency, and when the local currency is the functional currency, translated into U.S. dollars. U.S. dollar-denominated loans are remeasured into their respective functional currencies at exchange rates at the applicable balance sheet date. Also, certain of our U.S. dollar functional operating subsidiaries outside the U.S. are partially funded with local currency borrowings, while the currency risk is hedged with local currency denominated assets. Local currency loans in U.S. dollar functional currency subsidiaries outside the U.S. are remeasured into U.S. dollars at the exchange rate on the applicable balance sheet date. The resulting gain or loss is included in our condensed consolidated statements of income as Foreign exchange (losses) gains – net. We recorded a foreign currency gain on our debt of $2 million and $50 million, and for the three months ended March 31, 2024 and March 31, 2023, respectively, which were included as adjustments to reconcile Net income to Cash provided by (used for) operating activities in the line item Foreign exchange (gain) loss on net debt in our condensed consolidated statements of cash flows. These adjustments are required as the gains and losses are non-cash items that arise from financing activities and therefore will have no impact on cash flows from operations.
Current wording
Certain of our non-U.S. operating subsidiaries are primarily funded with U.S. dollar-denominated debt, while currency risk is hedged with U.S. dollar-denominated assets. The functional currency of our operating subsidiaries is generally the local currency. The financial statements of our subsidiaries are calculated in the functional currency, and when the local currency is the functional currency, translated into U.S. dollars. U.S. dollar-denominated loans are remeasured into their respective functional currencies at exchange rates at the applicable balance sheet date. Also, certain of our U.S. dollar functional operating subsidiaries outside the U.S. are partially funded with local currency borrowings, while the currency risk is hedged with local currency denominated assets. Local currency loans in U.S. dollar functional currency subsidiaries outside the U.S. are remeasured into U.S. dollars at the exchange rate on the applicable balance sheet date. The resulting gain or loss is included in our condensed consolidated statements of income as Foreign exchange (losses) gains – net. For the six months ended June 30, 2024, we recorded a foreign currency loss on our debt of $103 million, and for the six months ended June 30, 2023, we recorded a foreign currency gain on our debt of $174 million, which were included as adjustments to reconcile Net income to Cash provided by (used for) operating activities in the line item Foreign exchange (gain) loss on net debt in our condensed consolidated statements of cash flows. These adjustments are required as the gains and losses are non-cash items that arise from financing activities and therefore will have no impact on cash flows from operations.
Previous wording
Additionally, no proceeds were received from the disposal of businesses and property, plant and equipment during the three months ended March 31, 2024, as compared to proceeds received on the sale of our Russian oilseed business during the three months ended March 31, 2023.
Current wording
Investing: Cash used for investing activities was $548 million for the six months ended June 30, 2024, a decrease of $164 million, compared to cash used for investing activities of $384 million for the six months ended June 30, 2023. The decrease was primarily due to lower proceeds from the disposal of businesses and property, plant and equipment during the six months ended June 30, 2024, as compared to proceeds received on the sale of our Russian oilseed business during the six months ended June 30, 2023, in addition to higher net payments for investments. These decreases were partially offset by higher proceeds from investments in affiliates related to the refundable deposit received for the planned sale of BP Bunge Bioenergia as further explained in Note 2 -Acquisitions and Dispositions.
Previous wording
Financing: Cash used for financing activities was $259 million for the three months ended March 31, 2024, a decrease of $1,160 million, compared to cash provided by financing activities of $901 million for the three months ended March 31, 2023. During the three months ended March 31, 2024, we received net cash proceeds of short and long-term debt of $238 million, primarily, short-term borrowings from local bank lines, repurchased $400 million of registered shares and paid $95 million in dividends to shareholders. During the three months ended March 31, 2023, we received net cash proceeds of short and long-term debt of $1,002 million, primarily from long-term loans and paid $94 million of dividend payments to shareholders.
Current wording
Financing: Cash used for financing activities was $388 million for the six months ended June 30, 2024, a decrease of $480 million, compared to cash provided by financing activities of $92 million for the six months ended June 30, 2023. During the six months ended June 30, 2024, we received net cash proceeds of short and long-term debt of $191 million, primarily, short-term borrowings from local bank lines, repurchased $400 million of registered shares and paid $191 million in dividends to shareholders. During the six months ended June 30, 2023, we received net cash proceeds of short and long-term debt of $248 million, primarily from draws on long-term loans offset by the repayment of senior notes, and paid $188 million of dividends to shareholders.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
Liquidity and Capital Resources – At June 30, 2024, working capital, which equals Total current assets less Total current liabilities, was $7,846 million, a decrease of $1,063 million, compared to working capital of $8,909 million at
Current report — wording carried from elsewhere
•In Processing, a decrease of 79% was primarily due to lower Gross profit, driven by lower margins in our global soybean oilseed processing businesses, partially offset by an increase in other income as highlighted above.
Current report — wording carried from elsewhere
•In Processing, Net sales decreased 13%, primarily due to lower average sales prices experienced in all regions for our global soybean oilseed processing businesses as well as our Europe softseed businesses, driven by relative price stabilization as a result of supply and demand rebalancing, in addition to lower volumes in our global soybean oilseed processing businesses. The above decreases were slightly offset by higher volumes in our Europe softseed business primarily driven from increased activity at our Ukrainian facilities.
Current report — wording carried from elsewhere
•In Merchandising, Net sales decreased 3%, primarily due to lower average sales prices in our global corn, wheat, and oil businesses. The decrease was partially offset by an increase in volumes, primarily due to fewer supply constraints compared to the prior period in our global corn, wheat, and oils businesses.
Current report — wording carried from elsewhere
•In Processing, Cost of goods sold decreased 8%, primarily due to lower Net sales. The decrease was partially offset by unfavorable mark-to-market results in the current period as well as the lack of mark-to-market gains from the recovery of inventory in Ukraine recognized in the prior period.
Current report — wording carried from elsewhere
Other income (expense) - net was income of $109 million for the six months ended June 30, 2024 compared to income of $18 million for the six months ended June 30, 2023. The increase was primarily due to gains in Argentina related to foreign currency positioning.
Current report — wording carried from elsewhere
Milling segment Net sales decreased 22%, to $782 million for the six months ended June 30, 2024. The decrease was primarily due to lower sales prices in both our South American wheat milling and North American corn milling businesses. These decreases were partially offset by an increase in volumes across both regions.
Current report — wording carried from elsewhere
Segment EBIT increased 209%, to $71 million for the six months ended June 30, 2024. The increase was primarily due to higher Gross profit driven by South America, as described above.
Current report — wording carried from elsewhere
Interest income decreased 5%, to $79 million for the six months ended June 30, 2024. Interest expense decreased 4%, to $231 million for the six months ended June 30, 2024. Interest income and Interest expense are consistent with the prior period as a result of similar debt levels and interest rates remaining substantially flat.