Canada Markets closed

UPDATE 2-Bunge raises full-year profit outlook after quarterly income rises

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

(Adds details on vegetable oils business, earnings and revenue estimates)

July 28 (Reuters) - U.S. agricultural commodities trader Bunge Ltd raised its full-year adjusted profit outlook on Wednesday after strength in its vegetable oils business drove a 41% jump in income in the three months to the end of June.

The company said it expects full-year 2021 adjusted income of at least $8.50 per share, up from its previous estimate of about $7.50 per share.

Shares jumped 4.5% in premarket trading.

Bunge's results offer an insight into how major grain traders around the world are emerging from the COVID-19 pandemic that triggered massive shifts in food and fuel demand after consumers last year cooked more meals at home and avoided unnecessary travel.

Increased demand for vegetable oils from food service companies and the renewable diesel sector are now lifting Bunge's expectations for earnings, the company said.

Bunge reported adjusted earnings of $113 million in its refined and specialty oils segment for the quarter that ended on June 30, up from $48 million a year earlier. The unit's operations involve the processing, production and marketing of products derived from vegetable oils.

Adjusted earnings in the agribusiness fell from last year, though net sales rose sharply. Bunge said its processing operations in Brazil, the world's top soybean producer, posted lower results because farmers sold their crops more quickly in 2020.

Bunge said total adjusted net income rose to $398 million or $2.61 per share, in the quarter ended June 30, from $282 million, or $1.88 per share, a year earlier. Analysts were expecting earnings of $1.62 per share, according to Refinitiv IBES.

Revenue of $15.391 billion beat Wall Street estimates for $11.583 billion.

(Reporting by Arunima Kumar in Bengaluru and Tom Polansek in Chicago; editing by Uttaresh.V, Kirsten Donovan)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting