Bunge Global SA — FY2023 Form 10-K
Reporting period: Fiscal year ended December 31, 2023; the filing also reports fourth-quarter results. Bunge is a global agribusiness and food company operating in Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. Its shares trade on the NYSE as BG. The company completed its redomestication from Bermuda to Switzerland on November 1, 2023.
Financial performance and liquidity
| Metric | FY2023 | FY2022 |
|---|---|---|
| Net sales | $59.540 billion | $67.232 billion |
| Gross profit | $4.845 billion | $3.682 billion |
| Net income attributable to Bunge | $2.243 billion | $1.610 billion |
| Diluted EPS | $14.87 | $10.51 |
| Total Segment EBIT (non-GAAP) | $3.333 billion | $2.331 billion |
| Cash from operating activities | $3.308 billion | $(5.549) billion |
| Capital expenditures | $1.122 billion | $555 million |
Revenue declined as commodity prices normalized from the elevated prior-year environment; gross profit, attributable earnings, EPS, and Segment EBIT increased. Adjusted operating cash flow, including proceeds from beneficial interests in securitized receivables, was $3.395 billion versus $1.275 billion. The large reported operating-cash-flow swing also reflects working-capital movements and a change in receivables-securitization structure.
Fourth quarter: Net sales were $14.936 billion, net income attributable to Bunge was $616 million, and diluted EPS was $4.18. The comparable 2022 quarter reported net sales of $16.660 billion, attributable net income of $336 million, and diluted EPS of $2.21.
Balance sheet at year-end: Cash and cash equivalents were $2.602 billion; working capital was $8.663 billion and the current ratio was 2.13. Total debt was $4.882 billion, up from $4.651 billion; unused committed revolving capacity was $5.665 billion. Total equity was $11.814 billion.
Segment EBIT: Agribusiness $2.786 billion (up 62%); Refined and Specialty Oils $865 million (up 16%); Milling $66 million (down 59%); Sugar and Bioenergy $164 million (up 56%); Corporate and Other $(548) million versus $(397) million. Segment EBIT is a non-GAAP measure and is not equivalent to consolidated operating income.
Material changes, outlook, and notable items
- Agribusiness EBIT improved on stronger processing margins, while merchandising results weakened, particularly in ocean freight. Lower commodity prices reduced reported sales across major segments.
- Milling results fell partly because the Mexican wheat-milling business was sold in 2022. Sugar and Bioenergy benefited from higher sugar prices and a tax valuation-allowance release at its BP Bunge Bioenergia joint venture.
- FY2023 included $114 million of Viterra acquisition and integration costs, a $37 million North American fixed-asset impairment, a $20 million impairment of a long-term investment, and a $16 million impairment of the Australian Plant Proteins investment. A $29 million gain related to recovered Ukrainian inventory was also recorded. Income tax expense was $714 million, including a $90 million net benefit from Swiss tax credits.
- The Viterra acquisition remained pending at filing. Expected consideration comprised approximately 65.6 million Bunge shares and $2.0 billion cash; closing was anticipated in mid-2024, subject to approvals and other conditions. Bunge secured $8.0 billion of acquisition financing and expected total debt to rise to approximately $16 billion after closing. Certain regulatory-clearance termination circumstances could trigger a $400 million fee.
- Management planned 2024 capital expenditures of $1.2–$1.4 billion, primarily funded from operating cash flow. The filing does not provide a clear earnings or EPS forecast. Management said input-cost inflation was expected to continue into 2024.
- Key risks include crop and weather volatility, commodity and freight prices, foreign exchange and interest rates, competition, global economic conditions, regulation and deforestation requirements, counterparty credit, and operational or cybersecurity disruption. The Ukraine war continues to threaten facilities and logistics; Ukrainian assets and liabilities each represented less than 3% of consolidated totals. Bunge reported no material cybersecurity incident to date.
- Legal matters include Brazilian indirect-tax claims of $212 million for ICMS and $438 million for PIS/COFINS; these are asserted claims, not disclosed as expected losses. Recorded provisions for non-income-tax, labor, civil, and other claims totaled $199 million. Maximum potential payments under disclosed guarantees totaled $731 million, with $9 million recorded.
Most important facts for investors to verify
- Viterra regulatory approvals, closing timing, final share and cash consideration, financing terms, and the resulting debt and ownership dilution.
- Whether higher processing profitability and operating cash generation persist as commodity prices, margins, and working-capital needs change.
- Execution of the 2024 capital-spending plan and the pace of remaining share repurchases; Bunge had repurchased $800 million under its program by year-end and $1.1 billion cumulatively by February 21, 2024.
- Developments in Ukrainian operations, Brazilian tax and legal proceedings, farmer-credit exposures, and the company’s ability to meet new climate, deforestation, and ESG reporting requirements.
- The assumptions behind fair-value measurements for commodity inventories and forward contracts, including significant unobservable local-market inputs, and the realization of deferred tax assets and Swiss tax credits.