Bunge Limited (NYSE: BG) today reported fourth quarter and full-year 2022 results.

• Full-year GAAP EPS of $10.51 vs. $13.64 in the prior year; $13.91 vs. $12.93 on an adjusted basis excluding certain gains and charges and mark-to-market timing differences
• Q4 GAAP EPS of $2.21 vs. $1.52 in the prior year; $3.24 vs. $3.49 on an adjusted basis excluding certain gains and charges and mark-to-market timing differences
• Strong close to the year with full-year 2022 results exceeding last year's record performance
• Agribusiness in line with last year's strong results
• Higher Refined and Specialty Oils results reflected strength in all regions
• Market environment expected to continue to be favorable in 2023

• Overview

Greg Heckman, Bunge’s Chief Executive Officer, 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.

“Looking ahead to 2023, we expect the favorable market environment we experienced last year to continue. With our critical position at the center of the global agribusiness supply chain, we remain well positioned to capitalize 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.”

• Financial Highlights

• Fourth Quarter and Full-Year 2022 Results

Core Segments

Agribusiness

Processing ⁽²⁾

Higher results in the quarter were primarily driven by North America, which benefited from the combination of large crops and strong meal and oil demand. Partially offsetting this strong performance were lower results in Europe, which were negatively impacted by higher energy costs and lower volumes, and in South America due to tight bean supplies.

Merchandising ⁽²⁾

Higher results in global grains were more than offset by lower results in global oils marketing, which had a particularly strong prior year.

Refined & Specialty Oils

Refined & Specialty Oils Summary

Higher results reflected strong food and renewable fuel demand with notable improvements in Europe, Asia and South America.

Milling

Milling Summary

The loss in the quarter was primarily driven by low origination volume and high supply chain costs reflecting the small Argentine wheat crop that negatively impacted our local merchandising operations. Results in the prior year benefited from contributions from our Mexican wheat mills which we sold in the third quarter of 2022.

Corporate and Other

Corporate

Other

Corporate and Other Summary

The decrease in Corporate expenses in the quarter was primarily related to the timing of performance-based compensation accruals. The decrease in Other was primarily related to our captive insurance program and lower results in Bunge Ventures.

Non-core Segments

Sugar & Bioenergy

Sugar & Bioenergy Summary

Improved results in the quarter were primarily driven by higher sugar prices which more than offset lower ethanol margins.

Cash Flow

Cash used for operations during the year was $5,549 million compared to cash used of $2,894 million in the same period last year. Adjusted for the proceeds from beneficial interest in securitized trade receivables, cash provided by operating activities was $1,275 million compared with cash provided by operating activities of $2,163 million in the prior year. The lower cash provided by operating activities was driven by lower reported net income as well as an increase in cash used to fund working capital as a result of higher commodity prices in the current year. Funds from operations (FFO) adjusted for notable items and mark-to-market timing differences was $2,357 million compared to $1,958 million in the prior year ⁽⁴⁾.

Income Taxes

For the three and twelve months ended December 31, 2022, income tax expense was $131 million and $388 million, respectively, compared to $64 million and $398 million for the prior year periods. The increase in income tax expense for the quarter was primarily due to higher pre-tax income and earnings mix. The decrease in income tax expense for the full year was primarily due to lower pre-tax income, partially offset by earnings mix. Adjusting for notable items and mark-to-market timing differences, the full year adjusted effective income tax rate was 17.0% compared to 15.7% for the prior year⁽⁵⁾ primarily due to earnings mix.

• Outlook⁽⁶⁾

Taking into account the current margin environment and forward curves, we expect full-year 2023 adjusted EPS of at least $11 per share.

In Agribusiness, full-year results are forecasted to be down from last year as slightly higher results in Processing are more than offset by lower results in Merchandising. While we are not forecasting the same magnitude of margin enhancing opportunities that we captured during 2022, we do see potential upside to our outlook if strong demand and tight global commodity supplies continue throughout the year.

In Refined and Specialty Oils, full-year results are expected to be modestly down from the record prior year.

In Milling, full-year results are expected to be down from last year and in line with historical performance.

In Corporate and Other, results are expected to be in line with last year.

In Non-Core, full-year results in the sugar and bioenergy joint venture are expected to be in line with last year.

Additionally, the Company expects the following for 2023: an adjusted annual effective tax rate in the range of 20% to 24%; net interest expense in the range of $380 to $410 million; capital expenditures in the range of $800 million to $1 billion; and depreciation and amortization of approximately $415 million.

• Conference Call and Webcast Details

Bunge Limited’s management will host a conference call at 8:00 a.m. Eastern (7:00 a.m. Central) on Wednesday, February 8, 2023 to discuss the Company’s results.

Additionally, a slide presentation to accompany the discussion of results will be posted on www.bunge.com.

To access the webcast, go to “Events and presentations” in the “Investors” section of the Company’s website. Select “Q4 2022 Bunge Limited Earnings Conference Call” and follow the prompts. Please go to the website at least 15 minutes prior to the call to register and download any necessary audio software.

To listen to the call, please dial 1 (844) 735-3666. If you are located outside the United States or Canada, dial +1 (412) 317-5706. Please dial in five to 10 minutes before the scheduled start time. The call will also be webcast live at www.bunge.com.

A replay of the call will be available later in the day on February 8, 2023, continuing through March 8, 2023. To listen to it, please dial 1 (877) 344-7529 in the United States, 1 (855) 669-9658 in Canada, or +1 (412) 317-0088 in other locations. When prompted, enter confirmation code 8444555. A replay will also be available in "Past events" at "Events and presentations" in the "Investors" section of the Company's website.

• About Bunge

At Bunge (NYSE: BG), our purpose is to connect farmers to consumers to deliver essential food, feed and fuel to the world. With more than two centuries of experience, unmatched global scale and deeply rooted relationships, we work to put quality food on the table, increase sustainability where we operate, strengthen global food security, and help communities prosper. As the world’s leader in oilseed processing and a leading producer and supplier of specialty plant-based oils and fats, we value our partnerships with farmers to improve the productivity and environmental efficiency of agriculture across our value chains and to bring quality products from where they’re grown to where they’re consumed. At the same time, we collaborate with our customers to create and reimagine the future of food, developing tailored and innovative solutions to meet evolving dietary needs and trends in every part of the world. Our Company is headquartered in St. Louis, Missouri, and we have almost 23,000 dedicated employees working across approximately 300 facilities located in more than 40 countries.

• Website Information

We routinely post important information for investors on our website, www.bunge.com, in the "Investors" section. We may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

• Cautionary Statement Concerning Forward-Looking Statements

This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including “may,” “will,” “should,” “could,” “expect,” “anticipate,” “believe,” “plan,” “intend,” “estimate,” “continue” and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could cause actual results to differ from these forward-looking statements: the impact on our employees, operations, and facilities from the war in Ukraine and the resulting economic and other sanctions imposed on Russia, including the impact on Bunge resulting from the continuation and/or escalation of the war and sanctions against Russia; industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business, fluctuations in energy and freight costs; competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional economic, agricultural, financial and commodities market, political, social and health conditions; the ongoing impacts of pandemic outbreaks, including COVID-19; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; the impact of government policies and regulations; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies and environmental, tax and biofuels regulation; the impact of seasonality; our capital allocation plans, funding needs and financing sources; changes in foreign exchange policy or rates; the effectiveness of our risk management strategies; our ability to attract and retain executive management and key personnel; the impact of our dependence on third parties; operational risks, including industrial accidents, natural disasters and cybersecurity incidents; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.

• Additional Financial Information

Certain gains and (charges), quarter-to-date

The following tables provide a summary of certain gains and (charges) that may be of interest to investors, including a description of these items and their effect on Net income (loss) attributable to Bunge, Earnings per share diluted and Segment EBIT for the three month periods ended December 31, 2022 and 2021.

See Definition and Reconciliation of Non-GAAP Measures.

Core Segments

Agribusiness

EBIT for the quarter ended December 31, 2022 included $19 million of impairment charges related to the sale of our Russian oilseed processing business, recorded in Cost of goods sold.

Refined and Specialty Oils

EBIT for the quarter ended December 31, 2021 included a $35 million fixed asset impairment charge, at Bunge’s then-70% share, related to an oils facility in China, recorded in Cost of goods sold.

Milling

EBIT for the quarter ended December 31, 2021 included $170 million of impairment charges on classification of our Mexican wheat milling business as held-for-sale, recorded in Cost of goods sold.

Corporate and Other

EBIT for the quarter ended December 31, 2022 included $53 million of charges related to the impairment of minority investments in two start-up manufacturers of novel protein ingredients, Merit Functional Foods and Australian Plant Proteins, recorded in Income (loss) from affiliates.

Certain gains and (charges), year-to-date

The following tables provide a summary of certain gains and (charges) that may be of interest to investors, including a description of these items and their effect on Net income (loss) attributable to Bunge, Earnings per share diluted and Segment EBIT for the years ended December 31, 2022 and 2021.

See Definition and Reconciliation of Non-GAAP Measures.

Core Segments

Agribusiness

EBIT for the year ended December 31, 2022 included $80 million of charges resulting from the Ukraine-Russia war, recorded in Cost of goods sold, primarily related to losses associated with inventories physically located in occupied territories in Ukraine or in difficult to access locations with high costs of recovery.

EBIT for the year ended December 31, 2022 also included $40 million of impairment charges on the classification of our Russian oilseed processing business as held-for-sale, recorded in Cost of goods sold. The $40 million charge included $19 million of incremental impairment charges as a result of an agreed upon indexation of the sales price during the fourth quarter of 2022.

EBIT for the year ended December 31, 2021 included a $158 million gain on sale of a portfolio of interior grain elevators located in the United States (U.S. Grain Disposition), recorded in Other income (expense) - net.

Refined and Specialty Oils

EBIT for the year ended December 31, 2022 included $55 million of impairment charges and employee severance expenses on the classification of our Russian oilseed processing business as held-for-sale, recorded in Cost of goods sold.

EBIT for the year ended December 31, 2021 included $170 million in gains on sales of assets, comprising a $151 million gain on sale of our Rotterdam Oils Refinery, at Bunge’s then-70% share, and a $19 million gain on sale of an oil packaging facility in Mexico, both recorded in Other income (expense) - net.

EBIT for the year ended December 31, 2021 also included a $35 million fixed asset impairment charge, at Bunge’s then-70% share, related to an oils facility in China, recorded in Cost of goods sold.

Milling

EBIT for the year ended December 31, 2021 included $170 million of impairment charges on classification of our Mexican wheat milling business as held-for-sale, recorded in Cost of goods sold.

Corporate and Other

EBIT for the year ended December 31, 2022 included a $29 million gain, at Bunge's then-70% share, related to the settlement of one of the Company’s international defined benefit pension plans, recorded in Other income (expense) - net.

EBIT for the year ended December 31, 2022 also included $11 million of impairment charges on the classification of our Russian oilseed processing business as held-for-sale, recorded in Cost of goods sold.

EBIT for the year ended December 31, 2022 included $53 million of charges related to the impairment of minority investments in two start-up manufacturers of novel protein ingredients, Merit Functional Foods and Australian Plant Proteins, recorded in Income (loss) from affiliates.

Net income for the year ended December 31, 2022 included $39 million of expense (net of $8 million in tax benefits) related to the early redemption of the Company's 4.350% unsecured senior notes due March 15, 2024. In connection with the early redemption, the Company recorded a $47 million pre-tax charge within Interest expense, comprising a $31 million "make-whole" payment and a $16 million loss on the termination and de-designation of related interest rate hedges.

Net income for the year ended December 31, 2022 also included $30 million tax expense on sale of the Mexico wheat milling business.

• Consolidated Earnings Data (Unaudited)

(a) The line items "EBIT attributable to noncontrolling interest" and "Noncontrolling interest share of interest and tax" when combined, represent consolidated Net (income) loss attributable to noncontrolling interests on a U.S. GAAP basis of presentation.

• Condensed Consolidated Balance Sheets (Unaudited)