Chicago — US agricultural commodities trader Bunge reported first-quarter profit on Wednesday as higher soya crush margins in the US, Brazil and Europe lifted results for its agribusiness unit, which the company said it is restructuring.
The company announced management changes for the segment, its largest in terms of revenue and volumes, and unveiled a new global operating model, shifting away from a regional structure.
Bunge’s operating structure previously included three regions: North America, South America, and Europe and Asia.
The changes come after a string of weak earnings by the 200-year-old company, which has been stung by a global grains glut and slumping commodities prices made worse by a bruising trade war between the US and China.
Bunge appointed John Neppl as CFO, effective from May 29. Neppl joins from US ethanol producer Green Plains.
The moves “will simplify the organisation and speed up decision making, increasing our strategic flexibility, customer focus and accountability”, said Greg Heckman, who was named as Bunge’s new CEO in April.
Former president of South American sugar and bioenergy Raul Padilla was named president of global operations, overseeing crop handling and processing.
Christos Dimopoulos, formerly president of agribusiness, was appointed president of global supply chains, charged with managing Bunge’s trading and transportation activities.
Bunge said it continues to evaluate its operations as part of a strategic portfolio review announced in 2018.
The company reported net profit from continuing operations of $45m, or 26c per share, compared with a loss of $21m, or 20c per share, a year earlier.
The year-ago loss reflected a $120m charge resulting from the devaluation of some oilseed crushing contracts.
Adjusted net income was 36c per share in the first quarter, topping the 3c-per-share loss expected by analysts on average, according to Refinitiv data.
Net sales in the reported quarter fell to $9.94bn from $10.64bn.
Bunge said gross profit at the agribusiness segment rose to $235m from $203m.
Reuters
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