Bunge Limited (BG) 31 Jul 242024 Q2 Earnings call transcript

Good morning, everyone, and welcome to the Bunge Global SA Second Quarter 2024 Earnings Release Conference Call. [Operator Instructions] Please also note, today's event is being recorded.

At this time, I'd like to turn the floor over to Ruth Ann Wisener. Ma'am, please go ahead.

thank quarter joining earnings and for this operator, second our call. you, you us for morning Thank

Before we discussion. get our know found that started, the website I want have at Events to to at slides bunge.com accompany and Center our Investor This under be we can on let Presentations. you

non-GAAP of posted most our as website the on GAAP comparable Reconciliations directly to well. measures are financial measure

reflect includes Bunge's X Slide view I'd various like are forward-looking remind that future statements today's you subject uncertainties. that and These to to respect and presentation performance industry current you with to to financial forward-looking and direct events, risks conditions. statements

differ provided concerning contained in materially with information additional encourage reports its this the presentation, has and factors on to cause SEC could factors. we review these file to from Bunge that you those in results actual

Greg this turn John Officer. Chief call Financial morning the to On Bunge's over are and Officer; Chief Neppl, call Greg. now Executive I'll Heckman, the

morning, you, thanking and Ann, Thank Ruth their focus. everyone. and team I for the start dedication by to want good

to We're and by with effectively impressed the Viterra. this commercial integration drive. on passion our planning. making combination our grow by and priorities, business look continue to forward and progress We I'm excellent opportunities deliver so the existing future operational team's on excited to

continuing ways is be more process complete a Two teams close. progress. are are regulatory working very well approval together we'll and identifying company in the planning many process The post to

would the the the we we see to months. with remaining required, on discussions, jurisdictions. authorities issues receive remaining are several the close and While transaction that in Based and the we continuing to the have next relevant deal, be constructively economics engage of approvals we expect bulk to in approvals ongoing the of material no the

We in half results. EBIT, reflecting our adjusted muted others. offset the delivered during conditions second quarter, of margin the environment by some more in solid regions to partially improved Turning

We're approach. their and team requires very for proud adapt of a ability Our different to balanced market deliver. the

dynamics we rest For the of in still are XXXX, Demand good. discussed place. have that the see we is

both hangs spot at ends visibility market, year. customers Our the in supply later largely in it the of the limits chain

markets both see approximately evolving into full We're controlling supply-demand and the in several in markets tremendous $X.XX. we tapping amid the adjusted done curves over past now world, can work expect the the environment on years Based our today, we EPS strengthen around we what we've what of the forward the business. year to

walk our hand outlook I'll additional now will through to and then close financial we'll in who more results detail, thoughts. the John, and some call over John? with

and Thanks, everyone. Greg, good morning,

timing a the per mark-to-market Reported negative turn versus $X.XX business to share earnings Adjusted share with impact of on unfavorable Viterra. quarter per compared associated Reported in year. and related second share $X.XX the results transaction EPS in our XXXX. announced per quarter included was highlights combination $X.XX in an to of was prior costs and the $X.XX integration with the Slide second X. $X.XX of quarter Let's earnings $X.XX to difference

results America more quarter results Asia. core were quarter before in South and million earnings from in by segment and million were $XXX North year. year, down last taxes, offset was and last processing than million Europe in the of the versus Adjusted as interest $XXX and results crush EBIT, softseed soy higher or Agribusiness lower $XXX in

primarily grains. results driven by were Merchandising lower global

Europe. a well, South results America Asia than were and year. offset in Our were down more Oils Specialty in Higher and lower from prior Refined strong results than offset but volumes margins. lower and more by by performed North

reflecting driven in line the the Results U.S. were prior primly Milling by year. results South with volumes in margins. were higher America, higher and

largely due performance-based is last from improved compensation. Other and Corporate to The Corporate lower expenses year. in decrease

results primarily to Our insurance captive our Other in were related program.

our which million sugar approximately than lower U.S. prices, dollar-denominated Brazil Non-core results debt. ethanol exchange translation negatively core due venture, impacted in to higher foreign with bioenergy by and prices. offset $XX joint Results losses more were sugar In were also

year from $XX a benefit Results of tax reversal the a allowance. included the prior million valuation from

last The first expense to Net primarily the income The of X compared the was million million year was interest year. tax quarter pretax to in year. increase $XX in the is line income. of reported $XXX million in expense months due $XXX prior with lower

months. period Slide execution trend of the trend the market The by to turn adjusted see markets more years, X reflects less team. combination where the favorable allocation. you balanced earnings. Slide past can over translating and into environment lower Strong XX X, EBIT EPS details our volatile reflects more our Let's over a and performance full with trailing recent X capital along and

safety, first the million allocating environmental, generated which we discretionary million After $XXX operations. from to the $XXX CapEx, available. cash For adjusted funds half year, and includes maintenance, we of had $XXX flow of of sustaining health million

amount, relates greenfield our this previously This million multiyear repurchased cash of million dividends, a million of Of and in to about large of $XXX which investments shares. Bunge retained resulted in and $XXX paid use growth we flow. million CapEx, half of invested in $XXX productivity-related $XXX

end $X.X our billion the above. or progress range CapEx to could with the end in billion products. now our slightly year perhaps higher are on the greenfield of $X.X of We We

reduce would XXXX expectations. this our However,

inventories, $X RMI, Moving to X. exceeded net or Slide billion. debt approximately our Quarter-end by readily marketable

at ratio, net the X.Xx of to Our debt adjusted was reflects adjusted which EBITDA, leverage adjusted quarter. the end our

close $X billion, of Slide draw our Viterra X credit end, we upon which at approximately transaction. liquidity highlights of available quarter $X.X will At the the position. to facilities become includes billion that committed have

transaction. end liquidity us our Viterra the that we of available to term amounts all was unused These of providing with the the on the needs. addition to at With currently, the capital billion ongoing secured are $X manage $X.X to loan ample in quarter, us billion have fund to commitments

RMI above The ROIC to weighted our ROIC capital of average above X.X%. months of XX.X%, Slide adjusted XX well capital adjusted cost of turn Please XX. was of XX.X%, cost trailing X%. weighted was average our well

XX. Moving to Slide

approximately we our months, discretionary cash a produced of XX of trailing flow the yield $X.X compared cash cost flow of X.X%. For equity to at XX.X% billion,

Please to and XX outlook. our XXXX Slide turn

As and in adjusted Greg approximately of half pending that forecast margin forward results expect the mentioned current EPS XXXX are the first year. taking Note curves, this account that into transactions close year expected environment remarks, during his excludes any we now full to $X.XX.

by the down Both In reflecting higher are expected full forecasted year. in results our in be largely with to are outlook, last to results in processing, line year Agribusiness, lower merchandising. offset be compared to previous results

Oils record to expected to from compared up previous Specialty and full year quarter, last Refined year's a our second are results down to performance. The better-than-expected but be due outlook

full Milling expected our results to The up from similar be outlook year to previous last are and year.

results to outlook. In be our Corporate expected Other, to and year are similar previous full

results year. outlook year be bioenergy and Non-Core, joint from sugar down expected are significantly full In our to from our last venture in & previous down slightly

amortization in I $X.X to the $XXX for expense million. XXXX: billion approximately annual capital expects effective billion, to company the as range mentioned million in of interest to of Additionally, tax adjusted $XXX following and XX% of range the million; rate XX%; the and expenditures $XXX depreciation $X.X earlier; of net

that, closing With over to back turn Greg I'll things for comments. some

John. Thanks,

I few closing want a Q&A, to to go we just before thoughts. So offer

customers environment. drivers demand fundamental meet both our services our strong. to ends the ahead, at look fuel feed find products of food, we're our for increase. global to our continues well needs positioned and of market we chain, business regardless the With to the platform, the Long-term value remain and of of As very solutions

Our security strategic will needs. capabilities pressing combination to us help with us geographies accelerate the optionality world's address providing even more food and our diversification, Viterra assets, crops, most with and

mentioned teams planning work to capacity we have at post this organizational I and close. both As earlier, unlocking integration, additional our look hard forward been

of in partner range for We're our venture our also joint to will the interest Brazil our future, sugar initiatives the BP. that strengthen the & progressing company other bioenergy of strategic on sale including in a

become in with the has I'm the to very work pleased done leader the great a industry. team

to long-term allow but Bunge's core it on focus will not strategy, to those is business businesses. divesting this resources our core However, us

a and next the harvest, plan farmers solutions over our commercial acreage winter carbon Chevron, also planted canola pilot in significantly successful season lower effort farmers and provide completed in consumers. is Corteva of partners, acres with to increase a We X,XXX Working for the in After recently for the to our XX,XXX crop U.S. Southern year. to

creating these We meet hope more environmentally consumers' demand to results farmers. sources additional while energy, for for future, revenue sustainable driving on build growing promising to

soybean and from meal in products. Bunge customers CP their work nutritious, to shipped This a and transportation, trace all technology the help processing the global is increase In Brazil sustainability using to traceability platform to to farm Asia, safe successfully to addition, of and in Foods, transparency Foods with we traceability traceable soy end-to-end doing our commitments. of food product the another for fulfill way CP destination. several vessels deforestation-free sustainable tested We reliability example to leader is committed to feed jointly and allowing from blockchain

with that on fuel to opportunities while feed our positioned deliver of delivering to can connecting we focus on customers we're to while for And critical longer mission the solutions, stakeholders, provide investing look not world. today, to to food, Our consumers our deliver to business, strengthen the term. only improve, remains over value but we and so great well to always farmers all essential

Q&A. that, turn with And we'll to

comes from Barclays. Instructions] question Ben from today Our first Theurer [Operator

you months, is for $X, the you we second to drivers And just the split, guidance which my do if and obviously, as XX-XX back just it. At at we sit now, first gets go half. $X.XX $X.XX-something us $X.XX. question around take math, the we behind If understanding around X it just the roughly really the look

ago, clearly, have complete meal we've conditions a changed. environment just crush from X by But months in different seen

be seeing understand market to conservative what feels coming rather with So to out want a what guidance. are to in you the

is is, as be crush if to right this not in us. year years? given in the you lock conceptually, and volume could have the fourth should skew seems how think just, now, about maybe not, where that's we So that prior pronounced as to Just how that been or quarter usual what explain able to you

Sure.

last had But it we first QX, QX since margins, lock in Gross out, we were start. in of that confidence half to kind and as roll together late laid you us it yes, me into able time. did been improve we gave and about overperformed the gave that us have Let also to where margin and we what to through. talked the some visibility

spot. for Now and customers, end spot said, as that visibility. the very got as very inverted. very little as demand We've knows, oil strong, and everyone while And being farmer the remains are the margin very QX curves well meal consumer the

don't And visibility QX. just out, it's one important historically much we in us. have you So an that for called as

So and see had I what $X.XX. think we through now the the said that's call it, we to and we it approximate roll why that's confidence but

Ben, toward this little bit were while point. maybe where not to think, second you one. I the XX-XX but shifted half of at we've didn't a before. a just half, probably the change, for overall forecast second add more shift, But like look at When we lot more QX, XX-XX

a So from to QX. shift slight QX

divestitures. have some That's regulatory any good financial and you've to be the adversities conversations it, potentially you -- not that your into pending I not as you color. Viterra Okay. talk with approvals just then too comments to look meaningful much made able And on about might imply know but on

Just finish wanted asked what's color order are the this to to line. a going if you of kind on give and do things more the little you the get be see how to in negotiations deal over could us might bit

been great Sure. all jurisdictions has work, of clearances. doing we The majority the team issued the have and have

end engaging currently getting then others, a of with the as of Canada, are China the process. we're EU, of just We handful kind and the to

plans The great and done in integration leadership capital plans, on job the team. on the a team the place. has are preparing structure Those financing, plans for the the around

making conclude But Any as the we are companies to to we're be to of and that are those. going to the But on on public, have said, close pretty operate to and current we're able up the quick, those in then you are lines as several -- expect we things progress, months. confidential. I us become know, transaction. able conversations separate those as time as next continue Now, share some rolling we'll that of until

Samuelson from Adam Our comes next from question Sachs. Goldman

Maybe first Merchandising the side on question of Agribusiness.

alluded tempered. kind you've in so were of crush the environment the but bit more margin the Merchandising on has a the little And improved nearby, piece comments

balance farmer of And additional are Refined the Merchandising outlook question in a for and I've selling on the got some in how year. side. seeing influencing love then you're of I'd guess, over I what color follow-up Brazil, terms kind of the in those Oils your on Argentina

Sure. Okay. Yes.

'XX look the of you this been about at slow. very that, don't what has crop year. definitely if has shift of lower Argentina, crop going producers of So to like prices, And But to the the we're recovered, was half get right? the is course, that. as selling part

that catalyst And drive then been policy, economic to government come has really the with them sell. to

And so be the it's about very the see develops been really how is going second And very, government to pace there. policy in slow to and that the Argentina. a FX half

logistics I to expected. a we in XX place tons you able combined was saw million some year that of up than, that. the in tightness crop, in think, metric industry the and ended And had last I industry larger In and handle about so be with lower Brazil, that bean crop think to the corn what as constraints

end prices. the crop you then spot, That margins smaller for delivery. the and when ton other smaller pressure right? is being worried the and the demand good same challenges take the meal chain the the doesn't a while Merchandising. And consumer logistics, There the moving selling, especially about and drove in in that's oil, XX supply opportunistic then very piece, then very the lower that globally, rewarded like hurt to farmer for million been and around aren't and with And of has the the lot as again, and crop up metric spot farmer you

they become supply chain, for have pulled rewarded So the they they've inventories, and lower. the in down of down if pulled length their been buying prices spot

little And so tougher that's environment for the Merchandising bit a in as been well.

their have again, then, markets the watching lower the weather kind And see improving And Canada. selling. and there America marketing livestock in prices of We've Hemisphere, window. slower S&D when continue. the seen developed the here weather North in on critical don't Northern generally that and and temps they're canola Northern see as the producer be is farmer about we Again, entering door how looking on out also there. This soybeans got course, seed the more like North then the balanced in what and will that America, become really margins Hemisphere. the a in how they the although can of crop will we're And

really the on to color. And just being performance, Oils talked raising That's cited kind of the Asia second you Refined helpful which the you reflect strength. about of then largely area year-on-year side, release the quarter outlook the

about at what forward the relative us half months you be in that X help you why don't persisting to And think your same ago? surprised strength second that Was think the quite expectations level. the just would for

somewhat our late some the the that did see come cocoa And was helpful. energy of help weren't stronger side, expecting demand, that tight so received supply, in oil additional on we our tropical energy demand We in some bit a little in butter we butter in U.S. on RS, cocoa the equivalents, then

constructive. So was that

don't And year, I of we visibility, energy soybean on I not and think out takes. drive puts and side here. we're that think we're demand, look but balance when side on the prices the the the true think, inclusion drive have calling especially only lower oil on the always at demand meal, soybean that seeing and food but both in that's, that we in I for the And

Jones Our comes from from next Heather Jones Research. question Heather

just have people been QX wondering, the mentioned about these we the in and sell. you've because ask QX. crush into coverage farmers buy had for I than slow just or the been lower very wanted customers the But to U.S. soy you've markedly had rallies. and has to your and going so Greg, expected,

seeing margins QX and And that have QX, robust And is so but the covered? we're present? at how much as we're do of thinking your any about to that particularly exposure so QX, you

Yes.

you look late at a global of we the pretty were setup, well that think and the kind very and strength quarter. I of if in hedged, came QX lot

they job we then of did open also the executing, team we had. on, out great the a the the say balance I'll crush that and of Now closing have as executed capacity

year that That's run went and $X.XX. go hedge that to gave some through ahead have us some seen of lock able up QX, we've to to there what when QX and As to first late we confidence the overperformance been in. the of it the in the roll roll we half,

there's QX, liquidity and QX in said, low no yet being visibility. and really That very

balance things the I watching So keys be QX. for and that the QX develop think we'll as of are late the here those

to covered heavily bit July. at here especially add of on just by largely of affected Sun pretty we're QX as much there. a Heather, point, is soy Maybe coverage not the But there, well Yes. crop, the on maybe so covered this canola as that side. for little as end

experienced. And wondering QX. what Okay. the industry side, during were that had just on not industry read then some periods just but of margins if I you those the outlook, could understand, best in from that help Because in more and heard only repeatedly ever quarter there were happened the was also the cash has where the us Argentina

And very talking -- that. around farmer your sell. is all it clearly, would different you times when commentary are was But from the

help how business you're So me I and to thinking if was half. those just the second wondering difference that understand about between for could you the then

Yes.

not robust -- came surges. up. kind you're It may that the out some we say came provide was you're sporadic. ability picked crush fact the different think and that dribbled I in slow, would have selling costs, to you in that above it margins did -- at but farmer That of right on some the I saw fixed the

second reacts how on really That being the the it on case, half. farmer the depends

right, of that Europe. into lower that, meal soybean was offset the were exports Now moving

good of of we other That sword. so continue kind Europe side and And meal strong see to the in there the margins imports. demand with was less

Our America. next Bank question comes from from of Salvator Tiano

firstly, should quarter. when be your around on think ago I'm -- that $XX to So you was Merchandising, said $XXX it years earnings wondering X normalized Merchandising per million I million

So now so this for more low below we've quarters a few even QX. the and been end

expect back your are change is ag earnings you're $XXX us you Or is million below outlook? figure? made to to you that when it go this And situation Has the earnings so $XX that do bad normalized? much simply million so to the normalized

remember, were assumptions model are baseline, the our say, baseline I'd in our today. those below Yes. for we operating and

the one Now opportunities that's And those capitalizing toughest on always a up, think the to team good those. job come predict. as I of does

interesting S&D, But of we've you markets that's right? margins, balanced this pretty And time the transition, pressure and see higher these on transition a when into from adjustment been more in right? a prices generally when

like The sheets. farmers storage They have lower good, selling strong of a have available, prices. and don't lot they balance

you building they're how So seeing inventory, and will, plays weather the if how S&Ds out the and out. play

their got rewarded. is you've then patience their and is inventories, the consumer, actually chains, also supply shrinking being And which reducing

gets more in the and that's from the a you've the around on now, seen some and So as pressure could margins going upside seeing. start in what of back what and where to an happen opportunities a market develop. until transition But happen of puts of balance. really what think I we've put -- get what we pretty the been much getting we're market from could through, takes there to spot that's more weather I close the And think demand on be

topping be -- Okay. one continues little the looks bit quarter, refined after want quarter you're ask Perfect. you're about products. that own And like It segment your expectations. to it also a to I

better why on And you it oil it -- also expected. edible if on fuel mostly And is mostly to say did go you the the Is things where side? side? than can

been both. It's

a shift trade eating from maybe demand. -- at Our on eating home, well customers to food a away where and the probably favorable customers, been we've little oil while mix we're down as brands the that for of seeing they're they're home on beneficiary bit the the some as of that things on

one for demand. when one also with oil demand, food then about you think the doesn't And it go

pretty lower with resilient side. as energy some demand well. seen been the we've on that's then And on So food the price, improvement the

our I -- side side, solve their equivalents supply as been on helping and talking And of cost into we've as about our benefit on then tropical with tighter supply a customers lowering the lastly, the butter butter products. our some the problems for they was and/or cocoa reformulate cocoa definitely of

the technical execution has our of team environment. bit been the as dealing little with team team working a the job, challenging So customers doing with they're a and a great

Tom comes from Palmer question next Citi. Our from

slightly kind cash allocation. wanted Or for I closes? ask done not of with something given the it might line? repo And debt? Would transaction of see the you if Are the to just just sooner excess on use until repo, capital share free flow? we time the be Viterra what's extended

going think got -- going expecting not Tom, ratings the want close relative targets this we've close we're that to the to hit is look, related process, to John. Viterra I share repurchases mainly -- to we're because upgrade Yes, transaction. a as any to the to leverage prior commitments probably commit into we and

do to committed but what it ourselves close, obviously we expect We XX-month still makes did window we'll give makes are post and when sense. program sense But execute that to that close. post an very

increasing And we're by year. late that proceeds that Certainly, play some of to sugar, it those from will I would of the role hoping purchase meaningful the just -- -- add announcement repurchase maybe close that proceeds. meaningful program, a amount that could in this -- with

color there. couple wanted kind to the years. on of of plan Good Great. over just capital I next And ask then

multiyear this cycle. You've got CapEx

opening next think I getting bit will of longer tooth the year. in we're here little a start projects in terms

on might Viterra. is, any to how seeing it compare and before CapEx about think understand, And again, I what we're to early XXXX this year? Just how thoughts this

Yes.

depending next a end the we're So on of our could be getting the be of going of commissioning. CapEx the end to billion make projects bigger should do here X to It on at year think close given $X bit that, progress see -- billion, up high little be I our billion, probably expect range the closer out $X.X to how year. expenditures. the range to above year $X this But on things from billion we toward some play are great the development. Then on swing in full that -- but terms $X.X in we projects major range, working really these in year those next to going of commissioning all we're and on be probably a XXXX But off. to be really drop will today, we'll significant just

And coming today, excluding but other to absent probably do to in 'XX expect up of is as This any potentially XX% in opportunities drop we along, a 'XX. CapEx versus Viterra, see we XX%. drop all CapEx could

Our UBS. comes Manav next from Gupta question from

My since financials some Viterra. And reported exceeded to maybe understand expectations. you if the been first until were expectations time reported question now, just I'm even those announced by the there is numbers that Viterra transaction, the your has trying met or

Yes.

companies to separately close. As you got the run until we've know,

their They think, continues on well running the I Viterra regulatory job work side. does as business. the as very do team, got our as to all the a the the integration planning with team strain definitely So good in being done extra

the done. quality impressed that The work platform. all engagement the challenges challenging their it's and and But environment. have up And of had a with we their the their with be people, during pretty a we very to people by ability being the capabilities to really continue that's we're just great doing of step that all

look to to feel transaction really about good So and forward the the future. very continue we

the Perfect. My marked the had quick It for Non-core of follow-up Non-core is business. divestment for time. some been

price? particular deal And So you about? come how happy did the this were transaction with

able with we business and we, joint finish can for it. on, and put was here very exit that when with into the that sugar we then the got right we eventually and venture shareholders BP, stakeholders. that, thought we're our early Yes. for when time the I'll declared Look, start, John to would the

there but we the job improving leader. in BP combination long-term ourselves with did of did very becoming that supported an proud didn't really the And business that change industry which that of and strategy. a team, really And our that, meantime, and we're that fantastic

timing part the when then and of second that values the so up, And lined transaction done right and the was to we've exit.

do we to it. look So

As focused John that JV. not forward those resources, later some our of and there closing transaction year said, even look we the in hopefully this releasing supporting only are capital, folks to but that the

yes, we up that, were we add just I'd with pretty where a happy from standpoint. ended value Manav, And

Our next Haynes Morgan Steven from Stanley. question comes from

Wanted to ask quick selling. one farmer a on

You've alluded, I think, of that put source farmer a of a in the the selling going before, evolution maybe of hoping year. it might upside a be could idea the slowing of are you the think broader I where down of just bit little it context was forward. too, you we course through in

in some down what farmer gives kind might guess, seen I And past slow it's prolonged more selling cycle cycles? confidence we be you of that have not going to kind of a

Sure.

making you look at environment. price right, I the lower we've to that setup, if think a overall been transition,

used I the built the think some they've definitely produced, inventories we that. the crops as get producers right? to said, same are At time, getting then as and next

here North some good. we in develop, we'll America, I And marketing of more looks some Argentina. crop what's you farmer crop American South And in those. the development often the to as American bigger think also in but weather there. the see got drive farmers and Much North as develop then see still watching to crop We North market futures know, American happening price are that

Argentina, the farmers watching government mostly their a in course, and what will still in very closely the for are action in policy Brazil driver, is of the Currency be where FX activity.

would expected. I be of kind think all unfolding So as it's

is appropriate manage feel we're ensuring of about on that and pretty I we're good how we very And executing. executing for And in. team risk that the the remains what environment focused that's proud the

Strelzik Our Andrew from question BMO. next comes from

talked about curves. You inverted the

your environment there in you internal U.S. we you any as disposal levers where guess, an about crush that operations more potentially challenged at delayed? across margins in curious, should are can would But And levers probably so way? was that think might other I out I more get environment plays inverted that CapEx pull have the be or, growth

I that another, been one a all that been things because just with the in have more last would say, much seen be X have we platform we're we overweighted thing would region love this at different very running us, we've that thrown one would years, challenging. the versus the global

And think going I change going to don't forward. that's

in optionality whether to be where there the and or the that to our react the it's whether it's flexibility are and we margins farmer able demand. have hardest to So selling run to system

the made allowed And then I key have the be is and we better, and discipline the you company execution operating think to markets. that these get in in which really model the tougher when change much has

is we develops. team out, And opportunities see that can staying as on I've got the job line. a market So the confidence that the the to play control balance focused we bottom that year as the of those the great doing the we'll things get

in And you've do to your recent last That's environment margin bit that Okay. I to some years the couple appropriately the and really the from from obviously all? baseline at of business as decouple think gotten helpful. of able of are strength And kind strength, you that over environment, internal a crush you've several has assumptions? operating there's farther away years? kind of captured elevated but last of the evolved from the Or thinking I the the been that, kind related the know you to then guess, little out improvements better

one, we're continuous done, thinking never right? constantly think, I improvement. about We're

believe the assets it's So the getting term or not the whether over long greenfields, where fit may capital, debottlenecking but the assets the they are whether about the in the thinking also what we footprint. what brownfields or it's

some metrics and It's multiyear a making the and systems that the the digitalization program. in things crushing of plants are that we're in improvements are our in investments the

just way So I the think different things. we it's were a company than we very in that approach

you're And are reset these the how you so in these good the find as that of transitions, markets executing. times, kind out really

of the it never a information very, and we're that And planning focused. renewing so enormous the in an pleased challenging of front. on amount And while we're team doing enormous very amount -- with an environment and providing integration regulatory external we're

execution. the of proud really So

add, still years performing couple we're we that, in challenged feel just this still bit that and a year. ago above we $XXX million more in little Andrew, out a of set even environment baseline would we're -- I an

earlier, we're to to I -- that think environment. different we're a bit more challenging be here, were. I So than a point despite able to machine Greg's it's little think going And show we

I think we versus we're baseline. performing a what pretty set well out had as

Casella Our from JPMorgan. Carla next comes question from

relates question to My financing.

may You are dividends you... want you the -- that are come about of but thinking to wait got ahead you how in prefinancing buybacks much Viterra to what for? of would the terms and transaction and till Or you question you market transaction, the

itself. all in nuances things Yes. is Viterra that, We've out syndicated bonds already some terms in the some initial There transaction and the ahead but the and much finance debt so the will the close, around place commitments in obviously commitments got place. of allocation the and we're to set on of place we've are of take of that financing pretty

and how pretty -- to all but ready much sure, total much it's go. need, I'm have close, But post amount. on effect we that fine-tuning then some exactly we be an decide the when could There'll

gentlemen, like Heckman, with to the and closing over session. CEO, that, floor comments. ladies any be for turn we'll ending Greg I'd and back answer And question today's to

you to Viterra we're excited closing, here, Thanks, today. bringing term we'd post longer the and bringing everybody, joining And for us much. Thank just very the really say Bunge together. like about

a more We're what be And environment. company. in going capabilities a to to more to more our be we're customers serve to complete going complex have continues

continuing to transparent more environment grow, more increase, sustainable more policy that feedstocks. continuing to and want all while customers things continue what to capita with and volatility like a uncertainty, and population the looks climate challenging With per making

this to very we're uniquely and and focused on positioned future. well space, feel forward look really we the we So

So great thanks for a joining us. Have week.

Ladies for and that conclude gentlemen, We presentation. thank conference you does do call today's joining. and

disconnect may your You lines. now