Agribusiness giant Bunge has booked a jump in third-quarter income, which more than doubled as sales benefited from rising grain prices.
The company said net earnings in the three months to the end of September rose to US$289m, up from $140m. This marks the first year-on-year increase in earnings since the first quarter of 2011.
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Sales at the grain trader rose 11% to $17.29bn, up from $15.62bn.
The group revealed that a stronger performance from its agricultural unit offset a decline at its bioenergy division, which was hit by lower sugar crops.
Bunge said its oilseed processing business saw an improved performance in North America, Asia and Europe, while its grain division was boosted by strong demand which it was able to meet using supplies from Latin America.
However, the company warned the poor grain harvest and continued volatility would continue to shape market conditions. According to CEO Alberto Weisser, a “record” harvest is required to rebuild grain supplies.
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By GlobalData“The current market environment, shaped most notably by the severe U.S. drought, has been and will continue to be volatile and complex for everyone who participates in our industry,” he said.
“Bunge’s role is to help farmers and customers manage through this environment, by providing market access for crops and delivering the right products when and where they are needed. We are confident that the company’s core strengths – geographic balance, a diverse product portfolio, an experienced team and a strong balance sheet – enable us to fulfill this role effectively and profitably.”
