Analyst Note| Seth Goldstein, CFA |
Bunge finished the year on a strong note as adjusted core segment EBIT was up 36% year on year driven primarily by higher agribusiness segment profits. During the second half of 2020, Bunge benefited from strong oilseeds and grains demand as well as higher crop prices and a favorable soy crush margin environment. While we see another strong year for Bunge in 2021, we think 2020 will ultimately represent a cyclical high as Bunge generated adjusted EPS of $8.30. Management directionally agrees with our outlook, guiding to 2021 adjusted EPS of at least $6, which we think is achievable.