Bunge Ltd Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Salvator Tiano - BofA Securities, Research Division - Analyst : So firstly, I wanted to ask a little bit about the working capital, very big inflow in Q1, which is not also traditional seasonality. What just drove that? And also, how should we think now about the -- about working capital and operating cash flow for 2023 in total?

Question: Salvator Tiano - BofA Securities, Research Division - Analyst : Okay. Perfect. And I wanted to also follow-up on the comment you made earlier, essentially if I understood correctly, you're more confident right now in your guidance than you were 90 days ago. And I found that a little bit surprising because when you think what has happened in the meantime, lower crop prices, potential for a good -- really good harvest in the U.S. and perhaps next year in Latin America and of course, the crush margins, I would have thought that it would -- we would see exactly the opposite, meaning that no matter how conservative your guidance would have been you would have less confidence today versus 90 days ago. So can you elaborate a little bit on that? And what is essentially helping you despite market conditions getting worse, have more confidence today?

Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst : I just wanted to follow-up first on the March 14 announcement, you working with Chevron and Corteva to develop produce Winter Canola. Help us understand where this partnership is heading, which are the key milestones we should look at. And again, it looks very promising. So when should we start giving you some credit in your earnings for this kind of work that you're doing with Chevron and Corteva?

Question: Manav Gupta - UBS Investment Bank, Research Division - Analyst : Perfect. And just some more details. I mean you initially mentioned about this refinery you have acquired from Fuji. Why is this the right strategic fit for you guys? What are the benefits of it? Can you help us understand why this was the right transaction for you guys?

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : Based on your volume disclosures, I think a challenge both Merchandising and in Milling has been the availability of corn and wheat in your regions. Just any visibility as to when the volume picture might get a little better for those products. I mean you just alluded to a better corn crop, for instance. Do we start seeing benefits of this in the second quarter? Or is it a bit more second half weighted?

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : And then maybe on the question side. So you've kind of alluded to this at various points on the call, but maybe I'll ask a little more explicitly. Can we just get a recap of what you're seeing directionally in different parts of the world today from a crush margin standpoint? And then which regions are kind of showing the biggest rebounds as we think about the back half of the year at this point?

Question: Salvator Tiano - BofA Securities, Research Division - Analyst : I just want to go back a little bit before you mentioned a little bit that in terms of where you want to expand, and you had already given some indications with your prior presentation last summer. Mainly you want to expand, if I heard correctly, in Originations, being closer to the farmer in North and South America and generally remain in the Americas. So as we're thinking, you mentioned that you are in active discussions on M&A. And I know you cannot talk about specifics, but when you think about a bigger move? How important would it be to have -- to expand your Crushing actually footprint or Refining footprint which has been the focus of growth for a couple of years versus just the Origination. Is it important for any big moves to have such assets or it doesn't -- or it's not a deal breaker?

Question: Salvator Tiano - BofA Securities, Research Division - Analyst : Perfect. And just one last one. You made the comment that you're investing in a crushing facility to make it more flexible, take for example, the [padded] crest, covered crest will be producing at some point? I'm just wondering, as you invest more into making your crushing plants more feedstock flexible? How does this affect margins overall? Perhaps it makes it a little bit more capital intensive? I don't know if it has an impact on margins. And also as we think about cover crops overall, including the one covered crest is developing. What do you -- how do you think the new market will play out in terms of margins versus traditional oil seeds like canola and soybeans?