Bunge profits rose 15 percent during the second quarter of 2022. However, the global farm commodities company didn’t reach Wall Street expectations and the share price dropped five percent as a result. The company raised its full-year profit forecast and talked about plans to spend $3.3 billion on future investments and expenditures during the next few years.
Bunge attributed a $59 million net loss for the quarter in its agribusiness segment because of the war in Ukraine. CEO Gregory Heckman says it will be a slow process for shippers to move commodities out of Ukraine and into the global markets. The company’s results come amid backed-up supply chains and strong demand for food and fuel driving inflation to its highest level in decades.
Bunge’s rising operating costs offset higher demand and tighter supplies of commodity grain crops. Transportation and ongoing COVID-19 issues continue to drag down the world’s grain sector.