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Bunge (BG) to Boost Sustainable Practices With Nutrien Tie-Up

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Bunge Limited (BG - Free Report) announced a strategic partnership with Nutrien Ltd.’s (NTR - Free Report) retail division, Nutrien Ag Solutions. Through this alliance, the companies will boost the use of sustainable practices that improve soil health, thus providing new economic prospects to the field. The collaboration aligns with Bunge's commitment to continue investing in low-carbon projects.

The partnership will provide more whole-acre solutions to customers and end-consumers in the food, feed and fuel industries. It will increase sustainable agriculture across shared supply chains in North America.

The companies are targeting crop season 2023/2024 for this initiative. Initially, the initiative will concentrate on soybeans cultivated near Bunge's crushing plants in Council Bluffs, IA, and Decatur, with further scope of expansion. The program will include sustainable farming practices like cover crops, reduced tillage, nutrient management and appropriate pesticide use.

The collaboration with Nutrien Ag Solutions will further strengthen Bunge’s relationship with farmers in the U.S. while adding advantages for participants across all of its value chains. Bunge intends to enter into contracts with farmers with the goal to manage harvest and post-harvest commercialization.

In the first quarter of 2023, the company delivered earnings of $3.26 per share, missing the Zacks Consensus Estimate of $3.39 per share. This compares to earnings of $4.26 per share a year ago.

BG posted revenues of $15.33 billion for the quarter that ended March 2023. This compares to year-ago revenues of $15.88 billion. Bunge has a four-quarter trailing surprise of 6.6%, on average.

Price Performance

Shares of Bunge have lost 19.4% over the past year compared with the industry's fall of 18%.


Zacks Investment Research
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Zacks Rank & Stocks to Consider

Bunge currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Franco-Nevada (FNV - Free Report) , and Alamos Gold Inc. (AGI - Free Report) . FNV currently flaunts a Zacks Rank #1 (Strong Buy) and AGI has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Franco-Nevada’s fiscal 2023 earnings per share is pegged at $3.51. Earnings estimates have moved 9.3% north in the past 60 days. FNV has a trailing four-quarter earnings surprise of 2.8%, on average. Its shares have gained 15.1% in the past year.

The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at 47 cents for 2023. Earnings estimates have been revised 14.6% upward in the past 60 days. AGI has gained 84.5% in a year.

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