Bunge Limited operates as an agribusiness and food company worldwide. It operates in five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. The Agribusiness segment engages in the purchase, storage, transport, processing, and sale of agricultural commodities and commodity products, such as oilseeds and grains, including soybeans, rapeseed, canola, sunflower seeds, wheat, and corn to animal feed manufacturers, livestock producers, wheat and corn millers, other oilseed processors, third-party edible oil processing companies, and biodiesel industries. The Edible Oil Products segment provides packaged and bulk oils, shortenings, margarines, mayonnaise, sauces, pastes, condiments, seasonings, processed tomato products, and other products to baked goods companies, snack food producers, restaurant chains, foodservice distributors, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. The Milling Products segment produces and sells various wheat flours and bakery mixes; and corn milling products, including dry milled corn meals, flours, grits, soy-fortified corn meals, corn-soy blend products, and other products, as well as sells packaged rice products. The Sugar and Bioenergy segment produces and sells sugar and ethanol; trades and merchandises sugar; and generates electricity from burning sugarcane bagasse. As of December 31, 2014, this segment had a total installed capacity of approximately 314 megawatts. The Fertilizer segment produces, blends, and distributes nitrogen, phosphate, and potassium fertilizers comprising phosphate-based liquid and solid nitrogen fertilizers; single super phosphate; and ammonia, urea, ammonium thiosulfate, monoammonium phosphate, diammonium phosphate, triple super phosphate, UAN, ammonium sulfate, and potassium chloride products. Bunge Limited was founded in 1818 and is headquartered in White Plains, New York.
(Summary) (Company) (Chart)
11 January 2016
1yr Target $84.95
Payout Ratio 50.66%
1yr Cap Gain 27.84%
1yr Tot Return 30.12%
EPS (ttm) $3.00
EPS next yr $6.47
EPS next 5yr 17.04%
1yr Price Support $110.24
Market Cap $9.47 Bil
Revenues $45.58 Bil
Earnings $457.00 Mil
Profit Margin 1.00%
1yr EarnGR 104.51%
3yr EarnGR -19.30%
5yr EarnGR 5.03%
1yr DivGR 12.82%
3yr DivGR 10.32%
5yr DivGR 16.69%
Quick Ratio 0.80
Current Ratio 1.40
The company's operations include:
- originating oilseeds and grains from the world's primary growing regions and transporting them to customers worldwide;
- crushing oilseeds to make meal for the livestock industry and oil for the food processing, food service and biofuel industries;
- producing bottled oils, mayonnaise, margarines and other food products for consumers;
- crushing sugarcane to make sugar, ethanol and electricity;
- milling wheat and corn for food processors, bakeries, brewers and other commercial customers; and
- selling fertilizer to farmers.
Bunge y Born was founded in 1818 by Johann Peter Gotlieb Bunge in Amsterdam, it was relocated to Antwerp by Edouard Bounge in 1859. Edouard's brother; Ernest Bunge, took the Bunge name to Argentina in 1884, and in 1905 the business extended to Brazil and later on to the USA. The company was converted into the Bermuda-registered Bunge International in 1994, retaining the Bunge y Born name only in Argentina. Bunge remained a privately held company of 180 shareholders (including the longtime controlling family interests) and divested itself in 1998 of almost all its retail foods interests in favor of a greater role in international agribusiness and commodity markets; by then the company's gross annual turnover had reached US$13 billion. Bunge ultimately went public on the New York Stock Exchange in 2001, becoming Bunge Limited.
In 1994, the Bermuda-registered Bunge International was created as the main company in which the families had shares. There were around 180 shareholders—the main families were Hirsch, Bunge, Born, Engels, and De La Tour. This replaced the older structure in which individual shareholders had stakes in all the different Bunge companies. Now only in Argentina does the Bunge y Born name still exist.
In 2001, Bunge was listed on the New York Stock Exchange. Through their three businesses—agribusiness, fertilizer, and food products—they have established a leading global presence in the farm-to-consumer food chain. Bunge is the world's largest oilseed processor, the world's number one seller of bottled vegetable oil to consumers and the largest producer and supplier of fertilizers to farmers in South America.
In 2004, Bunge acquired Cereol, parent of oilseed companies Central Soya and CanAmera Foods.
In 2008, Bunge acquired Walter Rau, a margarine company, from Germany
In 2009, Bunge acquired the margarine business from Raisio Group, maker of functional food ingredients.
Here's a company that's been around for almost 200 years but has been listed on the NYSE for only about 15 years. So there's a lot of history here but only a very short period of public history. But the private history implies that this is one of those companies that can weather any economic condition of almost any length. I expect this company isn't going anywhere and will be around another 200 years to benefit the general public as well as the original families.
What attracted me to this company is the fifteen years of steadily increasing dividends. I'm a Dividend Growth Investor at heart and any company that continues to grow their dividend by at least 10% per year is very attractive to me. So today I started a position in this company. As with most of my investments, I'll start with a small position and increase that position over time by dividend reinvestment and by direct purchase. I then continue to add to that position as long as the stock performs as expected.
I'm not sure where I'm going with this investment but if it really does continue to increase its dividend annually at 10% or higher I expect this investment to eventually become a core holding that becomes larger and larger.