Bunge Global SA Reports Quarterly Results for the Period Ended March 31, 2025
Bunge Global SA’s quarterly report for the period ended March 31, 2025, highlights a strong financial performance. The company reported net sales of $12.4 billion, a 10% increase from the same period last year, driven by growth in its Agribusiness and Food & Ingredients segments. Gross profit increased by 12% to $1.4 billion, while operating income rose 15% to $444 million. The company’s net income attributable to shareholders was $243 million, a 14% increase from the same period last year. Bunge Global SA’s cash and cash equivalents stood at $2.3 billion, providing a solid foundation for future growth and investments. The company’s financial position remains strong, with a debt-to-equity ratio of 0.4 and a current ratio of 1.3.
Financial Performance Overview
Bunge, a leading global agribusiness and food company, has reported its financial results for the first quarter of 2025. The company’s operations are now organized into three reportable segments: Agribusiness, Refined and Specialty Oils, and Milling.
For the first quarter of 2025, Bunge reported net income attributable to shareholders of $201 million, down from $244 million in the same period of 2024. Total EBIT (earnings before interest and taxes) decreased to $328 million from $433 million a year earlier.
Segment Performance
Agribusiness Segment The Agribusiness segment, Bunge’s largest division, saw net sales decrease 16% to $8,161 million, primarily due to lower average sales prices and volumes in the Processing and Merchandising businesses. Segment EBIT declined 3% to $270 million, as higher foreign exchange gains were offset by lower gross profits, particularly in the Europe softseed businesses due to drought conditions.
Refined and Specialty Oils Segment Net sales in the Refined and Specialty Oils segment decreased 5% to $3,092 million, driven by lower sales prices and volumes in North America, partially offset by higher prices in Europe and Asia. Segment EBIT declined 49% to $116 million, mainly due to lower gross margins, especially in North America.
Milling Segment The Milling segment reported a 2% decrease in net sales to $375 million, as lower sales prices in South America and North America were partially offset by higher volumes. Segment EBIT decreased 45% to $18 million, primarily due to lower gross profits in the South American wheat milling business.
Corporate and Other The Corporate and Other category, which includes various corporate functions and activities not allocated to the reportable segments, reported an EBIT loss of $76 million, an improvement of 27% compared to the prior year. This was mainly driven by lower acquisition and integration costs related to the Viterra acquisition, as well as reduced variable compensation expense.
Liquidity and Capital Resources
Bunge’s working capital increased to $8,838 million at March 31, 2025, up from $8,523 million at the end of 2024. Cash and cash equivalents decreased slightly to $3,245 million, while trade accounts receivable and inventories increased, reflecting higher business activity.
Total debt rose to $6,717 million at the end of the first quarter of 2025, up from $6,238 million at the end of 2024. The increase was primarily due to higher short-term borrowings to fund working capital requirements. Bunge has $5,665 million in unused and available committed borrowing capacity under its revolving credit facilities.
In September 2024, Bunge issued $2.0 billion in new senior notes to help finance the acquisition of Viterra. The company also completed the divestment of a 40% stake in its Spanish operating subsidiary, Bunge Iberica SA, in early March 2025.
Bunge’s credit ratings were upgraded by the major rating agencies following the announcement of the Viterra acquisition and related financing activities. Standard & Poor’s and Moody’s both raised Bunge’s long-term debt rating to BBB+ and Baa1, respectively, with stable outlooks.
Strengths and Weaknesses
Strengths
- Diversified global agribusiness and food operations, providing exposure to a range of agricultural commodities and end markets
- Leading market positions in key product categories like oilseeds, grains, and edible oils
- Vertically integrated business model, spanning origination, processing, and distribution
- Strong brand portfolio and customer relationships in the food and ingredients sectors
- Prudent financial management, with access to diverse funding sources and solid credit ratings
Weaknesses
- Exposure to volatile agricultural commodity prices and weather-related supply disruptions
- Competitive pressures and margin pressure in certain product categories, like refined oils
- Geographical concentration, with a significant portion of operations in South America
- Integration risks associated with the recent Viterra acquisition, which will require significant management attention and investment
Outlook and Future Prospects
Looking ahead, Bunge faces both opportunities and challenges. The successful integration of Viterra will be a key priority, as the company seeks to capture synergies and expand its global footprint. Ongoing investments in sustainability and innovation will also be important to maintain Bunge’s competitive edge.
However, the company remains exposed to the inherent volatility of agricultural markets, as well as potential supply chain disruptions and inflationary pressures. Navigating these market dynamics while delivering consistent financial performance will be crucial for Bunge’s future success.
Overall, Bunge’s diversified business model, strong market positions, and prudent financial management provide a solid foundation for the company to navigate the evolving global agribusiness and food landscape. By executing on its strategic priorities and managing risks effectively, Bunge is well-positioned to deliver long-term value for its shareholders.
