Bunge Global SA Earnings: Solid Q1 2025 Amid Market Volatility and Strategic Realignment
- Hardik Shah
- May 7
- 3 min read
TLDR
Solid Start to 2025: Adjusted EPS of $1.81 beat expectations but fell year-over-year due to market normalization and timing impacts.
Portfolio Realignment on Track: Divestitures of margarine and corn milling businesses align with global value chains; Viterra merger near closing.
Reaffirmed Full-Year Outlook: Management maintained 2025 adjusted EPS guidance at ~$7.75, expecting stability in H2 earnings cadence.
Business Overview
Bunge Global SA (NYSE: BG) is a global leader in oilseed processing and specialty plant-based oils, connecting farmers and consumers across food, feed, and fuel markets. With a presence in more than 40 countries and approximately 300 facilities, its core segments include:
Agribusiness (Processing and Merchandising)
Refined and Specialty Oils
Milling (primarily wheat milling in South America post-divestitures)
Bunge continues to streamline its portfolio to focus on integrated, global value chains while advancing sustainability initiatives.
Bunge Global Earnings - Q1'25 vs Q1'24
Segment Insights:
Agribusiness: Adjusted EBIT fell to $268M (vs. $487M), reflecting mixed soy crush margins globally and softer North American performance.
Refined and Specialty Oils: Adjusted EBIT down to $123M (vs. $204M) amid a more balanced global supply-demand and U.S. biofuel policy uncertainty.
Milling: Adjusted EBIT of $15M (vs. $28M) as North America offset weakness in South America.
“Our resilient global footprint, disciplined approach, and focus on connecting farmers to consumers position us well to create value for all stakeholders.” — Greg Heckman, CEO
Cash Flow & Liquidity:
Generated $392M in adjusted funds from operations.
Net debt offset by $3 billion in readily marketable inventories.
Liquidity remained strong with $3.2 billion cash and ~$8.7 billion in undrawn credit facilities.
Forward Guidance
Management reaffirmed 2025 adjusted EPS guidance of ~$7.75, excluding pending M&A and divestitures.
Outlook by Segment:
Agribusiness: Slightly lower than prior outlook due to processing softness.
Refined Oils: Similar to prior outlook, but down YoY.
Milling: Expected to be up YoY.
Corporate and Other: More favorable than prior outlook.
Macro and policy assumptions (e.g., tariffs, U.S. biofuels policy) are embedded in current forecasts. No extraordinary assumptions included.
“We expect softness in Q2 but remain confident for H2 2025, with better crush margins expected into new crop periods.” — John Neppl, CFO
Operational Performance
Successes:
Pull-forward of demand supported Q1 results.
Global soy crush resilience in Brazil, Europe, and Asia.
Divestiture of margarine and corn milling businesses streamlining operations.
Challenges:
Lower margins in North America and Argentina.
Biofuel policy uncertainty impacting oil segment.
Tariffs and global trade tensions creating regional volatility.
Market Insights
Trade Dynamics: Q1 benefited from tariff-related demand shifts and farmer selling activity, especially in Brazil.
Biofuels: U.S. policy clarity remains key; Europe seen as more stable for lower carbon fuel investments.
South America: Argentina farmer selling improved with better weather and tax policy windows. Brazil expected to remain resilient with record soybean crop.
Strategic Initiatives
Viterra Merger: Final regulatory stages, expected to close shortly; transformational to global diversification.
Repsol JV: Strategic alliance for renewable fuels, leveraging novel crops and low carbon intensity feedstocks.
Divestitures: Exit from non-core European margarine and U.S. corn milling to sharpen focus.
"We want to be the partner of choice in every space we operate, including fuels.” — Greg Heckman, CEO
Capital Allocation
Dividends: $91 million paid.
CapEx: $256 million invested in growth/productivity.
Debt: Adjusted leverage ratio of 0.6x, strong balance sheet.
The Bottom Line
Bunge Global SA delivered a resilient Q1 2025, outperforming expectations despite macro and policy uncertainty. While year-over-year results reflect market normalization post-2024 volatility, management reaffirmed full-year guidance and emphasized confidence in H2 margin recovery.
“We continue to believe in the strategic merits of our planned combination with Viterra and expect to close the transaction in the near-term.” — Greg Heckman, CEO
Strategic moves—namely Viterra merger completion, Repsol renewable fuels JV, and portfolio divestitures—signal a sharpened focus on global value chains and optionality in the evolving agri-food landscape.
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