Bunge’s 2024 Performance: Challenges, Strategic Moves, and What Lies Ahead
- Hardik Shah
- Feb 5
- 3 min read
Updated: Feb 11
TLDR
Weaker-than-expected Q4 results – Adjusted EPS dropped to $2.13 (vs. $3.70 in Q4 2023), mainly due to lower agribusiness and specialty oil margins in North America.
M&A progress & capital returns – The Viterra acquisition is nearing closure, with additional regulatory approvals pending. Bunge repurchased $1.1 billion in shares in 2024.
2025 guidance cautious but stable – Management projects full-year adjusted EPS of $7.75, excluding acquisitions. They anticipate improved performance in South America but continued margin pressures in North America and Europe.
Business Overview
Bunge Global S.A. (NYSE: BG) is a leading agribusiness company engaged in oilseed processing, grain trading, and the production of refined and specialty plant-based oils and fats. The company operates globally, connecting farmers to consumers while focusing on sustainability, supply chain optimization, and agricultural innovation. Its core business segments include:
Agribusiness – Oilseed processing and grain merchandising.
Refined & Specialty Oils – Production and sale of edible oils and fats.
Milling – Flour and baking ingredient production.
Financial Results
Quarterly Performance (Q4 2024 vs. Q4 2023)
GAAP EPS: $4.36 (vs. $4.18)
Adjusted EPS: $2.13 (vs. $3.70)
Net income: $602 million (vs. $616 million)
Adjusted Core Segment EBIT: $548 million (vs. $881 million)
Net sales: $13.5 billion (vs. $14.9 billion)
Full-Year Performance (2024 vs. 2023)
GAAP EPS: $7.99 (vs. $14.87)
Adjusted EPS: $9.19 (vs. $13.66)
Net income: $1.14 billion (vs. $2.24 billion)
Adjusted Total EBIT: $2.02 billion (vs. $3.03 billion)
Key Drivers:
Lower processing margins in North America and South America.
Declining specialty oil margins due to increased competition and weaker biofuel demand.
Higher merchandising performance in ocean freight and global grains partially offset declines.
Operational Performance
Successes & Milestones
Regulatory approvals for the Viterra acquisition are in late stages (China, Europe pending).
Completion of the BP Bunge Bioenergia sale, leading to $195 million in gains.
$1.1 billion in share repurchases in 2024, returning capital to shareholders.
Achieved 100% traceability in soy sourcing in Brazil’s priority regions.
Challenges
South American margin pressures due to supply chain disruptions.
North American biofuel policy uncertainty impacting refining premiums.
Increased geopolitical risks reducing forward visibility.
Market Insights
Industry Trends
Soybean meal demand remains strong, driven by animal protein profitability.
Lower global palm oil and softseed supply favors soy oil competitiveness.
Renewable fuel market growth outside the U.S. supports long-term demand.
Tighter global corn supply may impact grain trading margins.
Competitive Positioning
Viterra acquisition enhances scale and diversifies assets across geographies.
Bunge is well-positioned to capitalize on supply chain shifts, given its global reach.
Investments in sustainability and efficiency provide a differentiated value proposition.
Strategic Initiatives
M&A Focus
Viterra acquisition: Expected to close soon; aimed at strengthening agribusiness supply chains.
CJ Selecta acquisition: Expanding into soy protein concentrate, with expected mid-teen returns.
Capital Allocation
$1.5-$1.7 billion in planned CapEx (down from prior $1.9-$2.0 billion estimates).
Share repurchases ongoing with $800 million remaining under the current authorization.
Operational Efficiency
Investments in automation, supply chain optimization, and refining efficiency.
Expanding renewable feedstock capabilities for biofuel production.
Forward Guidance
2025 Adjusted EPS Target: $7.75 (excluding M&A impact).
Agribusiness Outlook:
South America expected to improve, but North American and European margins will remain weak.
Merchandising results to be slightly lower due to less market volatility.
Specialty Oils Outlook:
Lower refining margins in North America due to a more balanced supply-demand environment.
Financial Expectations:
Adjusted tax rate: 21%-25%
Interest expense: $250-$280 million
CapEx: $1.5-$1.7 billion
D&A: ~$490 million
The Bottom Line
Bunge’s Q4 2024 results missed expectations due to weak processing margins and biofuel policy uncertainty, but strategic acquisitions like Viterra and CJ Selecta aim to enhance global scale. Despite a cautious 2025 EPS forecast of $7.75, South American recovery could offset North American and European challenges. With $1.1 billion in share buybacks and $1.5-$1.7 billion in CapEx, Bunge remains focused on efficiency, sustainability, and long-term growth in agribusiness.
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