Bunge 2025 Q1 Earnings Misses Targets as Net Income Declines 19%

Generated by AI AgentAinvest Earnings Report Digest
Wednesday, May 7, 2025 7:59 am ET2min read
Bunge (BG) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The total revenue of decreased by 13.2% to $11.64 billion in 2025 Q1, down from $13.42 billion in 2024 Q1. Bunge's EPS declined 12.9% to $1.50 in 2025 Q1 from $1.72 in 2024 Q1. Meanwhile, the company's net income declined to $204 million in 2025 Q1, down 19.0% from $252 million reported in 2024 Q1.

Despite a revenue drop, Bunge exceeded Wall Street's expectations with an adjusted profit of $1.81 per share, surpassing the average estimate of $1.30 per share. The company maintained its adjusted full-year EPS outlook at approximately $7.75, signaling confidence in its performance amidst dynamic market conditions and regulatory developments.

Revenue

The total revenue of Bunge decreased by 13.2% to $11.64 billion in 2025 Q1, down from $13.42 billion in 2024 Q1.

Earnings/Net Income

Bunge's EPS declined 12.9% to $1.50 in 2025 Q1 from $1.72 in 2024 Q1. Meanwhile, the company's net income declined to $204 million in 2025 Q1, down 19.0% from $252 million reported in 2024 Q1. The EPS decline reflects weaker financial performance.

Post-Earnings Price Action Review

The strategy of buying Bunge (BG) shares after a revenue drop Q/Q and holding for 30 days resulted in an 18.40% return, compared to a benchmark return of 83.12%, with an excess return of -64.72% and a CAGR of 3.48% over the past 5 years. This approach yielded a Sharpe ratio of 0.45, indicating risk-adjusted returns below the benchmark, with a volatility of 7.77% and a maximum drawdown of -12.35%. The strategy's underperformance highlights the challenges faced by Bunge in navigating market conditions, despite efforts to realign its operations.

CEO Commentary

Greg Heckman, Chief Executive Officer of Bunge, remarked on the company's strong start to 2025, highlighting their agility in a rapidly changing market. He noted solid performance in Agribusiness driven by Processing, despite a year-over-year decline. The CEO emphasized the strategic divestitures of the European margarine and U.S. corn milling businesses to better align with global value chains. He expressed confidence in the company's ability to navigate current market conditions, attributing success to their resilient global presence and commitment to connecting farmers with consumers.

Guidance

Bunge maintains its adjusted full-year EPS outlook at approximately $7.75. The CEO conveyed optimism regarding the company’s performance, anticipating continued execution amidst shifting market dynamics and confirming readiness to finalize the Viterra transaction upon regulatory approval.

Additional News

Bunge's merger with Viterra is nearing completion, pending final regulatory approval, which is expected to enhance its global market position. The company has strategically divested its European margarine and U.S. corn milling businesses to focus on core operations and integrate global assets effectively. Additionally, Bunge is actively engaged in discussions with Chinese regulators to address concerns regarding industry concentration and food security amid the ongoing U.S.-China trade tensions. CEO Greg Heckman has made several trips to China to facilitate these discussions, underscoring the merger's importance in strengthening Bunge's competitive edge.

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