Bunge 2025 Q1 Earnings Misses Targets as Net Income Falls by 19%

Bunge (BG) reported its fiscal 2025 Q1 earnings on May 7th, 2025. The total revenue of Bunge decreased by 13.2% to $11.64 billion in 2025 Q1, down from $13.42 billion in 2024 Q1. Bunge's EPS declined 11.8% to $1.50 in 2025 Q1 from $1.70 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.

Bunge's Q1 2025 earnings missed expectations with no adjustments made to the full-year EPS forecast of $7.75.

Revenue
Bunge's revenue for Q1 2025 saw a decline of 13.2%, totaling $11.64 billion compared to $13.42 billion in the previous year. The agribusiness segment led with $8.16 billion, followed by refined and specialty oils at $3.09 billion. Milling contributed $375 million, and the corporate and other segment added $15 million, culminating in the total revenue figure.

Earnings/Net Income
Bunge's earnings per share (EPS) fell by 11.8% to $1.50 in Q1 2025, compared to $1.70 in the same quarter of the previous year. The company's net income also saw a decline, decreasing by 19% to $204 million from $252 million in Q1 2024. The decline in EPS reflects challenges in the market environment.

Post-Earnings Price Action Review
The strategy of purchasing Bunge (BG) shares following a quarter-over-quarter revenue decline and holding for a 30-day period resulted in a 17.42% return. However, this performance fell short of the benchmark by 66.67%. The strategy exhibited a compound annual growth rate (CAGR) of 3.28%, with a maximum drawdown of -12.35% and a Sharpe ratio of 0.42, indicating moderate returns and associated risk. Despite the underperformance relative to the benchmark, the strategy showcased Bunge's ability to generate returns amidst revenue fluctuations, albeit with notable risk exposure.

CEO Commentary
Greg Heckman, Bunge's Chief Executive Officer, remarked, “Our team delivered a better than expected start to 2025, staying nimble in a quickly evolving market environment while continuing to serve our customers at both ends of the value chain.” He highlighted the strategic divestitures of the European margarine and U.S. corn milling businesses to better align assets with global integrated value chains. With confidence in navigating current market conditions, he emphasized the company’s resilient global footprint and disciplined approach in connecting farmers to consumers, which positions Bunge to create value for all stakeholders.

Guidance
Bunge maintains an adjusted full-year EPS outlook of approximately $7.75. The company expressed confidence in executing its strategy amid the evolving market dynamics, reinforced by recent tariff-related timing shifts in demand and farmer activity. The CEO affirmed the readiness to close the Viterra transaction swiftly upon receipt of regulatory approval, underscoring the company's focus on operational resilience and effective market execution.

Additional News
In recent weeks, Bunge Limited Finance Corp., a wholly-owned subsidiary of Bunge Global SA, extended the expiration date for its Exchange Offers related to Viterra Notes from May 5, 2025, to June 13, 2025. This extension aligns with the pending completion of Bunge's acquisition of Viterra, which is contingent upon antitrust approvals and other customary conditions. This acquisition, once finalized, will significantly bolster Bunge's global presence in crop trading and processing. Additionally, Bunge continues to navigate the regulatory process for this $34 billion merger, which has faced delays due to geopolitical tensions, particularly between the U.S. and China. Despite these challenges, Bunge remains optimistic about securing the necessary approvals in the coming months.