Bunge's Q1 2025 Earnings Call: Unpacking Contradictions in Viterra Deal, Crush Margins, and Demand Outlook

Viterra transaction status and timeline, crush margin visibility and outlook, impact of U.S. policy uncertainty on demand, cash flow and share repurchase, and crush margins and demand dynamics are the key contradictions discussed in Bunge Global SA's latest 2025Q1 earnings call.



Strong First Quarter Results:
- Bunge's first quarter earnings per share were $1.48, with adjusted earnings per share at $1.81.
- Adjusted segment earnings before interest and taxes (EBIT) were $406 million.
- The result reflects a pull forward of activity from Q2, driven by shifts in trade dynamics and uncertainty.

Processing Performance Varied Across Regions:
- Processing results were mixed, with stronger performance in Brazil, Europe, and Asia soy crush value chains, but lower in North America and Argentina.
- Margins were lower in North America due to soft seed margins, while soy crush margins were stronger globally, particularly in Europe.

Divestments and Strategic Partnerships:
- Bunge announced the sale of its European Margarines and Spreads business and North American corn milling business, aligning with global value chains.
- The partnership with Repsol on a soy crush footprint in Spain is expected to enhance Bunge's lower carbon fuel production capabilities.

Capital Allocation and Financial Health:
- Adjusted funds from operations were $392 million, with $338 million in discretionary cash flow.
- The company's readily marketable inventories exceeded net debt by $3 billion, maintaining a strong financial position with an adjusted leverage ratio of 0.6 times.