Agribusiness Company Bunge Misses Q2 Earnings Estimates, Warns Of Geopolitical Uncertainty

Shares of agribusiness and food company Bunge Global SA BG are trading lower in premarket on Wednesday.

Here’s a breakdown of the company’s report:

• Fourth-quarter FY24 sales declined 9.33% year-on-year to $13.54 billion, missing the analyst consensus estimate of $13.60 billion.
• Adjusted EPS of $2.13 missed the consensus estimate of $2.24.
• Net sales from the Agribusiness segment declined 9.5% to $9.9 billion, and Refined & Specialty Oils decreased 7.4% to $3.3 billion.
• Gross profit improved 13.8% Y/Y to $1.08 billion. Adjusted core segment EBIT amounted to $548 million, an 37.7% decrease Y/Y.
• Adjusted EBIT plunged 46.8% to $445 million. The operating cash flow for twelve months totaled $1.9 billion.

Also Read: PepsiCo Q4 Earnings: EPS Beat, Subdued North America Performance, 5% Dividend Hike And More

Bunge held $3.31 billion in cash and equivalents as of Dec. 31, 2024.

“While we didn’t end the year as we expected and our forward visibility is limited by the increased geopolitical uncertainty, we are confident that the work we’ve done to further strengthen our business will allow us to continue to create value for all stakeholders,” said CEO Greg Heckman.

Outlook: Bunge sees fiscal 2025 adjusted EPS of approximately $7.75, with an estimate of $8.81.

Bunge expects to incur capital expenditures of $1.5 billion – $1.7 billion. The company sees FY25 net interest expense in the range of $250 million to $280 million. 

In Agribusiness, FY25 results are forecasted to be down from last year due to lower results in Processing where higher results in South America are expected to be more than offset by lower results in North America and European softseeds.

Price Action: Bunge shares are trading lower by 4.71% at $71.49 in premarket at the last check Wednesday.

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