Bunge reports 49% drop in 2024 net income, projects lower 2025 EPS amid global challenges
USA – St. Louis-based agribusiness giant Bunge Global SA reported a significant decline in net income for the year ended December 31, 2024, with earnings totaling US$1.14 billion, or US$7.99 per share, marking a 49% drop from the previous year’s US$2.24 billion, or US$14.87 per share.
Bunge attributed the sharp decline to weak oilseed processing margins, particularly in South America, which weighed heavily on its core Agribusiness segment during the fourth quarter.
During a February 5 conference call, Gregory A. Heckman, Bunge’s Chief Executive Officer, acknowledged the challenges posed by the “complicated global environment.”
Despite the company’s efforts to optimize its portfolio and maintain financial discipline, Heckman said Bunge now expects adjusted earnings per share (EPS) for 2025 to be approximately US$7.75, down from an earlier forecast of US$8.71.
The company’s shares fell to a 52-week low of $69.78 on the New York Stock Exchange, a 7% decline from the previous day’s close of US$75.02.
Bunge’s financial performance for 2024 showed a decline across multiple metrics. Sales fell 11% to US$53.11 billion from US$59.54 billion in 2023, while adjusted total segment EBIT decreased to US$2.02 billion from US$3.03 billion. On an adjusted basis, EPS dropped to US$9.19 from US$13.66 in the previous year.
Segment performance
The company’s Agribusiness unit, a core revenue driver, faced significant challenges. Adjusted segment EBIT in this division totaled US$1.52 billion, down 34% from US$2.3 billion in 2023.
Net sales in the segment declined nearly 10% to US$38.6 billion, although volumes increased to 80.628 million tonnes from 76.019 million tonnes.
Fiscal 2024 results included a US$19 million impairment charge related to a minority investment in North America and US$6 million in insurance recoveries related to property damage from the Ukraine-Russia conflict.
Bunge’s Refined and Specialty Oils unit also saw a downturn, with adjusted segment EBIT totaling US$739 million, a 16% decline from US$883 million in 2023. Sales in the division fell 13% to US$12.77 billion, although volumes rose to 9.134 million tonnes from 8.908 million tonnes.
In contrast, the company’s Milling unit showed resilience, with adjusted segment EBIT increasing 9% to US$93 million from US$85 million in 2023. Despite this growth, net sales in the division decreased 18% to US$1.56 billion from US$1.9 billion, while volumes rose to 3.703 million tonnes from 3.391 million tonnes.
Looking Ahead
Despite the headwinds, Bunge is moving forward with several strategic initiatives aimed at strengthening its position in the global market.
Heckman highlighted the upcoming close of the company’s business combination with Viterra and noted progress in regulatory approvals, including a recent green light from the Canadian government and ongoing discussions with Chinese authorities.
The company is also advancing its acquisition of CJ Selecta, a leading Brazilian manufacturer of soy protein concentrate, and expects the transaction to close soon.
In October 2024, Bunge completed the sale of its sugar and bioenergy joint venture in Brazil to BP, a move aimed at streamlining its operations and supporting stock repurchases.
Additionally, Bunge plans to finalize a partnership with Repsol to develop low-carbon feedstocks for renewable fuel production, marking a first-of-its-kind alliance in Europe.
Despite the challenging financial landscape, Heckman emphasized Bunge’s readiness to navigate market uncertainties and pursue growth opportunities.
“Planning for these large initiatives takes teamwork and cross-functional collaboration,” he said, underscoring the company’s strategic focus on long-term value creation.
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