Bunge ends 2024 with falling profits

Bunge Global SA released its financial results for the fourth quarter and full year 2024, recording a significant drop in net income compared to 2023.

The company reported annual net income of $1,137 billion, compared with $2,243 billion a year earlier. Diluted earnings per share also fell, falling to $14,87 in 2023 from $7,99 in 2024. The decline was driven by lower margins in grain and oil processing, as well as currency impacts.

Performance by segment

In the agribusiness sector, Bunge recorded adjusted EBIT of US$1,515 billion in 2024, a decrease of 34% compared to the previous year. The performance was impacted mainly by the reduction in the profitability of grain processing, especially in North America and South America. In contrast, the trading division showed improvement, with gains in the financial services segment, maritime transportation and global grain trading.

The refined and specialty oils division also saw a decline, with adjusted EBIT of $739 million in 2024, compared with $883 million in the previous year. The decline was attributed to a more balanced market in North America and uncertainty in U.S. biofuels policies.

The milling sector had a mixed performance. While North America showed growth, results in South America were weaker, resulting in adjusted EBIT of $93 million, versus $85 million in 2023.

In the sugar and bioenergy segment, results reflect only one month of operations due to the sale of Bunge's stake in BP Bunge Bioenergia. Adjusted EBIT fell to US$20 million, compared to US$164 million in 2023.

Projections for 2025

For 2025, Bunge projects adjusted earnings per share of approximately $7,75, down from $9,19 in 2024.

The company expects a reduction in earnings from the grain processing sector, with a decline in North America and Europe, while sales should show a slight decline. The refined and specialty oils segment should also continue to decline, impacted by a more balanced supply in the North American market.

On the other hand, the expectation is for growth in the milling sector and in the corporate division.