Bunge reported better-than-expected third-quarter profits, driven by large global harvests and solid volumes of soy, corn, and other crops. Key highlights include:
Profit Performance: Bunge’s adjusted profit for the quarter ended September 30 was $2.29 per share, surpassing analysts’ expectations of $2.15 per share.
Volume Growth: The company benefited from a record soybean crop and the second-largest corn crop harvested by U.S. farmers, which helped offset lower margins.
2024 Earnings Outlook: Bunge raised its adjusted earnings-per-share outlook for 2024 to “at least $9.25,” slightly up from the previous estimate of “approximately $9.25.”
Segment Performance: Although Bunge’s Agribusiness segment, its largest, saw a 22% decline in adjusted earnings year-over-year, sales increased by 5.5%. The Refined and Specialty Oils segment also experienced a 21% drop in adjusted profit.
Market Conditions: The company noted that profit margins have been under pressure due to falling prices for staple crops like corn and soybeans, which have reached near four-year lows.
Acquisition Update: Bunge is in the process of finalizing a $34 billion acquisition of Viterra, backed by Glencore. While the deal has received conditional clearance from EU regulators and shareholder approval, it awaits final approvals from Canadian and Chinese regulators, with an expected closing by early 2025.
Stock Performance: Following the announcement, Bunge’s shares dipped 0.7% to $87.20.