Agricultural commodities trader Bunge Global has posted lower than expected fourth-quarter profit as weak oilseed processing margins in key markets dragged down results in its core agribusiness segment.
The company said its processing business would remain under pressure in 2025 due to weak margins and a challenging economic environment, with global trade tensions and biofuel policy uncertainty creating headwinds for crop traders.
The struggles come as Bunge is working to close a deal to acquire grain handler Viterra, a merger that would create an agribusiness powerhouse closer in size to its peers Archer-Daniels-Midland and Cargill. Bunge said regulatory approvals for the deal were in the late stages.
The company has seen profits erode as a global glut of staple crops like soybeans and corn dragged prices to four-year lows last year, whittling down margins.
Recently, ADM posted its lowest fourth-quarter profit in six years and said it was slashing costs and cutting jobs, joining Cargill in tightening its belt.
Divisional Performance
Bunge's agribusiness segment, which represents over 80% of its total revenue, saw adjusted core earnings decline to $364 million (€349 million) in the fourth quarter from $639 million (€613 million) a year earlier.
Adjusted earnings in the processing sub-segment tumbled nearly 60% due to lower soybean crushing results in North and South America and weak softseed markets in Europe.
Bunge's refined and specialty oils unit's adjusted profit dropped 25% due in part to US biofuel policy uncertainty.
Bunge forecast adjusted earnings to be $7.75 per share in 2025, down from an adjusted annual profit of $9.19 per share in 2024 and missing analysts' expectations of $8.71.
The Missouri-based company posted an adjusted profit of $2.13 per share in the quarter ended 31 December, down from $3.70 in the same period a year earlier and below the consensus analyst estimates of $2.24, according to data compiled by LSEG.
