Bunge Global SA Reports 50% Decline in Net Income for Fiscal Year 2024

Bunge Global SA reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net income attributable to shareholders falling to $1.137 billion, down from $2.243 billion in 2023. This represents a decrease of approximately 50%, primarily driven by lower earnings in its core segments, particularly the Agribusiness segment, which saw a 53% drop in EBIT to $1.301 billion. Total EBIT for the company decreased to $1.792 billion from $3.333 billion in the previous year, reflecting challenges in commodity pricing and market conditions.

The company experienced a 10% decrease in net sales within its Agribusiness segment, attributed to lower average sales prices and reduced volumes in soybean oilseed processing. The Refined and Specialty Oils segment also faced a 13% decline in net sales, largely due to decreased prices and uncertainty surrounding U.S. biofuel policies. In contrast, the Milling segment reported a 68% increase in EBIT, driven by improved gross profit margins despite an 18% drop in net sales.

Strategically, Bunge is in the process of acquiring Viterra Limited, a move expected to enhance its global agribusiness capabilities. The acquisition, valued at approximately $5.1 billion in shares and $2 billion in cash, is anticipated to close in the coming months, pending regulatory approvals. This acquisition is part of Bunge's strategy to expand its agricultural storage, processing, and transport assets, positioning the company to better meet market demands.

Operationally, Bunge employed approximately 23,000 people as of December 31, 2024, with a diverse geographic presence that includes significant operations in North and South America, Europe, and Asia-Pacific. The company has also been active in share repurchase programs, having repurchased 12.15 million shares for $1.1 billion during the year, reflecting its commitment to returning value to shareholders.

Looking ahead, Bunge's management remains cautious, citing ongoing risks related to market volatility, geopolitical tensions, and the integration of Viterra. The company expects to continue facing challenges in commodity pricing and supply chain dynamics, which may impact its financial performance in the near term. However, the anticipated synergies from the Viterra acquisition are expected to provide a pathway for future growth and operational efficiency.