Bunge’s Profit in the First Quarter of 2025 Falls to Its Lowest Level in Five Years
In the first quarter of 2025, Bunge reported a significant decline in profit; however, the company’s results exceeded analysts’ expectations. The main reasons were weak margins in oilseed processing in North America and Argentina, as well as a decrease in revenues from maritime freight. As a result, Bunge’s profit for the reporting period became the lowest in the last five years.
This is reported by AgroReview
Influencing Factors and Market Reaction
According to CEO Greg Heckman, some business activity that was expected to occur in the second quarter has shifted to the beginning of the year:
“The changing dynamics of trade, including tariffs and regulatory uncertainty, have forced many to act preemptively.”
In light of this news, the company’s shares fell by 1.8% during the trading session on May 7, reaching $76.72.
Global trade barriers, including new tariffs initiated by the Donald Trump administration, have negatively impacted not only Bunge but also other players in the agricultural market, such as Archer Daniels Midland (ADM) and Cargill. Due to high global agricultural product stocks and declining margins, their profits are also decreasing.
Bunge’s Performance and Forecast
In the key agribusiness segment, Bunge’s profit fell by 45% year-on-year. In the refined and specialty oils segment, the decline was 40%, while in the milling business, it was 46%.
Despite the challenging market conditions, Bunge has maintained its profit forecast for 2025 at $7.75 per share. At the same time, the company acknowledged that the outlook for agribusiness has worsened, and if the forecast holds true, it will mark the worst annual result since 2019.
CFRA Research analyst Arun Sundaram noted that the company benefited from early purchases due to concerns about potential tariffs but warned that even weaker results should be expected in the second quarter.
Bunge reported adjusted earnings of $1.81 per share for the period ending March 31, significantly lower than $3.04 a year earlier. However, this figure exceeded the average analyst forecast of $1.30, according to LSEG data.
Bunge’s main competitor, Archer Daniels Midland, also reported its worst first quarter in five years and revised its own forecast for 2025 downward due to heightened trade uncertainty.