What's Happening?
Bunge Global SA, headquartered in St. Louis, has reported a significant increase in sales following its $8.2 billion merger with Viterra. The third quarter marked the first operating period as a combined
company, with net sales surging 72% to $22.16 billion. Despite a decline in net income due to foreign-exchange losses, the company saw strong performance in its soybean and softseed processing and refining segments. Bunge has changed its segment and volume reporting to align with its new operating structure, reflecting a more balanced global footprint and capturing commercial synergies.
Why It's Important?
The merger between Bunge and Viterra is a pivotal development in the agribusiness sector, creating a more robust and diversified company with enhanced global capabilities. The increase in sales and adjusted EBIT highlights the benefits of the merger, including improved margins and expanded production capacity. This strategic move positions Bunge to better navigate market complexities and leverage its expanded network to create value for customers, farmers, and end consumers. The merger is expected to strengthen Bunge's competitive edge in the global agribusiness market.
What's Next?
Bunge continues to forecast full-year 2025 adjusted earnings per share in the range of $7.30 to $7.60, with capital expenditures expected to be between $1.6 billion and $1.7 billion. The company plans to capitalize on its expanded global network and adapt to shifting trade flows, maintaining flexibility to manage risk and deliver solutions. As policy decisions regarding biofuels and trade remain in flux, Bunge is focused on running efficiently and serving its customers, while creating value for farmers and consumers of food, feed, and fuel.
