Bunge reports Q1 profit beating as uncertainty over tariffs fuels demand
Bunge Global, a grain trader and processor, posted a lower-than-expected first quarter profit decline on Wednesday due to increased export demand.
The company's first-quarter earnings were the lowest in five years due to a combination of lower ocean freight returns and weaker oilseed crushing margins in North America, Argentina and South America.
Bunge shares rose 1.1% in pre-market trade to $79.01.
Rising global trade tensions stoked by U.S. President Donald Trump's sweeping tariffs have created headwinds for Bunge and agribusiness peers including Archer-Daniels-Midland and Cargill, which have all seen profits erode in recent quarters due to ample global crop supplies and thinning margins.
Bunge struggles to complete a deal with grain handler Viterra while the companies wait for final regulatory approvals.
"We benefitted in the first quarter due to timing shifts related to tariffs in farmer activity and demand. We remain confident in our abilities to continue to execute in spite of the current market conditions," said CEO Greg Heckman.
Bunge confirmed its previous 2025 earnings guidance, which was an adjusted $7.75 a share. However, it said that its outlook for its largest segment - agribusiness - would be weaker. According to LSEG, if realized, this would be Bunge’s worst annual profit in 2019.
ADM, a rival company, reported on Tuesday its lowest first quarter profit in five year and reduced its outlook for 2025 amid trade policy uncertainty.
Bunge's core Agribusiness segment saw a 16.2% decline in net sales to $8.16 billion during the third quarter of the year.
According to LSEG, the Missouri-based firm posted an adjusted profit per share of $1.81 for the three months ending March 31. This is down from $3.04 a year earlier but still above the analysts' average forecast of $1.30. Karl Plume reported from Chicago. Pooja Menon contributed additional reporting from Bengaluru. Editing by Pooja Deai and Mark Potter.
(source: Reuters)
