Bunge's strong processing margins and Viterra's boost to profits helped it beat profit expectations

Bunge Global beat Wall Street expectations for adjusted third-quarter profit on Wednesday, as its acquisition of Viterra in the first quarter increased volumes and improved oilseed processing margins.

Bunge's soybean refining and processing segment saw a boost in results after the bumper crop in Argentina and Brazil, and because China, which is Bunge’s top soy buyer, shunned U.S. soybeans due to trade tensions.

Bunge's earnings were a surprise, as it and other agribusinesses have been struggling with abundant global crop supplies as well as slumping margins. Meanwhile, U.S. president Donald Trump has threatened to impose tariffs on global trade.

Bunge's adjusted quarterly profit of $2.27 was the lowest since 2019. However, it exceeded analysts' estimates of $2.09 per stock.

Rival grains trader Archer-Daniels-Midland lowered its 2025 profit outlook on Tuesday to a six-year low as trade and policy uncertainty sapped demand and eroded margins.

Bunge completed the merger with Glencore's Viterra in July. This boosted its marketing and origination capabilities and expanded its soy-processing business in Argentina.

The soybean processing and refinery segment of the company posted a quarterly adjusted profit of $478.9 million, an increase by 67% from the same period a year ago. Meanwhile, softseeds processing and refinery unit profit increased more than twice as much.

Bunge's grain milling and merchandising division saw a 56% increase in profit, as increased ocean freight and wheat milling earnings more than compensated for poor grain merchandising.

Bunge shares fell 1.5% during premarket trading.

(source: Reuters)