Bunge Global SA BG reported fourth-quarter 2024 adjusted earnings of $2.13 per share, which missed the Zacks Consensus Estimate of $2.30 by a margin of 7%. The bottom line marked a 42% year-over-year plunge.
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Including one-time items, the company posted earnings per share of $4.36 in fourth-quarter 2024 compared with $4.18 in the year-ago quarter.
Bunge Global SA Price, Consensus and EPS Surprise
Bunge Global SA Price, Consensus and EPS Surprise
Bunge Global SA price-consensus-eps-surprise-chart | Bunge Global SA Quote
Bunge Global’s net sales were $13.5 billion, down 9.3% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $12.8 billion.
Bunge Global’s Cost & Margin Performances in Q4
The cost of sales was $12.46 billion , down 9% from the prior-year quarter. Gross profit declined 13.8% year over year to $1.08 billion. Selling and administrative expenses were $451 million, down 9% year over year.
Bunge Global reported an operating profit of $767 million, which marked a 19% decline from $951 million in the year-ago quarter.
Adjusted total segment operating profit slumped 47% year over year to $445 million. Total segment operating margin contracted 230 basis points to 3.3% from the fourth quarter of 2023.
BG’s Segmental Performances in Q4
Agribusiness: The segment’s sales declined 9.5% year over year to $9.8 billion. Volumes were 19,965 thousand metric tons compared with 20,522 thousand metric tons in the year-ago quarter. Adjusted operating profit for the segment declined 43% year over year to $364 million as improved results in merchandising business were negated by lower processing results.
The merchandising business’ adjusted operating profit was $123 million, marking a solid 167% improvement from the year-ago quarter. The business continues to gain on improved performance in the financial services, ocean freight and global oils businesses, which offset lower results in global oils. Results also included a business interruption insurance recovery of $14 million related to BG’s Ukrainian operations.
The processing business’ adjusted operating profit plunged 59% year over year to $241 million. Higher soy crush results in Europe and Asia were offset by lower results in North America and South America, as well as European softseeds. Results also included the impact of a business interruption insurance recovery of $38 million related to the Ukrainian operations.
Refined & Specialty Oils: The segment’s sales fell 7% year over year to $3.25 billion . Volumes were 2,305 thousand metric tons compared with 2,272 thousand metric tons in the year-ago quarter.
The segment reported an adjusted operating profit of $160 million , a 24.5% drop from the year-ago quarter’s $212 million. This was attributed to lower results in North America due to the combination of a more balanced supply and demand environment and uncertainty related to U.S. biofuel policies. Results in Europe, South America and Asia were also down due to lower margins.
Milling: The segment’s sales decreased 11% year over year to $366 million . Volumes were up 7% year over year to 897 thousand metric tons.
The segment reported an adjusted operating profit of $24 million , marking a 20% decline from the fourth quarter of 2023. Improved results in North America were offset by lower results in South America.
Bunge Global completed the sale of the non-core Sugar and Bioenergy segment on Oct. 1, 2024. Adjusted operating profit was $11 million (reflecting only one month of income) in the fourth quarter compared with $39 million in the year-ago quarter.
BG’s Cash & Balance Sheet Updates
Cash flow from operating activities was $1.9 billion in 2024 compared with$3.3 billion in the prior year. The decline was due to lower reported net income and net changes in working capital. Cash and cash equivalents were $3.3 billion as of the end of 2024 compared with $2.6 billion as of the end of 2023.
At the end of 2024, Bunge Global’s long-term debt was $4.7 billion, up from $4.1 billion as of 2023-end. The company repurchased $500 million of shares during the fourth quarter.
Bunge Global’s 2024 Performance
For 2024, Bunge Global’s adjusted earnings were $9.19 per share, which missed the Zacks Consensus Estimate of $9.35. Earnings were 33% lower than the prior year. The bottom line also fell short of the company’s projected adjusted earnings per share of “at least $9.25” for 2024.
Including one-time items, the company’s earnings were $7.99 per share in 2024 compared with $14.87 in 2023.
Total revenues fell 11% year over year to $53.1 billion, which fell short of the Zacks Consensus Estimate of $52.37 billion.
BG Provides 2025 Outlook
The company projects adjusted earnings per share of $7.75 in 2025, indicating a 15.7% year-over-year decline.
The Agribusiness segment is expected to witness a year-over-year decline due to lower results in Processing. The company expects improved results in South America to be offset by lower results in North America and European softseeds. Results in Merchandising will be down slightly from last year.
The Refined and Specialty Oils segment’s full-year results are also anticipated to be down from 2024, reflecting a more balanced supply and demand environment in North America. The Milling segment is expected to delivered an improvement in results.
BG-Viterra to Create a Premier Agribusiness Solutions Firm
The company also stated that it is progressing on the integration planning for the announced combination with Viterra. The combination has received the vast majority of regulatory approvals and Bunge Global expects to close the deal soon. The merged entity will boast an enhanced global network with a diversified agriculture network covering all major crops.
Bunge Stock’s Price Performance & Zacks Rank
Shares of Bunge Global have lost 15.7% over the past year against the industry's 2.4% growth.
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Bunge Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Another Agriculture Stock
Archer Daniels Midland Company ADM posted fourth-quarter 2024 adjusted earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate of $1.07. However, the figure decreased from earnings of $1.36 per share in the year-ago quarter.
ADM’s revenues fell 6.5% year over year to $21.5 billion and lagged the consensus estimate of $21.9 billion. The top line was hurt by lower revenues at its Ag Services & Oilseeds unit.
Other Agriculture Stocks Awaiting Results
West Fraser Timber Co. WFG is scheduled to report fourth-quarter 2024 results on Feb. 12. The company has a trailing four-quarter average earnings surprise of 170.50%. The Zacks Consensus Estimate for WFG’s earnings is pegged at six cents per share, implying a solid improvement from the loss of 23 cents per share reported in the year-ago quarter.
The consensus estimate for WFG’s top line is pegged at $1.40 billion, indicating a 7.6% decline from the prior-year figure.
Dole DOLE, expected to release fourth-quarter 2024 results next month, has a trailing four-quarter average earnings surprise of 121.6%. The Zacks Consensus Estimate for DOLE’s earnings is pegged at eight cents per share, implying a 50% plunge from the year-ago quarter.
The consensus estimate for Dole’s revenues is pegged at $2.05 billion, indicating a 1% dip from the prior-year figure.
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