Bunge Global SA (BG) Q1 2025 Earnings Call Highlights: Navigating Market Challenges with ...
In This Article:
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Reported EPS: $1.48 compared to $1.68 in Q1 2024.
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Adjusted EPS: $1.81 versus $3.04 in the prior year.
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Adjusted EBIT: $406 million compared to $719 million last year.
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Adjusted Funds from Operations: $392 million.
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Discretionary Cash Flow Available: $338 million after sustaining CapEx.
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Dividends Paid: $91 million.
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Growth and Productivity CapEx: $256 million.
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Cash Proceeds from Asset Sales: $306 million.
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Retained Cash Flow: Approximately $300 million.
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Net Debt: RMI exceeded net debt by approximately $3 billion.
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Adjusted Leverage Ratio: 0.6 times.
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Liquidity: $8.7 billion in committed credit facilities, all unused, and $3.2 billion cash balance.
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Adjusted ROIC: 9.4%.
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ROIC: 8.2%.
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Full Year 2025 Adjusted EPS Guidance: Approximately $7.75.
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Capital Expenditures: Expected range of $1.5 billion to $1.7 billion.
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Net Interest Expense: Expected range of $220 million to $250 million.
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Depreciation and Amortization: Approximately $490 million.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bunge Global SA (NYSE:BG) exceeded first-quarter expectations, driven by strategic execution and adaptability in a dynamic market environment.
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The company reaffirmed its full-year 2025 adjusted EPS guidance of approximately $7.75, indicating confidence in its ability to navigate current market conditions.
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Bunge Global SA (NYSE:BG) announced the sale of its European Margarines and Spreads business and North American corn milling business, aligning its operations with global value chains.
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The partnership with Repsol and the incorporation of intermediate novel crops in renewable fuel production in Europe supports Bunge's long-term strategy for lower carbon supply chains.
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Bunge Global SA (NYSE:BG) maintains a strong liquidity position with committed credit facilities of approximately $8.7 billion and a cash balance of $3.2 billion, providing ample financial flexibility.
Negative Points
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First-quarter adjusted EPS was $1.81, down from $3.04 in the prior year, reflecting challenges in the current market environment.
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Adjusted segment EBIT decreased to $406 million from $719 million last year, with lower results in North America, Argentina, and European soft seeds.
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The company experienced lower results in ocean freight and a more balanced global supply and demand environment, impacting refined and specialty oils results.
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Bunge Global SA (NYSE:BG) terminated its share purchase agreement with CJ Selecta due to regulatory approval delays, missing out on a potentially accretive transaction.
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The company faces uncertainty in US biofuel policies and trade relations, which could impact future earnings and operational strategies.