Gross sales surge as Bunge begins subsequent chapter

ST. LOUIS — The third quarter marked a brand new starting for Bunge International SA — its first working as a mixed firm following its $8.2 billion merger with Viterra and its first since altering its section and quantity reporting to align with its new working construction. Outcomes had been combined, as the corporate’s internet revenue fell in opposition to a backdrop of foreign-exchange losses however gross sales jumped on the advantages of the newly-added Viterra enterprise.

Internet revenue within the third quarter ended Sept. 30 totaled $166 million, equal to 84¢ per share on the frequent inventory, down 25% from $221 million, or $1.56 per share, in the identical interval a 12 months in the past. Adjusted complete EBIT, in the meantime, elevated 54% to $757 million from $491 million.

Internet gross sales surged 72% to $22.16 billion, up from $12.91 billion.

“Our third-quarter outcomes mirrored robust efficiency in our soybean and softseed processing and refining segments, the place we noticed the advantages of a extra balanced international footprint and the preliminary impression of our crew’s work to seize industrial synergies,” Gregory Heckman, chief government officer, stated throughout a Nov. 5 convention name with analysts.

In mid-October, Bunge stated it could be altering its section and quantity reporting from agribusiness, refined and specialty oils, milling, and company and different, to soybean processing and refining, softseed processing and refining, different oilseeds processing and refining, and grain merchandising and milling. Bunge will proceed to present outcomes for company and different.

“These adjustments replicate a good interconnection of our upstream and downstream operations and aligns our section reporting with our end-to-end worth chain working construction,” stated John Neppl, chief monetary officer.

Adjusted EBIT for soybean processing and refining totaled $478 million within the third quarter, up 67% from $286 million in the identical interval a 12 months in the past. The newest outcomes included $141 million in mark-to-market timing variations. Internet gross sales had been $10.86 billion, up 38% from $7.86 billion.

“Soybean processing and refining outcomes improved in all areas, reflecting a mix of upper margins, robust execution and the addition of Viterra’s South American property,” Neppl stated. “For vacation spot worth chain, increased outcomes had been primarily pushed by processing in Europe and Asia and origination from South America. In North America, increased processing outcomes had been greater than offset by decrease ends in refining. In South America, outcomes had been increased in processing and refining. And in International Oils, increased outcomes mirrored robust execution. Increased course of volumes primarily mirrored the mixed firm’s elevated manufacturing capability in Argentina.”

Adjusted EBIT in softseed processing and refining totaled $275 million, up 107% from $133 million a 12 months in the past. The newest quarter included $39 million in mark-to-market timing variations. Internet gross sales surged 130% to $3.66 billion from $1.59 billion.

“Increased softseed processing and refining outcomes had been pushed by increased common margins and the addition of Viterra’s softseed property and capabilities,” Neppl stated. “In Argentina, outcomes had been increased in each processing and refining. In Europe, outcomes had been increased in processing and biodiesel, whereas refining outcomes had been barely down. In North America, outcomes had been decrease in each processing and refining. Outcomes from international softseeds merchandising actions had been increased, reflecting robust execution. Increased softseed processed volumes primarily mirrored the mixed firm’s elevated manufacturing capability in Argentina, Canada and Europe.”

In different oilseeds processing and refining, adjusted EBIT was $51 million, down 19% from $63 million. Internet gross sales elevated to $1.21 billion from $1.06 billion.

“For different oilseeds processing and refining, increased ends in North America specialty oils had been greater than offset by decrease ends in Asia and Europe,” Neppl stated. “The addition of Viterra has a minimal impression on this section, which primarily consists of our tropical and specialty oils and soy protein focus companies.”

Adjusted EBIT within the grain merchandising and milling section totaled $120 million within the third quarter, up 56% from $77 million in the identical interval a 12 months in the past. The newest quarter included $93 million in mark-to-market timing variations. Internet gross sales within the section had been $6.43 billion, up sharply from $2.4 billion a 12 months in the past.

“In grain merchandising and milling, increased ends in wheat milling and ocean freight, plus the addition of the sugar enterprise had been partially offset by decrease ends in international wheat and corn merchandising,” Neppl stated. “Increased volumes mirrored the mixed firm’s bigger inexperienced dealing with footprint and capabilities. Prior-year outcomes included corn milling, which we divested earlier this 12 months.”

Bearing in mind its third-quarter outcomes, the present margin and macro atmosphere, Bunge continues to forecast full-year 2025 adjusted earnings per share within the vary of $7.30 to $7.60, Neppl stated. The corporate expects capital expenditures within the vary of $1.6 billion to $1.7 billion through the 12 months, he stated.

“We had a powerful third quarter,” Heckman stated on the shut of his ready remarks. “We’re capturing worth from the mixed platform, working as one firm and demonstrating the advantages of our expanded international community. Externally, we proceed to navigate a excessive diploma of complexity within the market. And as talked about, farmers and finish customers stay largely spot.

“International grain stocks-to-use ratios are elevated, dampening volatility and placing strain on sure margins. And coverage choices, together with biofuels and commerce, stay in flux as we stay up for 2026. However our platform is constructed to carry out and to win whatever the atmosphere. We have now the flexibleness to adapt to shifting commerce flows and preserve merchandise shifting. That’s the ability of our mixed firm.

“The dimensions, scope and resilience of a worldwide community backed by the self-discipline to handle threat and ship options that create worth for all our prospects, farmers and finish customers. So, in brief, now we have the individuals, property and processes to handle by way of uncertainty and the rigor to remain targeted on what we are able to management, operating effectively, serving prospects and creating worth for farmers and customers of meals, feed and gas.”