Bunge recorded a 61.4% drop in its net profit for the first quarter of 2024, compared to the same period in 2023, to US$244 million, as a result of the drop in sales from the trading operation. Net revenue fell 12.5% in the same comparison, to US$ 13.4 billion. In the trading segment, adjusted earnings before interest and taxes (Ebit) fell 29.6%, to US$76 million.
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In the agribusiness segment, which includes, for example, commodity processing units, adjusted Ebit fell 4.9%, to US$487 million. The results in this business were better in Europe and Asia than in the Americas.
The Ebit of the refining and special oils segment fell 3%, to US$ 226 million, while that of wheat milling almost tripled, to US$ 28 million. In the sugar and bioenergy segment, adjusted Ebit grew 26%, to US$ 24 million. The deal covers Bunge’s participation in the joint venture BP Bunge Bioenergia, the second largest sugarcane processor in Brazil.
Bunge CEO Greg Heckman stated in a report that “there continues to be limited visibility for the second half of the year”.
The company also agreed on March 1 to contract a revolving credit line of US$3.2 billion with a group of banks, of which US$1.95 billion is available for withdrawal. There is also a plan to release another US$1.25 billion for withdrawal when the purchase of Viterra is completed. The transaction, however, is still subject to approval by antitrust bodies.
