10-KPeriod: FY2024

Bunge Global SA Annual Report, Year Ended Dec 31, 2024

Filed February 20, 2025For Securities:BG

Summary

Bunge Global SA's 2024 10-K highlights a significant year marked by ongoing strategic integration and operational performance, particularly in its core Agribusiness, Refined and Specialty Oils, and Milling segments. Despite a decrease in net income attributable to shareholders compared to the prior year, driven primarily by lower core segment EBIT, the company demonstrated resilience. The Agribusiness segment experienced a notable decline in EBIT due to lower gross profit, influenced by stabilizing commodity prices and reduced average sales prices, though volumes saw an increase in certain areas. The company is progressing with its transformative acquisition of Viterra Limited, which is expected to create a more integrated global agribusiness entity. Regulatory approvals for this transaction are anticipated in the coming months. In its Non-core segment, Bunge completed the sale of its interest in BP Bunge Bioenergia, which contributed positively to the financial results through a gain on sale. Bunge continues to focus on operational efficiency, sustainability initiatives, and managing risks associated with market volatility and global economic conditions, while also investing in growth projects and maintaining a strong liquidity position.

Financial Highlights

59 data points
Beta

Revenue

$53.11B

6.4% Gross Margin

Net Income

$1.14B

2.1% Net Margin

EPS (Diluted)

$7.99

Total Assets

$24.90B

Cash & Equivalents

$3.31B

Free Cash Flow

$524.00M

Financial Statements
Beta
Revenue$53.11B
Cost of Revenue$49.72B
Gross Profit$3.39B
R&D Expenses$30.00M
SG&A Expenses$1.78B
Operating Income$1.14B
Interest Expense$471.00M
Net Income$1.14B
EPS (Basic)$8.09
EPS (Diluted)$7.99
Shares Outstanding (Basic)140.54M
Shares Outstanding (Diluted)142.22M

Key Highlights

  • 1Bunge Global SA is nearing completion of its significant acquisition of Viterra Limited, expected to enhance its global agribusiness footprint.
  • 2Net income attributable to shareholders decreased to $1,137 million in 2024 from $2,243 million in 2023, largely due to lower core segment EBIT.
  • 3The Agribusiness segment's EBIT decreased by 53% to $1,301 million, primarily due to lower gross profit from stabilizing commodity prices and reduced average sales prices.
  • 4The Refined and Specialty Oils segment saw a 12% decrease in EBIT to $759 million, driven by lower average sales prices and margins, partially offset by increased volumes in Asia and North America.
  • 5The Milling segment reported a 68% increase in EBIT to $111 million, driven by higher gross profit in both South American wheat milling and North American corn milling businesses.
  • 6The company successfully completed the sale of its 50% interest in the BP Bunge Bioenergia joint venture, contributing a $195 million gain on sale.
  • 7Bunge maintained a strong liquidity position with $3,311 million in cash and cash equivalents and $5,665 million in unused committed revolving credit facilities as of December 31, 2024.

Frequently Asked Questions

Bunge Global SA is in the final stages of acquiring Viterra Limited, with regulatory approvals anticipated in the near future. The acquisition is expected to create a more integrated global agribusiness company, enhancing storage, processing, and transport capabilities. Upon completion, Viterra shareholders are expected to own approximately 30% of the combined entity. The integration process is a key focus, with potential challenges including combining operations and realizing synergies.

In 2024, Bunge Global SA reported a decrease in net income attributable to shareholders to $1,137 million from $2,243 million in 2023. This decline was primarily driven by lower Earnings Before Interest and Taxes (EBIT) in its core segments, particularly Agribusiness, where stabilizing commodity prices and reduced sales prices impacted gross profit. However, the company managed its liquidity well, with an increase in cash and cash equivalents.

Bunge Global SA faces several key risks, including volatility in agricultural commodity and energy prices, adverse weather conditions and climate change impacts, geopolitical events (such as the ongoing war in Ukraine), intense competition, and risks associated with its significant pending acquisition of Viterra, including integration challenges and financing. The company also faces risks related to cybersecurity, global economic downturns, and regulatory changes.

Bunge emphasizes sustainability as critical to its business strategy. The company integrates ESG factors into its operations, from evaluating growth markets to compensation. Key focus areas include leveraging its value chain position to promote industry-wide transformation, mitigating deforestation in supply chains (achieving 100% traceability for direct and indirect soy supply chains in priority regions of Brazil), and setting Science Based Targets for GHG emission reductions. Bunge also adheres to various ESG disclosure frameworks and regulatory requirements.