Bunge lowers annual profit forecast after completing merger with Viterra

U.S. grain trader Bunge on Wednesday cut its 2025 profit forecast after its merger with Viterra. The company said it would revise its segment and volume reporting to align with the company’s integrated operations, Reuters reported.

However, the company’s shares rose 4.7% in premarket trading. UBS analyst Manav Gupta said investors had been wary of a worse outlook.

“The dilution effect is much better than expected. This takes the pressure off the stock and we expect a strong rally in the company,” Gupta said in a note.

At the same time, falling grain prices, weak processing margins and geopolitical tensions are weighing on profitability in the sector.

Starting in the third quarter, the company’s results will include separate segments for soybeans, oilseeds, other oilseeds, as well as another unit for grain trading and processing.

The company now expects adjusted earnings per share for 2025 in the range of $7.30-7.60, down from a previous forecast of $7.75 per share. Analysts estimate the company’s annual adjusted earnings at $7.47 per share, according to LSEG.

Bunge is scheduled to report third-quarter results on Nov. 5. Analysts, on average, had expected the company to report quarterly adjusted earnings of $1.33 per share.

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