Bunge’s first-quarter profit falls to lowest in 5 years

Bunge reported a decline in first-quarter 2025 profit, but the results were better than analysts’ forecasts.

Weak margins from oilseed processing in North America and Argentina, as well as a decline in the profitability of ocean freight, reduced the company’s profit, and it received its weakest first-quarter result in five years.

According to the company’s CEO Greg Heckman, some of the activity expected in the second quarter has already happened in the first:

“Changing trade dynamics, including tariffs and regulatory uncertainty, forced many to act ahead of schedule.”

Bunge shares fell 1.8% in mid-day trading on May 7, to $76.72.

Global trade restrictions, including new tariffs initiated by the Donald Trump administration, have negatively affected not only Bunge, but also other agricultural players such as Archer Daniels Midland (ADM) and Cargill. Against the background of high global agricultural inventories and declining margins, their profits also continue to decline.

In the largest revenue segment – agribusiness – Bunge’s profit fell by 45% year-on-year. In the refined and specialty oils segment, profit fell by 40%, and in the flour milling sector – by 46%.

Despite the difficult situation, the company confirmed its 2025 profit forecast of $7.75 per share, although it acknowledged that the prospects for agribusiness are worse than expected. If the forecast comes true, this will be Bunge’s worst annual result since 2019.

CFRA Research analyst Arun Sundaram said the company benefited from early buying amid tariff concerns, but warned that the second quarter should be even weaker.

Bunge reported adjusted earnings of $1.81 per share for the period through March 31, down from $3.04 a year earlier but above the average analyst estimate of $1.30, according to LSEG.

Bunge rival ADM also reported its worst first quarter in five years a day earlier and cut its 2025 outlook due to trade uncertainty.

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