Viterra net income falls in first half of 2024

Viterra Ltd. net income fell to $70 million in the first half of 2024, down from $141 million during the first six months of 2023 on lower prices and tighter margins across the industry.

In its 2024 half year report on the period ended June 30, Viterra said total revenues were $22.57 billion, down 22% from $28.76 billion in 2023. EBITDA was $691 million, down from $1.08 billion, mainly on a lower gross margin, the company said.

Viterra said sales volume was 62 million tonnes of wheat, corn, soybeans and soybean meal dominant commodities, which was 3% lower than 63.9 million tonnes during the same period in 2023. Grain marketing volumes were 38.8 million tonnes, down 1% from 39.1 million, while oilseeds fell 6% to 22.1 million tonnes from 23.4 million.

“During the first half of the year, we witnessed a significant recovery to crop production across regions that were severely impacted by dry weather conditions in 2023,” said David Mattiske, chief executive officer of Netherlands-based Viterra. “While the demand for agricultural commodities remains strong, increased supply has been tempered by previously volatile markets, resulting in lower commodity prices and tighter margins across the industry.”

Viterra, which is backed by Switzerland-based global commodities company Glencore, is in the process of merging with Bunge Global SA, which would create one of the world’s largest agribusiness companies, moving it closer in size and scope to leading agribusiness giants Cargill and ADM.

Mattiske said integration planning for the combination with US-based Bunge continues to make good progress. Viterra recently agreed to divest parts of its oilseeds processing business in Hungary and Poland to gain European Union conditional approval of the merger, which was received Aug. 1. Focus is turning to receiving approval in Canada and China.

“While we are disappointed we were not able to retain this highly valued part of our network, particularly our talented colleagues, we are pleased to receive conditional approval in Europe and with only a small number of jurisdictions outstanding,” Mattiske said.

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