Bunge Q1 2025: Segment Analysis Reveals Profit Drivers

Today, we're diving into the first-quarter 2025 financial results for Bunge Global SA (BG), a major player in the global agribusiness and food industry. By examining their latest 10-Q filing, we can get a clear picture of their performance and see how revenue flows through their operations to the bottom line.

For the three months ending March 31, 2025, Bunge reported total revenue of $11.64 billion. This generated a net income of $201 million attributable to shareholders. While these numbers provide a high-level view, the real story emerges when we break them down.

This flow diagram of the income statement for the quarter visualizes how Bunge's revenue is transformed into profit.

A Tale of Three Segments

Bunge's business is organized into three primary segments, each playing a distinct role in its financial performance.

• Agribusiness: This is Bunge's largest division by far, responsible for sourcing, processing, and trading agricultural commodities like oilseeds and grains. It accounted for $8.16 billion in revenue and generated a gross profit of $303 million, for a gross margin of about 3.7%.

• Refined and Specialty Oils: This segment, which produces edible oils and fats for food service and consumer brands, brought in $3.09 billion in revenue. With a gross profit of $237 million, its gross margin stands at a more robust 7.7%, showcasing the higher value of these more processed products.

• Milling: Though the smallest segment with $375 million in revenue, the Milling division boasts the highest gross margin. It produced a gross profit of $44 million from milling wheat and corn, resulting in an impressive 11.7% gross margin.

Balancing Volume and Value

Overall, Bunge's performance shows the realities of the commodity business. The high-volume, lower-margin operations in Agribusiness are complemented by smaller but more profitable value-added segments. The company achieved a company-wide gross margin of 5.1% and a net margin of 1.7%. On a per-share basis, this translated to a diluted earnings per share (EPS) of $1.48.

In conclusion, Bunge's first-quarter results paint a picture of a company navigating a dynamic market by balancing volume with value. The diversification across its segments, particularly the profitability in its value-added oil and milling divisions, helps sustain its bottom line.