In a July 31^st release, Bunge Global Limited (BG) posted financial results for the 2^nd quarter of FY 2024. The Company fell far short of analysts’ projections on earnings. Bunge can be regarded as a bellwether for the commodities trading and processing sector. Along with competitors ADM, Cargill, Cofco and Dreyfus, all are subject to the risks of currency fluctuation, geopolitical events, climatic extremes, and increased cost of ingredients, labor and transport in a competitive world environment still restrained by COVID and conflict in the Ukraine.

For Q2 of FY 2024 ending June 30^th, net income was $70 million on total revenue of $13,241 million.  Comparable figures for the 2^nd quarter of fiscal 2023 ending March 31^st were net income of $622 million on total revenue of $15,049 million. Diluted EPS fell from $4.09 for the Q2 of FY 2023 to $0.48 for the most recent quarter. Revenue was down 12.0 percent from Q2 FY 2023. Gross margin declined from 9.1 to 5.0 percent and operating margin fell from 6.3 to 1.6 percent for the most recent quarter compared to Q2 FY 2023.

Of the major operating segments, Agribusiness generated sales of $9,657 million with an EBIT contribution of $138 million; Oils and Refining with sales of $3,120 and an EBIT contribution of $193 million; Milling sales were of $401 million with an EBIT contribution of $28 million.

In commenting on results Greg Heckman, CEO, stated "Our team delivered solid results for the second quarter while also moving forward on a range of strategic priorities, including announcing the sale of our interest in the BP Bunge Bioenergia joint venture. The integration planning process for Viterra is progressing well and the team is excited about the opportunities that the combination will create for our employees, customers and other important stakeholders. He added “Current market conditions have improved in some regions, but we continue to have limited visibility into the latter part of the year. The drivers of long-term demand remain strong and with our global footprint and operating flexibility, we are well-positioned to connect farmers to consumers to deliver essential food, feed and fuel to the world.”

Bunge projected FY 2024 adjusted EPS at $9.25 based on evident headwinds and segment performance year to date.

On June 30^th 2024, Bunge posted assets of $24,428 million, against long-term debt and other obligations of $5,837 million. The Company had an intraday market capitalization of $13,940 million on June 5^th. BG trades with a forward P/E of 11.7 and has ranged over a 52-week period from $86.10 to $116.59 with a 50-day moving average of $107.63. Twelve-month trailing operating margin was 2.1 percent and profit margin 2.3 percent.  Return on assets over the past twelve months was 5.6 percent and the return on equity 12.3 percent.

BG closed at $114.75 on July 30^th but opened 8.5 percent down at $104.96 post release on July 31^st.