Grain trader and processor Bunge (NYSE:BG) Global posted a smaller than expected first-quarter profit drop on Wednesday as anxiety over rising tariffs boosted export demand for its products.
But weak oilseed crush margins in North America and Argentina, and lower returns in ocean freight operations, dampened earnings as the company turned in its lowest first-quarter result in five years.
Bunge shares edged 1.1% higher in pre-market trading to $79.01.
Rising global trade tensions stoked by U.S. President Donald Trump’s sweeping tariffs have created headwinds for Bunge and agribusiness peers including Archer-Daniels-Midland and Cargill, which have all seen profits erode in recent quarters due to ample global crop supplies and thinning margins.
The struggles come as Bunge is working to close a deal to acquire grain handler Viterra as the companies await final regulatory approvals.
"We benefited in the first quarter from tariff-related timing shifts in demand and farmer activity and remain confident in our ability to continue to execute despite the current market environment," CEO Greg Heckman said.
Bunge reaffirmed its prior 2025 earnings guidance of an adjusted $7.75 per share, but said its outlook for agribusiness, its largest segment, would be weaker than previously expected. If realized, it would be Bunge’s worst annual profit since 2019, according to LSEG data.
Rival ADM on Tuesday reported its lowest first-quarter profit in five years and lowered its 2025 outlook amid the trade policy uncertainty.
Net sales in Bunge’s core agribusiness segment were down 16.2% at $8.16 billion in the quarter from the previous year.
The Missouri-based company posted an adjusted profit of $1.81 per share for the three months ended March 31, down from $3.04 in the same period a year ago but above analysts’ average estimate of $1.30 per share, according to LSEG data.