Investment Rating - The industry investment rating is "Positive" (maintained) [4] Core Viewpoints - The pig price has retreated from its high, with the latest price at 14.94 CNY/kg and the average weight at 128.64 kg. The complete cost for leading enterprises has decreased to around 12 CNY/kg, indicating a potential for profit maintenance and valuation recovery [6][17][18] - The report emphasizes a shift from cyclical thinking to focusing on financial performance, suggesting that investment should transition from "cyclical thinking" to "quality and price" [18] - The report recommends focusing on companies with a "platform + ecosystem" model, highlighting DeKang Agriculture and Livestock as a representative, along with leading pig farming companies such as Muyuan Foods and Wens Foodstuff Group [18] Summary by Sections 1. Pig Industry - The latest pig price is 14.94 CNY/kg, with a slight increase in average weight to 128.64 kg. The price of 15 kg piglets remains stable at around 530 CNY/head. The industry is experiencing a short-term rebound in prices after a slight decline [6][17] - The official number of breeding sows in May was 40.42 million, a year-on-year increase of 1.15%, indicating a stable production capacity [7][17] - The report suggests that the government's commitment to stabilizing pig prices is strong, and capacity regulation may continue to increase [7][17] 2. Poultry Industry - The price of parent stock chicks remains high, with the latest price at 47.93 CNY, a week-on-week increase of 5.25%. The price of broilers is 2.95 CNY/kg, down 12% week-on-week and 18% year-on-year [19] - The industry faces a "high capacity, weak consumption" contradiction, leading to a reduction in production capacity among breeding farms [19] - The report highlights two main lines of focus: quality imported breeding stock leaders and fully integrated industry leaders [19] 3. Feed Industry - The report recommends Hai Da Group, noting a cash flow turning point and high overseas growth potential. The demand for aquaculture feed is expected to recover in 2025 [20][22] - The report indicates that the domestic capital expansion phase has ended, and leading companies are entering a new phase of stable cash flow [21][22] 4. Pet Industry - The report discusses the impact of potential tariffs on the pet industry, suggesting that the actual impact will be limited due to high profit margins and overseas factory layouts [23] - Companies with strong performance in their own brands, such as Guibao and Zhongchong, are highlighted as key focuses [23] 5. Agricultural Products - The USDA report indicates a slight reduction in soybean planting area for 2025, with a forecast of 83.4 million acres, a year-on-year decrease of 4% [24] - The report emphasizes that agricultural products are less affected by tariffs, and a reduction in imports may help prices rise from low levels [24] 6. Market and Price Situation - The Shanghai and Shenzhen 300 Index closed at 3982 points, up 1.54% from the previous week. The Agricultural and Forestry Index closed at 2729 points, up 2.55% [25][28] - The report notes that the aquaculture sector performed the best with a 5.13% increase [25]

Core Insights - Bunge Global SA has successfully completed its merger with Viterra Limited, creating a global agribusiness company aimed at meeting market demands and enhancing value for farmers and customers worldwide [1][8] Merger Details - The merger was announced in June 2023 and received unanimous approval from both companies' boards. Bunge's shareholders approved the merger in October 2023, including the issuance of 65,611,831 common shares [2] - The merger faced regulatory challenges and competition concerns, leading to delays in the process [2] Operational Enhancements - The merged entity will have a diversified agriculture network covering all major crops, enhancing geographical balance and adaptability in global value chains [3] - The combination is expected to improve operational efficiency and innovation capabilities, addressing food security, market access for farmers, and sustainable production [4] Financial Synergies - The merger is projected to generate $250 million in annual gross pre-tax operational synergies within the first three years and is expected to be accretive to Bunge's adjusted earnings per share in the first full year post-closing [6][8] Stock Performance - Bunge's stock has declined by 23.1% over the past year, compared to a 9.6% decline in the industry [7]

Industry Overview - The Zacks Agriculture - Products industry is facing challenges due to lower commodity prices, high input costs, and labor shortages, but increasing consumer awareness regarding food ingredients and healthier alternatives is expected to support growth [1][4] - The industry includes companies involved in storing agricultural commodities, distributing ingredients, and farming crops, livestock, and poultry products [3] Current Trends - Agricultural commodity prices are under pressure from ample supply, while rising labor, packaging, and distribution costs are impacting profitability [4] - Global food demand is projected to increase by 50% by 2050 due to population growth, with the global population expected to reach 9.6 billion [5] - Hydroponics and vertical farming are emerging as key agricultural technologies, with hydroponic equipment sales projected to reach $67 billion by 2033, growing at a CAGR of 16.2% [6] Company Insights - **Bunge Global S.A.** is focusing on strategic mergers, including a $34 billion merger with Viterra Ltd, to enhance its position in grain exports and oilseed processing [18][19] - **CalMaine Foods** is expanding its cage-free operations and product portfolio, with a projected earnings growth of 299.5% for fiscal 2025 [22][23] - **Hydrofarm** is streamlining operations and focusing on proprietary brands, with a significant increase in the sales mix of proprietary brands to 55% in Q1 2025 [26][27] Market Performance - The Zacks Agriculture - Products industry has underperformed compared to the Basic Materials sector and the S&P 500, with a 12.9% decline over the past 12 months [9] - The industry is currently trading at an EV/EBITDA ratio of 5.98X, significantly lower than the S&P 500's 17.51X [12][17]

Core Insights - Bunge Global S.A. is nearing the completion of its $34 billion merger with Viterra Ltd. after receiving necessary regulatory approvals from China, with the deal expected to close around July 2 [1][8] Group 1: Merger Details - The merger between Bunge and Viterra is anticipated to be the largest in the global agriculture sector by value, positioning the combined entity as a major player alongside competitors like Cargill [2] - Bunge shares have increased nearly 6% since the announcement of the merger [2] Group 2: Regulatory Challenges - The merger faced multiple regulatory hurdles, including concerns about reduced competition in the agricultural market, which could impact farmers' pricing power [3] - The approval from Chinese authorities was the final major obstacle, following efforts to secure approvals from Canada, the European Union, and other regions [3] Group 3: Strategic Implications - The merger is seen as a strategic move to enhance Bunge's position in grain exports and oilseed processing in the U.S., where it currently lags behind competitors [4] - The deal is expected to improve Bunge's export capabilities and storage capacity in key markets such as Australia and Canada, which are significant wheat suppliers [4] Group 4: Market Conditions - Bunge and its competitors have experienced declining profits due to weak demand and an oversupply of crops, which may affect the outlook for its agribusiness unit [5]

Core Viewpoint - The State Administration for Market Regulation has approved the acquisition of equity in Witte by Bunge Global Limited with additional restrictive conditions to ensure fair competition in the agricultural market [1] Group 1: Acquisition Details - The acquisition involves two major global grain traders, Bunge and Witte, highlighting the significance of this merger in the agricultural sector [1] - The approval process considered the potential impact on global grain markets and the domestic soybean and agricultural product trade in China [1] Group 2: Commitments and Conditions - Bunge and Witte have made five commitments to continue performance, stabilize prices, and ensure supply, which are aimed at maintaining stable supply and reasonable pricing for soybeans and other agricultural products [1] - These commitments are designed to protect the interests of downstream customers and consumers [1] Group 3: Regulatory Implications - The decision reflects the fair, just, and lawful administration of antitrust enforcement by China's regulatory body [1] - It underscores China's important role in maintaining fair competition in the grain trade market [1]

Core Insights - The article highlights a significant increase in the stock price of Bunge Limited (BG), one of the world's four major grain traders, which rose by over 7.8% [1] Company Summary - Bunge Limited is recognized as a leading player in the global agricultural and food sector, specifically in grain trading [1]

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited statements show decreased Q1 2025 net sales and income, with higher assets and a cash outflow from operations [Condensed Consolidated Statements of Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Q1 2025 net sales decreased to $11.6 billion, with net income falling to $201 million from the prior year Q1 2025 vs Q1 2024 Income Statement Highlights | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $11,643 million | $13,417 million | | Gross profit | $597 million | $876 million | | Income before income tax | $284 million | $369 million | | Net income attributable to Bunge shareholders | $201 million | $244 million | | Diluted EPS | $1.48 | $1.68 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Total comprehensive income rose to $416 million in Q1 2025, driven by positive foreign exchange adjustments Q1 2025 vs Q1 2024 Comprehensive Income | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $204 million | $252 million | | Foreign exchange translation adjustment | $266 million | $(184) million | | Total other comprehensive income (loss) | $228 million | $(149) million | | Total comprehensive income (loss) attributable to Bunge | $416 million | $104 million | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $26.7 billion by March 31, 2025, primarily due to a significant increase in inventories Balance Sheet Highlights (Mar 31, 2025 vs Dec 31, 2024) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $17,373 million | $15,958 million | | Total assets | $26,660 million | $24,899 million | | Total current liabilities | $8,535 million | $7,435 million | | Total liabilities | $15,116 million | $13,954 million | | Total Bunge shareholders' equity | $10,578 million | $9,913 million | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a $285 million net cash outflow from operations in Q1 2025, reversing a prior-year inflow Q1 2025 vs Q1 2024 Cash Flow Summary | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Cash provided by (used for) operating activities | $(285) million | $994 million | | Cash provided by (used for) investing activities | $(280) million | $(396) million | | Cash provided by (used for) financing activities | $490 million | $(259) million | | Net increase (decrease) in cash | $(79) million | $330 million | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the pending Viterra acquisition, asset dispositions, and derivative usage - Effective January 1, 2025, Bunge's **Sugar & Bioenergy reporting segment has been reclassified** to Corporate and Other, with prior periods restated[27](index=27&type=chunk) - The company is involved in a pending business combination with Viterra Limited, valued at approximately **$5.0 billion in stock and $2.0 billion in cash**[33](index=33&type=chunk)[34](index=34&type=chunk) - On April 8, 2025, Bunge agreed to sell its **North America corn milling business for $450 million** and its **European margarines business for approximately $239 million**[41](index=41&type=chunk)[42](index=42&type=chunk) - The company utilizes a trade receivables securitization program providing up to **$1.5 billion in funding** to enhance financial flexibility[54](index=54&type=chunk)[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses lower Q1 2025 net income, increased working capital, and rising debt to support operations - **Net income attributable to Bunge shareholders decreased by $43 million** YoY to $201 million, primarily due to lower Segment EBIT[179](index=179&type=chunk) - **Total EBIT decreased by $105 million** YoY to $328 million, driven by lower gross profit in the Refined and Specialty Oils segment[181](index=181&type=chunk) - **Working capital increased by $315 million** from year-end 2024 to $8.8 billion, mainly due to higher inventories for the South American harvest[183](index=183&type=chunk)[184](index=184&type=chunk) - **Cash used for operating activities was $285 million**, a $1.28 billion decrease from the prior year, driven by funds used for inventory purchases[237](index=237&type=chunk) [Segment Overview & Results of Operations](index=39&type=section&id=Segment%20Overview%20%26%20Results%20of%20Operations) Segment performance was led by Agribusiness, while Refined & Specialty Oils and Milling EBIT declined significantly Segment EBIT Performance (Q1 2025 vs Q1 2024) | Segment | Q1 2025 EBIT | Q1 2024 EBIT | % Change | | :--- | :--- | :--- | :--- | | Agribusiness | $270 million | $278 million | (3)% | | Refined and Specialty Oils | $116 million | $226 million | (49)% | | Milling | $18 million | $33 million | (45)% | | **Total Reportable Segment EBIT** | **$404 million** | **$537 million** | **(25)%** | | Corporate and Other | $(76) million | $(104) million | 27% | - Agribusiness performance was impacted by lower gross profit in Merchandising, partially offset by favorable foreign exchange gains in Processing[190](index=190&type=chunk)[191](index=191&type=chunk) - Refined and Specialty Oils EBIT decreased primarily due to **lower gross profit driven by lower margins**, particularly in North America[194](index=194&type=chunk) - Corporate and Other results improved due to a **decrease in SG&A expense**, reflecting lower acquisition and integration costs for the Viterra transaction[199](index=199&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital and total debt increased while the company maintained strong liquidity and paused share repurchases Working Capital Summary | (US$ in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $17,373 | $15,958 | | Total current liabilities | $8,535 | $7,435 | | **Working capital** | **$8,838** | **$8,523** | - **Total debt increased by $479 million** from year-end 2024 to $6.7 billion, mainly to fund working capital[217](index=217&type=chunk) - The company has **$5.665 billion in unused and available committed borrowing capacity** under its revolving credit facilities[214](index=214&type=chunk)[215](index=215&type=chunk) - **No shares were repurchased in Q1 2025**, with approximately $800 million remaining authorized under the existing program[234](index=234&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company actively manages significant market risks from commodities, currencies, and interest rates via derivatives - The company's primary market risks are from **agricultural commodity prices, transportation costs, foreign currency exchange rates, and interest rates**[244](index=244&type=chunk)[245](index=245&type=chunk) Commodity Position Market Risk Analysis | (US$ in millions) | Value | Market Risk (10% adverse change) | | :--- | :--- | :--- | | **Highest daily aggregated position value (Q1 2025)** | $481 | $(48) | | **Lowest daily aggregated position value (Q1 2025)** | $(38) | $(4) | - A hypothetical **100 basis point change in interest rates** would result in an approximate **$48 million change in annual interest expense**[257](index=257&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2025[267](index=267&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the first quarter of 2025[268](index=268&type=chunk) [PART II — INFORMATION](index=54&type=section&id=PART%20II%20%E2%80%94%20INFORMATION) [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, primarily in Brazil, with specific amounts reserved for claims - The company is party to numerous labor, civil, and other claims, **primarily related to its Brazilian operations**[271](index=271&type=chunk) Reserved Amounts for Legal Claims (as of March 31, 2025) | Claim Type | Reserved Amount | | :--- | :--- | | Labor Claims | $43 million | | Civil Claims | $199 million | [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) The report references the 2024 Annual Report for a comprehensive discussion of business and operational risk factors - The report refers to the "Item 1A. Risk Factors" section in the **2024 Annual Report on Form 10-K** for a comprehensive discussion of material risks[272](index=272&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - None[273](index=273&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) Filed exhibits include credit agreement amendments, Sarbanes-Oxley certifications, and XBRL data files - Exhibits filed include an amendment to the Receivables Transfer Agreement, an extension to a Revolving Credit Agreement, and **CEO/CFO certifications**[279](index=279&type=chunk)

Financial Performance - Bunge Global reported revenue of $11.64 billion for the quarter ended March 2025, a decrease of 13.2% year-over-year [1] - Earnings per share (EPS) was $1.81, down from $3.04 in the same quarter last year, with an EPS surprise of +42.52% compared to the consensus estimate of $1.27 [1] - The reported revenue was a surprise of -9.10% against the Zacks Consensus Estimate of $12.81 billion [1] Key Metrics - Agribusiness volumes were 18,277 Kmt, below the estimated 19,369.03 Kmt [4] - Milling products volumes were 898 Kmt, compared to the average estimate of 908.96 Kmt [4] - Refined & Specialty Oils volumes were 2,130 Kmt, compared to the average estimate of 2,195 Kmt [4] Net Sales - Net sales to external customers in Agribusiness were $8.16 billion, below the estimate of $8.76 billion, representing a year-over-year change of -16.2% [4] - Net sales for Milling products were $375 million, compared to the average estimate of $396.09 million, reflecting a -1.6% change year-over-year [4] - Net sales for Refined & Specialty Oils were $3.09 billion, below the estimate of $3.65 billion, with a year-over-year change of -4.6% [4] Adjusted Segment EBIT - Adjusted Segment EBIT for Corporate and Other was -$44 million, better than the average estimate of -$63.55 million [4] - Adjusted Segment EBIT for Agribusiness was $268 million, exceeding the estimate of $206.45 million [4] - Adjusted Segment EBIT for Milling products was $15 million, below the average estimate of $22.98 million [4] - Adjusted Segment EBIT for Refined & Specialty Oils was $123 million, slightly above the estimate of $118.33 million [4] Stock Performance - Bunge Global shares returned +12.4% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The reported first quarter earnings per share (EPS) was $1.48, down from $1.68 in the first quarter of 2024, with adjusted EPS at $1.81 compared to $3.04 in the prior year [10][12] - Adjusted segment earnings before interest and taxes (EBIT) was $406 million in the quarter, down from $719 million last year [10][12] - The trailing twelve months adjusted return on invested capital (ROIC) was 9.4%, with an adjusted leverage ratio of 0.6 times at the end of the quarter [16] Business Line Data and Key Metrics Changes - Processing results improved in Brazil, Europe, and Asia, but were offset by lower results in North America, Argentina, and European soft seeds [10][12] - Merchandising performance improved in the Global Grains Financial Services business, but was offset by lower results in ocean freight [10][12] - Refined and specialty oils results were down in all regions except Asia, reflecting a more balanced global supply and demand environment [11] Market Data and Key Metrics Changes - The company expects full-year 2025 adjusted EPS of approximately $7.75, which excludes the impact of announced acquisitions and divestitures [18][19] - Agribusiness full-year results are forecasted to be slightly lower than previous outlooks, primarily due to lower results in processing [19] - The company anticipates a favorable outlook for North American canola and a tighter crop in Europe and the Black Sea, which may improve margins [36][37] Company Strategy and Development Direction - The company is focused on closing the transaction with Viterra, which is expected to enhance diversification across assets, geographies, and crops [4][23] - The recent partnership with Repsol aims to create alternative paths towards meeting customer demand for lower carbon agricultural and oil supply chains [6][52] - The company is committed to navigating market uncertainties and believes in the strength of its global infrastructure to ensure efficient supply [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute despite current market challenges and reaffirmed the full-year adjusted EPS guidance [7][21] - The management highlighted the importance of a resilient supply chain to serve key demand markets globally amid market disruptions [30] - The company is optimistic about the potential for improved margins in the second half of the year, particularly in North America [55] Other Important Information - The company terminated the definitive share purchase agreement with CJ Selecta due to regulatory approval delays, but remains optimistic about the soy protein concentrate market [5][31] - The company generated $392 million of adjusted funds from operations in the first quarter, with $338 million of discretionary cash flow available after capital expenditures [13][14] Q&A Session Summary Question: Update on Vitera acquisition approval - Management remains confident in the strategic merits of the Vitera transaction and believes regulatory approval is imminent, with constructive interactions ongoing [29][30] Question: Processing business margins - Margins for U.S. soy and Canadian canola were better in Q1, but are expected to soften in Q2 due to market conditions [33][35] Question: Earnings cadence for the year - The earnings distribution is expected to shift to 60% in the first half and 40% in the second half, with some earnings pulled forward from Q2 to Q1 [42][44] Question: Impact of RVO on margins - A higher Renewable Volume Obligation (RVO) would strengthen the oil leg of the crush in North America, benefiting margins [54][55] Question: South America farmer selling trends - There has been a recent pickup in farmer selling in Argentina, which is expected to positively impact global crush margins [72][73] Question: Timeline for corn milling business closure - The company anticipates closing the corn milling transaction by the end of Q2 or early Q3, pending regulatory processes [110]

Core Viewpoint - Bunge Global reported quarterly earnings of $1.81 per share, exceeding the Zacks Consensus Estimate of $1.27 per share, but down from $3.04 per share a year ago, indicating a significant earnings surprise of 42.52% [1][2] Financial Performance - The company posted revenues of $11.64 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 9.10% and down from $13.42 billion year-over-year [2] - Over the last four quarters, Bunge Global has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Bunge Global shares have increased approximately 0.5% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates at $1.81 for the coming quarter and $7.82 for the current fiscal year [4][7] - The estimate revisions trend for Bunge Global is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Agriculture - Products industry, to which Bunge Global belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]