Bunge SA(BG) - 2025 Q2 - Quarterly Report

PART I — FINANCIAL INFORMATION This section presents Bunge Global SA's unaudited condensed consolidated financial statements and management's discussion and analysis ITEM 1. FINANCIAL STATEMENTS (Unaudited) This section presents Bunge Global SA's unaudited condensed consolidated financial statements and related notes for Q2 2025 and 2024 Condensed Consolidated Statements of Income (Loss) This statement details Bunge's revenues, expenses, and net income for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Income (Loss) (US$ in millions, except per share data) | Metric (US$ in millions, except per share data) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net sales | $12,769 | $13,241 | $24,412 | $26,658 | | Gross profit | $738 | $664 | $1,335 | $1,540 | | Income (loss) before income tax | $494 | $103 | $778 | $472 | | Net income (loss) attributable to Bunge shareholders | $354 | $70 | $555 | $314 | | Earnings per share—basic | $2.63 | $0.49 | $4.14 | $2.20 | | Earnings per share—diluted | $2.61 | $0.48 | $4.10 | $2.17 | - Net income attributable to Bunge shareholders significantly increased by $284 million (405.7%) for the three months ended June 30, 2025, and by $241 million (76.7%) for the six months ended June 30, 2025, compared to the respective prior periods[11] - Diluted EPS rose to $2.61 for Q2 2025 from $0.48 in Q2 2024, and to $4.10 for the six months ended June 30, 2025, from $2.17 in the prior year period[11] Condensed Consolidated Statements of Comprehensive Income (Loss) This statement presents Bunge's net income and other comprehensive income components for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Comprehensive Income (Loss) (US$ in millions) | Metric (US$ in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income (loss) | $370 | $73 | $574 | $325 | | Total other comprehensive income (loss) | $335 | $(263) | $563 | $(412) | | Total comprehensive income (loss) | $705 | $(190) | $1,137 | $(87) | | Total comprehensive income (loss) attributable to Bunge | $667 | $(182) | $1,083 | $(78) | - Total comprehensive income attributable to Bunge improved significantly, reaching $667 million for Q2 2025 compared to a loss of $182 million in Q2 2024, primarily driven by a positive foreign exchange translation adjustment[14] Condensed Consolidated Balance Sheets This statement provides a snapshot of Bunge's assets, liabilities, and equity at June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (US$ in millions) | Metric (US$ in millions) | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Total assets | $31,154 | $24,899 | | Total liabilities | $19,218 | $13,955 | | Total equity | $11,895 | $10,945 | | Cash and cash equivalents | $6,790 | $3,311 | | Inventories | $8,014 | $6,491 | | Short-term debt | $3,535 | $875 | | Long-term debt | $7,044 | $4,694 | - Total assets increased by $6,255 million to $31,154 million at June 30, 2025, from $24,899 million at December 31, 2024, primarily due to higher cash and cash equivalents and inventories[17] - Total debt (short-term + long-term) increased by $5,031 million to $11,269 million at June 30, 2025, from $6,238 million at December 31, 2024, largely in preparation for the Viterra Acquisition[17][243] Condensed Consolidated Statements of Cash Flows This statement summarizes Bunge's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (US$ in millions) | Metric (US$ in millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------- | :--------------------------- | :--------------------------- | | Operating Activities | $(1,357) | $(480) | | Investing Activities | $(102) | $(548) | | Financing Activities | $4,938 | $(388) | | Net increase (decrease) in cash and cash equivalents, and restricted cash | $3,484 | $(1,422) | - Cash used for operating activities increased to $1,357 million for the six months ended June 30, 2025, from $480 million in the prior year, mainly due to changes in working capital and derivative contracts[19][260] - Cash provided by financing activities significantly increased to $4,938 million for the six months ended June 30, 2025, from cash used of $388 million in the prior year, driven by increased debt borrowings for the Viterra Acquisition and working capital[19][263] Condensed Consolidated Statements of Changes in Equity and Redeemable Noncontrolling Interests This statement outlines changes in Bunge's equity and noncontrolling interests for the six months ended June 30, 2025 and 2024 - Total Bunge shareholders' equity increased by $970 million to $10,883 million at June 30, 2025, from $9,913 million at December 31, 2024, primarily due to net income, favorable foreign exchange translation adjustments in OCI, and the sale of a redeemable noncontrolling interest[17][254] - Dividends paid to registered shareholders for the three months ended June 30, 2025, were $377 million, with a declared quarterly dividend of $0.70 per share[22][169] - Noncontrolling interests decreased to $1,012 million at June 30, 2025, from $1,032 million at December 31, 2024, mainly due to the acquisition of noncontrolling interest in TGSC, partially offset by capital contributions and foreign exchange translation adjustments[17][255] Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements 1. Basis of Presentation, Principles of Consolidation, and Significant Accounting Policies This note describes the framework for financial statement preparation, consolidation principles, and key accounting policies - The financial statements are prepared in accordance with U.S. GAAP for interim financial information and SEC rules, with certain disclosures condensed or omitted[26] - Effective January 1, 2025, the Sugar and Bioenergy reporting segment was reclassified to Corporate and Other, with prior period amounts restated[27] Cash and Cash Equivalents (US$ in millions) | (US$ in millions) | June 30, 2025 | June 30, 2024 | | :---------------- | :------------ | :------------ | | Cash and cash equivalents | $6,790 | $1,161 | | Restricted cash included in Other current assets | $22 | $40 | | Total | $6,812 | $1,201 | - New accounting pronouncements include ASU 2024-03 (Expense Disaggregation Disclosures), SEC climate-related disclosure rules (stayed), and ASU 2023-09 (Improvements to Income Tax Disclosures), with Bunge evaluating their impacts[30][31][32] 2. Acquisitions and Dispositions This note details Bunge's significant acquisition and divestiture activities during the reporting period - Bunge completed the acquisition of Viterra Limited on July 2, 2025, for approximately $5.3 billion in stock and $2.0 billion in cash, creating a premier global agribusiness solutions company[33][34] Total Preliminary Purchase Consideration for Viterra (US$ in millions) | Item | Amount | | :------------------------------------ | :---------- | | Fair value of Bunge stock issued | $5,340 | | Cash consideration | $1,940 | | Repayment of certain debt of Viterra | $3,554 | | Effective settlement of pre-existing relationships | $(157) | | Total preliminary purchase consideration | $10,677 | - Divestitures include the sale of North America Corn Milling business for $470 million cash proceeds and a $155 million gain, and an agreement to sell European margarines and spreads business for $239 million[42][45] - Other acquisition activities include an asset purchase agreement with International Flavors and Fragrances for approximately $110 million and exercising a call option to acquire the remaining 85% equity interest in ViOil for approximately $138 million[38][39] - The definitive share purchase agreement for CJ Selecta was formally terminated in April 2025[41] 3. Trade Structured Finance Program This note explains Bunge's use of trade structured finance activities to enhance financial flexibility - Bunge uses trade structured finance activities, including letters of credit (LCs) and time deposits, to leverage global trade flows and enhance financial flexibility[52] - As of June 30, 2025, time deposits and LCs of $7,349 million were presented net on the balance sheets, with weighted-average interest rates of 4.55%[53] - Total net proceeds from discounting LCs were $4,291 million for the six months ended June 30, 2025, with all related cash flows included in operating activities[53] 4. Trade Accounts Receivable and Trade Receivables Securitization Program This note details Bunge's trade accounts receivable, allowance for credit losses, and securitization program Allowance for Credit Losses (US$ in millions) | Item | Six Months Ended June 30, 2025 | | :------------------------ | :----------------------------- | | Allowance as of January 1 | $113 | | Current period provisions | $19 | | Recoveries | $(20) | | Write-offs | $(13) | | Foreign exchange translation differences | $4 | | Allowance as of June 30 | $103 | - Bunge participates in a trade receivables securitization program providing up to $1.5 billion in funding, with a termination date of May 17, 2031, and includes sustainability provisions[58] Trade Receivables Securitization Program (US$ in millions) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------------------- | :------------ | :---------------- | | Receivables sold (derecognized) | $1,100 | $1,148 | | Receivables pledged (included in Trade accounts receivable) | $230 | $123 | 5. Inventories This note provides a breakdown of Bunge's inventories by segment and their valuation Inventories by Segment (US$ in millions) | Segment | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Agribusiness | $6,745 | $5,090 | | Refined and Specialty Oils | $1,132 | $1,188 | | Milling | $133 | $209 | | Corporate and Other | $4 | $4 | | Total | $8,014 | $6,491 | - Total inventories increased by $1,523 million to $8,014 million at June 30, 2025, from $6,491 million at December 31, 2024, primarily due to increased volumes from the South American harvest[63][234] Readily Marketable Inventories (RMI) by Segment (US$ in millions) | Segment | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Agribusiness | $6,351 | $4,819 | | Refined and Specialty Oils | $294 | $339 | | Milling | $12 | $66 | | Total | $6,657 | $5,224 | 6. Other Current Assets This note details the components of Bunge's other current assets at June 30, 2025, and December 31, 2024 Other Current Assets (US$ in millions) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | Unrealized gains on derivative contracts | $1,354 | $1,286 | | Prepaid commodity purchase contracts | $485 | $216 | | Secured advances to suppliers, net | $252 | $239 | | Recoverable taxes, net | $326 | $315 | | Margin deposits | $640 | $579 | | Marketable securities and other short-term investments | $347 | $484 | | Income taxes receivable | $122 | $122 | | Prepaid expenses | $272 | $164 | | Restricted cash | $22 | $17 | | Disposition receivable | $80 | $100 | | Insurance recovery receivable | $— | $52 | | Other | $305 | $426 | | Total | $4,205 | $4,000 | - Other current assets increased by $205 million to $4,205 million at June 30, 2025, from $4,000 million at December 31, 2024, driven by increases in prepaid commodity purchase contracts, assets held for sale, and unrealized gains on derivative contracts[65][236] - The company collected a $100 million disposition receivable from the sale of BP Bunge Bioenergia and a $52 million insurance recovery related to the Ukraine-Russia war in Q1 2025[68][69] 7. Other Non-Current Assets This note outlines the components of Bunge's other non-current assets at June 30, 2025, and December 31, 2024 Other Non-Current Assets (US$ in millions) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | Recoverable taxes, net | $22 | $19 | | Judicial deposits | $95 | $86 | | Other long-term receivables, net | $15 | $14 | | Income taxes receivable | $90 | $125 | | Long-term investments | $172 | $174 | | Affiliate loans receivable | $8 | $8 | | Long-term receivables from farmers in Brazil, net | $68 | $23 | | Unrealized gains on derivative contracts | $13 | $— | | Other | $112 | $108 | | Total | $595 | $557 | - Total other non-current assets increased by $38 million to $595 million at June 30, 2025, from $557 million at December 31, 2024, primarily due to an increase in long-term receivables from farmers in Brazil[70] - Long-term receivables from farmers in Brazil, net, increased from $23 million to $68 million, with an average recorded investment of $135 million for the six months ended June 30, 2025[70][76] 8. Investments in Affiliates and Variable Interest Entities This note discusses Bunge's investments in affiliates and its involvement with variable interest entities - Bunge's agreement to acquire a 25% interest in Terminal XXXIX De Santos S.A. (T-39) was formally terminated by the seller in June 2025[80] - Bunge acquired all shares of Terminal de Granéis de Santa Catarina (TGSC) for approximately $85 million in March 2025; TGSC is no longer a VIE and is now a wholly-owned subsidiary[81][82] - Bunge Chevron Ag Renewables LLC (BCAR) remains a consolidated Variable Interest Entity (VIE) where Bunge is the primary beneficiary[83] Assets and Liabilities of Consolidated VIEs (US$ in millions) | Item | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Total assets | $1,001 | $1,149 | | Total liabilities | $96 | $174 | 9. Income Taxes This note provides information on Bunge's income tax expense and effective tax rates Income Tax Expense (US$ in millions) | Period | 2025 | 2024 | | :------------------------ | :--- | :--- | | Three Months Ended June 30 | $124 | $30 | | Six Months Ended June 30 | $204 | $147 | - The effective tax rate for both periods in 2025 was higher than the U.S. statutory rate of 21%, primarily due to the jurisdictional mix of earnings[89] - Bunge is evaluating the potential impact of the newly signed U.S. 'One Big Beautiful Bill Act' on its financial statements[91] 10. Other Current Liabilities This note details the components of Bunge's other current liabilities at June 30, 2025, and December 31, 2024 Other Current Liabilities (US$ in millions) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | Unrealized losses on derivative contracts | $1,073 | $1,082 | | Accrued liabilities | $793 | $840 | | Advances on sales | $400 | $501 | | Dividends payable | $282 | $91 | | Income tax payable | $80 | $80 | | Other | $288 | $224 | | Total | $2,916 | $2,818 | - Total other current liabilities increased by $98 million to $2,916 million at June 30, 2025, from $2,818 million at December 31, 2024, primarily due to higher accrued dividends and liabilities held for sale[92][239] - Advances on sales are impacted by business seasonality and are generally recognized in earnings within twelve months or less[92] 11. Fair Value Measurements This note describes Bunge's fair value measurements for financial and non-financial assets and liabilities - Bunge categorizes fair value measurements into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[96] Assets at Fair Value (US$ in millions) - June 30, 2025 | Item | Level 1 | Level 2 | Level 3 | Total | | :---------------------------------------- | :------ | :------ | :------ | :------ | | Cash equivalents | $5,185 | $16 | $— | $5,201 | | Readily marketable inventories | $— | $5,122 | $1,535 | $6,657 | | Unrealized gain on derivative contracts | $332 | $1,123 | $125 | $1,500 | | Total assets | $5,517 | $6,322 | $1,660 | $13,499 | Liabilities at Fair Value (US$ in millions) - June 30, 2025 | Item | Level 1 | Level 2 | Level 3 | Total | | :---------------------------------------- | :------ | :------ | :------ | :------ | | Trade accounts payable | $— | $303 | $273 | $576 | | Unrealized loss on derivative contracts | $140 | $957 | $110 | $1,227 | | Total liabilities | $140 | $1,260 | $383 | $1,783 | - Level 3 measurements for readily marketable inventories and trade accounts payable primarily involve management estimations for transportation costs and local market adjustments, particularly in Brazil and Canada[111] 12. Derivative Instruments and Hedging Activities This note details Bunge's use of derivative instruments to manage market risks and their accounting treatment - Bunge uses derivative instruments to manage market risks such as interest rate, foreign currency, and commodity risk, classifying them as Hedge Accounting Derivatives or Economic Hedge Derivatives[120] Hedge Accounting Derivatives Notional Amounts (US$ in millions) | Type of Hedge | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Fair value hedges of interest rate risk (Interest rate swap) | $4,900 | $4,900 | | Cash flow hedges of currency risk (Foreign currency forward) | $57 | $— | | Cash flow hedges of currency risk (Foreign currency option) | $60 | $120 | | Net investment hedges (Foreign currency forward) | $737 | $550 | - Economic hedge derivatives are used for interest rate, currency, agricultural commodity, ocean freight, energy, and other macroeconomic exposures, with impacts primarily recognized in Interest expense, Foreign exchange gains (losses) – net, or Cost of goods sold[127][128][129][130][131][132] Gain (Loss) Recognized in Income on Derivative Instruments (US$ in millions) - 3 Months Ended June 30 | Income statement classification | Type of derivative | 2025 | 2024 | | :---------------------------- | :----------------- | :--- | :--- | | Cost of goods sold | Foreign currency | $47 | $(217) | | | Commodities | $219 | $(26) | | | Other | $(2) | $95 | | Interest expense | Interest rate | $(23) | $(30) | | Foreign exchange (losses) gains – net | Foreign currency | $(8) | $28 | 13. Debt This note provides a detailed breakdown of Bunge's short-term and long-term debt obligations Bunge's Short and Long-Term Debt (US$ in millions) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | Short-term debt | $3,535 | $875 | | Current portion of long-term debt | $690 | $669 | | Total Short-term debt and Current portion of long-term debt | $4,225 | $1,544 | | Long-term debt | $7,044 | $4,694 | | Total debt | $11,269 | $6,238 | - Total debt increased by $5,031 million to $11,269 million at June 30, 2025, from $6,238 million at December 31, 2024, primarily due to increased short-term borrowings and $2.3 billion in term loan borrowings for the Viterra Acquisition[141][243] - Bunge amended its $3.2 billion 5-year and $3.5 billion 3-year revolving credit agreements, and extended its $1.1 billion 364-day revolving credit agreement, with $1.1 billion outstanding under the $3.5 billion facility at June 30, 2025[143][144][145] - In connection with the Viterra Acquisition, Bunge borrowed $2.3 billion from term loans and issued $2.0 billion in 2024 Senior Notes and $1.3 billion in 2025 Senior Notes[147][148][149] 14. Related Party Transactions This note discloses transactions with related parties and their financial impact - Related party purchases of agricultural commodities comprised approximately 9% or less of total Cost of goods sold, and sales comprised approximately 3% or less of total Net sales for the three and six months ended June 30, 2025 and 2024[154] - Receivables and payables related to related party transactions comprised approximately 5% or less and 3% or less of total Trade accounts receivable and payable, respectively, at June 30, 2025[156] - Bunge believes all related party transaction values are similar to arm's-length transactions with third parties[158] 15. Commitments and Contingencies This note outlines Bunge's legal claims, lawsuits, and other commitments and contingencies - Bunge is party to various claims and lawsuits, primarily non-income tax and labor claims in South America, and other litigation, with management not expecting a material adverse effect on financial condition[159] Provisions for Legal Matters (US$ in millions) | Claim Type | June 30, 2025 | December 31, 2024 | | :------------------ | :------------ | :---------------- | | Non-income tax claims | $24 | $19 | | Labor claims | $26 | $50 | | Civil and other claims | $204 | $194 | | Total | $254 | $263 | Guarantees (US$ in millions) | Type of Guarantee | Recorded Liability | Maximum Potential Future Payments | | :---------------------------- | :----------------- | :-------------------------------- | | Unconsolidated affiliates guarantee | $14 | $164 | | Residual value guarantee | $— | $375 | | Other guarantees | $— | $12 | | Total | $14 | $551 | - Bunge recognized a $95 million obligation related to indemnities for legal claims associated with the sale of its 50% ownership in BP Bunge Bioenergia, with maximum potential future payments of $1,357 million[164] 16. Other Non-Current Liabilities This note details the components of Bunge's other non-current liabilities at June 30, 2025, and December 31, 2024 Other Non-Current Liabilities (US$ in millions) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | Labor, legal, and other provisions | $286 | $281 | | Pension, post-retirement, and post-employment obligations | $168 | $170 | | Uncertain income tax positions | $79 | $75 | | Unrealized losses on derivative contracts | $134 | $232 | | Other | $94 | $89 | | Total | $761 | $847 | - Total other non-current liabilities decreased by $86 million to $761 million at June 30, 2025, from $847 million at December 31, 2024, primarily due to a decrease in unrealized losses on derivative contracts[167] 17. Equity This note provides information on Bunge's equity, including share repurchase programs and dividends - Bunge's Board approved an additional $500 million for its share repurchase program in November 2024, bringing total authorizations to $2.7 billion, with approximately $800 million remaining outstanding[168] - No shares were repurchased during the three and six months ended June 30, 2025[168] Dividends Paid to Shareholders (per share) | Period | 2025 | 2024 | | :------------------------ | :---- | :----- | | Three Months Ended June 30 | $0.70 | $0.68 | | Six Months Ended June 30 | $1.38 | $1.3425 | - Shareholders approved a cash dividend distribution of $2.80 per share, payable in four quarterly installments of $0.70 per share, representing a 3% increase from the previous quarterly dividend[169][265] Accumulated Other Comprehensive Income (Loss) Attributable to Bunge (US$ in millions) - June 30, 2025 | Component | Balance, April 1, 2025 | Balance, June 30, 2025 | | :-------------------------------------- | :--------------------- | :--------------------- | | Foreign Exchange Translation Adjustment | $(5,952) | $(5,594) | | Deferred Gains (Losses) on Hedging Activities | $(344) | $(393) | | Pension and Other Postretirement Liability Adjustments | $(140) | $(136) | | Total Accumulated Other Comprehensive Income (Loss) | $(6,436) | $(6,123) | 18. Earnings Per Share This note details the computation of basic and diluted earnings per share for Bunge Earnings Per Share Computation | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income (loss) attributable to Bunge shareholders (US$ in millions) | $354 | $70 | $555 | $314 | | Weighted-average number of shares outstanding: Basic | 134,493,236 | 141,620,591 | 134,278,611 | 142,560,804 | | Weighted-average number of shares outstanding: Diluted | 135,599,243 | 143,185,150 | 135,497,578 | 144,291,340 | | Earnings per share: Basic | $2.63 | $0.49 | $4.14 | $2.20 | | Earnings per share: Diluted | $2.61 | $0.48 | $4.10 | $2.17 | - Diluted EPS increased significantly to $2.61 for Q2 2025 from $0.48 for Q2 2024, and to $4.10 for the six months ended June 30, 2025, from $2.17 for the prior year period[173] 19. Segment Information This note provides financial information by Bunge's reportable segments - Effective January 1, 2025, Bunge no longer presents a separate Sugar and Bioenergy segment; prior period amounts have been reclassified to Corporate and Other[175] - The company's operations are now classified into three reportable segments: Agribusiness, Refined and Specialty Oils, and Milling, with remaining operations in Corporate and Other[174][176][198] Total Reportable Segment EBIT (US$ in millions) | Period | 2025 | 2024 | | :------------------------ | :---- | :---- | | Three Months Ended June 30 | $659 | $361 | | Six Months Ended June 30 | $1,063 | $898 | Net Sales to External Customers by Segment (US$ in millions) - 6 Months Ended June 30, 2025 | Segment | Sales from commodity contracts (ASC 815) | Sales from contracts with customers (ASC 606) | Total Net Sales | | :--------------------------------------- | :-------------------------------------------- | :-------------- | | Agribusiness | $16,260 | $1,068 | $17,328 | | Refined and Specialty Oils | $428 | $5,841 | $6,269 | | Milling | $40 | $744 | $784 | | Corporate and Other | $— | $31 | $31 | | Total | $16,728 | $7,684 | $24,412 | Cautionary Statement Regarding Forward Looking Statements This statement advises that the report contains forward-looking information subject to risks and uncertainties - The report contains forward-looking statements subject to risks, uncertainties, and assumptions that could cause actual results to differ materially[185] - Key risk factors include the impact of the war in Ukraine, weather conditions, global economic and market conditions, changes in government policies, seasonality, and the ability to integrate acquisitions like Viterra Limited[188] ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section provides management's perspective on Bunge Global SA's financial condition and results of operations for the three and six months ended June 30, 2025, compared to the prior year Second Quarter 2025 Overview This overview highlights key events and financial performance during the second quarter of 2025 - Bunge completed the acquisition of Viterra Limited on July 2, 2025, with Viterra's results to be included in consolidated financial statements starting Q3 2025[190] Non-U.S. GAAP Financial Measures This section defines and explains the use of non-U.S. GAAP financial measures in the report - Total earnings before interest and taxes (EBIT) is a non-U.S. GAAP measure used by management to evaluate reportable segment operating activities and overall performance, excluding financing methods or capital structure[191] Executive Summary This section provides a high-level overview of Bunge's financial performance and key operational highlights for the reporting period Key Financial Highlights (US$ in millions, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income Attributable to Bunge Shareholders | $354 | $70 | $555 | $314 | | Diluted EPS | $2.61 | $0.48 | $4.10 | $2.17 | | Total EBIT | $538 | $185 | $866 | $618 | | Income Tax Expense | $124 | $30 | $204 | $147 | - Net income attributable to Bunge shareholders increased by $284 million for Q2 2025 and $241 million for the six months ended June 30, 2025, primarily due to higher Segment EBIT and Corporate and Other EBIT[192] - Working capital increased by $2,538 million to $11,061 million at June 30, 2025, compared to December 31, 2024, mainly due to higher cash and cash equivalents from increased borrowings for the Viterra Acquisition, partially offset by higher short-term debt[196] Segment Overview & Results of Operations This section provides a detailed analysis of the financial performance of Bunge's reportable segments Agribusiness Segment This section analyzes the financial performance and key drivers of Bunge's Agribusiness segment Agribusiness Segment Performance (US$ in millions, except volumes) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :------------------------------------ | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Volumes (in thousand metric tons) | 19,274 | 20,579 | (6)% | 37,551 | 40,771 | (8)% | | Net sales | $9,167 | $9,657 | (5)% | $17,328 | $19,397 | (11)% | | Gross profit | $471 | $289 | 63% | $774 | $743 | 4% | | Total Agribusiness Segment EBIT | $381 | $138 | 176% | $651 | $416 | 56% | - Agribusiness Segment EBIT increased by 176% to $381 million for Q2 2025 and 56% to $651 million for the six months ended June 30, 2025, driven by favorable foreign exchange results and higher gross profit in global soybean oilseed processing and South America businesses[203][208] - Net sales decreased by 5% for Q2 2025 and 11% for the six months ended June 30, 2025, primarily due to lower volumes and average sales prices in processing and global wheat businesses, partially offset by higher demand in global oils and corn[202][206][207] Refined and Specialty Oils Segment This section analyzes the financial performance and key drivers of Bunge's Refined and Specialty Oils segment Refined and Specialty Oils Segment Performance (US$ in millions, except volumes) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :------------------------------------ | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Volumes (in thousand metric tons) | 2,175 | 2,300 | (5)% | 4,305 | 4,495 | (4)% | | Net sales | $3,177 | $3,121 | 2% | $6,269 | $6,361 | (1)% | | Gross profit | $225 | $315 | (29)% | $462 | $674 | (31)% | | Total Refined and Specialty Oils Segment EBIT | $101 | $185 | (45)% | $217 | $411 | (47)% | - Refined and Specialty Oils Segment EBIT decreased by 45% to $101 million for Q2 2025 and 47% to $217 million for the six months ended June 30, 2025, primarily due to lower gross profit and overall lower margins, particularly in North America and Europe[211][214] - Net sales increased by 2% for Q2 2025 due to higher sales prices in Europe and Asia, but decreased by 1% for the six months ended June 30, 2025, due to lower prices and volumes in North America[210][212] Milling Segment This section analyzes the financial performance and key drivers of Bunge's Milling segment Milling Segment Performance (US$ in millions, except volumes) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :------------------------------------ | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Volumes (in thousand metric tons) | 857 | 971 | (12)% | 1,755 | 1,845 | (5)% | | Net sales | $409 | $401 | 2% | $784 | $782 | —% | | Gross profit | $47 | $66 | (29)% | $91 | $126 | (28)% | | Total Milling Segment EBIT | $177 | $38 | 366% | $195 | $71 | 175% | - Milling Segment EBIT increased significantly by 366% to $177 million for Q2 2025 and 175% to $195 million for the six months ended June 30, 2025, primarily due to a $155 million gain on the sale of Bunge's North America corn milling business[218][219][221][222] - Net sales remained consistent for the six months ended June 30, 2025, with higher sales prices in South American wheat milling and North American corn milling offset by decreased volumes[220] Corporate and Other This section discusses the financial performance of Bunge's Corporate and Other segment Corporate and Other EBIT (US$ in millions) | Period | 2025 | 2024 | % Change | | :------------------------ | :---- | :---- | :------- | | Three Months Ended June 30 | $(121) | $(176) | 31% | | Six Months Ended June 30 | $(197) | $(280) | 30% | - Corporate and Other EBIT improved by 31% to a loss of $121 million for Q2 2025 and 30% to a loss of $197 million for the six months ended June 30, 2025, mainly due to lower SG&A expenses from reduced Viterra acquisition and integration costs[224][225] - Acquisition and integration costs within Corporate and Other EBIT were $38 million for Q2 2025, down from $62 million in Q2 2024[224] Interest This section analyzes Bunge's interest income and expense for the reporting periods Consolidated Interest Income and Expense (US$ in millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :-------------- | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Interest income | $46 | $37 | 24% | $105 | $79 | 33% | | Interest expense| $(106) | $(123) | (14)% | $(210) | $(231) | (9)% | - Interest income increased by 24% for Q2 2025 and 33% for the six months ended June 30, 2025, due to higher cash and cash equivalents balances[227][228] - Interest expense decreased by 14% for Q2 2025 and 9% for the six months ended June 30, 2025, due to lower interest rates, partially offset by higher debt levels[227][228] Liquidity and Capital Resources This section discusses Bunge's ability to generate and manage cash to meet its financial obligations and fund operations Working Capital This section analyzes Bunge's working capital position and its components Working Capital Summary (US$ in millions, except current ratio) | Metric | June 30, 2025 | June 30, 2024 | December 31, 2024 | | :------------------------ | :------------ | :------------ | :---------------- | | Total current assets | $21,445 | $15,452 | $15,958 | | Total current liabilities | $10,384 | $7,606 | $7,435 | | Working capital | $11,061 | $7,846 | $8,523 | | Current ratio | 2.07 | 2.03 | 2.15 | - Working capital increased by $2,538 million to $11,061 million at June 30, 2025, from $8,523 million at December 31, 2024, primarily due to higher cash and cash equivalents and inventories, partially offset by higher short-term debt[230][196] Cash and Cash Equivalents This section details the changes in Bunge's cash and cash equivalents - Cash and cash equivalents increased by $3,479 million to $6,790 million at June 30, 2025, from $3,311 million at December 31, 2024, mainly due to borrowings for the Viterra Acquisition[231] Trade accounts receivable, net This section discusses changes in Bunge's net trade accounts receivable - Trade accounts receivable, net, increased by $110 million to $2,258 million at June 30, 2025, from $2,148 million at December 31, 2024, primarily due to fewer receivables sold into the securitization program[232] Inventories This section analyzes the changes in Bunge's inventory levels - Inventories increased by $1,523 million to $8,014 million at June 30, 2025, from $6,491 million at December 31, 2024, mainly due to increased volumes from the South American harvest[234] Other current assets This section details the changes in Bunge's other current assets - Other current assets increased by $375 million to $4,383 million at June 30, 2025, from $4,008 million at December 31, 2024, driven by higher prepaid commodity purchase contracts and assets held for sale[236] Short-term debt This section discusses changes in Bunge's short-term debt obligations - Short-term debt, including the current portion of long-term debt, increased by $2,681 million to $4,225 million at June 30, 2025, from $1,544 million at December 31, 2024, due to higher borrowings for the Viterra Acquisition and working capital[237] Trade accounts payable This section analyzes changes in Bunge's trade accounts payable - Trade accounts payable increased by $117 million to $2,894 million at June 30, 2025, from $2,777 million at December 31, 2024, primarily due to higher inventory volumes from the South American harvest[238] Other current liabilities This section details the changes in Bunge's other current liabilities - Other current liabilities increased by $155 million to $2,983 million at June 30, 2025, from $2,828 million at December 31, 2024, mainly due to higher accrued dividends and liabilities held for sale[239] Debt This section provides an overview of Bunge's total debt and its components Total Debt (US$ in millions) | Metric | June 30, 2025 | June 30, 2024 | December 31, 2024 | | :------------------------------------ | :------------ | :------------ | :---------------- | | Short-term debt | $3,535 | $949 | $875 | | Long-term debt, including current portion | $7,734 | $4,091 | $5,363 | | Total debt | $11,269 | $5,040 | $6,238 | | Average total debt outstanding (6 months) | $7,263 | $5,132 | $5,480 (Year) | - Total debt increased by $5,031 million to $11,269 million at June 30, 2025, from $6,238 million at December 31, 2024, primarily due to increased short-term borrowings and $2.3 billion in term loan borrowings for the Viterra Acquisition[243] - Bunge's operating companies had $1,288 million in short-term borrowings outstanding from local bank lines of credit at June 30, 2025[245] Revolving Credit Facilities This section describes Bunge's revolving credit facilities and their utilization Revolving Credit Facilities (US$ in millions) | Facility | Maturities | Committed Capacity (June 30, 2025) | Borrowings Outstanding (June 30, 2025) | | :---------------------------------------- | :--------- | :--------------------------------- | :------------------------------------- | | $1.1 Billion 364-day Revolving Credit Agreement | 2026 | $1,100 | $— | | $3.2 Billion 5-year Revolving Credit Agreement | 2029 | $3,200 | $— | | $3.5 Billion 3-year Revolving Facility Agreement| 2026 | $3,500 | $1,100 | | $865 Million 5-year Revolving Credit Agreement | 2026 | $865 | $— | | Total | | $8,665 | $1,100 | - At June 30, 2025, Bunge had $7,565 million unused and available committed borrowing capacity under its revolving credit facilities[241] Commercial Paper Program This section outlines Bunge's commercial paper program and its associated requirements Commercial Paper Program (US$ in millions) | Program Capacity | June 30, 2025 | Borrowings Outstanding (June 30, 2025) | | :------------------------ | :------------ | :------------------------------------- | | $2 Billion Commercial Paper Program | $2,000 | $1,147 | - The commercial paper program requires Bunge to maintain equivalent unused committed borrowing capacity under its long-term credit facilities[242] Registered Senior Notes This section provides details on Bunge's outstanding registered senior notes BLFC Outstanding Debt Securities (US$ in millions) | Senior Notes Due | Aggregate Principal Amount Outstanding | | :--------------- | :------------------------------------- | | 2025 | $600 | | 2026 | $699 | | 2027 | $598 | | 2028 | $398 | | 2029 | $793 | | 2031 | $993 | | 2034 | $791 | - Subsequent to June 30, 2025, Bunge completed US Exchange Offers, exchanging $1.92 billion of Existing USD Viterra Notes for new BLFC notes, and issued $1.3 billion in 2025 Senior Notes[248] - Bunge unconditionally guarantees BLFC's obligations with respect to the BLFC Notes, which are unsecured and unsubordinated[249] Credit Ratings This section presents Bunge's credit ratings from major agencies and their outlooks Bunge's Debt Ratings and Outlook (June 30, 2025) | Agency | Short-term Debt | Long-term Debt | Outlook | | :---------------- | :-------------- | :------------- | :---------------- | | Standard & Poor's | A-2 | BBB+ | CreditWatch Positive | | Moody's | P-2 | Baa1 | Stable | | Fitch | F-2 | BBB+ | Stable | - Subsequent to June 30, 2025, Standard & Poor's upgraded Bunge's credit rating to A- with a stable outlook, and Moody's and Fitch affirmed their ratings[251][256] - Bunge was in compliance with all financial covenants (minimum current ratio, maximum debt to capitalization ratio, limitations on secured indebtedness) as of June 30, 2025[253] Equity This section provides an overview of Bunge's total equity and its components Total Equity (US$ in millions) | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | Total Bunge shareholders' equity | $10,883 | $9,913 | | Noncontrolling interest | $1,012 | $1,032 | | Total equity | $11,895 | $10,945 | - Total Bunge shareholders' equity increased by $970 million to $10,883 million at June 30, 2025, driven by net income, favorable foreign exchange translation adjustments, and the sale of a redeemable noncontrolling interest[254] - Noncontrolling interests decreased due to the acquisition of noncontrolling interest in TGSC, partially offset by capital contributions and foreign exchange translation adjustments[255] Share repurchase program This section details Bunge's share repurchase program and its activity - Bunge's Board approved an additional $500 million for its share repurchase program in November 2024, bringing total authorizations to $2.7 billion, with approximately $800 million remaining outstanding[257] - No shares were repurchased during the three and six months ended June 30, 2025[257] Cash Flows This section summarizes Bunge's cash flow activities for the reporting periods Cash Flow Summary (US$ in millions) | Activity | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------------- | :--------------------------- | :--------------------------- | | Cash provided by (used for) operating activities | $(1,357) | $(480) | | Cash provided by (used for) investing activities | $(102) | $(548) | | Cash provided by (used for) financing activities | $4,938 | $(388) | | Net increase (decrease) in cash and cash equivalents and restricted cash | $3,484 | $(1,422) | - Cash used for operating activities increased to $1,357 million for the six months ended June 30, 2025, primarily due to a reduction in net changes in working capital and funds used for secured advances to suppliers[260] - Cash provided by financing activities increased by $5,326 million to $4,938 million for the six months ended June 30, 2025, driven by increased net cash proceeds from short and long-term debt for the Viterra Acquisition and working capital[263] Off-Balance Sheet Arrangements This section refers to disclosures regarding Bunge's off-balance sheet arrangements - Details on off-balance sheet arrangements are provided in Note 15 - Commitments and Contingencies[264] Dividends This section provides information on dividends declared and paid to Bunge's shareholders - Shareholders approved a cash dividend distribution of $2.80 per share, payable in four equal quarterly installments of $0.70 per share, representing a 3% increase from the previous quarterly dividend[265] Critical Accounting Policies and Estimates This section highlights Bunge's critical accounting policies and estimates that require significant management judgment - Critical accounting policies and estimates are significant to financial condition and results, requiring significant management judgment, with a complete discussion in the 2024 Annual Report on Form 10-K[266] ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK This section details Bunge's exposure to various market risks, including commodity prices, transportation costs, foreign currency exchange rates, interest rates, energy costs, and inflation Risk Management This section outlines Bunge's strategies and framework for managing market risks - Bunge is exposed to changes in agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates, energy costs, and inflationary pressures, which are actively monitored and managed[267] - Derivative instruments are used to manage these exposures, with exposure limits centrally set and monitored under a global governance framework[267][268] Credit and Counterparty Risk This section describes Bunge's exposure to credit and counterparty risks and its management approach - Bunge is subject to credit and counterparty risks from commercial sales, purchases, and derivative instruments, measured by unpaid accounts receivable and unrealized gains from contracts[269] - Risk is actively monitored through regular reviews, credit analysis, and global committees, with heightened monitoring during periods of tight credit markets or significant price volatility[269][270] Commodities Risk This section discusses Bunge's exposure to fluctuations in agricultural commodity prices - Bunge purchases and produces various agricultural commodities, which are subject to price fluctuations due to unpredictable factors, including inflationary pressures[271] - Derivative contracts are used to manage exposure to adverse price movements, with established policies limiting unhedged fixed price positions[272] Potential Loss from Hypothetical 10% Adverse Change in Commodity Prices (US$ in millions) | Period | Highest daily aggregated position value | Lowest daily aggregated position value | | :------------------------ | :-------------------------------------- | :------------------------------------- | | Six Months Ended June 30, 2025 | $(48) | $(5) | | Year Ended December 31, 2024 | $(76) | $(41) | Ocean Freight Risk This section addresses Bunge's exposure to volatility in ocean freight costs - Ocean freight costs are a significant portion of operating costs, subject to market price variations based on supply, demand, global economic conditions, and inflation[274] - Bunge uses financial derivatives, primarily freight forward agreements (FFAs), to hedge portions of its ocean freight costs[274] Energy Risk This section discusses Bunge's exposure to fluctuations in energy costs - Bunge purchases various energy commodities (electricity, natural gas, bunker fuel) for manufacturing and vessels, which are subject to price risk, including inflationary pressures[275] - Financial derivatives, including exchange-traded and OTC swaps and options, are used to manage exposure to energy cost volatility[275] Currency Risk This section outlines Bunge's exposure to foreign currency exchange rate fluctuations - Primary foreign currency exposures include the Brazilian real, Canadian dollar, Euro, and Chinese yuan/renminbi[276] - Derivative instruments like foreign currency forward contracts, swaps, and options are used to mitigate exchange rate fluctuation risk[276] - The potential loss in fair value from a hypothetical 10% adverse change in foreign currency exchange rates as of June 30, 2025, was not material[276] Interest Rate Risk This section describes Bunge's exposure to changes in interest rates on its debt - Bunge is exposed to market risk from changes in interest rates on its fixed and floating rate debt[278] - A hypothetical 100 basis point increase or decrease in interest yields on fixed rate debt would result in a less than 1% change in fair value[279] - A hypothetical 100 basis point change in the applicable reference rate (e.g., SOFR) would result in an approximate $94 million change in interest expense on variable rate debt at June 30, 2025[280] Inflation Risk This section discusses the potential impact of inflation on Bunge's operations and financial results - Inflationary factors increase labor, overhead, and other costs, potentially affecting results of operations and financial position[281] - Historically, Bunge has recovered inflation impacts through sales price increases, but future ability to do so cannot be reasonably estimated[281] Derivative Instruments This section provides an overview of the types of derivative instruments Bunge uses for risk management - Bunge uses foreign exchange derivatives (forwards, swaps, futures, options) to mitigate currency risk on commercial and balance sheet exposures, and net investment hedges for foreign subsidiaries[282] - Interest rate swap agreements are used to manage interest rate exposures, with changes in fair value recorded in earnings[284] - Commodity derivatives (exchange-traded futures, options, OTC transactions) are primarily used to manage exposure to agricultural commodity price movements, with changes in fair values included in Cost of goods sold[285] - Ocean freight derivatives (FFAs, FFA options) and energy derivatives are used to hedge costs and manage volatility, with fair value changes recorded in Cost of goods sold[286][287] ITEM 4. CONTROLS AND PROCEDURES This section addresses the effectiveness of Bunge's disclosure controls and procedures and internal control over financial reporting Disclosure Controls and Procedures This section reports on the effectiveness of Bunge's disclosure controls and procedures - As of June 30, 2025, Bunge's Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[290] Internal Control Over Financial Reporting This section discusses the status and any changes to Bunge's internal control over financial reporting - There have been no material changes in Bunge's internal control over financial reporting during the quarter ended June 30, 2025[291] - Bunge continues initiatives to migrate processes to shared business service models to consolidate back-office functions and standardize financial systems globally, which will align and streamline internal controls[291] PART II — INFORMATION This section provides additional information not covered in the financial statements, including legal proceedings and risk factors ITEM 1. LEGAL PROCEEDINGS This section provides an overview of Bunge's involvement in various legal proceedings, including litigation, claims, investigations, and other matters incidental to its business - Bunge is involved in litigation and claims, primarily non-income tax and labor claims in South America, and other contract, antitrust, and environmental matters[293] - Management believes the outcome of these proceedings will not have a material adverse effect on Bunge's financial condition, results of operations, or liquidity[293] - As of June 30, 2025, Bunge has reserved an aggregate of $26 million for labor claims and $204 million for civil and other claims[294] ITEM 1A. RISK FACTORS This section directs readers to the comprehensive discussion of risk factors in Bunge's 2024 Annual Report on Form 10-K and this Quarterly Report on Form 10-Q - Readers should refer to 'Item 1A. Risk Factors' in the 2024 Annual Report on Form 10-K and 'Part II — Item 1A. Risk Factors' in this Quarterly Report for a detailed discussion of factors that could materially affect Bunge's business[295] - The listed risk factors are not exhaustive, and other unknown or currently immaterial risks could also adversely affect the company[295] ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS This section states that there were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities or use of proceeds to report[296] ITEM 3. DEFAULTS UPON SENIOR SECURITIES This section indicates that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities to report[297] ITEM 4. MINE SAFETY DISCLOSURES This section states that mine safety disclosures are not applicable to Bunge Global SA - Mine safety disclosures are not applicable[298] ITEM 5. OTHER INFORMATION This section indicates that there is no other information to report for the period - No other information to report[299] ITEM 6. EXHIBITS This section lists the exhibits filed or furnished as part of this Quarterly Report on Form 10-Q, including certifications, XBRL taxonomy documents, and the cover page interactive data file Exhibit Index This index provides a list of all exhibits included in the report - The exhibit index includes certifications from the CEO and CFO (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act), Subsidiary Issuers of Guaranteed Securities, and various XBRL Taxonomy Extension Documents[302] Signatures This section contains the duly authorized signatures of Bunge Global SA's Executive Vice President, Chief Financial Officer, and Controller and Principal Accounting Officer, affirming the filing of the report - The report is signed by John W. Neppl, Executive Vice President, Chief Financial Officer, and J. Matt Simmons, Jr., Controller and Principal Accounting Officer, on August 5, 2025[305]