Bunge SA(US:BG)2025-11-05 21:17Financial Performance - For the three months ended September 30, 2025, net income attributable to Bunge shareholders was $166 million, a decrease of $55 million compared to $221 million for the same period in 2024[215]. - Total EBIT for the three months ended September 30, 2025, was $403 million, a decrease of $4 million compared to $407 million for the same period in 2024[217]. - For the nine months ended September 30, 2025, net income attributable to Bunge was $721 million, an increase of $186 million compared to $535 million for the same period in 2024[215]. - Income tax expense for the three months ended September 30, 2025, was $86 million, compared to $89 million for the same period in 2024[218]. - Segment EBIT for Soybean Processing and Refining increased by 52% to $337 million for the three months ended September 30, 2025, compared to $222 million for the same period in 2024[226]. - Segment EBIT increased by 10% to $254 million for the nine months ended September 30, 2025, driven by higher other income, partially offset by increased selling, general and administrative expenses[257]. - Corporate and Other EBIT decreased by 106% to a loss of $268 million for the three months ended September 30, 2025, primarily due to increased SG&A expenses from the Acquisition of Viterra[259]. Sales and Revenue - Soybean Processing and Refining segment net sales increased 38% to $10,857 million for the three months ended September 30, 2025, primarily due to contributions from the Viterra acquisition and higher oilseed merchandising volumes[227]. - Soybean Processing and Refining segment net sales increased 7% to $25,268 million for the nine months ended September 30, 2025, driven by contributions from the acquisition of Viterra and higher oilseed volumes[232]. - Softseed Processing and Refining segment net sales increased 130% to $3,661 million for the three months ended September 30, 2025, mainly from the acquisition of Viterra and higher average sales prices in Europe[239]. - Other Oilseeds Processing and Refining segment net sales increased 13% to $1,207 million for the three months ended September 30, 2025, primarily due to higher sales prices in the tropical oils business[245]. - Grain Merchandising and Milling segment net sales increased 168% to $6,428 million for the three months ended September 30, 2025, driven by contributions from the acquisition of Viterra and increased export demand[251]. Costs and Expenses - Cost of goods sold increased 37% to $10,359 million for the three months ended September 30, 2025, primarily due to higher net sales and unfavorable mark-to-market results[228]. - Cost of goods sold increased 5% to $23,877 million for the nine months ended September 30, 2025, primarily due to higher net sales[233]. - Cost of goods sold for the Softseed Processing and Refining segment increased 137% to $3,372 million for the three months ended September 30, 2025[240]. - Segment EBIT for Grain Merchandising and Milling decreased 73% to $21 million for the three months ended September 30, 2025, primarily due to higher selling, general and administrative expenses[253]. Working Capital and Cash Flow - Working capital at September 30, 2025, was $10,622 million, an increase of $2,394 million compared to $8,228 million at September 30, 2024[219]. - Cash used for operating activities was $503 million for the nine months ended September 30, 2025, a decrease of $1,350 million compared to cash provided of $847 million for the same period in 2024[295]. - Cash used for investing activities increased to $5,524 million for the nine months ended September 30, 2025, up from $957 million in the same period of 2024, primarily due to the acquisition of Viterra for $4,116 million[297]. - Cash provided by financing activities was $4,021 million for the nine months ended September 30, 2025[293]. Acquisition of Viterra - The acquisition of Viterra was completed on July 2, 2025, with Viterra shareholders receiving approximately 65.6 million shares of Bunge valued at $5.3 billion and $1.9 billion in cash[212]. - The company completed the acquisition of Viterra, which significantly impacted its equity and debt structure[290]. - Cash payments for the acquisition of Viterra were net of cash acquired, totaling $4,116 million, contributing to the increase in cash used for investing activities[297]. Debt and Equity - Total debt increased to $15,589 million as of September 30, 2025, up from $6,238 million at December 31, 2024, representing a $9,351 million increase[278]. - Total Bunge shareholders' equity reached $15,768 million at September 30, 2025, an increase of $5,855 million from $9,913 million at December 31, 2024[290]. - Noncontrolling interests increased to $1,462 million at September 30, 2025, compared to $1,032 million at December 31, 2024, an increase of $430 million[291]. - Bunge's total unused and available committed borrowing capacity was $8,665 million as of September 30, 2025[277]. Foreign Exchange and Market Risks - Foreign exchange losses for the three months ended September 30, 2025, amounted to $42 million, a decrease of 380% compared to the previous year, primarily due to unfavorable hedging results[229]. - Foreign exchange gains increased 116% to a gain of $9 million for the nine months ended September 30, 2025, attributed to a weaker U.S. dollar[234]. - The company recorded a foreign currency gain on debt of $251 million for the nine months ended September 30, 2025, impacting cash flows from operating activities[296]. - The company actively manages various market risks, including commodity prices, foreign currency exchange rates, and interest rates, through derivative instruments[303]. Derivative Instruments - The company primarily uses derivative instruments to manage exposure to agricultural commodity price movements, utilizing exchange-traded futures and options contracts[321]. - The company employs freight forward agreements (FFAs) and FFA options to hedge ocean freight costs, with changes in fair values recorded in Cost of goods sold[322]. - Energy derivatives are used to manage exposure to volatility in energy costs, with changes in fair values also recorded in Cost of goods sold[323]. - The company may enter into credit default swaps, carbon emission derivatives, and equity derivatives to manage credit risk and macroeconomic risks, with impacts recorded in Cost of goods sold[324].