On Wednesday, the agricultural commodities trader Bunge reported its mixed first-quarter financial results led by robust crush margins.
Its stock price went down by -0.40% to $90.79 per share on May 03. However, it is expected to go up by 0.68% to $91.41 apiece in the upcoming session.
The company’s earnings per share rose to $3.26, missing the analysts’ $3.27 forecasts. However, it still managed to surpass the former $3.24 data.
Moreover, the revenue of Bunge declined to $15.33 billion, below the $15.51 billion consensus. Therefore, the figures are lower than the prior $16.66 billion reading.
Earnings are weaker from a great first quarter last year. This came after weaker oilseed processing results from Asia, Europe, and Argentina. Also, issues with grain flows brought about by the Ukrainian war contributed to its plunge.
Meanwhile, supply distributions amid the ongoing war started to hurt earnings for the business.
In addition, a massive drought has negatively affected grain and soy harvests in Argentina. As a result, it limited the agriculture company of the crops for processing.
Furthermore, the adjusted profit in the Agribusiness unit of Bunge fell by 18.00% in the year.
On the other hand, the entity mentioned that its results in all regions were solid. It is linked with notable strength in North and South America while hinting towards good demand trends.
Agriculture Program Launched by Bunge
Brazilian farmers would gain support from Bunge as it announced a helpful program. It will contribute to their transition to low-carbon agriculture.
The program aims to promote productivity growth and reduce costs by applying cultivation best practices. In addition, it will improve soil fertility and health, water retention, and infiltration in the soil. Also, it can help with managing energy consumption.
To implement the program, Bunge gathered a team of partners to support the application of regenerative practices. They will focus on monitoring progress and cash in from sustainable agriculture.
Moreover, the company is convinced the program will boost its connection with farmers. They have a great model supportive of farmers in ensuring the productivity and sustainability of their business.