(Reuters) – Bunge beat Wall Street estimates for fourth-quarter profit on Wednesday, as the grain trader and processor benefited from strong global export demand.
The company posted an adjusted profit of $3.70 per share for the three months ended Dec. 31, compared with analysts’ average estimate of $2.81, according to LSEG data.
Earnings from its core agribusiness segment, its largest by revenue and volume, jumped 89% to $835 million in the quarter from a year earlier.
The higher results were primarily driven by South America, Europe and Canada, the company said.
Bunge acquired an equity stake in Brazilian soy crusher CJ Selecta last year to strengthen its position as a large soy processor in the world’s largest producer and supplier of the oilseed.
Meanwhile, Bunge is awaiting approvals from major regulators for closing its merger with Glencore-backed Viterra. The deal agreed in June last year will create an agricultural trading giant worth about $34 billion including debt, and get it closer to leading rival Archer-Daniels-Midland.
Bunge and its peers make money by processing, trading, and shipping crops around the world. The supply chain intermediaries tend to thrive when crises like droughts or war trigger shortages.
The company expects annual 2024 results for its agribusiness segment to be down year-on-year due to lower results in processing.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Sriraj Kalluvila)
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