Bunge booked surging first-quarter earnings today (28 April), boosted by strong performances from its agribusiness and food ingredients units.
The US firm reported a first-quarter net profit of US$232m, up from $63m in the first quarter of last year. Revenues rose to $12.19bn from $10.35bn, the company added.
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Profit in Bunge’s core agribusiness segment more than doubled, rising to $253m from $122m, as demand for corn, soybeans and wheat increased following poor harvests in key exporting nations such as Russia.
Edible oil profits jumped to $34m from $18m, while milling product earnings climbed to $33m from $13m.
“Bunge is off to a strong start in 2011. Agribusiness and [the] food & ingredients [divison] performed very well in the first quarter,” chairman and CEO Alberto Weisser said.
“The agribusiness and food markets continue to be characterized by tight supply and volatility, resulting from a combination of factors, including weather and trade policy,” he added.
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By GlobalDataHowever, Weisser suggested that these conditions were unlikely to persist as farmers have responded to higher prices by increasing planting. “Another season of large harvests will be an important step in rebuilding stocks and moderating prices,” he said.
