Bunge Global SA stock research
FY2024 Q1
Bunge Global SA (BG) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue declined at a slower pace, resulting in a lower gross margin. The gross margin weakened sequentially and year-over-year, reflecting that the reduction in gross profit outpaced the decline in revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue declined at a slower pace, resulting in a lower gross margin. The gross margin weakened sequentially and year-over-year, reflecting that the reduction in gross profit outpaced the decline in revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined more sharply than cost of revenue, compressing gross profit and margin. This pattern is consistent across both comparison periods.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue also decreased. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were lower, with cost of revenue declining as well.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
6.5%
Gross profit
$876.0M
Revenue
$13.4B
Cost of revenue
$12.5B
Quarter-over-quarter change
-17.5 pts
Year-over-year change
-1.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2023 | -$6.2B | $1.4B | $13.7B | -21.9% |
| Sep 30, 2023 | $4.4B | $1.0B | $13.2B | 24.0% |
| Mar 31, 2024 | $13.4B | $876.0M | $12.5B | 6.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-17.5 pts
Year-over-year change
Mar 31, 2023
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined more sharply than cost of revenue, compressing gross profit and margin. This pattern is consistent across both comparison periods.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue also decreased. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were lower, with cost of revenue declining as well.
Monitor the trajectory of cost of revenue relative to revenue, as the current period shows cost of revenue declining more slowly than revenue, which directly pressures gross margin.