BG

Bunge Global SA stock research

Jun 30, 2024

FY2024 Q2

Bunge Global SA (BG) Gross Margin — Quarter Ended Jun 30, 2024

Revenue was negative while cost of revenue remained positive, resulting in a negative gross profit and a negative gross margin. Compared to the prior quarter, gross margin improved from positive to negative, and compared to the same quarter last year, the negative margin narrowed.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue was negative while cost of revenue remained positive, resulting in a negative gross profit and a negative gross margin. Compared to the prior quarter, gross margin improved from positive to negative, and compared to the same quarter last year, the negative margin narrowed.

  • The negative gross margin is driven by revenue being lower than cost of revenue. The improvement from the prior quarter reflects a smaller gap between revenue and cost of revenue.
  • Gross margin was negative this quarter, compared to positive in the prior quarter and negative but weaker in the same quarter last year. Gross profit was lower than the prior quarter and much lower than the year-ago quarter.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

-11.6%

Gross profit

$664.0M

Revenue

-$5.7B

Cost of revenue

$12.6B

Quarter-over-quarter change

-18.1 pts

Year-over-year change

+10.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023-$6.2B$1.4B$13.7B-21.9%
Sep 30, 2023$4.4B$1.0B$13.2B24.0%
Mar 31, 2024$13.4B$876.0M$12.5B6.5%
Jun 30, 2024-$5.7B$664.0M$12.6B-11.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

-18.1 pts

Year-over-year change

Jun 30, 2023

+10.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The negative gross margin is driven by revenue being lower than cost of revenue. The improvement from the prior quarter reflects a smaller gap between revenue and cost of revenue.

Gross margin was negative this quarter, compared to positive in the prior quarter and negative but weaker in the same quarter last year. Gross profit was lower than the prior quarter and much lower than the year-ago quarter.

Monitor the relationship between revenue and cost of revenue, as the negative gross margin indicates cost exceeds revenue.