Bunge sells its European margarine & spreads business to Vandemoortele
Vandemoortele aims to expand its presence in Central and Eastern Europe and Scandinavia through this acquisition.
EUROPE – Bunge, a global agribusiness and food company, has agreed to sell its European margarines and spreads business to Vandemoortele, a family-owned food group that also deals in margarines and plant-based oils and fats.
Bunge stated it aims to focus on its core areas, such as global leadership in integrated value chains for oilseeds and grains.
Bunge’s Chief Transformation Officer and acting President of Food Solutions, Pierre Mauger, said, “Bunge’s focus going forward is on global leadership in our integrated value chains for oilseeds and grains, as well as in our connected oils, emulsifiers, and proteins B2B ingredient businesses.
“We are pleased that the margarines and spreads business will be able to further develop under new ownership.”
The agreement indicates that Vandemoortele will acquire Bunge’s margarines and spreads business in Germany, Finland, Poland and Hungary, along with the manufacturing sites and a portfolio of 20 consumer brands.
Vandemoortele stated that the acquisition reinforces the commitment of its Plant-Based Food Solutions business line to supporting the European food sector’s transition to sustainable, plant-based foods.
Yvon Guerin, CEO of Vandemoortele, said, “This acquisition offers an interesting geographic complementarity. We already serve a strong customer base in Western and Southern Europe with high-quality and innovative plant-based products. Now, we can expand our presence in Central Eastern Europe and Scandinavia too.”
According to Bunge, the margarine and spread activities in Europe represent a turnover of more than Euro 450 million (US$484.61 million).
Financial Report 2024
Recently, Bunge released its financial results for the year 2024. It reported a net income drop to US$221 million, or US$1.56 per share, down from US$373 million, or US$2.47 per share, in the same quarter of the previous year.
Adjusted earnings per share also declined to US$2.29 from US$2.99, a 23% reduction.
The quarterly earnings reflect a negative mark-to-market impact of 16 cents per share and an additional 57-cent per share reduction due to expenses associated with its planned merger with Viterra.
Revenue also dipped, with net sales declining by 9.3% to US$12.91 billion from US$14.23 billion in the previous year’s third quarter.
Since hitting US$100.48 on Sept. 19, the stock has fallen by 16%.
In Bunge’s most prominent business segment, Agribusiness, adjusted earnings before interest and taxes (EBIT) fell 23% to US$366 million, down from US$472 million the previous year.
Agribusiness volumes reached 19.89 million tonnes, slightly higher than the 18.85 million tonnes recorded last year.
Sales within this segment also fell, dropping 7.9% to US$9.29 billion from US$10.08 billion.
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