NETHERLANDS– Louis Dreyfus Company has released its consolidated financial results for the six-month period ending June 30, 2023, showcasing a strong performance despite the persistent market turbulence resulting from geopolitical, macroeconomic, and environmental challenges.
According to the company, net sales for the period amounted to US$25.8 billion while EBITDA remained stable.
While these sales are lower than the US$30.3 billion reported in 2022, a lower price environment in grains and oilseeds, mostly due to lower corn deliveries, a drought in the US, and lower crop yields in Argentina caused the 8.9% decrease in sales.
The Group effectively utilized its global presence and market knowledge to capitalize on profitable origination and sales opportunities, mitigate risks, and meet customer demand. This resulted in Segment Operating Results of US$1,316 million.
“While international trade flows progressively adapted to last year’s turbulent environment, some challenges persisted into 2023 – a context in which LDC pursued its focus on keeping essential food, feed, fiber, and ingredient supply chains moving safely, reliably, and responsibly,” said Michael Gelchie, LDC’s Chief Executive Officer.
“Leveraging our expertise, diverse portfolio, and global network, we successfully navigated a still uncertain and complex market to deliver resilient performance for the first semester, supported by recent developments and investments in asset improvements, in line with our strategic growth plans,” Michael Gelchie added.
Over the period, the Group made significant progress in long-term projects and initiatives to strengthen its core merchandising activity and diversify its sources of revenue.
This includes expanding its canola processing facility in Canada, investing in facilities that support its grains, oilseeds, and sugar origination and logistics activities in Argentina and Brazil, and constructing its food industrial park and instant coffee joint ventures in China and Vietnam. These ventures were inaugurated in September.
New platform for refined operations
LDC also established a new Food & Feed Solutions Platform in January to capitalize on the growing demand for nutritious, nature-based products and ingredients. The company aims to expand its presence in the lecithin, glycerin, and specialty feed protein market.
As part of this strategy, LDC announced in July that it would be adding glycerin refining and edible oil packaging lines to its palm oil refining complex in Indonesia.
The group also took an important step towards accelerating its journey towards decarbonization. In March, they announced a target of reducing their Scope 1 and 2 greenhouse gas emissions by 33.6% by 2030, using 2022 as the baseline year.
The progress towards this target was reported in LDC’s latest Sustainability Report, which is part of their environmental, social, and governance (ESG) goals and commitments.
“In these challenging and rapidly changing times, I am very proud of the considerable achievements we have accomplished so far this year, pursuing our work to help feed and clothe millions of people worldwide, guided by our purpose to create fair and sustainable value in everything we do,” said Michael Gelchie.
Michael Gelchie also expressed gratitude to the LDC teams and partners for their hard work and dedication.
“I am confident that together, we will continue to build on our positive momentum, during the second half of 2023 and beyond,” he concluded.