NETHERLANDS – Louis Dreyfus Co. (LDC) has announced its financial results for the year ending December 31, 2023, showcasing resilience in the face of various challenges. 

Despite facing geopolitical tensions and climate-related hurdles, the global agribusiness giant reported a decrease in earnings by 5.3% to US$2.2 billion, with net sales dropping to US$50.6 billion from US$59.9 billion. However, segment operating results remained stable at US$2.607 billion compared to the previous year.

Michael Gelchie, the CEO of LDC, emphasized the positive contributions from its two business segments, attributing the solid results to the company’s global network, market insight, and efficient risk management. 

Both of our business segments contributed positively to our solid results for 2023, successfully navigating a complex environment, thanks to our global network, market insight, and risk management capabilities, as well as an ongoing drive for cost and operational efficiency,” said Michael Gelchie.

He highlighted the significance of ongoing efforts towards cost and operational efficiency, underscoring LDC’s commitment to bridging supply and demand gaps across essential food, feed, fiber, and ingredient value chains.

The Value Chain segment, particularly the Grain & Oilseeds platform, demonstrated notable resilience with operating results increasing to US$1.910 billion from US$1.817 billion in 2022. 

Despite a decline in net sales by 11.4% primarily due to lower prices for grain and oilseeds, the platform’s global footprint and integrated value chain management supported improved financial performance. 

High crop yields in Brazil and robust demand from China created profitable opportunities for the soy and corn businesses.

The company’s vegetable oils business also delivered robust results, benefiting from efficient hedging amidst challenging market conditions characterized by declining prices and tight palm oil supplies. Strong crush and crack margins, especially in North America, along with large crop yields in Brazil, contributed significantly to the platform’s performance.

LDC’s sustainability efforts were also highlighted in its integrated report, including financial results and progress in its sustainability roadmap. 

Gelchie outlined the company’s strategy focused on six priority areas identified through a materiality assessment. This includes the adoption of a Human & Labor Rights Policy and a global Supplier Code of Conduct, reflecting LDC’s commitment to sustainability governance.

In 2023, LDC’s Carbon Solutions team formulated a climate transition plan with near-term targets to reduce Scope 1 and 2 emissions by 2030, while also calculating Scope 3 emissions as a baseline for future target setting. 

Additionally, establishing a dedicated global team aimed to drive the development of LDC’s regenerative agriculture strategy, focusing on farming practices that improve soil health, promote biodiversity, and sequester carbon.

Looking ahead, Gelchie emphasized LDC’s enduring commitment to sustainable value creation, stating that it positions the company for success in the future. 

As stakeholders increasingly prioritize sustainable practices, LDC aims to ensure fair and sustainable outcomes across its value chains, thus aligning its long-term success with responsible business practices.

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