Louis Dreyfus Company Releases 2022 Financial Results

Louis Dreyfus Company B.V. (LDC) has published its consolidated financial results for the year ended December 31, 2022, in which the Group continued to fulfill its role in keeping essential agricultural and food supply chains moving safely, reliable and responsible, amid new and persistent geopolitical, macroeconomic and environmental turmoil. As part of the Group's decarbonisation journey, LDC also announced a 33,6% reduction target for its scope 1 and 2 greenhouse gas emissions by 2030, compared to 2022 as a baseline year.

“Despite new challenges and unprecedented disruptions, LDC has further diversified its geographic and commercial portfolio in an effort to preserve global access to essential products, while always focusing on the safety and well-being of its teams around the world as a priority”, said Margarita Louis-Dreyfus, Chairperson of the Board of Directors. “In this extremely complex environment, collaboration across value chains is more essential than ever to find shared solutions to common challenges and help provide livelihoods for people around the world.”

The Group's net revenue reached US$59,9 billion in 2022, while Operating Results by Segment were US$2,611 billion in the year, supported by strong general demand for products sold by the Group. The company leveraged its global presence, market intelligence and risk management framework, reinforced since the advent of Covid-19, to capture profitable origination and sales opportunities while meeting customer demands, with EBITDA reaching US$2,347 billion.

“In the face of strong headwinds, we remain focused on keeping essential food, feed, fiber and ingredient supply chains moving to meet commitments to customers around the world and ensure continued financial and operational performance in 2022, while We move forward with our strategic growth plans to balance strength and leadership in our core business with evolution for long-term relevance,” said Michael Gelchie, CEO of LDC.

In 2022, LDC continued to invest in core merchandizing operations, expand activities towards the end consumer, diversify revenue streams and adopt innovative products, solutions and technologies. Among other developments, the Group expanded its Grains & Oilseeds origination network with the acquisition of a leading grains company in Australia, invested in the construction of a joint venture food industrial park in China, opened a new lecithin plant in Indiana , USA, opened a new R&D facility in California as the base of its new Plant Proteins business, diversified its B2C portfolio with new juice and cooking oil products, and continued to invest in innovative startups with the potential to 'disrupt' and complement your commercial activities.

“Our work doesn’t stop here as we step up the activation of our strategic plans to maintain the positive momentum we’ve built, adapting to the fundamental changes we see happening, such as: evolving consumer trends toward alternative proteins and healthier diet options, digitalization and disruptive innovation in agriculture and food production, and accelerated developments to meet the increasingly urgent need for a more sustainable food system amid global climate and macroeconomic uncertainties,” said Michael Gelchie.

The Group has also taken important steps on its sustainability and decarbonization journey in 2022, including its commitment to eliminate deforestation and conversion of native vegetation for agricultural purposes from its supply chains by the end of 2025, as well as progress on specific product lines, geographies and focus areas, which will be reported as part of the next LDC Sustainability Report.

“The 33,6% emissions reduction target we announced today for scopes 1 and 2 by 2030 is based on the work of our Carbon Solutions team with all our business lines last year to measure the profile of LDC emissions as a basis for target setting and reporting,” said Michael Gelchie. “Our goal is aligned with the criteria of the Science-Based Target initiative and consistent with the Paris Agreement goal of limiting global warming to 1,5°C above pre-industrial levels, in line with our commitment to contribute to global warming. global climate goals.”

Highlights of 2022:

Net Revenue: US$59,9 billion (US$49,6 billion in 2021)

Operating Results by Segment: US$2,611 billion (US$1,834 billion in 2021)

EBITDA: US$2,347 billion (US$1,623 billion in 2021)

Profit before taxes: US$1,226 billion (US$864 million in 2021)

Net profit, attributed to the Group: US$1,006 billion (US$697 million in 2021)

Return on equity, attributed to the Group: 18,7% (14,3% in 2021)

Adjusted leverage ratio: 0,2x (0,9x on December 31, 2021)

Liquidity Coverage: 3,7x of the short-term debt portion (2,2x on December 31, 2021)