Louis Dreyfus Company Releases First Half 2023 Financial Results

Louis Dreyfus Company B.V. (LDC) today (3/10) announced its consolidated financial results for the period ending June 30, 2023, reporting resilient performance in a context of ongoing market turbulence as a result of geopolitical, macroeconomic challenges and ongoing environmental issues.

Net revenue totaled US＄25,8 billion, Ebitda remained stable at US＄1,169 billion and Segment Operating Results reached US＄1,316 billion, as the Group successfully leveraged its global presence and market insights to capture profitable origination and sales opportunities, manage risks and meet customer demand.

“While international trade flows have progressively adapted to the turbulent environment of the past year, some challenges persist into 2023 – a context in which LDC remains focused on keeping essential food, feed, fiber and ingredient supply chains moving. , in a safe, reliable and responsible manner”, said Michael Gelchie (in the photo), CEO of LDC. “Leveraging our expertise, our diverse portfolio and our global network, we successfully navigated a still uncertain and complex market to deliver a resilient performance in the first half, supported by recent developments and investments in asset improvements, in line with our strategic plans for growth."

During the period, the Group moved forward with long-term projects and initiatives to further strengthen its core trading activity and diversify revenue streams, including the expansion of its canola processing facility in Canada, investments in facilities to support its activities logistics and origination of grains, oilseeds and sugar in Argentina and Brazil and the construction of its food industrial park and instant coffee joint ventures in China and Vietnam, opened in September. LDC also created a new Food & Feed Solutions Platform in January to address favorable market trends towards nutritious and natural products and ingredients, with a focus on developing and expanding its presence in the lecithin, glycerin and specialty protein space. for feed – for example, through the addition of glycerin refining and edible oil packaging lines at its palm refining complex in Indonesia, announced in July.

The Group also took an important step towards accelerating its decarbonization journey, announcing in March a 33,6% reduction target for its Scope 1 and 2 greenhouse gas emissions by 2030, compared to 2022 as the year benchmark, whose progress was reported in LDC's latest Sustainability Report, as part of its 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 made so far this year, continuing our work to help feed and clothe millions of people around the world, guided by our purpose of creating fair value and sustainable in everything we do,” said Michael Gelchie. “I am grateful to our teams for their hard work and unwavering dedication to our mission, as well as to our partners around the world for their enduring trust. I am confident that together we will continue to build our positive momentum through the second half of 2023 and beyond.”

Highlights of the semester ending June 30, 2023:

• Net revenue: US＄25,8 billion (US＄30,3 billion in the same period of 2022)

• Operating Results by Segment: US＄1,316 billion (US＄1,375 billion in the same period of 2022)

• Ebitda: US＄1,169 billion (US＄1,170 billion in the same period of 2022)

• Pre-tax profit: US＄654 million (US＄760 million in the same period of 2022)

• Net profit, attributed to the Group: US＄568 million (US＄662 million in the same period of 2022)

• Return on equity, attributed to the Group[1]: 15,8% (18,7% in 2022)

• Adjusted leverage ratio: 0,3x (0,2x as of December 31, 2022)

• Adjusted net leverage: 0,11 (0,07 as of December 31, 2022)