Louis Dreyfus Company B.V. (LDC) announces its consolidated financial results for the six-month period ended June 30, 2018.
Net sales remained constant at $18.8 billion, compared to the same period in 2017. A 6.3% decline in volumes shipped, partially attributable to the sale of our African and Australian Fertilizers & Inputs businesses, was completely offset by price increases across the group’s main products.
The group’s consolidated Net income, Group Share, amounted to $100 million, versus $160 million for the same period the previous year. The lower Net Income reflects a temporarily negative mark-to-market recognized by the group as of June 30, attributable to our hedging strategy of locking in soy crush margins.
This will ensure a high return from our crushing activities for the whole of 2018, as our performance benefits for the remainder of the year. Financing costs increased due to the rise in Libor rates and increased working capital utilization.
Highlights for the six-month period ended June 30, 2018:
- Net sales of $18.8 billion remained constant compared with the same period in 2017
- Income before tax of $117 million, compared to $206 million at 30 June 2017
- Segment Operating Results at $493 million, compared to US$542 million in the same semester last year
- Working capital usage of $7.7 billion versus US$6.3 billion at 31 December 2017
- Net income, Group Share at $100 million, compared to $160 million for the first half 2017
- Net proceeds from sale of investments and fixed assets of US$468 million
- Capital expenditure of $131 million over the half year, compared to US$119 million over the same period in 2017
- Return on equity, Group Share, of 5.2%, compared to 6.7% one year before
View the entire report at ldc.com.
