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Louis Dreyfus Co. releases 2023 integrated report

Report shows $50.6 billion in net sales and progress in its sustainability and growth initiatives across global food and feed value chains.

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Louis Dreyfus Company B.V. (LDC) has published its first integrated report for the year ended December 31, 2023, encompassing consolidated financial results and progress in the Group’s sustainability roadmap. Despite ongoing geopolitical tensions and climate-related challenges disrupting trade flows, the company delivered resilient results for 2023. Net sales amounted to $50.6 billion, with stable Segment Operating Results at $2,607 million and EBITDA reaching $2,222 million.

Michael Gelchie, LDC’s Chief Executive Officer, highlighted the positive contributions of both business segments to the solid results for 2023. The company successfully navigated a complex environment, driven by its global network, market insight, risk management capabilities, and a continuous pursuit of cost and operational efficiency. LDC advanced in its strategic growth plans while fulfilling its essential role in bridging supply and demand gaps across essential food, feed, fiber, and ingredient value chains, catering to customers worldwide.

The Group's investment in ambitious growth plans saw capital expenditure increase by almost 16% year on year. LDC aimed to strengthen its core merchandising activities by acquiring a 50% share in a sugar export terminal in Brazil, expanding its ethanol operations in the country, and signing a joint venture agreement to grow its presence in Australian cotton by providing gin management services. Additionally, it increased grains and oilseeds processing capacity in China, began work to expand its canola processing complex in Canada, and announced the construction of a new soy processing plant in Ohio, US.

The year 2023 marked the first operating year of LDC’s new Food & Feed Solutions Platform, designed to meet evolving customer trends by upcycling agri-commodity by-products into value-added products and solutions. The Platform achieved the addition of glycerin refining activities at the site of LDC’s Lampung complex in Indonesia and opened a state-of-the-art R&D center in Shanghai, focusing on the development of plant-based protein products and ingredients. The Group's diversification and downstream integration plans also advanced with the commissioning of its joint venture freeze-dried instant coffee plant in Vietnam, as well as continued B2C portfolio growth in China for cooking oils and bottled juices.

The Group continued to take significant steps to advance its commitments to shaping more sustainable value chains. LDC defined a strategy focused on six priority areas to reinforce its sustainability governance framework, including the adoption of a Human & Labor Rights Policy and global Supplier Code of Conduct. Importantly, the company made strides in pursuing its key decarbonization and zero-deforestation goals, with the development of a detailed climate transition plan and efforts to drive the development of a regenerative agriculture strategy at scale.

The 2023 financial highlights include:

  • Net Sales: US$50.6 billion
  • Segment Operating Results: US$2,607 million
  • EBITDA: US$2,222 million
  • Net Income, Group Share: US$1,013 million
  • Capital Expenditure: US$636 million
  • Return On Equity, Group Share: 16.6%
  • Adjusted Leverage Ratio: 0.1x
  • Adjusted Net Gearing: 0.02
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