ROTTERDAM, THE NETHERLANDS, 3 April 2017 – Louis Dreyfus Company B.V., the leading merchant and processor of agricultural goods, today reported consolidated net sales of US$49.8 billion in the fiscal year ended 31 December 2016, with shipped volumes remaining stable compared to 2015. The company posted a consolidated income before tax of US$365 million, and consolidated net income, Group Share, of US$305 million.
2016 was marked by strong supply and abundant inventories for some commodities, which led to challenging market conditions, worsened by volatility working against some market fundamentals. Nevertheless, both segments generated profits on their origination and destination activities. The Value Chain segment posted decent logistics and processing margins, and the Merchandizing segment achieved higher sold volumes compared to 2015, thanks to a strong contribution from Metals. Net sales fell slightly for the Merchandizing segment due to lower average prices, while in the Value Chain segment, marginally reduced activity levels and lower average selling prices on Oilseeds and Grains impacted net sales.
Margarita Louis-Dreyfus, Chairperson of Louis Dreyfus Holding B.V., commented: “In the constantly evolving environment we operate in, our ability to balance entrepreneurship with sound risk management and a strong sustainability ethic as a global corporate citizen, whilst drawing on our expertise and know-how built over 165 years, becomes ever more important. Our clear roadmap, based on a long-term strategy, and our capable management teams enabled the company to deliver satisfying results in 2016 despite adverse conditions, and remain the foundation for profitable and sustainable growth in the future.”
Gonzalo Ramírez Martiarena, Chief Executive Officer of Louis Dreyfus Company, commented: “Despite another challenging year, the results for 2016 remained resilient. Oversupply, market shocks, geopolitical dynamics and adverse weather conditions were some of the difficulties that the agribusiness industry had to face during 2016. Nonetheless, our shipping volumes remained constant and net income, Group Share, increased by 45% on the previous year, demonstrating the effectiveness of our business model and strategy, with a renewed focus on innovation and research in order to leverage new technologies, and an increasingly customer-centric approach.”
“Market fundamentals are unlikely to be very different in 2017, so our agility in adapting to changing market conditions will remain critical. With this in mind, we will continue to optimize our portfolio and geographic presence, and further increase efficiencies and synergies across the entire value chain, in order to capitalize on emerging consumer trends. We really expect the results of the new strategy to show in our financial performance as of next year,” continued Mr. Ramírez Martiarena.
In 2016 LDC strengthened its funding structure, increasing its medium-term Revolving Credit Facilities by 10%, and pushing the diversification of funding sources to new frontiers, by raising, for the first time, JPY 12.5 billion on a 3-year term loan with Japanese investors. Louis Dreyfus Company also extended its long-term debt maturity through the successful issuance in February 2017 of a 5-year Eurobond for EUR400 million.
2016 Financial Highlights
The complete 2016 Annual Report and Audited Consolidated Financial Statements are available at www.ldc.com.
Louis Dreyfus Company is a leading merchant and processor of agricultural goods, leveraging its global reach and extensive asset network to deliver for its customers around the world - safely, responsibly and reliably. Today we help to feed and clothe some 500 million people, originating, processing and transporting approximately 81 million tons of commodities annually.