Louis Dreyfus Commodities Reports 2015 Financial Results; Announces Rebrand
ROTTERDAM, THE NETHERLANDS, 21 March 2016 – Louis Dreyfus Commodities B.V., the leading merchant and processor of agricultural goods, today reported consolidated net sales of US$55.7 billion in the fiscal year ended 31 December 2015, supported by a 1% growth in shipped volumes. The company posted a consolidated income before tax of US$416 million, and consolidated Net Income, Group Share, of US$211 million, impacted by exceptional non-cash tax items.
The company also announced it is changing name, rebranding as Louis Dreyfus Company B.V., effective immediately. The new corporate identity has been carefully crafted to reflect the full scale of the company’s operations and capabilities to deliver a high-level service centered on its customers’ needs, by leveraging its rich heritage. The new brand will be rolled out progressively across the company’s more than 300 facilities and its offices worldwide.
“Despite adverse conditions, both in our agricultural markets and in the overall macro economic environment, LDC’s activity continued to expand in 2015. Our Group is well-positioned to meet the global challenge of supplying food and agricultural products to a growing world population, safely and sustainably,” said Margarita Louis-Dreyfus, Chairperson of Louis Dreyfus Holding B.V.. Commenting on the rebrand, she continued: “Our sector is changing rapidly, and it is time for us to open a new chapter in our 165-year history. Our new name is as simple and functional as we want our operations to be. It reflects the company’s evolution, and also the pride we take in our heritage – as a company of entrepreneurs, united through a family culture and a vision to grow as a long-term, trusted partner to both customers and suppliers.”
Plentiful crops for the second consecutive year, combined with the absence of significant logistic and geographical disruptions, resulted in a low volatility environment for most commodities. The company’s Value Chain segment recorded healthy results, with logistic and processing assets benefiting from abundant crops in most origination countries. For platforms in the Merchandizing segment, fewer arbitrage opportunities led to compressed margins globally.
With US$420 million invested in 2015, compared to US$592 million in 2014, the Group adapted its capital expenditure in response to the current bearish environment.
Gonzalo Ramírez Martiarena, Chief Executive Officer of Louis Dreyfus Company, commented: “2015 was a difficult year for the entire industry, marked by geopolitical issues that contributed to an environment of reduced commercial opportunities. However, our results have shown our resilience under the circumstances. Our increased sales volumes, to 81 million tons shipped to destination, highlighted a more customer-centric approach that will be further reinforced in 2016. The world in which we operate is continuously evolving – consumers are becoming more demanding and our competitive landscape is changing. But our agility and our speed to adapt to new conditions is our differentiation, and helps us navigate this changing environment. It drives our success, alongside our ability to rethink our approach and reposition our activities within each business line, in a humble but decisive manner. This is what we have always done, and what we will continue to do.”
2015 Financial Highlights
- Net sales of US$55.7 billion, compared to US$64.7 billion in 2014
- Segment operating results at US$1,356 million, compared to US$1,781 million on the previous year
- Income before tax of US$416 million, compared to US$837 million in 2014
- Net Income, Group Share, at US$211 million, versus US$648 million one year ago
- Volumes shipped to destination of 81million tons, up 1% compared to 2014
- Total Assets: US$18.6 billion, compared to US$19.4 billion at the end of December 2014
- Capital expenditure of US$420 million against US$592 million the previous year
- Working capital usage: US$7.9 billion, compared to US$8.9 billion in December 2014
- Strong liquidity covering 150% of short-term debt as of 31 December 2015
- Adjusted net gearing at 0.66
- Return on equity, Group Share, of 4%
The complete 2015 Annual Report and 2015 Audited Consolidated Financial Statements are available at www.ldcom.com.
