{"id":8417,"date":"2020-09-28T10:04:24","date_gmt":"2020-09-28T08:04:24","guid":{"rendered":"https:\/\/www.ldc.com\/br\/?post_type=press-release&p=8417"},"modified":"2023-05-11T11:04:04","modified_gmt":"2023-05-11T09:04:04","slug":"ldcbv-reports-solid-2020-half-year-consolidated-financial-results","status":"publish","type":"press-release","link":"https:\/\/www.ldc.com\/br\/en\/press-releases\/ldcbv-reports-solid-2020-half-year-consolidated-financial-results\/","title":{"rendered":"LDCBV Reports Solid 2020 Half-Year Consolidated Financial Results"},"content":{"rendered":"\n

Rotterdam<\/strong>, The Netherlands<\/strong>, September 28, 2020 – Louis Dreyfus Company B.V. (LDC) announced today its\nconsolidated financial results for the six-month period ended June 30, 2020.\nThe Group reported a strong first half performance, enduring global challenges\nand navigating market uncertainty, while ensuring essential food and feed supply\nchain continuity during the ongoing Covid-19 pandemic. <\/p>\n\n\n\n

The Group delivered\nEBITDA of US$634 million in the first half of the year, up 49.9% compared to\nthe same period in 2019, despite\nthe adverse impact of the change in fair value of Luckin Coffee<\/em> shares. Income\nbefore tax from continuing operations share grew 260% year-on-year, settling at\nUS$306 million for the semester. Net sales decreased\nto US$16.3 billion, as both prices and volumes shipped fell year-on-year. Segment\nOperating Results increased by 61.4% to US$799 million, as LDC captured\nprofitable origination and sales margins in most business lines. The Group also\nmaintained its prudent risk management approach and secured a solid balance\nsheet through a large cash position, while ensuring access to liquidity with\navailable committed bank lines. <\/p>\n\n\n\n

\u201cIn the first\nhalf of 2020, LDC achieved strong results while continuing to deliver essential\nproducts and ingredients to customers and consumers around the world, in the\ncontext of operational challenges posed by Covid-19 and despite continued trade\ntensions,\u201d said Ian McIntosh, LDC\u2019s Chief Executive Officer. \u201cOur diversified\nportfolio, global geographic footprint and risk management expertise remained\ncrucial to our performance and agility in this environment.\u201d <\/p>\n\n\n\n

Both of LDC\u2019s\nbusiness segments contributed to the Group\u2019s improved operational performance\nin a complex market and operating environment. In the Value Chain Segment, where\noperating results more than doubled year-on-year, the Grains & Oilseeds\nPlatform captured profitable commercial opportunities, while Freight and Global\nMarkets anticipated and adjusted to evolving market trends, offsetting challenges\nfaced by Juice as a result of global lockdowns. The Merchandizing Segment saw an\nimproved performance across the board, as Coffee leveraged its global footprint\nto address shifting coffee consumption patterns, Sugar increased sales and capitalized\non favorable market conditions, Rice secured profitable flows and Cotton maintained\na resilient performance despite decreased demand. <\/p>\n\n\n\n

\u201cThe results\nreported today put LDC in a strong position from which to advance its ambitious\ngrowth plans,\u201d said Michael Gelchie, LDC\u2019s Deputy Chief Executive Officer. \u201cWe pursued\nour transformative strategy in the first half of the year, through continued\ninvestments to strengthen our core trading activities, to advance the use of new\ntechnologies for greater efficiency and traceability in the industry, and to accelerate\ninnovation toward a sustainable future of food.\u201d <\/p>\n\n\n\n

In addition\nto continued deployment of capital expenditure for asset maintenance, the Group\ninvested in aquatic feed research with Temasek Life Sciences Laboratory<\/em>\nand Barramundi Asia<\/em>, and in the creation of Covantis S.A.,<\/em> a\ntechnology company co-founded with industry peers to digitize agri-commodities\ntrade. The Group also launched \u2018LDC Innovations\u2019, its venture capital program to\ninvest in early-stage companies with the potential to transform the food and\nagricultural industries. <\/p>\n\n\n\n

\u201cAs the world\ncopes with, and adjusts to, restrictions and uncertainty resulting from the\nadvent of Covid-19, our key role in providing sustenance for a growing\npopulation has proved all the more important,\u201d said Ian McIntosh. \u201cWe have\nrisen to the challenge of ensuring continued food security while protecting\npeople\u2019s health and safety as a priority, thanks to the commitment of LDC teams\naround the world, to whom I am extremely grateful. I am confident that their\nexpertise and dedication will see LDC continue to thrive, adapt to short- and\nlong-term challenges and fulfill its essential mission, as it transforms for\nthe future.\u201d <\/p>\n\n\n\n

Highlights for the\nsix-month period ended June 30, 2020: <\/strong><\/p>\n\n\n\n