{"id":6664,"date":"2020-03-23T11:07:15","date_gmt":"2020-03-23T09:07:15","guid":{"rendered":"https:\/\/www.ldc.com\/co\/press-releases\/louis-dreyfus-company-reports-resilient-2019-financial-results-confirms-strategic-direction-2\/"},"modified":"2023-05-11T11:07:02","modified_gmt":"2023-05-11T09:07:02","slug":"louis-dreyfus-company-reports-resilient-2019-financial-results-confirms-strategic-direction-2","status":"publish","type":"press-release","link":"https:\/\/www.ldc.com\/co\/en\/press-releases\/louis-dreyfus-company-reports-resilient-2019-financial-results-confirms-strategic-direction-2\/","title":{"rendered":"Louis Dreyfus Company Reports Resilient 2019 Financial Results, Confirms Strategic Direction"},"content":{"rendered":"\n

Rotterdam, The Netherlands, <\/strong>March 23, 2020 – Louis\nDreyfus Company (LDC) has reported resilient consolidated financial results for\nthe year ended December 31, 2019, despite significant global challenges\nincluding African swine fever, geopolitical instability, continued US-China\ntrade tensions and general market oversupply. Net sales came in at US$33.6\nbillion, with an increase in shipped volumes of 1.3%, but lower prices. EBITDA\nfrom continuing operations reached a solid US$836 million, while net income\nGroup Share came in at US$230 million.<\/p>\n\n\n\n

\u201c2019 proved\nto be one of the most challenging years in recent times and witnessed some of\nthe fundamental shifts taking place in the world and within our sector,\u201d\ncommented Margarita Louis-Dreyfus, Chairperson of Louis Dreyfus Holding B.V. \u201cOur\nnew reality is one of higher global volatility, political unpredictability,\nchanging consumer trends and a ticking clock on environmental issues on a\nplanetary scale. LDC is embracing this new reality with a stronger and more\nurgent ambition than ever. It is within this context that LDC\u2019s transformative\nbusiness strategy made strong progress in 2019 and the company posted resilient\nfinancial results. This is a very positive performance overall.\u201d<\/p>\n\n\n\n

Segment Operating\nResults came in at $956 million, compared to US$1,314million the previous year.\nIn the Value Chain Segment, the Grains & Oilseeds Platform\ndelivered a decent year despite African swine fever and trade tensions thanks\nto its global presence and product portfolio, while our Freight activities\nadded significant value through effective logistics optimization. The\nMerchandizing Segment\u2019s performance was driven by the Cotton Platform, together\nwith improved results in Coffee, and a resilient performance from Sugar and\nRice in low price and volatility markets.<\/p>\n\n\n\n

\u201cWhile overall results were lower than in\n2018, we put in a solid performance, confirming our strategic decisions, and\ntook steps to adjust our cost base, without losing focus on our transformation\nplans and future growth trajectory,\u201d said Ian McIntosh, LDC\u2019s Chief Executive\nOfficer. \u201cWe have the right strategy and it is on track, as we move to become\nmore of the value chain, integrating transparency, sustainability and\ntraceability at all stages of our activities.\u201d<\/p>\n\n\n\n

LDC focused\non implementing its transformative business strategy in 2019, with selective capital\nexpenditure of US$413 million for the year, up from US$329 million in 2018. It invested\nin new partnerships with Leong Hup\nInternational<\/em> in Malaysia and Luckin\nCoffee<\/em> in China, laying the foundations for joint ventures to build a\ncoffee roasting plant and establish a juice business with the latter. LDC also developed\nessential operating capacity along the value chain, including rail cars to\nfacilitate grain exports in Ukraine, a warehousing joint venture for corn in\nChina, expanded crushing plant storage and logistics in the US, and new\neco-efficient vessels in its Juice and Freight businesses. <\/p>\n\n\n\n

\u201cOur strategic transformation is\nfundamental and remains our focus even in the most challenging of times,\u201d Ian\nMcIntosh commented. \u201cLooking forward, while the year started well, it is too early\nto say what impact the new coronavirus may have on our 2020 performance, but we\nare working hard with our employees, customers and suppliers to ensure their\nhealth and safety, and prevent further spread of the virus, even as we strive\nto fulfill our mission of providing essential products, like food and feed, to\ncustomers and consumers around the world – safely, responsibly and reliably.\u201d<\/p>\n\n\n\n

2019 Highlights:<\/strong><\/p>\n\n\n\n