March 24, 2020

Louis Dreyfus reports profit drop last year

This was due to the tough agricultural markets in 2019, although the commodity trader doesn't forsee COVID-19 impacting its business, reported Reuters.

The company said its 2019 net income dropped US$230 million from US$364 million reported in 2018's restated income. This is near its US$211 million income reported in 2015, the lowest this past decade.

The drop in income was because of the US-China trade war and the African swine fever outbreak in China, though it reported strong performance in its cotton and freight businesses.

Margarita Louis-Dreyfus, Louis Dreyfus chairwoman and majority shareholder said last year was challenging, but a cost-cutting programme introduced in November 2019 will reap benefits later this year.

In its annual report, the company said COVID-19 has not severely affected is business but it is too early to project its effect on future company performance.

COVID-19 has shutdown multiple countries after disrupting China's economic activity. China is a major market for Louis Dreyfus.

The company seeks to bounce back after a weak margin period purchasing and selling staple crops by restructuring operations and concentration towards food processing in Asia.

-      Reuters