March 29, 2022

Louis Dreyfus Company reports increased annual profit

The Louis Dreyfus Company (LDC) announced increased annual profits in 2021, the latest major commodity merchant to show higher earnings as economic activity recovers from the COVID-19 pandemic, Reuters reported.

LDC reported US$697 million in net profit in 2021, 82.5% higher from 2020. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) was up 22.6% to US$1.623 billion.

Competitors ADM and Bunge have also reported sharp increases in earnings.

LDC said its grain and oilseed unit were helped by demand from China, positive crushing margins, and higher ethanol prices.

Russia's invasion into Ukraine has put a hold on LDC's long-delayed project to develop a grain export terminal at the Black Sea Russian port of Taman, the company said. LDC has suspended operations in its grain export terminal near the Azov Sea in Russia and in Odesa port, Ukraine.

LDC had assets of US$57 million and liabilities of US$18 million in Russia as of December 31, 2021. It also has US$289 million and US$216 million in assets and liabilities in Ukraine.

The company said grains sourced from the two countries account for less than 4% of 2021 group sales.

Financial pressure on LDC and main shareholder Margarita Louis-Dreyfus have eased thanks to improved results and the sale of a stake last year to Abu Dhabi holding firm ADQ.

-      Reuters