Louis Dreyfus Company B.V. issued its Annual Report, showing improved results and outlining a strategy to meet extraordinary challenges in the agribusiness sector today, including rapid population growth, climate change, and shifting consumer preferences.
The company reported consolidated net sales of US$43.0 billion1 in the fiscal year ended 31 December 2017, with shipped volumes up 5%2 compared to 2016. The consolidated income before tax was US$405 million, compared to US$365 million the previous year, including the Metals business, which is in the process of being sold. LDC’s consolidated net income, Group Share, increased to US$317 million, compared to US$305 million at the end of 2016.
Gonzalo Ramírez Martiarena, Chief Executive Officer of Louis Dreyfus Company, commented:
“Ongoing industry challenges continue to prevail, but 2017 results remained sound, with shipping volumes up by 5% and net income, Group Share, up by 4% on the previous year. This steady upward trend reflects the positive impact that our strategy has had on overall performance, a core element of which centers around keeping a focus on our core business areas. As a result, we concluded the sale of our Fertilizers and Inputs operations in Africa, signed on the sale of these operations in Australia, and we are in the process of selling our solid-performing Metals business. These sales will enable us to invest in and continue to build on the success of our core activities. Our investment focus will therefore remain predominantly on expanding our capacity and on adopting technological advancements that will improve efficiency and sustainability.”
LDC’s strategy consists of the following pillars, positioning our company to embrace trends and seize new opportunities:
1. Optimize portfolio & investments
Our approach has two strands to optimizing the Group’s portfolio and investments. First, we are refocusing on activities where we already have core competences. Secondly, we are building our portfolio into connected products and sectors.
2. Innovate with food products
We are hoping that in coming years, innovation will take us into promising food-related sectors and lead us further downstream in our value chains.
The Group will go deeper into the ongoing food revolution. Our new, dedicated Food Innovation Project Team will add value to this revolution by selecting potential projects for further exploration or investment.
3. Realign our geographical footprint
Global imbalances between supply and demand mean we must constantly reassess how we can move products from origin to destination in the most efficient manner. It will be critical to selecting the flows with the potential to generate most value. Asia – especially China – offers the most promise in that respect and we will be ambitious about shifting our footprint to that area. We are exploring strategic alliances with key players in China.
4. Generate sustainable value
Sustainability is an absolute must. LDC constantly reviews policies and processes to make our products and businesses more sustainable. Oilseeds is one of the platforms actively working in this area, particularly in palm and soybeans origination.
External partnerships to improve traceability and certification will also be crucial, as shown by the successful track records of our Coffee, Cotton and Juice platforms.
The complete 2017 Annual Report and Audited Consolidated Financial Statements are available at web-stg.ldc.com.
To read the Press Release on the Financial Results go to http://web-stg.ldc.com/global/en/investors-media/press-releases/press-release-2018/louis-dreyfus-company-reports-improved-2017-financial-results/
1 Excluding net sales of US$12.4 billion and US$9.2 billion, for 2017 and 2016 respectively, from discontinued Metals operations.
2 Excluding discontinued Metals operations.