Louis Dreyfus Co. achieves 4.4% volume growth despite slight earnings decline in H1
The Grains & Oilseeds Platform had lower operating results in the context of softened origination and processing margins amid policy uncertainty around tariffs and tax credits.
NETHERLANDS – Louis Dreyfus Co. reported a 4.4% year-on-year increase in volume growth for the first half of the year ended June 30, highlighting the global trader’s ability to grow volumes despite persistent geopolitical, environmental and regulatory challenges.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled US$987 million, down from US$1.06 billion in the corresponding period of 2024.
Segment operating results stood at US$1.22 billion, a decline from US$1.28 billion the previous year. However, net sales rose to US$26.2 billion, up from US$25.6 billion, supported by a 4.4% year-over-year increase in volumes.
Michael Gelchie, chief executive officer of LDC, emphasized the company’s adaptability in a challenging landscape.
“Thanks to the agility and dedication of our global teams, and despite persistent geopolitical, regulatory, and environmental challenges, we achieved continued volume growth and delivered a robust financial performance, while maintaining strong momentum in pursuit of our strategic growth ambitions,” Gelchie stated.
In the Value Chain Segment, net sales fell by 1.1% year over year, primarily due to lower prices for grains and oilseeds products. Operating results for this segment were US$803 million, compared to US$941 million in the prior period.
The Grains & Oilseeds Platform reported higher shipment volumes, particularly corn, driven by robust demand from China. Nevertheless, operating results were tempered by softened origination and processing margins amid policy uncertainties related to tariffs and tax credits.
“The performance nevertheless remained positive, thanks to the Platform’s global footprint and product diversification,” LDC noted in its interim financial report.
Strategic investments and expansions
The company continued to advance strategic investments to bolster its core merchandising capabilities. In North America, construction progressed on a new oilseed processing facility in Upper Sandusky, Ohio, United States, and expansion efforts continued at an existing plant in Yorkton, Saskatchewan, Canada.
In South America, LDC enhanced its inland origination capacity in Argentina through new and expanded warehouses for grains and oilseeds.
LDC also expanded its European presence by completing the acquisition of grains and oilseeds logistics and processing operations in Hungary and Poland. This move complements the company’s existing portfolio, strengthens trade flows in Central Europe, and reinforces its position in rapeseed and sunflower markets.
Downstream initiatives saw notable progress as well. Construction advanced on a new pea protein isolate production facility in Canada. The period included the inauguration of a glycerin refining plant and edible oil packaging line in Lampung, Indonesia, alongside a specialty feed lecithin production line in Tianjin, China.
Additionally, LDC broke ground on a Food Technology Park in Dongjiakou, China, which will integrate operations from oilseeds crushing to the processing of specialty feed proteins, food-grade lecithin, and other products.
“This project is at the intersection of our strategic ambitions from R&D to core merchandizing and downstream processing, reflecting our increasingly integrated value chains,” Gelchie remarked.
Looking ahead to the second half of the year, LDC remains committed to reliable delivery for its business partners, including newly integrated teams in Central Europe.
In September, the company finalized its transaction with Bunge for shareholding interests in Viterra’s former operations in Hungary and parts of Poland, with a preliminary purchase price of US$483 million, subject to potential adjustments. The financial impacts will be reflected in LDC’s statements for the year ending December 31, 2025.
“Together, we continue to advance our strategic roadmap for LDC’s transformation into an increasingly integrated, innovative, and sustainable food, feed, fibers, and ingredients company, a roadmap that is all the more relevant in today’s rapidly evolving global context,” Gelchie concluded.
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