Louis Dreyfus Company reports US$50B in 2024 sales amid market volatility
Despite ongoing challenges, the company reported segment operating results of US$2.35 billion and EBITDA of US$1.88 billion.
NETHERLANDS – Louis Dreyfus Company B.V. (LDC), a global leader in agricultural commodities, has achieved net sales of US$50.6 billion for the year ending December 31, 2024, maintaining stability amid ongoing geopolitical and climate challenges.
Despite ongoing challenges, the company reported segment operating results of US$2.35 billion and EBITDA of US$1.88 billion.
In 2024, LDC significantly increased its capital expenditure to US$1.01 billion, up from US$636 million in 2023, focusing on organic growth and strategic acquisitions. Key developments included expanding oilseed processing capacity in the United States and Canada, constructing a pea protein production plant in Canada, and investing in logistics facilities across South America.
The company also completed two strategic acquisitions: Companhia Cacique de Café Solúvel, bolstering its global soluble coffee business, and Namoi Cotton Limited, Australia’s largest cotton ginning company.
On the sustainability front, LDC advanced its 2030 emissions reduction targets by enhancing energy efficiency and increasing the use of renewable energy.
The company adopted its first near-term Scope 3 emissions reduction targets: a 20% reduction in the carbon intensity of sourced commodities and a 30% reduction in related land use emissions by 2030, both compared to a 2022 baseline.
LDC also published its deforestation- and conversion-free (DCF) methodology and collaborated with organizations like The Nature Conservancy to promote regenerative agriculture practices.
In the consumer market, LDC launched its Montebelo Brasil juice brand in France and relaunched its Vibhor edible oils brand in India. The company also signed a binding agreement to acquire BASF’s Food and Health Performance Ingredients business, to expand its presence in the plant-based ingredients market.
Despite stable net sales, LDC experienced a decline in net income, reporting US$726 million in 2024, down 27% from US$1.013 billion in 2023.
For the first half of 2024, the company reported a drop in both net sales and net income reflecting persistent geopolitical, macroeconomic, and environmental hurdles.
For the period ending June 30, net sales amounted to US$25.6 billion, slightly down from US$25.8 billion a year ago, while net income dropped to US$489 million from US$568 million.
Segment operating results also fell from US$1.316 billion to US$1.284 billion, highlighting the impact of these challenges on the company’s profitability.
The company’s return on equity decreased to 11% from 16.6% in the previous year. Additionally, the adjusted leverage ratio increased to 0.5x from 0.1x, and adjusted net gearing rose to 0.15 from 0.02, indicating a higher reliance on debt financing. Liquidity coverage also declined to 2.7x from 5.2x in 2023.
The LDC’s strategic investments and sustainability initiatives demonstrate its commitment to adapting to these challenges while pursuing growth and resilience in a complex global environment.
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