Global agribusiness giant Louis Dreyfus Company (LDC) saw its net income decline in 2024 as it faced persistent geopolitical, macroeconomic and environmental challenges, World Grain reported.
Although net sales held steady from the previous year at US$50.6bn the company reported net income of US$726M in 2024, down 27% from US$1.013bn in 2023, according to its 19 March earnings report.
LDC’s Value Chain Segment’s net sales decreased 2.6% year-on-year, mainly due to the lower price environment throughout the period for grains and oilseeds products, except for palm oil, World Grain wrote on 19 March.
The Grains & Oilseeds platform shipped higher volumes compared to the previous year, particularly wheat and soyabeans, supported by a recovery in crop sizes in Argentina.
LDC said its Grains & Oilseeds platform delivered lower operating results compared to a strong 2023 “but performance remained robust thanks to customer base expansion, a global footprint, product diversification and integrated value chain management from origin to destination”.
“Our global beans and corn businesses were negatively impacted by fewer opportunities in a context of low volatility, partially offset by higher volumes sold. In Brazil, record low farmer selling combined with crop failures weighed on origination margins, while in Argentina, activities and margins recovered from lower levels in 2023,” LDC said.
“The vegetable oils business delivered resilient results thanks to efficient hedging strategies in a challenging year. Processing margins decreased in China in a context of stagnant demand, as well as in North America, due to substitution for low carbon intensity feedstocks in renewable diesel processing and uncertainties about continuity of the US biofuel tax credit.”
Despite operating in a difficult global business environment, LDC said it had significantly accelerated its capital expenditure in 2024, reaching US$1.005bn, geared toward organic developments and acquisitions in various business lines.
For example, the company said it was in the process of expanding its oilseeds processing capacity in the USA and Canada and was investing in logistics facilities supporting Grains & Oilseeds operations in Argentina, Paraguay and Uruguay.
In Asia, the company relaunched its Vibhor edible oils brand in India, as part of a strategy to extend LDC’s reach further downstream.
Looking ahead, LDC would focus on the growing its core business while diversifying into new activities, Gelchie said.
