ROTTERDAM, NETHERLANDS — Leveraging its global footprint and diversified portfolio, Louis Dreyfus Company BV posted EBITDA of $1.623 billion, a 23% increase for the year ended Dec. 31, 2021.
Net sales reached $49.6 billion, up 48% compared with 2020 while segment operating results were up nearly 18% to $1.83 billion.
“2021 was a very special year for LDC, in which we celebrated 170 years of history and opened a new chapter for the company, welcoming ADQ into our shareholder group as a strategic partner in the pursuit of our long-term plans and strategy,” said Margarita Louis-Dreyfus, chairperson of the Supervisory Board. “It was also another challenging year for our teams and partners around the world, to whom I am deeply grateful for their exceptional commitment, which made business continuity and success possible even in a complex and rapidly changing context.”
Both business segments contributed to the strong overall results, with overall resilient demand for the main products commercialized by the group. The Value Chain Segment saw operating results of $1.19 billion while the Merchandizing Segment results were $556 million.
“All business platforms successfully navigated uncertain market conditions, securing profitable flows to meet demand, implementing successful hedging strategies and capitalizing on recovery from COVID-19 impacts in certain sectors, owing to easing sanitary measures,” LDC said.
Within the Value Chain Segment, the Grains & Oilseeds Platform delivered strong operating results. Volatility remains driven by uncertain crop size prospects and concerns over supply chain logistics.
“The strong core performance in soy, vegetable oils and grains was echoed in other product lines, including high biodiesel margins in the US and Europe, and supported by a valuable contribution from our ingredients businesses — both lecithin and refined glycerin,” said André Roth, head of Grains & Oilseeds. “Thanks to the expertise and continued commitment of our teams, the Platform once again kept all key assets operating with only minor interruptions in an ongoing COVID context, with constant focus on protecting people across our sites. We also continued to successfully navigate climate impacts, logistics bottlenecks and government policies impacting supply and demand dynamics, to deliver for our customers efficiently and reliably.”
Demand for soy and grain imports from China continued to grow and exports from the United States remained strong despite smaller-than-expected corn and soybean crops.
Crushing activities contributed significantly to the platform’s performance due to strong margins, especially in the United States and Canada.
Ethanol prices were bolstered by the rally in oil prices as global demand for biofuels grew.
“In another year marked by the ongoing pandemic, freight shortages and port congestions, as well as climate challenges, LDC once again navigated a complex environment to deliver for customers, while making important strides in our strategic and sustainability roadmaps,” said Michael Gelchie, chief executive officer of LDC. “Our clear vision and agile mindset have underpinned our success over 170 years, and continue to do so today as we pursue our growth ambitions, always with the safety and well-being of all those who work for and with us as a top priority.”
As part of its commitment to helping address climate and other global sustainability challenges, LDC set up a dedicated Carbon Solutions Platform in 2021 to accelerate the Group’s decarbonization journey. This reflects the sectoral commitment, signed at the COP26 United Nations Climate Change Conference, for accelerated action on deforestation and emissions, supporting the global drive toward a net zero economy.
“Our progress in 2021 further reinforced LDC’s leading position as a key industry participant for the future, while ensuring the future we shape is fair and sustainable, in line with our company purpose,” Gelchie said. “Looking ahead, in light of new geopolitical tensions and macroeconomic shifts emerging in 2022, our role to provide essential products to the world’s population is more important than ever. It remains our priority to fulfill this role safely, reliably and responsibly, working hand in hand with our teams and business partners across the globe, to whom we are extremely grateful for their collaboration and steadfast support.”