Louis Dreyfus Company reports solid 2016 financial results
Louis Dreyfus Company B.V., one of the leading merchants and processor of agricultural goods, reported consolidated net sales of US$49.8 billion in the fiscal year ended 31 December 2016, with shipped volumes remaining stable compared to 2015.
Louis Dreyfus Company B.V., one of the leading merchants and processor of agricultural goods, reported consolidated net sales of US$49.8 billion in the fiscal year ended 31 December 2016, with shipped volumes remaining stable compared to 2015. The company posted a consolidated income before tax of US$365 million, and consolidated net income, Group Share, of US$305 million.
2016 was marked by strong supply and abundant inventories for some commodities, which led to challenging market conditions, worsened by volatility working against some market fundamentals. Nevertheless, both segments generated profits on their origination and destination activities. The Value Chain segment posted decent logistics and processing margins, and the Merchandizing segment achieved higher sold volumes compared to 2015, thanks to a strong contribution from Metals. Net sales fell slightly for the Merchandizing segment due to lower average prices, while in the Value Chain segment, marginally reduced activity levels and lower average selling prices on Oilseeds and Grains impacted net sales.
In 2016 LDC strengthened its funding structure, increasing its medium-term Revolving Credit Facilities by 10 %, and pushing the diversification of funding sources to new frontiers, by raising, for the first time, JPY 12.5 billion on a 3-year term loan with Japanese investors. Louis Dreyfus Company also extended its long-term debt maturity through the successful issuance in February 2017 of a 5-year Eurobond for EUR400 million.
2016 Financial Highlights
- Net sales of US$49.8 billion, compared to US$55.7 billion in 2015
- Segment operating results at US$1,167 million, compared to US$1,356 million on the previous year
- Income before tax of US$365 million, compared to US$416 million in 2015
- Net Income, Group Share, at US$305 million, versus US$211 million one year ago
- Volumes shipped to destination of 81 million tons, remaining stable versus 2015
- Total assets of US$19.8 billion, compared to US$18.6 billion at the end of December 2015
- Capital expenditure of US$354 million against US$420 million the previous year
- Working capital usage of US$8.5 billion, compared to US$7.9 billion in December 2015
- Strong liquidity covering 154 % of short-term debt, as at 31 December 2016
- Adjusted net gearing at 0.57
- Return on equity, Group Share, of 6.3 % compared to 4.1 % for the full year 2015