Louis Dreyfus reports volume growth and profit decline in first half of year

Louis Dreyfus Company, an agricultural commodities trading company, reported on Friday that it saw sales growth in the first half of the year, driven by higher shipment volumes, but lower prices for most crops led to lower profits.

LDC—commonly known as Dreyfus and part of the ABCD quartet of global grain traders, along with ADM, Bunge Global, and Cargill—said that first-half sales volumes increased 4.4% year-on-year, contributing to a 2.3% increase in sales to $26.2 billion.

However, operating profit (EBITDA) declined 6.6% to $987 million, while net profit declined 14.5% to $418 million.

The group’s coffee division saw operating profit growth, driven by higher volumes and higher prices. However, most other divisions, including grains and oilseeds, performed worse due to lower prices, trade tensions, and an uncertain economic environment, according to LDC’s interim financial report.

The company increased capital expenditure in the first half of the year to $521 million from $299 million a year earlier, in part to expand oilseed crushing, including in North America.

LDC intends to expand its global oilseed crushing capacity after acquiring Bunge’s assets in Hungary and Poland. The company reported a starting price of $483 million for the deal.

The report states that higher spending in the first half of the year contributed to an increase in adjusted net debt in least developed countries from $1 billion at the end of 2024 to $2.4 billion.