(AOF) – LDC recorded in the first half, ending at the end of August, of the 2022-2023 financial year, a turnover of 2.735 billion euros, up 14.2% (+ 13.2% at perimeter identical and constant exchange rate). The volumes marketed fell by 3.3% and by 4.2% at identical scope. In the second quarter alone, revenues reached 1.394 billion euros, up 16.1%. At identical scope and constant exchange rates, they increased by 15.7%. Volumes sold are down 5.4% and 5.8% at identical scope.
“The tariff increases obtained in poultry in France and internationally have made it possible to offset the consequences of this unprecedented situation”, explained the poultry group, referring to the price increases on raw materials and the persistent inflation on other costs (energy, packaging, etc.).
“Beyond these revaluations, the good resilience of the half-year was driven by the agility and industrial performance of all the poultry sites. Faced with the episode of avian influenza, the inter-site mutual aid plan enabled to maintain a level of activity higher than the group’s expectations”, explained LDC.
Before continuing: “All these factors are at the heart of the growth in value recorded over the half-year in poultry both in France and internationally”.
For LDC, it should logically be accompanied by maintaining the current operating margin level compared to the first half of the 2021-2022 financial year.
This change will, however, be weighted by the performance expected from the Catering division, where the later and still insufficient price increases did not cover the increase in raw materials over the half-year, without even mentioning the inflation observed in the main items. operating expenses.
Beyond the current financial year, LDC reaffirms its confidence and confirms all of the objectives set within the framework of its strategic plan: to cross the threshold of 7 billion euros in turnover in 5 years. This new dimension must be accompanied by an increase in profitability with a target of nearly 560 million EBITDA for the 2026-2027 financial year, up 40% compared to 2021-2022.
AOF – LEARN MORE
Development of the Chinese dairy industry
The Chinese government encourages the consumption of dairy products to improve the nutrition and immune defenses of the population, while seeking to reduce the country’s dependence on imports. Wishing to turn the page on the melamine infant milk scandal, which affected 300,000 babies in 2008, milk production is picking up again in the country, after ten years of stagnation. The big industrial groups (Mengniu, Yili, Youran or Modern Dairy) do not export and concentrate on a domestic market, which is growing by 4 to 5% per year. They develop very large farms and rely heavily on innovation, investing four times more than all their competitors in the world.