(AOF) – LDC, a food group specializing in poultry and catering, announces a turnover for the 1st quarter of the 2023-2024 financial year (from March 2023 to May 2023) up 12.9% over one year , at €1,514.8 million, and specifies that the increase in sales is mainly due to a base effect linked to the price increases obtained in 2022 and early 2023. The volumes marketed in the 1st quarter of the current financial year are down 4.6% on a like-for-like basis. The fall in tonnage marketed is less significant than that recorded in 2022-2023.
With regard to the beginning of the year, LDC confirms its objectives of exceeding a turnover of 6 billion euros with a maintenance of the current operating margin rate around 5%.
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Soaring energy prices and a call for help
In the past, energy represented a fixed cost of 3% of turnover. This year, this percentage rises to 5% or even 7% for VSEs-SMEs, according to Ania (National Association of Food Industries). Professionals are very worried because until the end of 2022 they generally benefit from coverage to cushion these increases. However, they have not been renewed for 2023 and after. Consequently, 25 of the main inter-professional organizations (Intercereals, Inaporc, Semae, etc.) are calling on the State for help in the face of the erosion of their margins and their capacity to investment.
The State has proposed several devices, including an “electricity damper”, which are deemed insufficient. The organizations also deplore the failure of European negotiations to achieve a tariff shield to avoid distortions of competition. Agriculture and agri-food require a maximum ceiling price of €180/MWh, while many companies buy at prices above €500/MWh on the French market.