(Boursier.com) — The group CDL is pleased to post solid results for the 2021-2022 financial year despite the sharp rise in raw materials. EBITDA is up by nearly 11% to 399 ME (7.9% of turnover compared to 8.1% for the 2020-2021 financial year). Current operating income stands at 208.5 ME against 194 ME over 2020-2021, up 7.5% and above the target of 200 ME initially set. It represents 4.1% of turnover compared to 4.4% over the previous financial year.
The current operating profit of the Poultry France division (including Upstream) is stable at 141 ME against 141.5 ME over 2020-2021. The price increases will have made it possible to limit the decline in the division’s current operating margin to 3.8% of sales compared to 4.3% over the previous financial year. The International division posted current operating income of €29.3 million, up 58.4%.
“The quality of the product mix, the growing contribution of processed and branded products and the improvement in market conditions for specialties (duck and geese) have supported this very positive development”, comments the group.
The Catering division is also there with a current operating profit of 38.2 ME, up 12.4%. In total, after taking into account corporation tax and financial income, the net income Group share is 165.1 ME against 140.7 ME, an increase of 17.3%. The Management Board will propose to the General Meeting of August 25, 2022, the payment of an increased dividend to 2 euros per share compared to 1.8 euros paid for the previous financial year.
LDC estimated in March that it could contain the drop in its available volumes by around 20% over the period from March to August 2022. The drop should ultimately be more limited (between -12 and -15%) thanks to the mutual aid plan of the group implemented by all sites and teams between production areas.
In the field of increases in raw materials and costs, new revaluations are needed today to ensure the balance of cost prices and the sector. In poultry, LDC specifies that 25% increases have been obtained over the last 16 months (including around 10% since March 2022). Between now and July 2022, additional revaluations of around 10% are still necessary to deal with the unprecedented context. In the caterer, negotiations have also been initiated with 4% increases already obtained. By September, 16% remain to be passed, including 7% before the summer.
Discussions are already considered well underway with customers. On these two divisions, the level of results for the current financial year will therefore be conditioned by the outcome of these negotiations and the evolution of market conditions. On the International division, on the other hand, the outlook is more favorable with already good visibility on future performance and expected results on the rise. Given these elements, the results targets for the 2022-2023 financial year will be presented when the next half-year results are published in November.
Beyond the current financial year, LDC is now beginning a new cycle of development through a strategic roadmap which should allow it to reach 7 billion euros in turnover within 5 years with a EBITDA of nearly 560 ME over the 2026-2027 financial year, up 40% compared to 2021-2022.