Ldc: With a jump in profits, poultry champion LDC reaches a new peak on the stock market

(BFM Bourse) – The owner of the Loué ou Marie brands has revealed progressing annual accounts, a well-received publication which has propelled the LDC stock to new heights on the Paris Stock Exchange.

For its 2023-2024 financial year (ended at the end of February), LDC revealed “very good results”, indicates TP ICAP Midcap in its note published this Thursday morning.

The European leader in the poultry market explains that it “benefited from exceptional circumstances” which led to the improvement in its results. LDC cites in particular a reduction in the price of cereals, which are used as animal feed, and which had soared with the war in Ukraine.

Over its entire past financial year, i.e. the period covering the months of March 2023 to the end of February 2024, the company which owns the Loué or Marie brands saw its profitability increase over one year.

At the end of February, current operating income showed an increase of 23.5% year-on-year, to 370.3 million euros compared to 299.9 million euros. The corresponding margin thus stands at 6% on the basis of a turnover, already published, of 6.2 billion euros. Which represents a clear improvement compared to the margin of 5.1% revealed over the previous financial year.

A little further down in the accounts, the group’s net profit increased by 35.5% to 304.4 million euros compared to 224.7 million euros for the comparable period.

“These good results are accompanied by an improvement in cash generation with net cash increasing by 100 million euros,” appreciates Florent Thy-tine, head of equity research at TP ICAP Midcap.

To reward the loyalty of its shareholders, the group plans to pay them a dividend of 3.60 euros, an increase of 33% compared to the coupon of 2.70 euros paid for the previous financial year.

“Coherent” objectives

LDC indicates “to approach the 2024-2025 financial year with confidence”. The European leader in the poultry market has set itself the objective of reaching a turnover of 6.5 billion euros this year, subject to the finalization of the acquisitions already announced, including that of the king of tabbouleh Pierre Martinet revealed Tuesday evening.

The sales objective defined by LDC implies “an organic progression of around 2%”, according to estimates from TP ICAP Midcap. “The price effects will indeed play a downward role but the volumes could partially compensate,” continues Florent Thy-tine.

In terms of results, LDC confirms its objective of maintaining a normative current operating margin of around 5%, compared to 6% in 2023-2024.

The company which owns the Loué or Marie brands has once again confirmed its objectives set as part of its 2026-2027 strategic plan, namely to cross the milestone of 7 billion euros in turnover by this horizon. This ambition must be accompanied by an increase in profitability with a target of nearly 560 million euros in Ebitda over the 2026-2027 financial year.

“These results and these prospects therefore confirm our positive opinion on the file”, notes TP ICAP Midcap which confirms its purchase recommendation as well as its price target of 192 euros.

On the Paris Stock Exchange, the title of the owner of the Marie, Le Gaulois and Loué brands rose another 4% to 153 euros, after hitting an absolute peak at 159 euros around 10:30 a.m. this Thursday.

Sabrina Sadgui – ©2024 BFM Bourse

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