# Crop merchant Louis Dreyfus gets profit boost in volatile year Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-22 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: LDC Reports 44% Jump in 2022 Net Profit Amid Global Crop Meta Description: Discover how Louis Dreyfus Company's 2022 net profit soared by 44% to over $1 billion, driven by high prices and strong demand amidst market volatility. URL: https://financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-yearhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-22t102135z1lynxmpej2l0bxrtroptp4europe-wheat-crops-1736814280693-compressed.jpg) By Gus Trompiz PARIS (Reuters) -Louis Dreyfus Company (LDC) on Wednesday reported a 44% jump in 2022 net profit, joining other global crop merchants in capturing high prices and strong demand in a volatile year marked by Russia’s invasion of fellow grain exporter Ukraine. LDC, whose rivals include ADM, Bunge and Cargill, reported a group net profit of just over $1 billion versus $697 million a year earlier. Net [sales rose almost 21% to $59.9 billion](https://www.financedigest.com/allianz-puts-n26-stake-up-for-sale-at-3-billion-valuation-ft.html "Allianz puts N26 stake up for sale at billion valuation – FT") from $49.6 billion. Russia’s invasion of [Ukraine contributed to surging prices and supply tensions in staple crops](https://www.financedigest.com/traders-cut-ukraine-2022-combined-grain-and-oilseeds-crop-forecast.html "Traders cut Ukraine 2022 combined grain and oilseeds crop forecast"). Bunge and ADM both reported [record 2022 earnings and have forecast healthy profits](https://www.financedigest.com/bp-makes-record-profit-in-2022-slows-shift-from-oil.html "BP makes record profit in 2022, slows shift from oil") for this year. LDC’s grains and oilseeds unit further increased operating results last year after a strong 2021, supported by strong demand from importers, although operations in Europe, the Middle [East and Africa were negatively impacted by logistics difficulties in the Black Sea amid the war](https://www.financedigest.com/russia-sharply-scales-back-far-east-war-games-with-china.html "Russia sharply scales back Far East war games with China") in Ukraine, it said. Like other foreign grain firms, LDC [scaled back](https://www.financedigest.com/mifid-ii-why-you-should-not-scale-back-your-implementation-efforts.html "MIFID II: WHY YOU SHOULD NOT SCALE BACK YOUR IMPLEMENTATION EFFORTS") operations in Ukraine and Russia this year due to the war. Products sourced from the two countries made up 2% of group [sales last year](https://www.financedigest.com/home-battery-sales-in-germany-may-surge-59-this-year-study.html "Home battery sales in Germany may surge 59% this year -study"), versus less than 4% the prior year, it said. In Ukraine, the re-opening of sea trade, under a wartime agreement [backed by the United Nations](https://www.financedigest.com/if-the-nation-backs-fintech-we-need-to-address-a-few-things.html "If the nation backs FinTech, we need to address a few things") and Turkey, allowed some export volumes, while LDC had also made use of non-maritime logistic channels with extra costs, it said. The company incorporated a new legal entity in Romania to [support its operations](https://www.financedigest.com/synapse-appoints-new-finance-and-operations-manager-to-support-the-rapid-growth-of-the-business.html "Synapse appoints new Finance and Operations Manager to support the rapid growth of the business") in the zone, it said. In Russia, where LDC operates silos and a [grain export](https://www.financedigest.com/ukraine-grain-export-coordination-centre-opens-in-istanbul.html "Ukraine grain export coordination centre opens in Istanbul") terminal, the group resumed operations after initially suspending activity. For a long-delayed [joint venture](https://www.financedigest.com/the-window-blinds-market-to-be-led-by-constructive-joint-ventures.html "The Window Blinds Market To Be Led By Constructive Joint Ventures") project to build a deep-sea terminal in the Taman peninsula, LDC recognised a $156 million impairment as of Dec. 31, it added. [Improved results and the sale of a stake in 2021 to Abu Dhabi holding firm ADQ have eased financial](https://www.financedigest.com/5-ways-to-improve-your-financial-literacy.html "5 Ways to Improve Your Financial Literacy") pressure on LDC and main shareholder Margarita Louis-Dreyfus after several years of modest profits and mounting debt. [Group equity rose to a record $6.1 billion](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility") as of Dec. 31, 2022, while its adjusted net debt fell to $0.4 billion by Dec. 31 from $1.5 [billion a year](https://www.financedigest.com/over-150-new-business-jets-could-be-delivered-to-europe-this-year-worth-an-estimated-5-billion.html "Over 150 New Business Jets Could Be Delivered To Europe This Year Worth An Estimated $ 5 Billion") earlier, the company said. LDC also announced a 33.6% reduction [target for its Scope 1 & 2 greenhouse gas emissions](https://www.financedigest.com/mcdonalds-targets-net-zero-emissions-by-2050-from-meat-to-energy.html "McDonald’s targets net zero emissions by 2050, from meat to energy") by 2030, compared with a baseline year of 2022. (Reporting by Gus Trompiz; editing by Sudip Kar-Gupta and Jason Neely) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---