LDC Earnings Slip Amid Tough First Half for Global Agricultural Markets
Despite strong global sales and strategic growth initiatives, Louis Dreyfus Company reported a decline in earnings for the first half of 2025, pressured by market volatility, regulatory uncertainty, and climate disruption.
Global commodity trading firm Louis Dreyfus Company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $987 million for the first six months of 2025, a decrease from $1.06 billion during the same period in the previous year. While net sales increased slightly to $26.2 billion, up from $25.6 billion, overall profitability declined due to weaker origination and processing margins, particularly in the grains and oilseeds segments.
Chief Executive Officer Michael Gelchie attributed the performance to a complex global environment characterized by geopolitical risks, evolving regulations, and climate unpredictability. However, he underscored the company's resilience and loterm strategy. "Thanks to the agility and dedication of our global teams, we delivered a robust financial performance, while maintaining strong momentum in pursuit of our strategic growth ambitions," he stated.
Operating results for the Value Chain Segment declined to $803 million, compared to $941 million in the first half of 2024, as lower global prices for grains and oilseeds weighed on financial outcomes. Although corn exports to China supported higher volumes, margins remained under pressure due to tariff policy changes and uncertainties regarding tax credits.
Nonetheless, the company emphasized that its diversified global footprint and broad product portfolio helped mitigate margin volatility and maintain positive operating performance.
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Strategic investments continued across core business areas. In North America, Louis Dreyfus Company advanced the construction of a new oilseed processing facility in Upper Sandusky, Ohio, and expanded an existing facility in Yorkton, Saskatchewan, Canada. In South America, the company enhanced its inland origination capacity in Argentina with new or upgraded grain and oilseed storage infrastructure.
In Central Europe, the company finalized the acquisition of grain and oilseed logistics and processing operations in Hungary and Poland, expanding its presence in the rapeseed and sunflower markets. The preliminary purchase price was $483 million, subject to adjustments. The financial results of these newly acquired operations, formerly part of Viterra, will be included in the company's financial statements for the year ending December 31, 2025.
Progress also continued in the company's downstream development initiatives. Projects underway include a new pea protein isolate production facility in Canada, a glycerin refining and edible oil packaging plant in Indonesia, and a specialty feed lecithin production line in China. Notably, the group commenced construction of a new Food Technology Park in Dongjiakou, China, which will integrate oilseed crushing, processing of specialty feed proteins, food-grade lecithin, and other high-value products.
"These initiatives represent our increasingly integrated value chains, linking upstream origination with downstream innovation and processing capabilities," said Gelchie.
Looking forward, the company remains focused on reliable delivery for its business partners and seamless integration of its new operations in Central Europe. Louis Dreyfus Company continues to execute its strategic roadmap toward becoming a more innovative, sustainable, and vertically integrated global provider of food, feed, fiber, and ingredients, adapting to the rapidly evolving international agricultural landscape.