Following earlier difficult buying and selling durations, France’s main poultry firm LDC Group experiences enhancements in gross sales and turnover for the fiscal 12 months simply ended. It continues to hunt to realize development targets by acquisitions.
On the publication of its newest annual outcomes, French-based LDC Group highlighted a return to former gross sales quantity development from earlier years, and general efficiency it describes as “good.”
Whereas the 2022-2023 fiscal 12 months was marked by greater costs and decrease volumes, the corporate’s web turnover was just below EUR6.2 billion (US$6.7 billion) for the 12 months to February 29, 2024. This represented a year-on-year enhance of 6.0%, whereas manufacturing was up marginally on the earlier 12 months at simply over 1.08 million metric tons.
The agency’s enterprise continued to get better over the past monetary 12 months, with gross sales quantity for the fourth quarter 6% greater than in the identical interval of 2022-2023.
At 8.9%, Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization (EBITDA) as a proportion of turnover for the 12 months simply ended than within the earlier 12 months. Nonetheless, working revenue at EUR376.6 million was 25.6% greater than the determine reported for 2022-2023. LDC Group attributed these developments to a mix of things, together with a return to regular poultry provides following the losses arising from extremely pathogenic avian influenza throughout the earlier winter, in addition to to decrease feed grain costs, and gross sales promotion efforts.
Fiscal outcomes by enterprise operation
For the group’s largest division — Poultry France — turnover within the 2023-2024 12 months was 5.9% greater than the earlier 12 months at virtually EUR4.5 billion. This determine was boosted by contributions from the Matines model (acquired in 2022), and Ovoteam (acquired in April of 2023). On a like-for-like foundation, the turnover of the French poultry enterprise within the 12 months simply ended was 2.3% greater year-on-year.
The corporate experiences that gross sales to supermarkets have been 9% greater within the fourth quarter of final 12 months than in the identical interval of 2022-2023 on account of its intensified promotional efforts.
LDC’s poultry operations exterior France cowl Poland, Hungary, Belgium, and the UK — contributing 63%, 27%, 6%, and 4%, respectively, to the general turnover of EUR833 million by its worldwide companies. This represents a year-on-year enhance of two.5%, pushed partially by favorable international foreign money adjustments, in addition to greater gross sales of value-added merchandise. Total gross sales of rooster, duck, and goose merchandise by this division was simply 0.7% greater than within the earlier 12 months.
In the meantime, turnover by the Group’s catering division delivered a ten.2% year-on-year enhance in turnover of EUR912 million. This was attributed to cost will increase achieved on the finish of the earlier 12 months. Gross sales quantity in 2023-2024 was 1.1% greater than the earlier 12 months, primarily as a results of greater gross sales of Marie model fresh-cooked meals and frozen pizzas.
Prospects for 12 months forward
Previously 12 months’s monetary report, LDC Group data its targets for an annual turnover of EUR6.5 billion, and an working margin of 5%.
The corporate can be set to proceed its development technique based mostly on acquisitions throughout all its divisions.
LCS experiences it has not too long ago entered into unique negotiations with a view to the acquisition of the Pierre Martinet Group. Based in 1968, it is a French firm producing processed meals merchandise within the catering class.
In November of 2023, LDC Group was reported to be in talks to accumulate Polish turkey producer Indykpol. In response to LDC’s newest annual report, the acquisition is at the moment being thought-about by the European competitors authority. A call is anticipated within the subsequent few months.
Extra on LDC Group
With annual manufacturing of 476 million birds, Lambert Dodard Chancereul Group (LDC Group) is the third largest poultry firm in Europe, based on WATTPoultry.com’s High Poultry Firms survey.
In addition to rooster, the corporate produces and sells a spread of turkey, duck, and goose meat merchandise, in addition to eggs of the Matines model.
