PARIS (Reuters) -Louis Dreyfus Company (LDC) reported on Tuesday a sharp rise in first-half profit, a further sign that climbing commodity prices and strong demand for staple crops are boosting earnings for international merchants.
Group net profit reached $336 million, up 167% from $126 million a year earlier, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 23% to $778 million.
A surge in commodity prices and strong grain demand from China have supported earnings for agricultural merchants during the coronavirus pandemic, and helped LDC’s profits to recover last year.
Citing “a persistently volatile environment”, Chief Executive Michael Gelchie said LDC’s market knowledge, risk management and hedging strategies secured “solid results for the first half of the year.”
LDC, known as Dreyfus, is the “D” of the “ABCD” quartet of renowned global agricultural commodity firms alongside Archer- Daniels-Midland Co, Bunge Ltd and Cargill Inc.
LDC earlier this month completed the sale of a 45% indirect stake to Abu Dhabi holding firm ADQ, marking the arrival of the first non-family shareholder in the agricultural commodity group’s 170-year history.
(Reporting by Gus Trompiz and Sudip Kar-GuptaEditing by Jason Neely and Mark Potter)
