Create a free Feed Strategy account to continue reading

LDC Group reports return to higher annual turnover

Following previous challenging trading periods, France’s leading poultry company LDC Group reports improvements in sales and turnover for the fiscal year just ended. It continues to seek to achieve growth targets through acquisitions.

Earnings Stock Market
Phongphan | Bigstock.com

Following previous challenging trading periods, France’s leading poultry company LDC Group reports improvements in sales and turnover for the fiscal year just ended. It continues to seek to achieve growth targets through acquisitions.

On the publication of its latest annual results, French-based LDC Group highlighted a return to former sales volume growth from previous years, and overall performance it describes as “good.”

While the 2022-2023 fiscal year was marked by higher prices and lower volumes, the company’s net turnover was just under EUR6.2 billion (US$6.7 billion) for the 12 months to February 29, 2024. This represented a year-on-year increase of 6.0%, while production was up marginally on the previous year at just over 1.08 million metric tons.

The firm’s business continued to recover over the last financial year, with sales volume for the fourth quarter 6% higher than in the same period of 2022-2023.

At 8.9%, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) as a percentage of turnover for the year just ended than in the previous year. However, operating profit at EUR376.6 million was 25.6% higher than the figure reported for 2022-2023. LDC Group attributed these developments to a combination of factors, including a return to normal poultry supplies following the losses arising from highly pathogenic avian influenza during the previous winter, as well as to lower feed grain prices, and sales promotion efforts. 

Fiscal results by business operation

For the group’s largest division — Poultry France — turnover in the 2023-2024 year was 5.9% higher than the previous 12 months at almost EUR4.5 billion. This figure was boosted by contributions from the Matines brand (acquired in 2022), and Ovoteam (acquired in April of 2023). On a like-for-like basis, the turnover of the French poultry business in the year just ended was 2.3% higher year-on-year.

The company reports that sales to supermarkets were 9% higher in the fourth quarter of last year than in the same period of 2022-2023 as a result of its intensified promotional efforts.

LDC’s poultry operations outside France cover Poland, Hungary, Belgium, and the United Kingdom — contributing 63%, 27%, 6%, and 4%, respectively, to the overall turnover of EUR833 million by its international businesses. This represents a year-on-year increase of 2.5%, driven in part by favorable foreign currency changes, as well as higher sales of value-added products. Overall sales of chicken, duck, and goose products by this division was just 0.7% higher than in the previous 12 months.

Meanwhile, turnover by the Group’s catering division delivered a 10.2% year-on-year increase in turnover of EUR912 million. This was attributed to price increases achieved at the end of the previous year. Sales volume in 2023-2024 was 1.1% higher than the previous year, mainly as a result of higher sales of Marie brand fresh-cooked meals and frozen pizzas. 

Prospects for year ahead

In the past year’s financial report, LDC Group records its targets for an annual turnover of EUR6.5 billion, and an operating margin of 5%.

The company is also set to continue its growth strategy based on acquisitions across all its divisions.

LCS reports it has recently entered into exclusive negotiations with a view to the acquisition of the Pierre Martinet Group. Founded in 1968, this is a French company producing processed food products in the catering category.

In November of 2023, LDC Group was reported to be in talks to acquire Polish turkey producer Indykpol. According to LDC’s latest annual report, the acquisition is currently being considered by the European competition authority. A decision is expected in the next few months.

More on LDC Group

With annual production of 476 million birds, Lambert Dodard Chancereul Group (LDC Group) is the third largest poultry company in Europe, according to WATTPoultry.com’s Top Poultry Companies survey.

As well as chicken, the company produces and sells a range of turkey, duck, and goose meat products, as well as eggs of the Matines brand. 

Page 1 of 118
Next Page