Global agricultural products trader Louis Dreyfus Company (LDC) reported rising sales and profits in the first half, saying it used its extensive supply network to adapt to disruptions linked to the war in Ukraine in order to increase volumes and benefit. of the highest prices.
LDC, whose rivals include ADM, Bunge and Cargill, said net sales for the six months ended June 30 rose to $30.3 billion from $24 billion a year earlier, while net income rose to $30.3 billion. $662 million from $336 million.
Earnings by international grain traders were boosted by high prices and tight supply, with market tension heightened by Russia’s invasion of Ukraine on Feb. 24.
“Despite very limited origination possibilities from the Black Sea, we increased volumes shipped in the first half of the year,” Chief Executive Michael Gelchie said in a report on Thursday.
The increase in sales reflected a 0.9% year-on-year increase in volumes and higher prices, LDC said in the report.
Like other foreign grain companies, LDC has scaled back operations in Ukraine and Russia this year due to the war.
Products from these two countries accounted for less than 4% of its sales last year.
In Ukraine, operations continue at a reduced level, LDC said. It reported provisions and losses of $118 million for Ukraine within its cost of sales as of June 30.
No war casualties were reported among officials in Ukraine, although wheat stockpiles in a third-party silo were destroyed, he said.
For Russia, the group has resumed operations as far as possible due to trade commitments and sanctions, he added.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
