Louis Dreyfus Company's net profit down 10%
Prices lower except for coffee, volumes up sharply
Group sees no significant impact so far from Mideast war
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By Gus Trompiz
PARIS, March 18 (Reuters) - Global agricultural commodity merchant Louis Dreyfus Company said on Wednesday it had recorded a decline in annual profit, driven by lower prices for most crops and market uncertainty arising from tariffs and economic concerns.
Ample global supply weighed on prices of staple crops such as corn and soybeans in the past two years and eroded earnings for agribusiness groups like LDC and U.S. rivals ADM ADM.N, Bunge Global BG.N and Cargill.
LDC said its core earnings before interest, taxes, depreciation, and amortisation reached $1.83 billion last year, against $1.88 billion in 2024.
Group net profit fell to $653 million from $726 million.
"Markets were marked by ongoing geopolitical crises, the implementation of new tariffs on international trade flows, and concerns about the slowdown in global economic growth," it said in an annual report.
Average prices for LDC's main commodities were lower, with the exception of coffee. However, shipped volumes rose sharply, helped by expansion in capacity and strong demand for corn and soybeans, it said.
Volumes jumped 10.6% year on year, helping net sales rise to $53.2 billion from $50.6 billion the prior year.
LDC doubled capital expenditure to $2 billion, it said.
Uncertainty over U.S. biofuel policy , meanwhile, weighed on the performance of its vegetable oils business, LDC said, echoing comments by its peers.
The Middle East conflict has not significantly impacted LDC's activities so far, the group said.
The U.S.-Israeli war on Iran has unsettled agricultural markets by creating tensions in fertiliser supply and maritime transport, threatening to raise food costs.
Bunge said earlier this month it was exploring alternative shipping routes because of the conflict.
Benchmark grain and soybean prices in Chicago climbed to multi-month and multi-year highs last week as the war sent crude oil soaring, a departure from depressed levels seen in grains in the past two years. GRA/
(Reporting by Gus Trompiz; Editing by Joe Bavier and Pooja Desai)
((gus.trompiz@thomsonreuters.com;))