Global agricultural commodity trader Louis Dreyfus Company stated that profits are expected to decline by 2025, reflecting pressure on agricultural commodity prices, although an increase in sales volume helps maintain overall performance resilience.
The company announced that core earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $1.83 billion, down from the previous year's $1.88 billion; net profit fell from $726 million to $653 million.
Due to abundant global supply, corn and soybean prices have been under continuous pressure over the past two years, dragging down industry profits, with major agricultural traders such as ADM and Bunge facing similar pressure.
However, Louis Dreyfus saw a 10.6% year-over-year increase in shipment volumes, boosting net sales from $50.6 billion to $53.2 billion. The company stated that volume growth was mainly driven by capital expenditures doubling to $2 billion, thereby increasing capacity.
The company noted that although geopolitical and trade policy uncertainties persist, the Middle East conflict has not yet had a significant impact on its business.
