During the past fiscal year, Europe’s top poultry company, LDC, increased sales by 5.5 percent, making gains on both the French and export markets.
Strategies by French-based LDC Group — both to reduce imports of poultry meat into France, and to boost its own exports — appear to be bearing fruit, based on the firm’s latest annual results for the year ended February 28, 2018.
Key to its further international success in the coming year 2018-19 is the acquisition of Hungarian duck and goose producer, Tranzit, according to LDC. A family-owned concern, Tranzit comprises 46 farms, a hatchery, two slaughterhouses, and two processing facilities. In 2017, it also commenced chicken production, and had a turnover of EUR108 million (US$126 million). Sixty percent of Tranzit’s business is exports. The acquisition is still subject to approval by the competition authority in Germany, but LDC sees the firm as the basis for consolidating its business in Hungary as well as export markets.
LDC saw strong growth in the value of its international business in the past fiscal year, with sales up by 3.9 percent in volume and by 13.2 percent in value to just under EUR274 million. Operating income from this business division increased to EUR11.1 million in 2017-18 from EUR7.6 million the previous year. The firm attributes this success to a strong commercial organization, and to the development of a wider offering including more elaborate poultry cuts, and additional goose and duck products.
For the 2017-18 financial year, LDC achieved an increase of 5.5 percent in total production volume to 925,300 metric tons, and sales revenue was 6.9 percent higher at EUR3.827 billion. Operating profit was up to EUR184.7 million from EUR174.5 million in 2016-17.
Its Poultry division made gains in traditional markets and in reducing imports by catering and industrial businesses, according to LDC. Compared to the previous 12-month period, sales by this business unit increased by 5.6 percent in volume, and by 5.7 percent in value to almost EUR2.719 billion.
LDC’s French Poultry division contributed to the group’s latest year results with an operating income of EUR158.7 million, three percent more than in 2016-17, equivalent to 5.4 percent of sales.
The firm’s Processed Foods group benefitted from strong performance by the Marie brand in 2017-18, as well as private label products. Compared to 2016-17, sales were higher in terms of both volume (+6.1 percent), and value (+8.0 percent), which helped offset higher raw material costs.
In May of 2018, a commercial court in France decided in favor of a consortium of mainly French companies — including LDC — to acquire poultry company, Doux Group.
According to LDC, the recovery of some of Doux’s assets — including its plant in Quimper — and activities offers new opportunities for exports as well as to replace poultry meat imports in France. Additionally, LDC is to invest EUR60 million in new slaughter and processing facilities at the former Doux plant in Châteaulin, saying this investment will further support its future efforts to substitute imports to the industrial and catering markets.
Earlier this year, LDC also acquired Marcel Favreau Company, and announced its intention to take over Couthouis and Péridy. These companies have a combined turnover of EUR70 million, around half of which is generated by export activity.
