For the March-May period of 2024, LDC Group reports a year-on-year increase of 5.6% in the volume of sales. This it attributes to a combination of its successful strategy to regain market share, as well as recent acquisitions.
Despite the growth in sales, consolidated turnover for the period was up only marginally at almost EUR1.518 billion (US$1.643 billion).
On a like-for-like basis, turnover was down 3.1% year-on-year, while sales volume was up 4.1%. At constant exchange rates, turnover was 3.8% lower.
For the comparable period in the 2023-2024 fiscal year, sales had contracted by 4.6% year-on-year in the first quarter. This illustrates how its intensive promotional efforts over the latest period have helped reverse the previous decline in sales volume, the firm reports.
For the current 12-month period, LDC Group had previously set out its ambitions to achieve a turnover of EUR6.5 billion, and to restore its operating margin to 5%.
Performance by business sector
The largest of the group’s business units is Poultry France, which achieved sales in the first quarter of the current fiscal year of just under EUR1.1 billion.
Including both poultry meat and processed products, this equates to a marginal increase from the comparable period. LDC Group highlights strong contributions in these categories by four of its latest acquisitions. These were poultry company SavicFresion as well as processors Ovoteam, Galina Maine, and Mayenne Volaille. All of these entities were incorporated into the LDC Group between April and June of 2023.
First-quarter sales for the Poultry division within this business unit were 3.8% lower year-on-year at a little over EUR940 million. However, sales volume was up by 5.9%, which the group explains as related to pricing adjustments in line with changes in raw material costs.
In its International business unit, LDC Group reports that sales turnover for the quarter fell back year-on-year by 4.6% to around EUR193 million. However, this was largely attributable to an exceptional rise during the comparable period in 2023-2024. Strong sales of chicken portions helped to push up the volume of sales for the three-month period by 5.4% year-on-year.
For its third business unit — Catering — LDC Group credits a 4.7% year-on-year increase in turnover to almost EUR234 million to one operation. This was Les Délices de Saint-Léonard factory — a plant acquired by LDC Group in January of this year.
More on LDC Group
With annual production of around 476 million birds, Lambert Dodard Chancereul Group (LDC Group) is the third largest poultry producer in Europe, according to WATTPoultry.com’s Top Poultry Companies survey. As well as chicken, France’s biggest poultry company produces and sells a range of turkey, duck, and goose meat products, as well as eggs of the Matines brand.
Following previous challenging trading periods, the group reported improvements in both sales and turnover for the latest full fiscal year. To achieve previously stated growth targets, LDC continues to seek acquisition opportunities.
Just last month, LDC Group announced plans to acquire the Konspol poultry brand of Poland, including a processing facility in the south of the country.
This deal followed soon after LDC’s proposed purchase of Indykpol, the Polish turkey producer, in November of 2023. This transaction may still be under review by the European competition authority.
