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French poultry group LDC sees further growth in profit next year

France’s largest poultry group LDC is targeting a 5 percent rise in operational profit next year.

28 May 2019, at 10:51am

Reuters reported that France’s largest poultry group LDC is targeting a 5 percent rise in operational profit next year, helped by further growth in its convenience and international divisions that allowed the group to post better than expected results on Wednesday.

Reporting results for its financial year that ended on 28 February, LDC said full-year current operating profit rose to 190.1 million euros from 184.7 million euros a year earlier.

It expects operating profit to reach 200 million euros in 2019/2020 as its international division benefits from the takeover of Hungarian group Tranzit last year and the French convenience market continues to grow..

LDC expects further growth on the French poultry market, where it already has a market share of nearly 40 percent, pulled by a rise in consumption and by taking some share from chicken imports, which account for nearly 40 percent of the market, Chairman Denis Lambert said.

He warned, however, that the group’s target for next year was subject to commodity costs, notably grain prices.

“The situation seems not as tight as this year but grain prices are linked to geopolitics and on that front it is quite tense,” Lambert told reporters, referring to price moves linked to a US-China trade row.

LDC’s net profit rose to 148.7 million euros from 140.7 million while sales topped 4 billion euros ($4.5 billion) for the first time, rising 7.7 percent to 4.1 billion.

International sales rose 29 percent last year to 353 million euros, boosted by the acquisition of Tranzit and strong results in Poland which boosted exports to countries such as Germany and the UK by more than 25 percent.

The group is looking at external growth but Lambert declined to give further details.

($1 = 0.8957 euros)