Poultry group LDC to boost plant-based foods in growth plan
24/05/2022 17:27
PARIS, May 24 (Reuters) - France's largest poultry group LDC
LOUP.PA aims to more than treble its volumes of plant-based
products by 2026 and is open to acquisitions in the sector as
part of a plan to boost earnings by 40% in the next four years,
it said on Tuesday.
The market for plant-based food has soared in recent years,
attracting major investment from global agrifood groups,
including Nestle NESN.S , PepsiCo PEP.O and Archer Daniels
Midland ADM.N , hoping to capitalise on a trend towards
healthier eating.
"Our ambition is to accompany the flexitarian movement with
the aim to reach 10,000 tonnes of products (from 3,000 tonnes
currently) by 2026, for sales of 60 million euros ($64 million),
just through organic growth," LDC's new chief executive Philippe
Gelin told reporters.
"In addition we will be open to all opportunities that could
arise in terms of external growth on these products," he added.
Yet plant-based meat will remain a small part of LDC, which
is focused mainly on fresh poultry and ready-cooked dishes.
The group, which made 5.1 billion euros of sales in 2021/22,
up 14.5% year-on-year, is aiming for 7.0 billion by 2026, and a
40% rise in earnings before interest, taxes, depreciation and
amortization (EBITDA) to 560 million euros. urn:newsml:reuters.com:*:nFWN2W51CQ
Gelin declined to give guidance for the 2022/23 financial
year, saying there were too many unknowns at this stage, both in
terms of volumes and prices.
LDC expects a fall in group poultry output of 12-15% in
March-August due to France's worst ever bird flu crisis.
It still needs to pass on to customers a large portion of
the higher costs it is facing due to the recent surge in the
price of grains, which make up most of the diet of poultry,
Gelin said.
($1 = 0.9339 euros)
(Reporting by Sybille de La Hamaide
Editing by Mark Potter)
((Sybille.deLaHamaide@thomsonreuters.com; +336 8774 4148;))