LDC : Q3 2020-2021 Revenue

Sablé-sur-Sarthe, 6 January 2021

Q3 2020-2021 revenue

Stable nine-month sales despite the health crisis

Annual earnings target confirmed

Sablé-sur-Sarthe, 6 January 2021 - LDC Group (FRFR0013204336 - LOUP) has released is consolidated revenue for the third quarter of the 2020-2021 financial year (1 September 2020 to 30 November 2020).

Cumulative revenue for the first nine months of the 2020-2021 financial year was stable at €3.2 billion (+0.2%), with a 1.0% increase in volumes compared to the 2019-2020 financial year. On a like-for-like basis1 and at constant exchange rates, revenue declined 2.1% to €3.1 billion and volumes sold were down 1.5%.

In the third quarter, sales were down 1.0% in value terms to €1.1 billion and stable in volume terms (+0.3%). On a like-for-like basis and at constant exchange rates, revenue decreased by 2.8% in value terms and by 1.5% in volume.

Poultry France: sales held up well thanks to acquisitions

Including upstream business, the Poultry France division generated revenue of €2,462.7 million over the first nine months of the financial year, up 1.1% and down 1.1% on a like-for-like basis.

Excluding upstream business, the Poultry France division's sales including contributions from Société Ramon (1 June 2019) and Luché Traditions Volailles (1 December 2019) were stable at €2,218.4 million (+0.2%). Volumes sold were comparable with the first nine months of the previous financial year (-0.3%). On a like-for-like basis, the division generated revenue of €2,186.7 million, down 1.3% in value terms and down 1.8% in volume terms.

In the third quarter, the Poultry division's sales excluding upstream business fell by 0.9% in value terms and by 1.0% in volume terms. On a like-for-like basis, revenue and volumes sold declined by 2.0%. This trend remains satisfactory in light of the impact of the new restrictions implemented during the period

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(further closures in the commercial and institutional catering sector) and thanks to continued strong

business in retail stores.

International: business still impacted by COVID-19 tensions despite the contribution of

acquisitions

Over the first nine months of the year (January to September), sales in value terms declined by 5.0% to €296.8 million, while volumes increased by 7.0%. This reflects the ongoing pressure on the retail price of chicken and other speciality poultry (duck and goose) and declining export sales. However, business benefited from the successful integration of Kiplama in Belgium on 1 July 2019 and Marnevall in Hungary on 1 March 2020, which mitigated the decline in revenue over the period. On a like-for-like basis and at constant exchange rates, business was down 11.1% in value terms and 2.4% in volume terms.

Third-quarter revenue declined 12.9% to €105.2 million, while volumes increased 4.2%. On a like-for- like basis and at constant exchange rates, sales declined 14.9% in value terms and 3.2% in volume terms, due to continued pressure caused by the COVID-19 crisis.

Catered Food: a return to growth

After a mixed first half due to the health crisis, the division generated nine-month revenue of €460.1 million, down slightly by 0.9%, with volumes sold up 1.0% including AGF as of 1 November 2020. On a like-for-like basis, revenue fell by 1.2%, with a 1.0% increase in volumes sold.

Sales increased 2.7% in the third quarter (+1.9% on a like-for-like basis), and volumes increased by 2.5% (+2.3% on a like-for-like basis), driven by increased consumption of fresh and frozen food at home. Increased sales of brand-name products also contributed to this growth.

Satisfactory sales during the holiday season and some price adjustments obtained. Targets

confirmed.

The Group's sales during the important holiday season were in line with expectations in light of the health situation. In the Poultry division, against a backdrop of substantial increases in commodity prices over recent months, the Group is in negotiations to obtain the price adjustments needed to keep the industry afloat. To date, a portion of the price increases requested has been obtained but they remain insufficient at this stage. As a result, LDC is confirming its current operating income target of -5% to -10% for the full year.

1: Like-for-like: Based on the same scope as Year N-1, not including contributions from acquired entities.

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Upcoming events:

2020-2021full-year revenue

8 April 2021 after market

CONTACTS

Laurent Raimbault	Stéphane Ruiz / Benjamin Lehari
Chief Administrative and Financial Officer	Associate Director / Consultant
[phone]	[phone]
[e-mail]	[e-mail] / [e-mail]
	Press
	Jennifer Jullia
	[phone]
	[e-mail]
	Investors
	Alexandre Commerot
	[phone]
	[e-mail]

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