SALES ON SEPTEMBER 30, 2020
- SUSTAINED SALES GROWTH FOR THE FIRST QUARTER 2020-2021: +6.7%
ON A LIKE-FOR-LIKE BASIS
- CONFIRMATION OF OBJECTIVES FOR 2020-2021
Vilmorin & Cie’s consolidated sales for the first
quarter of 2020-2021, closing on September 30, 2020, corresponding
to revenue from ordinary activities, stood at 234.4 million euros,
up 6.7% on a like-for-like basis and 1.1% with current
data.
In millions of euros |
2019-2020 |
2020-2021 |
Variationwith current data |
Variationon a like-for-like basis |
Sales at the
end of the first quarter |
231.9 |
234.4 |
+1.1% |
+6.7% |
Vegetable Seeds |
108.6 |
104.8 |
-3.5% |
+2.2% |
Field Seeds |
116.1 |
120.5 |
+3.8% |
+9.5% |
Garden Products and
Holdings |
7.3 |
9.1 |
+24.9% |
+28.7% |
Consolidated financial information is
established in compliance with the IFRS (International Financial
Reporting Standards) reference, as applied by the European Union on
September 30, 2020.
SALES FOR THE FIRST QUARTER 2020-2021
Vegetable Seeds division: growth in line with
objectives, at the end of a quarter marked by fluctuating currency
rates
Sales for the
Vegetable Seeds division stood at 104.8 million euros, down 3.5%
compared to the same period of the previous fiscal year, as a
result of the unfavorable evolution of foreign currency against the
euro. Restated for the effect of foreign currency, Vegetable Seeds
sales increased by 2.2%.
Over the course of the first quarter, Vilmorin
& Cie posted a fine increase in the sales of several strategic
crops, foremost of which were cauliflower, bean and lettuce.
In terms of geographical regions, this increase
in sales was strong in several territories, with a very good
performance in the Americas, particularly South America. Sales also
grew at a good level in Europe, particularly in Western Europe,
while in Asia, sales were penalized by unfavorable weather
conditions, particularly in India and China, as well as by a few
one-off shortages in seed availability.
In line with the previous fiscal year, the
Covid-19 health crisis did not have a significant impact on
business, despite persistent uncertainties. Thus, at the end of a
quarter that is still not very representative of the fiscal year,
the Vegetable Seeds division is continuing to grow in markets which
confirm their resilience.
Consequently, Vilmorin & Cie can confirm its
sales growth objective for this activity for fiscal year 2020-2021,
i.e. an increase of at least 3% on a like-for-like basis compared
to 2019-2020.
Field Seeds division: a strong increase
for the start of the fiscal year, driven by the excellent momentum
of business in South America
Sales for the Field Seeds division for the first
quarter reached 120.5 million euros, an increase of 9.5 % on a
like-for-like basis, and 3.8% with current data.
§ In Europe, the commercial campaign for
rapeseed posted a very high level of growth, in a declining market:
indeed, acreages were considerably reduced in most countries, the
sowing period being affected by drought. Vilmorin & Cie
continues to gain market shares. This quality performance is
essentially due, as in previous campaigns, to an extremely high
technical performance product portfolio, the result of Vilmorin
& Cie's research efforts.
Moreover, the first part of the commercial
campaign for straw cereal seeds (wheat, barley) recorded a marked
drop in sales, mainly because of postponed orders. Sales of forage
and amenity grass seeds, which complement the commercial offer in
Europe, rose significantly compared to the previous fiscal
year.
§ In South America, sales increased very
sharply, both in Brazil and in Argentina. In Brazil, within
agricultural markets that were globally dynamic despite the
continuing Covid-19 health crisis, sales posted very marked growth.
Sales for the first corn campaign in Brazil (safra) rose sharply,
against a backdrop of an anticipated slight decline in cultivated
acreage devoted to this crop. Order books for the second corn
campaign (safrinha), for which acreage is expected to be stable
compared to the previous fiscal year, are looking very
satisfactory.
In addition, in Argentina, business grew
particularly fast, with a strong increase in volumes sold in corn
seeds, confirming the successful integration of the company Sursem,
acquired in December 2018. Vilmorin & Cie is thus strengthening
its commercial presence on this major market for field seeds, which
is little affected by the very tense economic situation in the
country.
§ For the coming commercial spring
campaign, procurement of corn seeds is nearly
complete, both in Europe and North
America. It has been marked by difficulties for
certain European and North American production because of the
weather conditions. Their impacts will be covered by the use of
safety inventories.
On the basis of the above, Vilmorin & Cie
reaffirms its objective to increase its Field Seeds sales for
fiscal year 2020-2021, with growth of at least 3% on a
like-for-like basis compared with the previous fiscal year.
OUTLOOK FOR 2020-2021: CONFIRMATION OF OBJECTIVES FOR BUSINESS
GROWTH OF AT LEAST 3%(1) AND OF A CURRENT OPERATING MARGIN RATE OF
CLOSE TO 8%
(1) On a like-for-like basis
Consolidated sales for the first quarter in
recent years have represented on average around 15% of sales for
the year.
Fiscal year 2020-2021 should allow Vilmorin
& Cie to continue to strengthen its competitive positions,
confirming the resilience of its business in market conditions that
will very probably still lack visibility, as a result of the likely
continuation of the global health crisis.
In this context, and on the basis of business
figures at the end of this first quarter, Vilmorin & Cie can
confirm its objectives in terms of sales and current operating
margin for fiscal year 2020-2021. These objectives correspond to an
increase in consolidated sales of at least 3% on a like-for-like
basis, and a current operating margin rate of close to 8%,
including research investment which should be higher than
265 million euros.
Finally, Vilmorin & Cie is aiming for a
contribution from its associated companies – mainly AgReliant
(North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT
(Australia. Field Seeds) of around 22 million euros.
PREPARATION OF THE JOINT ANNUAL GENERAL MEETING FOR 2020
The preparatory documents for the Joint Annual
General Meeting of Shareholders to be held on December 11, 2020 can
be consulted in French on the company’s website
(www.vilmorincie.com, section "Publications", then "Assemblée
Générale” and “Documents préparatoires à l’Assemblée Générale”) or
requested from the Corporate Finance Department.
As a result of the health crisis, and in
compliance with the measures taken by the French government, the
Joint Annual General Meeting of December 11, 2020 will be held
exceptionally in camera, without the physical presence of the
shareholders. Nevertheless, shareholders will be able to follow the
proceedings of the Annual General Meeting by teleconference, in
accordance with the conditions presented in the notice to attend,
and on the Vilmorin & Cie website (www.vilmorincie.com, in the
section "Publications", then "Assemblée Générale”).
COMING DISCLOSURES AND EVENTS
Friday December 11, 2020: Annual General Meeting of Shareholders
Monday December 14, 2020: Detachment of the dividendsWednesday
December 16, 2020: Payment of the dividendsWednesday March 3,
2021(1): Sales and results for the first semester 2020-2021Thursday
May 6, 2021(1): Sales at the end of the third quarter
2020-2021Monday August 2, 2021(1): Sales for fiscal year
2020-2021Wednesday October 13, 2021(1): Results for fiscal year
2020-2021
Dates provided as an indication only, and liable to be
changed. (1) Disclosure after trading on the Paris stock
market.
FOR ANY FURTHER INFORMATION
Olivier FALUTChief Financial
Officerolivier.falut@vilmorincie.com
Valérie MONSÉRATHead of Financial Communication and Investor
Relationsvalerie.monserat@vilmorincie.com
Tel.: +33 473 634 485www.vilmorincie.com
Vilmorin & Cie, the 4th largest seed company in the world,
develops vegetable and field seeds with high added value,
contributing to meeting global food requirements.
A multi-crop seed company, every year Vilmorin
& Cie brings around 300 new varieties to market to meet the
needs of all diverse types of agriculture and allow farmers to
produce better and produce more.
Accompanied by its reference shareholder
Limagrain, both an agricultural cooperative owned by French farmers
and an international seed group, Vilmorin & Cie’s strategy for
growth relies on research and international development to durably
strengthen its market shares, on resilient world markets.
True, since its origins in 1743, to its vision
of sustainable development, Vilmorin & Cie ensures its
achievements fully respect its three founding values: progress,
perseverance and cooperation.
You can consult the presentation of sales at the
end of the first quarter 2020-2021 on the website
www.vilmorincie.com, on the homepage.
APPENDIX 1:SALES FOR THE FIRST QUARTER 2020-2021
AND EVOLUTION COMPARED TO 2019-2020
In millions of euros |
2019-2020 |
2020-2021 |
Variationwith current data |
Variationon a like-for-like basis |
of
which: Impact
ofcurrency |
Impact of
scope |
First
quarter |
231.9 |
234.4 |
+1.1% |
+6.7% |
-12.2 |
-0.2 |
Vegetable Seeds |
108.6 |
104.8 |
-3.5% |
+2.2% |
-6.1 |
0.0 |
Field Seeds |
116.1 |
120.5 |
+3.8% |
+9.5% |
-6.0 |
0.0 |
Garden Products and
Holdings |
7.3 |
9.1 |
+24.9% |
+28.7% |
-0.1 |
-0.2 |
APPENDIX 2:
GLOSSARY
·Like-for-like data
Like-for-like data is data that is restated for
constant scope and currency translation. Financial data for
2019-2020 is restated with the average rate for fiscal year
2020-2021, and any other changes to the consolidation scope, in
order to be comparable with data for fiscal year
2020-2021. The
variation in the consolidated scope comes from the disposal of the
Garden Products division's business in Turkey, finalized at the end
of fiscal year 2019-2020.
·Current dataCurrent data is
data expressed at the historical currency exchange rate for the
period, and without adjustment for any changes in scope.
·Research investmentResearch
investment refers to gross research expenditure before recording
any research costs and research tax relief as fixed assets.
·Current operating marginThe
current operating margin is defined as the accounting operating
margin restated for any impairment and reorganization costs.