VILMORIN & CIE Vilmorin & Cie SA
Public limited company with Board of Directors, with a capital of 317 717 005.50 Euros
Head Office: 4, Quai de la Mégisserie - F-75001 PARIS SIREN Paris 377 913 728
Fiscal year from July 1st to June 30th
Euronext Paris (Compartment A) - Eligible for Deferred Settlement Order
Indices: CAC Mid & Small, CAC All-Tradable, CAC All Share
April 27, 2015, at 5.40 pm CET
SALES FOR THE 3RDQUARTER ON MARCH 31, 2015 DOWN 1% ON A LIKE-FOR- LIKE BASIS
REVISION OF OBJECTIVES FOR 2014-2015: SLIGHT INCREASE IN SALES AND
CURRENT OPERATING MARGIN READJUSTED TO 9%
A MIXED THIRD QUARTER FOR 2014-2015, IN AN UNFAVORABLE CONTEXT FOR FIELD SEEDS
Closing on March 31, sales at the end of the third quarter of fiscal year 2014-2015, corresponding to revenue from ordinary activities, came to 955 million Euros, down by 1.2% compared with the same period for the previous fiscal year.
Restated on a like-for-like basis (currency, business scope), they were down 1% compared with
March 31 of the previous fiscal year.
In millions of Euros | 2013-2014 disclosed | 2013-2014 restated* | 2014-2015 | Variation** like-for like |
Sales at the end of the third quarter | 1 146.9 | 966.8 | 954.9 | -1.0% |
Vegetable seeds | 394.2 | 394.2 | 418.8 | +4.6% |
Field seeds | 694.8 | 514.7 | 492.1 | -4.9% |
Garden products and holdings | 58.0 | 58.0 | 44.0 | -5.8% |
* restatement for the impacts due to the first application of IFRS 11
** variation 2014-2015 compared with data restated for 2013-2014
Consolidated financial information is established in compliance with the IFRS reference
(International Financial Reporting Standards), as adopted by the European Union on March 31, 2015.
The main changes in the consolidation scope concern the acquisition of Seed Asia (Thailand. Field seeds) achieved at the end of March 2014, and the disposal of the company Suttons (United Kingdom. Garden products) finalized during the first semester of the current fiscal year.
As of July 1, 2014, with the application of IFRS 11, Vilmorin & Cie records its main partnerships (in particular AgReliant. North America. Field seeds) in its accounts using the equity method, whereas previously it recorded them using the proportional integration method.
Moreover, this fiscal year the company Seed Co (Zimbabwe. Field seeds) integrates the consolidation scope using the equity method, further to Vilmorin & Cie's purchase of a complementary stake achieved during the first semester 2014-2015(1).
(1)cf. Vilmorin & Cie's press release published October 7, 2014
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VEGETABLESEEDSDIVISION:
ANOTHER QUARTER WITH GROWTH IN BUSINESS
Over the course of the third quarter, the Vegetable Seeds division made good quality sales (177.8 million Euros, +0.4% on a like-for-like basis), particularly if one bears in mind the high reference base of the previous fiscal year.
All the Business Units achieved solid commercial performances during this period, with the exception of the Japanese Business Unit, which saw part of its business fall back, in spite of the successful progression on the Chinese market. Growth in sales was accompanied by market share gains, and mainly concerned strategic crops (tomato, melon, bean, onion, etc.) and most geographical areas, in particular North America, South America, India and Turkey.
Consequently, aggregate sales for Vegetable seeds on March 31, 2015 came to 418.8 million Euros, an increase of 6.2%. Restated on a like-for-like basis, this increase was 4.6%.
FIELDSEEDSDIVISION:
SLOWDOWN IN BUSINESS IN AN ENVIRONMENT OF TENSE MARKETS
Business over the third quarter (320 million Euros, -6.3% on a like-for-like basis) is down significantly, being highly affected by an unfavorable market context. This context is marked both by the predicted drop in corn acreage on the main markets of Vilmorin & Cie, due in particular to the impact of the lower prices of agricultural raw materials, and the political and economic crisis in Ukraine and Russia.
In Europe, field seed sales for the third quarter (301.8 million Euros) were down considerably because of the drop in the markets for corn and sunflower, which will certainly affect most countries this year. The spring campaigns were particularly difficult in Ukraine and in Russia, with a significant slowdown; the persistent lack of visibility on the short-term evolution of these two markets has become extremely difficult.
Nevertheless, on the disturbed European markets this year, Vilmorin & Cie has managed to
hang on to its market shares, with good control over its pricing policy and greater vigilance with financial risk management, both in terms of customer solvency and currency management.
In South America, business increased over the second part of the commercial campaign for corn (14.6 million Euros), particularly in Brazil, whereas the first part of the campaign, in spite of prices increasing as a result in the evolution of technologies, was affected by competition from soybean.
After accounting for this third quarter, aggregate sales for the Field seeds division on March 31,
2015, stood at 492.1 million Euros, a drop of 4.4% compared with the same period for the previous fiscal year; the decrease is -4.9% on a like-for-like basis.
Finally, on the North American market, business for this quarter was marked by stability in the volumes of corn seeds marketed, while volumes of soybean seeds progressed. In a context where corn acreage will probably decrease, AgReliant is holding up well with regard to the competition.
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NEWS
At the end of March, 2015, Vilmorin & Cie finalized the full acquisition of the company Tropdicorp(1)
(Vietnam. Vegetable seeds).
Tropdicorp is a Vietnamese family company founded in 2007, specialized in cucurbit seeds. Tropdicorp is the only company that breeds locally and holds research and factory infrastructures in accordance with European standards; it has a privileged potential for growth on the Vietnamese market and in neighboring countries. The company, which made sales of 6 million US dollars in
2014, will join the Business Unit HM.CLAUSE.
This site on the Vietnamese market will enable Vilmorin & Cie to strengthen its facilities in South East Asia by penetrating the most dynamic country in the region in terms of vegetable seeds development. Vilmorin & Cie will also be able to enrich and diversify its portfolio of products and germplasm, while benefiting from complementary research programs to India, Thailand and Japan.
(1)cf. presentation of Vilmorin & Cie's results for fiscal year 2013-2014, dated October 8, 2014
OUTLOOK FOR 2014-2015:
DOWNWARD REVISION OF OBJECTIVES FOR THE FISCAL YEAR
Sales figures for the first nine months of the fiscal year on average represent almost three quarters of Vilmorin & Cie's annual sales because of seasonal variations.
Considering the results of the first nine months for the fiscal year, as presented above, and on the basis of currently available information, Vilmorin & Cie is now aiming for a slight increase in its global sales for fiscal year 2014-2015, compared with the previous fiscal year, and should therefore record a contraction of its current operating margin, readjusting it to the level of 9%.
"In an unfavorable market for our field seeds markets, marked by a drop in corn acreage and the prices of agricultural raw materials, and by a highly disturbed economic situation in Ukraine and in Russia, Vilmorin & Cie has globally succeeded in consolidating its market shares while remaining in control of its level of commercial margins. At the same time, on the correctly-oriented vegetable seeds markets, Vilmorin & Cie is continuing to gain positions, confirming the pertinence of its strategy of innovation and proximity to markets.
Consequently even though the current situation for cereal production is difficult, Vilmorin & Cie is continuing to deploy its development strategy with conviction, in a long-term vision, on a world seeds market that will go on growing sustainably", commented Emmanuel ROUGIER, Vilmorin & Cie's CEO delegate.
You can consult a detailed presentation of sales at the end of the third quarter
2014-2015onthewebsitewww.vilmorin.info,onthehomepage.
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COMINGDISCLOSURES(at the end of trading on the Paris stock market):
Wednesday July 29, 2015: sales for the fiscal year
Monday October 5, 2015:results for the fiscal year
Thursday 5 November, 2015: sales for the 1stquarter 2015-2016
Vilmorin & Cie develops vegetable and field seeds with high added value to better meet global food requirements.
Accompanied by its reference shareholder, Limagrain, an international agricultural co-operative group,
Vilmorin & Cie is currently the fourth largest seed company in the world.
True to its vision of sustainable development, Vilmorin & Cie relies on ongoing investments in research and international growth to strengthen its market shares. An ambition that is driven by its corporate culture which is based on the sharing of knowledge, quality of life and respect for the needs of mankind.
FOR ANY FURTHER INFORMATION:
DanielJACQUEMONDChief Financial Officerdaniel.jacquemond@vilmorin.info
Valérie MONSÉRAT
Head of Financial Communication and Investor Relations
valerie.monserat@vilmorin.info
Clémence DATURI
Financial Communication Officer and Individual Shareholder Relations
clemence.daturi@vilmorin.info
Tel: + 33 (0)4 73 63 44 85
Fax: + 33 (0)4 73 63 41 80
Website:www.vilmorin.info
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APPENDIX:
SALES AT THE END OF THE THIRD QUARTER 2014-2015
AND EVOLUTION PER QUARTER AND PER DIVISION
In millions of Euros | 2013-2014 disclosed | 2013-2014 restated | 2014-2015 | Variation / restated with current data | Variation / restated like-for-like |
First quarter | 198.6 | 198.2 | 198.9 | +0.4% | +1.0% |
Vegetable seeds | 110.9 | 110.9 | 113,1 | +2.0% | +1.4% |
Field seeds | 74.9 | 74.5 | 76.3 | +2.4% | +1.6% |
Garden products and Holdings | 12.8 | 12.8 | 9.5 | -25.8% | -7.8% |
Second quarter | 244.5 | 224.4 | 229.7 | +2.3% | +3.6% |
Vegetable seeds | 113.7 | 113.7 | 127.9 | +12.4% | +11.9% |
Field seeds | 120.2 | 100.1 | 95.8 | -4.3% | -5.0% |
Garden products and Holdings | 10.6 | 10.6 | 5.9 | -44.3% | -9.2% |
Third quarter | 703.8 | 544.2 | 526.3 | -3.3% | -4.1% |
Vegetable seeds | 169.5 | 169.5 | 177.8 | +4.9% | +0.4% |
Field seeds | 499.7 | 340.1 | 320.0 | -5.9% | -6.3% |
Garden products and Holdings | 34.6 | 34.6 | 28.5 | -17.6% | -5.6% |
Sales at the end of the third quarter | 1 146.9 | 966.8 | 954.9 | -1.2% | -1.0% |
Vegetable seeds | 394.2 | 394.2 | 418.8 | +6.2% | +4.6% |
Field seeds | 694.8 | 514.7 | 492.1 | -4.4% | -4.9% |
Garden products and Holdings | 58.0 | 58.0 | 44.0 | -24.1% | -5.8% |
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