Floridienne S A : Half year results 2022

Floridienne Group - Condensed consolidated interim financial statements (non-audited) as at 30 June 2022

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Floridienne Group - Condensed consolidated interim financial statements (non-audited) as at 30 June 2022

Floridienne Group interim management report

1. Consolidated results

The Floridienne Group turnover as at 30 June 2022 amounted to EUR 242.7 million, up 47.5% compared with the figure of EUR 164.5 million recorded as at 30 June 2021. This increase may be attributed primarily to the dynamism of the Life Sciences Division and the Chemicals Division, as well as the integration of acquisitions made by the Group during the first half of the year.

As previously indicated, on 14 February 2022 Biobest concluded an agreement with the company Stickles Management Corporation under the terms of which it acquires a 90% holding in the Canadian company Morse Leasing Inc., which trades under the name Plant Products. This company is one of the main distributors of integrated pest management solutions in Canada and the United States.

The consolidated EBITDA stood at EUR 33.2 million as at 30 June 2022, up EUR 9.7 million compared with 30 June 2021. This growth in the EBITDA reflects the good performance of the Life Sciences Division, which is benefiting from the successful integration of Plant Products, and the Chemicals Division, which is profiting from more advantageous purified metals prices.

However, during the first half of the year the Life Sciences and Food Divisions also had to cope with widespread inflation impacting on the cost of ingredients, logistics, labour and energy, as well as with supply difficulties affecting certain products. The consequences of the war in Ukraine weighed significantly on the profitability of these two Divisions during the first six months of 2022.

The Food Division is focusing on maintaining its margins and has negotiated the necessary rate increases with its customers. These are expected to exert a positive influence on the profitability of the Division in the second half of the year.

Amortisation and impairments amounted to EUR 9.0 million, up EUR 2.2 million compared with the first half of 2021. This increase may be attributed to the inclusion in the scope of Plant Products, amortisation of intangible assets recognised further to the acquisition of Beneficial Insectary and the extent of the investments made by the Group.

The divestment of Salm Invest and Gel Manche on 22 January 2021 led to the recognition of a non-recurrent gain on divestments of EUR 1.5 million in 2021.

The development of the debt burden is under control and in line with the financing obtained in the context of recent acquisitions.

The financial result is negative, standing at EUR -2.0 million, a variation of EUR -3.0 million compared with the first half of 2021 owing to exchange rate fluctuations.

The pre-tax result stood at EUR 18.1 million, up EUR 1.1 million thanks mainly to the strong performance of the Life Sciences and Chemicals Divisions and the integration of our recent acquisitions.

The consolidated net result amounted to EUR 12.0 million, of which EUR 7.6 million can be allocated to Floridienne shareholders (down EUR 1.4 million).

The consolidated equity capital stood at EUR 223.3 million as at 30 June 2022, an increase of EUR 51.4 million compared with 31 December 2021, mainly further to a capital increase in Biobest and the net result for the period.

As part of the financing for the acquisition of Plant Products, Biobest undertook a capital increase of EUR 30 million in February 2022, to which Sofina, the new minority shareholder in Biobest, subscribed. Further to this transaction, Floridienne's holding in its subsidiary Biobest amounts to 86.79%. The remainder of the Biobest shares are held by Mérieux Equity Partners, which joined the company in 2018, Sofina and the company management.

The Group's net financial debt (excluding lease commitment debts) as at 30 June 2022 amounted to EUR 181.9 million, compared with EUR 97.3 million as at 31 December 2021.

The Group had substantial liquid assets of EUR 52.4 million as at 30 June 2022, enabling it to continue its growth strategy in its future business lines.

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Floridienne Group - Condensed consolidated interim financial statements (non-audited) as at 30 June 2022

Consolidated financial data of Floridienne Group

2. Life Sciences Division

The turnover of the Life Sciences Division amounted to EUR 169.7 million as at 30 June 2022, up 69.4% compared with EUR 100.2 million as at 30 June 2021. This rise may be attributed primarily to the dynamism of the Division and the integration of recent acquisitions made by BIOBEST which is currently under way.

BIOBEST is benefiting from the success of its integrated pest management solutions and seeing particularly strong growth in North America, where it has the largest beneficial insect production platform further to the acquisition of Beneficial Insectary in November 2020. Biobest is also benefiting from the integration of the company Plant Products, one of the main distributors of integrated pest management solutions in Canada and the United States, which was taken over in February 2022. Enzybel is investing in its main production sites to meet growth in demand from its main customers for its plant and animal enzymes.

The EBITDA stood at EUR 29.2 million, up 49% compared with the figure of EUR 19.6 million recorded as at 30 June 2021. The Division is having to cope with certain extraordinary costs linked to an inflationary context, in particular as regards energy, and to logistics costs that remain substantial owing to the disruption in air travel sector.

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Floridienne Group - Condensed consolidated interim financial statements (non-audited) as at 30 June 2022

The net result after tax of the Life Sciences Division amounted to EUR 11.9 million, compared with EUR 10.8 million as at 30 June 2021, up 10%.

The markets on which the Life Sciences Division is evolving remain favourable and the integration of recent acquisitions is continuing. The Division is expected to record growth in its result for the year as a whole.

Significant events

Capital increase

As part of the financing for the acquisition of Plant Products, Biobest undertook a capital increase of EUR 30 million in February 2022, to which Sofina, the new minority shareholder in Biobest, subscribed in full.

This transaction values the Biobest Group at EUR 815.0 million ('post-money valuation'). Further to this transaction, Floridienne's holding in its subsidiary Biobest amounts to 86.79%. The remainder of the Biobest shares are held by Mérieux Equity Partners, which joined the company in 2018, Sofina and the company management.

Acquisition of a majority holding in Plant Products

On 14 February 2022, Biobest concluded an agreement with the company Stickles Management Corporation under the terms of which it acquires a 90% holding in the Canadian company Morse Leasing Inc., which trades under the name Plant Products.

Plant Products has been doing business for over 75 years and is now one of the main distributors of integrated pest management solutions in Canada and the United States. The company markets Biobest products and also distributes fertilisers, seeds and conventional products. Plant Products is a preferred partner on its markets in the market gardening, fruit and greenhouse cultivation industries in Canada and the United States.

The company is located in Leamington (Ontario, Canada) and has branches in Laval (Quebec, Canada), Ancaster (Ontario, Canada) and Westland (Michigan, United States). In 2021, it recorded a turnover of around CAD 180 million, with earnings before interest and taxes of approximately CAD 18 million.

Other acquisitions

Biobest acquired a 51% holding in the Australian company Bioresources in December 2021. Bioresources produces certain insects that are beneficial for the crops regarding which our other Australian subsidiary, Biological Services, is active. This acquisition was consolidated as at 1 January 2022. Bioresources recorded a turnover of AUD 1.2 million in 2021.

In April 2022, Biobest acquired a 60% holding in Biopartner sp z.o.o, one of the pioneers in the distribution of biological crop protection products, pollinising bumblebees, fertilisers and biopesticides on the Polish horticultural market. Biopartner recorded a turnover of EUR 1.4 million in 2021.

Launch of Natix

The Group has decided to combine its activities involving the production and distribution of enzymes, essential oils and snail slime in a new structure known as Natix. The Natix companies specialise in harvesting unique and sustainable natural bioactive compounds to supply its partners operating in health, nutrition and cosmetics with effective ingredients so as to improve people's lives.

3. Food Division

The turnover of the Food Division rose by 12% during the first half of year to EUR 50.6 million, compared with EUR 45.0 million a year earlier. This rise in sales may be attributed to new references, price rises and the success of certain export markets.

The EBITDA of this Division fell by EUR 2.3 million to stand at EUR -0.8 million as at 30 June 2022, compared with EUR 1.5 million as at 30 June 2021. The Food Division has had to cope with widespread inflation affecting the costs of ingredients and with supply difficulties affecting certain products. In this inflationary context, exacerbated by the war in Ukraine triggered by the Russian invasion on 24 February 2022, the Division saw a substantial fall in its profitability.

The activity of the Food Division is highly seasonal and its sales are closely linked to the end-of-year festivities. This Division therefore records weak results in the first half of every year in structural terms.

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