VILMORIN & CIE Vilmorin & Cie SA
Public limited company with Board of Directors with a capital of 349,488,703 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 Small, CAC Mid & Small and CAC All-Tradable
April 28, 2023, at 8:15 am CET
Sales on March 31, 2023
Activity: sales for activities intended for professional markets rose sharply, in spite of major operating difficulties
Objectives for 2022-2023: Vilmorin & Cie raises its objective for sales growth*; the other objectives for the end of fiscal year remain unchanged
*on a like-for-like basis
Vilmorin & Cie's consolidated sales for the third quarter of 2022-2023, closing on March 31, 2023, corresponding to revenue from ordinary activities, stood at 1,401.0 million euros, up 20.9% with current data compared to the previous year. Restated on a like-for-like basis, they posted growth of 17.7%.
In millions of euros | 2021-2022 | 2022-2023 | Variation | Variation | ||||||||
with current data | on a like-for-like basis | |||||||||||
Sales | 1,158.4 | 1,401.0 | +20.9% | +17.7% | ||||||||
at the end of the third quarter | ||||||||||||
Vegetable Seeds | 455.0 | 493.8 | +8.5% | +5.6% | ||||||||
Field Seeds | 660.3 | 870.7 | +31.9% | +28.2% | ||||||||
Garden Products and Holdings | 43.1 | 36.5 | -15.4% | -15.1% | ||||||||
Consolidated financial information is established in compliance with the IFRS (International Financial Reporting Standards) reference, as applied by the European Union on March 31, 2023.
Activity
Sales for activities intended for professional markets rose sharply, in spite of major operating difficulties
Vegetable Seeds division
Over the course of the third quarter, the Vegetable Seeds division achieved sales of 234.6 million euros, up 15.2% with current data and 13.6% on a like-for-like basis.
The Vegetable Seeds business returned to a dynamic of marked growth in sales, enabling the division to catch up on the delay observed since the beginning of the fiscal year.
In an inflationary context, Vilmorin & Cie's capacity to pass on price increases has compensated for the unfavorable evolution of production costs and a downward trend in volumes in most regions of the world.
However, the situation remains difficult in Western Europe, following on from the first half of the fiscal year, due to an economic and geopolitical environment that is still unsettled (generalized inflation, climatic fluctuations, consequences of the Russia-Ukraine conflict, etc.).
At the end of the third quarter, sales for the Vegetable Seeds division reached 493.8 million euros, an increase of 8.5% with current data and 5.6% on a like-for-like basis.
1 | Vilmorin & Cie press release | April 28, 2023 |
Field Seeds division
Sales for the Field Seeds division came to 438.5 million euros for the third quarter of the fiscal year, up 21.3% with current data, and 19.6% on a like-for-like basis.
Europe and South America
- In Europe, after an excellent campaign in rapeseed and in cereals over the first semester, Vilmorin & Cie also made headway in corn on all its markets, both in volumes and prices. On the other hand, despite rising prices, the sunflower campaign was penalized by a drop in sales in Ukraine, due to the reduction in cultivated acreage, as well as in Russia, where numerous supply difficulties were observed. It should be noted that the change in accounting method for straw cereal royalties, which are now calculated on a pro rata basis, had a beneficial impact on the quarter.
- In South America, the safrinha corn campaign (winter crop) in Brazil ended with strong growth in volumes and sales prices. The same was true for soybean seeds. In Argentina, the corn and sunflower campaigns are expected to be up on the previous fiscal year, both in terms of volumes and prices, in a context of persistent hyperinflation.
Development regions (of the consolidated scope)
- In South Africa, healthy product availability and increased demand led to higher sales of corn and soybean seeds.
- In Asia, sales growth was also observed, mainly in Southeast Asia.
At the end of the third quarter, sales for the Field Seeds division amounted to 870.7 million euros, up 31.9% with current data. Restated on a like-for-like basis, business increased by 28.2%.
Associated companies
- In North America, AgReliant's activity was significantly lower than initially forecast, both in corn and soybean.
- In Africa, Seed Co's activity, penalized by a drop in demand in Malawi, recovered in Zimbabwe, in a context still marked by monetary instability.
- On the Australian market, Australian Grain Technologies' business is growing, due to record wheat production in 2023.
- In China, in a market context still complicated by the effects of the post-pandemic, the activity of Hengji Limagrain Seeds was penalized by a drop in order volumes, despite a strong increase in sales prices.
2 | Vilmorin & Cie press release | April 28, 2023 |
Objectives for 2022-2023
Vilmorin & Cie is raising its objective for sales growth*; the other end-of-year objectives remain unchanged.
*on a like-for-like basis
The renewed growth dynamic for the Vegetable Seeds activity, as well as the very good results that continued over the third quarter for the Field Seeds division, should not occult the commercial uncertainties that threaten the end of fiscal year, in a context of generalized inflationary tensions.
As anticipated in February, the problems of shipment to Russia have been confirmed and are hampering Vilmorin & Cie's capacity to fulfill all its orders, in particular those booked in advance in the first semester and for which prepayments were made. In addition, the operational difficulties observed in associated companies remain, particularly on the North American and Chinese markets, and will ultimately have an adverse effect on performances.
All these factors lead Vilmorin & Cie to raise its sales growth objective for the end of the fiscal year (on a like-for-like basis), without modifying the other indicators:
- growth in consolidated sales of at least 12% on a like-for-like basis (objective at the beginning of the fiscal year: growth of between 6% and 8% on a like-for-likebasis; objective fixed for the disclosure of results for the semester: growth of between 8% and 10% on a like-for-likebasis), excluding the positive impact of the EGalim law on sales (which will however be neutral concerning the operating income)*,
- a current operating margin rate of at least 8% (objective unchanged compared to the beginning of the fiscal year), taking into account investment into research at a similar level (as a percentage of sales) to that of the two previous fiscal years, and spread evenly between Vegetable Seeds and Field Seeds,
- a contribution from associated companies lower than that of the previous fiscal year (objective at the beginning of the fiscal year: a contribution at least equal to that of the previous fiscal year), mainly due to a more unfavorable outlook for AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and Hengji Limagrain Seeds (China. Field Seeds).
*The law of October 30, 2018 for balanced commercial relations in the agricultural and food sector and healthy, sustainable food accessible to all, known as the EGalim law, modifies certain product flows between Vilmorin & Cie and its supplier, the Limagrain Cooperative.
3 | Vilmorin & Cie press release | April 28, 2023 |
Coming disclosures and events* | For any further information | ||
Monday July 31, 2023 | Anthony CARVALHO | ||
Disclosure of sales for fiscal year 2022-2023 | Chief Financial Officer | ||
Wednesday October 11, 2023 | Édouard ROCHE | ||
Disclosure of results for fiscal year 2022-2023 | Head of Financial Communication | ||
and Investor Relations | |||
Friday December 8, 2023 | |||
Annual General Meeting of Shareholders | e-mail: contact@diffusion.vilmorincie.com | ||
Disclosure after trading on the Paris stock market. | www.vilmorincie.com | ||
Dates provided as an indication only, and liable to be changed | |||
*Subject to the proposed simplified takeover bid initiated by | |||
Limagrain Participations. |
The 4th largest seed company in the world, pure play in its sector, Vilmorin & Cie creates, produces, and distributes vegetable and field seeds with high added value, contributing to meeting global food requirements in a context of accelerating climatic, environmental, and demographic challenges.
Vilmorin & Cie is a historical expert in plant breeding, with around 6,000 varieties in its portfolio and several hundred new varieties marketed each year. It has become an international leader, offering all forms of agriculture, on all continents, the capacity to produce more and to produce better, while preserving the independence and freedom of choice of farmers and growers with regard to their other production factors.
Vilmorin & Cie relies on research & development for its ongoing development and growth, by investing more than 16% of its sales in R&D each year, and on the controlled internationalization of its business activities, in order to durably strengthen its competitive positions in the long term on structurally buoyant world markets.
True to its long-term vision of development, Vilmorin & Cie's strategy and performance are based on respect for the values shared with its parent company and reference Shareholder, the agricultural cooperative Limagrain: progress, perseverance, and cooperation.
You can consult the presentation of sales at the end of the third quarter 2022-2023 on the website www.vilmorincie.com, on the homepage.
4 | Vilmorin & Cie press release | April 28, 2023 |
Appendix 1:
Sales for the third quarter 2022-2023 and evolution compared to 2021-2022
Variation | Variation | Of which: | Impact of | |||||||||||||||
In millions of euros | 2021-2022 | 2022-2023 | with current | on a like-for- | Impact of | |||||||||||||
scope | ||||||||||||||||||
data | like basis | currency | ||||||||||||||||
First quarter | 258.4 | 331.9 | +28.5% | +23.7% | +10.1 | 0.0 | ||||||||||||
Vegetable Seeds | 101.4 | 105.4 | +4.0% | +0.4% | +3.6 | 0.0 | ||||||||||||
Field Seeds | 148.2 | 219.5 | +48.1% | +41.9% | +6.5 | 0.0 | ||||||||||||
Garden Products and | 8.9 | 7.1 | -20.0% | -19.8% | 0.0 | 0.0 | ||||||||||||
Holdings | ||||||||||||||||||
Second quarter | 308.8 | 374.6 | +21.3% | +16.2% | +13.5 | 0.0 | ||||||||||||
Vegetable Seeds | 149.9 | 153.7 | +2.6% | -1.5% | +6.2 | 0.0 | ||||||||||||
Field Seeds | 150.5 | 212.7 | +41.3% | +34.8% | +7.3 | 0.0 | ||||||||||||
Garden Products and | 8.4 | 8.2 | -3.5% | -3.3% | 0.0 | 0.0 | ||||||||||||
Holdings | ||||||||||||||||||
Third quarter | 591.2 | 694.4 | +17.5% | +15.9% | +7.9 | 0.0 | ||||||||||||
Vegetable Seeds | 203.7 | 234.6 | +15.2% | +13.6% | +2.9 | 0.0 | ||||||||||||
Field Seeds | 361.6 | 438.5 | +21.3% | +19.6% | +5.1 | 0.0 | ||||||||||||
Garden Products and | 25.8 | 21.3 | -17.7% | -17.4% | -0.1 | 0.0 | ||||||||||||
Holdings | ||||||||||||||||||
Sales at the end of | 1,158.4 | 1,401.0 | +20.9% | +17.7% | +31.5 | 0.0 | ||||||||||||
the third quarter | ||||||||||||||||||
Vegetable Seeds | 455.0 | 493.8 | +8.5% | +5.6% | +12.7 | 0.0 | ||||||||||||
Field Seeds | 660.3 | 870.7 | +31.9% | +28.2% | +18.9 | 0.0 | ||||||||||||
Garden Products and | 43.1 | 36.5 | -15.4% | -15.1% | -0.1 | 0.0 | ||||||||||||
Holdings | ||||||||||||||||||
5 | Vilmorin & Cie press release | April 28, 2023 |
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Vilmorin & Cie SA published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 06:26:07 UTC.
