Earnings Release • May 3, 2010
Earnings Release
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May 3rd 2010
Public limited company with Board of Directors, with a capital of 262 576 040.25 Euros. Head Office: 4, Quai de la Mégisserie – F-75001 PARIS SIREN Paris 377 913 728 Fiscal year from July 1st to June 30th
Expansion of Vilmorin's partnership with Arcadia Biosciences and acquisitions on the North American wheat market
Closing on March 31st, sales at the end of the third quarter for fiscal 2009-2010, corresponding to revenue from ordinary activities, stood at 756.2 million Euros, a slight increase (+ 0.2%) compared with the same period for the previous fiscal year.
Restated like for like (currency translation, consolidation scope), sales remain stable compared with the previous fiscal year.
| In millions of Euros | 2008-2009 | 2009-2010 | Variation* |
|---|---|---|---|
| First quarter | 129.4 | 148.3 | + 11.1 % |
| Vegetable seeds activity | 77.9 | 83.9 | + 4.9 % |
| Field seeds activity | 37.2 | 49.6 | + 25.7 % |
| Garden products activity | 14.1 | 14.5 | + 5.5 % |
| Holdings | 0.2 | 0.2 | + 13.3 % |
| Second quarter | 176.4 | 165.9 | - 4.1 % |
| Vegetable seeds activity | 83.3 | 89.8 | + 11 % |
| Field seeds activity | 83 | 66.5 | - 19.3 % |
| Garden products activity | 9.8 | 9.2 | - 2 % |
| Holdings | 0.3 | 0.4 | + 16.8 % |
| Third quarter | 449.2 | 442 | - 1.8 % |
| Vegetable seeds activity | 121.8 | 134.6 | + 9 % |
| Field seeds activity | 283.8 | 267.5 | - 5.6 % |
| Garden products activity | 43.2 | 39.6 | - 7.6 % |
| Holdings | 0.3 | 0.3 | - 7.5 % |
| Sales at the end of the 3rd | 755 | 756.2 | stable |
| quarter Vegetable seeds activity |
283 | 308.4 | + 8.4 % |
| Field seeds activity | 404.1 | 383.6 | - 5.3 % |
| Garden products activity | 67.1 | 63.4 | - 4.1 % |
| Holdings | 0.8 | 0.9 | + 6.2 % |
* Like for like
Consolidated financial information is established in compliance with the IFRS reference (International Financial Reporting Standards), as adopted by the European Union on March 31st 2010.
The main changes in the consolidation scope are due to the acquisition of two companies: Clovis Matton (field seeds, Belgium) in August 2009 and Su Tarim (vegetable seeds, Turkey) in December 2009, both integrated globally.
• Sales for the vegetable seeds activity were 308.4 million Euros on March 31st 2010, up by 9% compared to the same period for the previous fiscal year. Restated like for like (currency translation, consolidation scope), this is an increase of 8.4 %.
Despite persistent tension, in certain regions, for vegetable crops, during the third quarter all business units accentuated the excellent results recorded since the start of the fiscal year. This trend confirms the gain in market shares for North and South America, the southern Mediterranean basin and Asia.
Sales figures for the first nine months of the fiscal year represent less than three quarters of Vilmorin's annual sales.
On the basis of the information presented above and its expectations with regard to the short-term evolution of its main markets, Vilmorin can confirm for fiscal 2009-2010, its capacity to moderately increase its consolidated sales compared to 2008-2009.
However, for the fourth quarter, reaching this goal will depend, in part, on eventual changes in areas of corn cultivated in North America and, indirectly, on potential market fluctuations for agricultural raw materials.
After signing a joint-venture agreement in February 2010 with Don Mario (Argentina), Vilmorin is pursuing its wheat development strategy in North America. Several new phases have now been completed towards accessing new technologies and setting up business in major American production zones.
• Vilmorin and Arcadia Biosciences1 , who have already concluded a strategic alliance concerning Nitrogen Use Efficient wheat, have decided to reinforce their cooperation through a new agreement. This agreement grants Vilmorin privileged global rights to technologies developed by Arcadia for wheat.
At the same time, Vilmorin will purchase a minority stake in Arcadia Biosciences, representing 7.25% and Arcadia will purchase a 35% stake in the capital of Limagrain Cereal Seeds LLC (referred to as LCS). As a 65% subsidiary of Vilmorin, the newly created LCS (in Fort Collins, Colorado) will now serve as a platform for wheat development in the United States.
Dr. C. James Peterson, Professor of genetics and plant improvement and former head of wheat breeding at the University of Oregon, has been appointed Head of Research.
• In order to diversify its genetic resources and establish business in key production zones for American wheat, LCS has just acquired the wheat assets of Genesis Seed Research and BSF AG Research (Indiana). Genetic material for high-quality wheat and an existing flow of royalties are the two main assets of these firms and constitute the building blocks for more ambitious development plans.
""Vilmorin's wheat strategy in the United States, one of the world's main wheat markets, is based on the development of genetic material well adapted to local conditions, access to innovative new technologies and a team of experts dedicated to growing our wheat business. The long term collaboration with Arcadia is a key component of our global expansion plan and will allow us to develop more innovative and environmentally friendly seed varieties" said Adrian Huige, CEO of Vilmorin.
1 Arcadia Biosciences is based in Davis, Calif., with additional facilities in Seattle, Wash. and Phoenix, Ariz., Arcadia Biosciences is an agricultural technology company focused on developing technologies and products that improve the environment and enhance human health. Arcadia's technologies for efficient and environmentally beneficial crop production include nitrogen use efficiency (NUE), water use efficiency, and salt tolerance. For more information visit: www.arcadiabio.com.
Pursuing the policy of external growth it has engaged during the last two fiscal years, Vilmorin has recently acquired Mesa Maize through its subsidiary HM. Clause.
Based in Olathe (Colorado), Mesa Maize is the fourth largest American seed company in sweet corn for fresh produce markets. This business is a relevant addition to the HM. Clause range. Historically positioned on the industrial segment, HM. Clause now has the necessary genetic resources to satisfy consumer demands (taste, texture…) and to position the company more globally on the sweet corn market with the long-term goal of becoming a key player on the second most important vegetable seed market in the United States.
Tuesday August 3rd 2010 at the end of the day: annual sales for 2009-2010. Wednesday October 6th 2010 at the end of the day: annual results for 2009-2010. Tuesday November 9th 2010 at the end of the day: 1st quarter sales for 2010-2011.
Listed on NYSE Euronext Paris (compartment A), Vilmorin's quotation is included in the Next 150, CAC Mid 100 and SBF 120 indices, and is eligible for SRD (Deferred Settlement Order). ISIN code: FR0000052516 (RIN).
For any further information, please contact:
Daniel JACQUEMOND Claire PLANCHE Chief Financial Officer Financial Communication Officer [email protected] [email protected]
Vilmorin & Cie BP 1 – F-63720 CHAPPES Tel: + 33 (0)4 73 63 41 95 - Fax : + 33 (0)4 73 63 41 80 www.vilmorin.info
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