Earnings Release • Feb 24, 2010
Earnings Release
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February 24th 2010
Public limited company with Board of Directors, with a capital of 204 225 819.25 Euros. Head Office: 4, Quai de la Mégisserie – F-75001 PARIS SIREN Paris 377 913 728 Fiscal year from July 1st to June 30th
The consolidated financial statements for the first semester 2009-2010, closed on December 31st 2009 were approved at the Vilmorin Board meeting of February 23rd 2010. The Statutory Auditors have carried out a limited audit of this financial information for the first semester; in their conclusions they have not indicated any significant anomaly or observation.
It should be remembered that the consolidated financial statements for the first semester traditionally show negative income because of the seasonal nature of the business; on average, sales for the first semester represent less than one third of Vilmorin's annual sales.
| In millions of Euros | 2008-2009 | 2008-2009 | 2009-2010 |
|---|---|---|---|
| 12.31.08 disclosed | 12.31.08 restated1 | 12.31.09 | |
| Sales | 299.5 | 305.8 | 314.2 |
| Sales margin | 44.6% | 44.7% | 46.9% |
| Operating income | -20.2 | - 22.4 | - 26.5 |
| Financial income | -10.5 | - 10.5 | - 1 |
| Income taxes | -3 | 3.3 | - 2.6 |
| Profit from discontinued operations |
-1.1 | - 0.4 | 1 |
| Net income | -29.2 | - 30.4 | - 29,3 |
| Group share of net income2 | -27.4 | - 28.5 | - 25.9 |
Consolidated data restated on December 31st 2008 take into account reintegration of the British company Suttons into continuing operations, and also modification of the method used to record tax relief on research in the accounts as implemented on June 30th 2009.
Allocation of ownership interest
Consolidated financial information is established in compliance with the IFRS standards (International Financial Reporting Standards) as adopted by the European Union on December 31st 2009.
The main change in the consolidation scope comes from the acquisition of the company Clovis Matton (Belgium) in August 2009 and now integrated globally in the financial statements for 2009-2010.
NB: all variations in relation to fiscal 2008-2009 are expressed in comparison with data restated on December 31st 2008.
Consolidated sales corresponding to the income from ordinary activities for the first semester of 2009-2010, closed on December 31st 2009, came to 314.2 million Euros, an increase of 2.7% with current data and 2.5% like for like.
After taking into account the cost of destruction and depreciation of inventory, margins on the cost of goods sold came to 147.5 million Euros, representing 46.9% of total sales, an increase of 2.2 percentage points compared with December 31st 2008.
Operating income for the semester shows a loss of 26.5 million Euros on December 31st 2009, down 4.1 million Euros compared with December 31st 2008.
Net operating costs came to 174 million Euros, an increase of 15 million Euros.
Nevertheless it should be noted that this drop includes the negative impact of non-recurring events:
The financial result shows a net charge of 1 million Euros, an improvement of 9.5 million Euros compared to December 31st 2008; in this first semester, in particular, capital gains were recorded from the sale of a minority stake in a biotechnology company, and with gains in currency translation and benefits from the drop in interest rates. The funding cost came to 9.4 million Euros on December 31st 2009 compared to 14.5 million Euros on December 31st 2008.
Income from discontinued activities came to 1 million Euros compared with a net loss of 1.1 million Euros on December 31st 2008, corresponding to an increase in the price obtained for the sale of Flora Frey.
At the end of 2009, the balance sheet structure is of course influenced to a large extent by the seasonal nature of the annual business cycle.
Net of cash and cash equivalents, indebtedness came to 538.2 million Euros, including a nonrecurring sum of 311.7 million Euros.
The Group share of equity ("allocation of ownership interest") stood at 587.1 million Euros and minority interests ("non-controlling interests") at 113 million Euros.
In view of the results obtained in the first semester, as described above, and on the basis of information currently available, Vilmorin can confirm, for fiscal 2009-2010, its global objectives for growth at the overall average level achieved in previous years.
For the second semester, achievement of these objectives will nevertheless be, to some extent, dependent on the evolution of production acreage for corn both on the European and North American markets, and also on potential fluctuations on markets for agricultural raw materials.
Vilmorin is considering launching in the near future a capital increase with pre-emptive rights, depending on market conditions and pending approval from the AMF (French Stock Exchange Authority).
With a value of approximately 200 millions Euros, the aim of this operation would be to strengthen Vilmorin's equity in order to accelerate its development both on the vegetable seeds and field seeds markets, by helping to fund :
"In a business sector where internationalization and innovation are key factors for success, Vilmorin intends to accelerate its development and strengthen its position on the high added value vegetable seeds and field seeds markets. If this project to increase the capital is a success, it will enable us to take on a new dimension and meet the challenges involved in satisfying tomorrow's food needs", as Adrian HUIGE, Vilmorin's CEO underlined.
Following the decision of the NYSE Euronext of February 19th 2010, Vilmorin's shares, previously listed on compartment B, are now listed on compartment A of NYSE Euronext.
The update of the French Vilmorin reference document for fiscal 2008-2009 was registered with the AMF (French Stock Exchange Authority) on February 24th 2010. This update includes the financial statements closed on December 31st 2009, the management report and certification by the statutory auditors.
Monday May 3rd 2010 at the end of the day: sales at the end of the 3rd quarter. Tuesday August 3rd 2010 at the end of the day: sales for the fiscal year. Wednesday October 6th 2010 at the end of the day: results for the fiscal year.
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:
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
More comprehensive information about Vilmorin & Cie ("Vilmorin") may be obtained on its Internet website (www.vilmorin.info), including its reference document filed under n° D.09-0742 on November 6, 2009 wit h the Autorité des marchés financiers and its update of the reference document filed under n° D.09-0742-A01 (also available on the Internet website of the Autorité des marchés financiers, www.amf-france.org). Vilmorin draws the attention of investors to the risk factors section in the reference document.
This press release contains forward-looking statements. These statements are by their nature subject to risks and uncertainties as described in Vilmorin's reference document and in its update of the reference document. These statements do not necessarily reflect future performance of Vilmorin, which may materially differ.
This press release and the information it contains do not constitute an offer to sell or subscribe or a solicitation of an order to buy or subscribe for securities in any country. In particular, securities may not be offered in France absent a prospectus approved by the Autorité des marchés financiers. The distribution of this press release may be restricted in certain countries by applicable laws and regulations. Persons who are physically located in those jurisdictions and in which this press release is circulated, published or distributed must inform themselves about and observe such restrictions.
The securities mentioned in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent such registration or an applicable exemption from the registration requirements of the Securities Act. Vilmorin does not intend to register any portion of the planned offering in the United States or to conduct a public offering of securities in the United States.
This press release does not contain or constitute an invitation, inducement or solicitation to invest. This press release is directed only at persons (i) who are outside the United Kingdom, (ii) who are "investment professionals" falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order"), (iii) who are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Order or (iv) other persons to whom an invitation or inducement to engage in investment activity (within the meaning of the Financial Services and Markets Act 2000) in connection with the issue or sale of any shares may otherwise lawfully be communicated or caused to be communicated (all such persons in (i), (ii), (iii) and (iv) together being referred to as "Relevant Persons"). This press release is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this presentation relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.
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