Earnings Release • Oct 6, 2009
Earnings Release
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October 6th 2009
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 R.C.S. Paris 377 913 728 Fiscal year from July 1st to June 30th
The annual financial statements approved by the Vilmorin Board for the fiscal year ending on June 30th 2009 show a consolidated operating income of 107.9 million Euros, representing an operating margin of 10.8% and a consolidated net income of 60.2 million Euros, the Group share of which is 53 million Euros.
| In millions of Euros | 2007-2008 | 2008-2009 | Variation * |
|---|---|---|---|
| pro-forma | |||
| Sales | 1 018.0 | 1 001.7 | + 1.3% |
| Operating income | 127.6 | 107.9 | - 19.7 |
| Financial income | (31.0) | (26.6) | + 4.4 |
| Income taxes | (22.9) | (20.0) | + 2.9 |
| Net income | 51.1 | 60,2 | + 9.1 |
| Net income Group share | 44.3 | 53.0 | + 8.7 |
* Like for like
The consolidated financial information has been established as it stood on June 30th 2009, and in accordance with the IFRS standards (International Financial Reporting Standards), as adopted by the European Union.
Following the announcement in October 2007 of its plan to sell its garden products activity,
Vilmorin applied IFRS standard 5 "Non-current assets held for sale and discontinued operations". This standard requires that any operations concerning these assets are to be isolated as specific items on the balance sheet and the income statement.
When the accounts for the year were closed on June 30th 2008, only the German company Flora Frey and its subsidiary Sperling had been sold.
Taking into account the fast deteriorating economic and financial environment, during the course of fiscal 2008-2009, Vilmorin's Board decided to suspend the process to sell the companies Oxadis (France) and Suttons (United Kingdom). Consequently their financial statements have been once again declared as "continuing operations", and have been restated in pro-forma figures for fiscal 2007-2008 in order to facilitate comparability.
The consolidated sales corresponding to the income from ordinary activities for fiscal 2008-2009, came to 1 001,7 million Euros, down 1.6% with current data.
Restated like for like (currencies, scope of activities), sales actually rose 1.3% compared with the previous fiscal year.
After taking into account the cost of destruction and depreciation of inventory, the margin on the cost of goods sold came to 45.2%, remaining stable compared with fiscal 2007-2008, in spite of an increase of 8 million Euros in obsolescence costs.
Net operating charges stood at 345 million Euros, an increase of 11.5 million Euros compared with June 30th 2008.
It should be noted that in compliance with the strategic orientations presented in October 2008, Vilmorin intensified its research programs 2008-2009 both in terms of conventional plant breeding and biotechnologies. Total research investment came to 120.6 million Euros as opposed to 105.1 million Euros in 2007-2008, and now represents 14.7% of sales for the seeds activities intended for the professional markets.
Consequently, the consolidated operating income stood at 107.9 million Euros, a decrease of 19.7 million Euros compared with the previous year, showing an operating margin of 10.8%.
The financial result showed a net charge of 26.6 million Euros as opposed to 31 million Euros in 2007-2008, integrating a net exchange loss for this fiscal year of 1.1 million Euros. In a context where interest rates were falling, financial costs stood at 26.2 million Euros and were marked by a rise in Vilmorin's average indebtedness, partly because of the acquisitions made during the course of the financial year.
Net income taxes came to 20 million Euros as opposed to 22.9 million Euros the previous year.
The result from discontinued activities was close to break-even whereas it showed a loss of 24.3 million Euros the previous year due to the negative impact of the sale of the company Flora Frey.
The balance sheet structure on June 30th 2009 like for like, remained relatively stable in its main components.
Net of cash and cash equivalents, (251.9 million Euros), total balance sheet indebtedness stood at 377.9 million Euros on June 30th 2009 as opposed to 333.6 millions Euros on June 30th 2008. The proportion of gross non-current indebtedness stood at 358.2 million Euros.
The Group's share of equity stood at 753.8 million Euros and minority interests at 116,3 million Euros.
Vilmorin's Board has decided to propose to the Annual General Meeting of Shareholders a dividend of 1.77 Euros per share corresponding to a pay-out rate of 45%. This dividend will be paid on December 15th of this year.
The financial crisis and the continuing volatility of the prices of raw materials have particularly affected the agricultural environment and influenced fiscal 2008-2009. Within this disturbed context, Vilmorin has shown its capacity to resist and implemented its strategic orientations by pursuing its investment in research and innovation, and its development of the world markets of agriculture and vegetable production.
Fiscal 2009-2010 will confirm Vilmorin's organic growth potential in spite of the fact that market conditions will remain difficult; moreover, Vilmorin will continue to increase its investment in research and development significantly, particularly in upstream technologies.
Pursuing its development model, Vilmorin has set the objective of reinforcing its position as fourth largest world seed producer, and ensuring the balanced growth of it professional activities and margins at the overall average level it has in previous years.
Thursday November 12th 2009 at the end of the day: sales at the end of the first quarter of the fiscal year 2009-2010.
Tuesday December 8th 2009: Annual General Meeting of Shareholders in Paris.
Listed on NYSE Euronext Paris (compartment B), 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 3/3
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