Earnings Release • Jul 30, 2014
Earnings Release
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Vilmorin & Cie SA Public limited company with Board of Directors, with a capital of 288 833 642.75 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: SBF 120, CAC Mid & Small, CAC All-Tradable, CAC All Share
July 30, 2014
OUTLOOK FOR 2013-2014: CURRENT OPERATING MARGIN ESTIMATED TO BE SLIGHTLY HIGHER THAN 10% AND SIGNIFICANT IMPACT OF VARIATIONS IN CURRENCY TRANSLATION
BUSINESS HELD UP WELL FOR THE FOURTH QUARTER OF 2013-2014, COMPARED TO LAST YEAR'S HIGH BENCHMARK: - 0.6% ON A LIKE-FOR-LIKE BASIS
"Vilmorin & Cie has achieved a new fiscal year of sustained business growth, with an increase close to 5%, reaching 1.5 billion Euros sales on June 30, 2014. This solid performance demonstrates how we have strengthened our competitive positions, both on vegetable and field seed markets.
Moreover, Vilmorin & Cie's expansion this year has been achieved in the context of a tenser market, with a volatile, unfavorable foreign currency environment, and falling prices of agricultural raw materials, even though the world market for seeds has confirmed its regular, lasting growth.
For 2014-2015, Vilmorin & Cie is fully confident in its capacity to pursue dynamic deployment of its development and innovation strategy, with a long-term vision", Emmanuel ROUGIER, CEO of Vilmorin & Cie commented.
| In millions of Euros | 2012-2013 | 2013-2014 | Variation on a like-for-like basis |
|---|---|---|---|
| Sales for the fourth quarter | 357.8 | 352.7 | -0.6% |
| Vegetable seeds | 169.0 | 168.5 | +1.7% |
| Field seeds | 165.5 | 161.3 | -2.4% |
| Garden products | 22.8 | 22.6 | -3.8% |
| Holdings | 0.4 | 0.4 | - |
| Sales for the fiscal year | 1 472.0 | 1 499.7 | +4.6% |
| Vegetable seeds | 544.9 | 562.6 | +7.3% |
| Field seeds | 846.8 | 856.1 | +3.4% |
| Garden products | 79.4 | 79.9 | +0.6% |
| Holdings | 1.0 | 1.0 | - |
NB: on page 5 of this press release you will find sales split up per quarter and per division.
Closing on June 30, 2014, sales for the fourth quarter, corresponding to revenue from ordinary activities, came to 352.7 million Euros, down 1.4% with current data compared to the previous fiscal year. Restated on a like-for-like basis (foreign currency and business scope), they were down slightly (-0.6%) compared with fiscal year 2012-2013.
Consequently, consolidated sales for fiscal year 2013-2014 came to 1,499.7 million Euros, an increase of 1.9% with current data compared with the previous fiscal year, and 4.6% on a like-forlike basis.
Consolidated financial information is established in compliance with the IFRS reference (International Financial Reporting Standards), as adopted by the European Union on June 30, 2014. The main changes in the consolidation scope concern the acquisition of the companies Shamrock (United States and Mexico. Vegetable seeds) in October 2013 and Eureka Seeds (United States. Field seeds) in November 2013. The company Seed Asia (Thailand. Field seeds), which was taken over at the end of March 2014, was consolidated as of the fourth quarter 2013-2014.
With a determining role in the performance of the Vegetable seeds division, the fourth quarter this fiscal year saw sales of 168.5 million Euros, stable with current data. The increase of 1.7% on a likefor-like basis was the reward for excellent commercial activity, bearing in mind the high benchmark of the fourth quarter 2012-2013.
As a result of this fourth quarter, sales for the fiscal year for the Vegetable seeds division came to 562.6 million Euros on June 30, 2014, up 3.3% with current data compared with the previous fiscal year. Restated on a like-for-like basis, the increase was 7.3%.
In a globally favorable market environment, Vilmorin & Cie thus managed to achieve particularly solid performances over fiscal year 2013-2014, and these concerned all its Business Units and its major strategic crops.
Moreover, with this higher growth than the global market, Vilmorin & Cie once again gained new market shares and has confirmed its position as a world leader for vegetable seeds.
For the fourth quarter, the Field seeds division recorded sales of 161.3 million Euros, a decrease of 2.5% with current data compared with the same period for the previous fiscal year.
This evolution (-2.4% on a like-for-like basis) can be explained in particular by the high benchmark set in 2012-2013. The market context has been more difficult this year, and was marked by a drop in cultivated acreage in corn in the main geographical areas covered by Vilmorin & Cie (Europe and the United States), and a drop in cereal and oilseed crop prices over the past few months.
For the fourth quarter in Europe, Vilmorin & Cie recorded a slight rise in its sales (86.7 million Euros) of 0.2% on a like-for-like basis. In corn, volumes sold continued to increase fast, reaching a new record this year. This achievement confirms market share gains in certain areas, particularly in Eastern and Northern Europe, and these were accompanied by a slight rise in prices.
For sunflower, Vilmorin & Cie maintained stability in its commercial volumes, in spite of a drop in the market, particularly in Turkey. Selling prices globally remained stable.
Consequently, sales for the Field seeds division for the fiscal year ending on June 30, 2014, came to 856.1 million Euros, an increase of 1.1% compared with fiscal year 2012-2013; on a like-for-like basis this increase was 3.4%.
Sales for the Garden products division came to 79.9 million Euros on June 30, 2014, an increase of 0.6% on a like-for-like basis. Business was significantly hit, both in France and in the United Kingdom, by an economic environment that remained tense. However business in Poland and on certain export markets performed well.
The corporate accounts of the companies in Vilmorin & Cie's consolidation scope are in the final stages of being audited; furthermore, the other operations involved in the consolidation of the financial statements (excluding sales) are still at the validation phase.
On the basis of estimates made to date, Vilmorin & Cie should achieve a current operating margin slightly higher than 10%, below the threshold ambitions set last May of 10.5%. Moreover, Vilmorin & Cie's net result for the fiscal year should be noticeably down compared with the previous year. This is directly linked to the strong impact of the negative variations in currency exchange rates.
You can consult a detailed presentation of sales at the end of fiscal year 2013-2014 on the website www.vilmorin.info, on the home page.
Tuesday October 7, 2014*: results for the fiscal year 2013-2014
Wednesday November 5, 2014*: sales for the first quarter 2014-2015
Friday November 21 and Saturday November 22, 2014: Actionaria Fair in Paris
Wednesday December 10, 2014: Annual General Meeting of Shareholders in Paris
* at the end of trading on the Paris stock market
Vilmorin & Cie develops vegetable and field seeds with high added value to better meet global food requirements.
Accompanied by its reference shareholder, Limagrain, an international agricultural cooperative group, Vilmorin & Cie is currently the fourth largest seed company in the world.
True to its vision of sustainable development, Vilmorin & Cie relies on ongoing investments in research and international growth to strengthen its market shares. An ambition that is driven by its corporate culture which is based on the sharing of knowledge, quality of life and respect for the needs of mankind.
Daniel JACQUEMOND Valérie MONSERAT [email protected] and Investor Relations
Chief Financial Officer Head of Financial Communication [email protected]
Tel: + 33 (0)4 73 63 44 85 Fax: + 33 (0)4 73 63 41 80 Website: www.vilmorin.info
| In millions of Euros | 2012-2013 | 2013-2014 | Variation with current data |
Variation on a like-for-like basis |
|---|---|---|---|---|
| First quarter | 187.3 | 198.6 | +6.1% | +9.2% |
| Vegetable seeds | 107.6 | 110.9 | +3.1% | +12.3% |
| Field seeds | 67.2 | 74.9 | +11.5% | +6.6% |
| Garden products | 12.3 | 12.6 | +2.3% | -0.8% |
| Holdings | 0.2 | 0.2 | - | - |
| Second quarter | 244.7 | 244.5 | -0.1% | 0.4% |
| Vegetable seeds | 110.6 | 113.7 | +2.8% | +7.9% |
| Field seeds | 124.1 | 120.2 | -3.2% | -6.0% |
| Garden products | 9.8 | 10.4 | +5.6% | +2.8% |
| Holdings | 0.1 | 0.2 | - | - |
| Third quarter | 682.3 | 703.8 | +3.2% | +6.4% |
| Vegetable seeds | 157.6 | 169.5 | +7.6% | +10.5% |
| Field seeds | 490.0 | 499.7 | +2.0% | +5.6% |
| Garden products | 34.4 | 34.3 | -0.3% | +0.3% |
| Holdings | 0.3 | 0.3 | - | - |
| Fourth quarter | 357.8 | 352.7 | -1.4% | -0.6% |
| Vegetable seeds | 169.0 | 168.5 | -0.3% | +1.7% |
| Field seeds | 165.5 | 161.3 | -2.5% | -2.4% |
| Garden products | 22.8 | 22.6 | -0.8% | -3.8% |
| Holdings | 0.4 | 0.4 | - | - |
| Sales for the fiscal year | 1 472.0 | 1 499.7 | +1.9% | +4.6% |
| Vegetable seeds | 544.9 | 562.6 | +3.3% | +7.3% |
| Field seeds | 846.8 | 856.1 | +1.1% | +3.4% |
| Garden products | 79.4 | 79.9 | +0.7% | +0.6% |
| Holdings | 1.0 | 1.0 | - | - |
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