Cibi e Bevande
Sales and results for the first semester 2021-2022
Vilmorin & Cie's business is characterized by significant structural seasonality. Indeed, in recent years, consolidated sales for the first semester represent, on average, one third of the Company's annual sales. Traditionally, the consolidated financial statements for the first semester show very negative income.
The consolidated financial statements for the first semester 2021-2022, closed on December 31, 2021, were approved at the Vilmorin & Cie Board meeting of March 1, 2022. The Statutory Auditors have carried out a limited audit of the financial information for the first semester; in their conclusions, they have not indicated any reservations or particular remarks.
Consolidated financial information is established in compliance with the IFRS referential ( International Financial Reporting Standards ) as endorsed by the European Union on December 31, 2021.
The accounting principles and methods adopted in the condensed interim consolidated financial statements at December 31, 2021 are identical to those used in the annual consolidated financial statements of June 30, 2021. No change in accounting methods or estimates with any impact on Vilmorin & Cie's consolidated financial statements was applied by Vilmorin & Cie over the course of the semester.
The standards, interpretations and amendments to existing standards adopted by the European Union and applicable to accounting periods beginning on or after July 1, 2021 did not have a material impact on the financial statements.
SALES FOR THE FIRST SEMESTER :
THE FIRST HALF OF THE FISCAL YEAR MAR KED BY THE
STRONG GROWTH OF FIELD SEEDS
Vilmorin & Cie 's consolidated sales for the first semest er 202 1 -202 2 , clos ed on December 31, 202 1 , correspond ing to revenue from ordinary activities , came to 567 . 2 million euros, an increase of 7 . 9% with current data, and 6 . 6% on a like-for-like basis .
Vegetable Seeds division
Over the second quarter , the Vegetable Seeds division made sales of
149 . 9 million euros,
an increase of 1 . 1%
with current data , but down 0 . 2%
on a like-for-like basis .
Even though globally the level of sales remained very similar to that of the previous year, two items can explain the slight drop in sales over the second quarter:
Moreover, following on from the first quarter, the dynamics of the Vegetable Seeds division remained contrasted depending on geographic zones and crops.
At the end of the first semester, sales for the Vegetable Seeds d ivision reached 251.3 million euros, down by 0.7% with current data and by 1.7% on a like-for-like basis compared to the first semester of fiscal year 2020-2021 .
Field Seeds division
Over the second quarter , Field Seeds division posted sales of 150 . 5 million euros, an increase of 12 . 5% with current data, and 10 . 0% on a like-for-like basis .
At the end of the first semester, sales for the Field Seeds division came to 298.6 million euros, up 17.5% with current data, and 15.7% on a like-for-like basis, compared with the first semester of 2020-2021.
R ESULTS FOR THE FIRST SEMESTER :
A POSITIVE OPERATING INCOME , WITH A SIGNIFICANT IMPROVEMENT IN THE FINANCIAL INCOME ,
BUT INCOME FROM ASSOCIATED COMPANIES DOWN
NEWS
Update on the situation i n Ukraine and in Russi a
In the current context of armed conflict in Ukraine , Vilmorin & Cie 's priority is to provide its support to its local employees .
A crisis unit was already set up on Thursday February 24. Events are being closely monitored and practical measures of assistance contributing to the preservation of the health and safety of employees are being coordinated with the subsidiaries concerned. All activities in Ukraine are currently stopped.
Furthermore, Vilmorin & Cie is actively working with its subsidiaries to ensure the security of its assets (administrative sites and research stations, in particular) and so that, as far as possible, its sales and economic objectives for the fiscal year can be achieved.
Vilmorin & Cie i n Ukraine and i n Russi a
E volution of Limagrain 's representation in Vilmorin &
Cie 's governance
Following on from the Annual General Meeting and the Board of Directors of Limagrain, which were held respectively on December 14, 2021 and February 8, 2022, Vilmorin & Cie held a meeting of its Board of Directors on March 1, 2022, in order to take note of several changes concerning the representation of its reference shareholder.
Cooptation of Mr . Eric GRELICHE, as Board Member
A farmer, and a Limagrain Board Member since 2005, Mr. Eric GRELICHE was appointed Vice-Chairman of Limagrain in December 2021. He is currently Chairman of the Field Seeds division.
Cooptation of Mr . Pierre-Antoine RIGAUD, as Board Member
A farmer, and a Limagrain Board Member since 2016, Mr. Pierre-Antoine RIGAUD was appointed Vice-Chairman of Limagrain in December 2021. He is currently Chairman of the Vegetable Seeds Division.
These cooptations follow the resignation of Mr. Philippe BLATEYRON, Mr. Sébastien BRIFFOND and Ms. Annick BRUNIER. Ratification of the mandates of the coopted Board Members will be submitted to the vote of the Vilmorin & Cie Shareholders at the Annual General Meeting to be held on December 9, 2022.
As at March 1, 2022, Vilmorin & Cie's Board of Directors comprises the following eight members:
Further to these changes, Vilmorin & Cie's Board of Directors has reviewed the composition of its specialized committees, which, as of March 1, 2022, stands as follows:
OBJECTI VE S FOR
2021-2022:
PARTIAL REVISION OF THE ANNUAL OBJECTIVES
The first semester for fiscal year 2021-2022 ended with a slight drop in sales for Vegetable Seeds (-1.7%*), but a significant increase in activity for Field Seeds (+15.7%*). Despite a positive operating income, benefiting from the overall increase in margins, and a significantly improved financial result, the contribution of associated companies weighed down on the net income for the semester in comparison to the previous fiscal year. In addition, there are strong uncertainties concerning the consequences of the Russian-Ukrainian crisis on the end of the seeds campaign in Eastern Europe.
In view of all these elements, Vilmorin & Cie has decided to partially revise its objectives for the end of fiscal year 2021-2022.
For the Vegetable Seeds division, the Company is targeting an increase in sales of close to 3%* (compared to at least 3%* previously), compared to 2020-2021. The objective of at least 6%* growth for the Field Seeds division is confirmed, as is the objective of at least 4%* growth in consolidated sales. The target current operating margin rate has been adjusted: it is now at least 7.5% (compared with at least 8.5% previously), in order to take into account uncertainties linked to the Russian- Ukrainian crisis, the impact of the rise in the price of agricultural raw materials and the general inflationary context on the cost of products sold . This rate includes research investment similar to that of the previous fiscal year.
Finally, Vilmorin & Cie is revising the contribution of associated companies - mainly AgReliant (North America . Field Seeds ), Seed Co (Africa . Field Seeds ) and AGT (Australia . Field Seeds ) - to a level close to that of last year (compared with almost 30 million euros previously). This revision is mainly due to a less favorable evolution than expected , in corn, for AgReliant.
For the second half of fiscal year 2021-2022, the achievement of these objectives will remain partly dependent on developments in Eastern Europe and their impact on seed supply chains and currencies.
On a like-for-like basis .
COMING DISCLOSURES AND EVENTS
Disclosure after trading on the Paris stock market.
Dates provided as an indication only, and liable to be changed.
FOR ANY FURTHER INFORMATION
Olivier FALUT
Chief Financial Officer
Édouard ROCHE
Head of Financial Communication and Investor Relations
Tel: + 33 473 634 008
E-mail: contact@diffusion.vilmorincie.com
www.vilmorincie.com
Vilmorin & Cie , the 4 largest seed company in the world, develops vegetable and field seeds with high added value, contributing to meeting global food requirements.
A multi-crop seed company, every year Vilmorin & Cie brings around 300 new varieties to market to meet the needs of all diverse types of agriculture and allow farmers to produce better and produce more.
Accompanied by its reference shareholder Limagrain, both an agricultural cooperative owned by French farmers and an international seed group, Vilmorin & Cie's strategy for growth relies on research and international development to durably strengthen its market shares on resilient world markets.
True, since its origins in 1743, to its vision of sustainable development, Vilmorin & Cie ensures its achievements fully respect its three founding values: progress, perseverance and cooperation.
You can consult a presentation of sales and results at the end of the first semester 2021-2022 on the home page of the website www.vilmorincie.com
APPENDIX 1:
SALES FOR THE FIRST SEMESTER 2021-2022
AND EVOLUTION PER QUARTER AND PER DIVISION
APPENDIX 2:
CONSOLIDATED INCOME STATEMENT ON DECEMBER 31, 2021
APPENDIX 3:
DETAILS OF THE GAINS AND LOSSES
APPENDIX 4:
FINANCIAL PROGRESS REPORT
Assets
Liabilities
APPENDIX 5:
VARIATION IN CONSOLIDATED EQUITY
APPENDIX 6:
GLOSSARY
L ike-for-like data
Like-for-like data is data that is restated for constant scope and currency translation. Therefore, financial data for 2020-2021 is restated with the average rate for fiscal year 2021-2022, and any other changes to the scope, in order to be comparable with data for fiscal year 2021-2022.
Current data
Current data is data expressed at the historical currency exchange rate for the period, and without adjustment for any changes in scope.
EBITDA
The EBITDA is defined as the operating result to which are added any provisions for depreciation, amortization and impairment.
Financial indebtedness
Financial indebtedness corresponds to the financial debts less cash and cash equivalents.
Research investment
Research investment corresponds to gross research expenditure before recording as fixed assets any research costs and research tax relief.
Current operating margin
The current operating margin is defined as the accounting operating margin restated for any impairment and reorganization costs.
Attachment
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