Yahoo Finanza Sales on March 31, 2023
Activity: sales for activities intended for professional markets rose sharply, in spite of major operating difficulties
Objectives for 2022-2023: Vilmorin & Cie raises its objective for sales growth*; the other objectives for the end of fiscal year remain unchanged
*on a like-for-like basis
Vilmorin & Cie’s consolidated sales for the third quarter of 2022-2023, closing on March 31, 2023, corresponding to revenue from ordinary activities, stood at 1,401.0 million euros, up 20.9% with current data compared to the previous year. Restated on a like-for-like basis, they posted growth of 17.7%.
In millions of euros | 2021-2022 | 2022-2023 |
|
|
Sales | 1,158.4 | 1,401.0 | +20.9% | +17.7% |
Vegetable Seeds | 455.0 | 493.8 | +8.5% | +5.6% |
Field Seeds | 660.3 | 870.7 | +31.9% | +28.2% |
Garden Products and Holdings | 43.1 | 36.5 | -15.4% | -15.1% |
Consolidated financial information is established in compliance with the IFRS (International Financial Reporting Standards) reference, as applied by the European Union on March 31, 2023.
Activity
Sales for activities intended for professional markets rose sharply, in spite of major operating difficulties
Vegetable Seeds division
Over the course of the third quarter, the Vegetable Seeds division achieved sales of 234.6 million euros, up 15.2% with current data and 13.6% on a like-for-like basis.
The Vegetable Seeds business returned to a dynamic of marked growth in sales, enabling the division to catch up on the delay observed since the beginning of the fiscal year.
In an inflationary context, Vilmorin & Cie's capacity to pass on price increases has compensated for the unfavorable evolution of production costs and a downward trend in volumes in most regions of the world.
However, the situation remains difficult in Western Europe, following on from the first half of the fiscal year, due to an economic and geopolitical environment that is still unsettled (generalized inflation, climatic fluctuations, consequences of the Russia-Ukraine conflict, etc.).
At the end of the third quarter, sales for the Vegetable Seeds division reached 493.8 million euros, an increase of 8.5% with current data and 5.6% on a like-for-like basis.
Field Seeds division
Sales for the Field Seeds division came to 438.5 million euros for the third quarter of the fiscal year, up 21.3% with current data, and 19.6% on a like-for-like basis.
Europe and South America
In Europe, after an excellent campaign in rapeseed and in cereals over the first semester, Vilmorin & Cie also made headway in corn on all its markets, both in volumes and prices. On the other hand, despite rising prices, the sunflower campaign was penalized by a drop in sales in Ukraine, due to the reduction in cultivated acreage, as well as in Russia, where numerous supply difficulties were observed. It should be noted that the change in accounting method for straw cereal royalties, which are now calculated on a pro rata basis, had a beneficial impact on the quarter.
In South America, the safrinha corn campaign (winter crop) in Brazil ended with strong growth in volumes and sales prices. The same was true for soybean seeds. In Argentina, the corn and sunflower campaigns are expected to be up on the previous fiscal year, both in terms of volumes and prices, in a context of persistent hyperinflation.
Development regions (of the consolidated scope)
In South Africa, healthy product availability and increased demand led to higher sales of corn and soybean seeds.
In Asia, sales growth was also observed, mainly in Southeast Asia.
At the end of the third quarter, sales for the Field Seeds division amounted to 870.7 million euros, up 31.9% with current data. Restated on a like-for-like basis, business increased by 28.2%.
Associated companies
In North America, AgReliant's activity was significantly lower than initially forecast, both in corn and soybean.
In Africa, Seed Co's activity, penalized by a drop in demand in Malawi, recovered in Zimbabwe, in a context still marked by monetary instability.
On the Australian market, Australian Grain Technologies' business is growing, due to record wheat production in 2023.
In China, in a market context still complicated by the effects of the post-pandemic, the activity of
Hengji Limagrain Seeds was penalized by a drop in order volumes, despite a strong increase in sales prices.
Objectives for 2022-2023
Vilmorin & Cie is raising its objective for sales growth*; the other end-of-year objectives remain unchanged.
*on a like-for-like basis
The renewed growth dynamic for the Vegetable Seeds activity, as well as the very good results that continued over the third quarter for the Field Seeds division, should not occult the commercial uncertainties that threaten the end of fiscal year, in a context of generalized inflationary tensions.
As anticipated in February, the problems of shipment to Russia have been confirmed and are hampering Vilmorin & Cie's capacity to fulfill all its orders, in particular those booked in advance in the first semester and for which prepayments were made. In addition, the operational difficulties observed in associated companies remain, particularly on the North American and Chinese markets, and will ultimately have an adverse effect on performances.
All these factors lead Vilmorin & Cie to raise its sales growth objective for the end of the fiscal year
(on a like-for-like basis), without modifying the other indicators:
growth in consolidated sales of at least 12% on a like-for-like basis (objective at the beginning of the fiscal year: growth of between 6% and 8% on a like-for-like basis; objective fixed for the disclosure of results for the semester: growth of between 8% and 10% on a like-for-like basis), excluding the positive impact of the EGalim law on sales (which will however be neutral concerning the operating income)*,
a current operating margin rate of at least 8% (objective unchanged compared to the beginning of the fiscal year), taking into account investment into research at a similar level (as a percentage of sales) to that of the two previous fiscal years, and spread evenly between Vegetable Seeds and Field Seeds,
a contribution from associated companies lower than that of the previous fiscal year (objective at the beginning of the fiscal year: a contribution at least equal to that of the previous fiscal year), mainly due to a more unfavorable outlook for AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and Hengji Limagrain Seeds (China. Field Seeds).
*The law of October 30, 2018 for balanced commercial relations in the agricultural and food sector and healthy, sustainable food accessible to all, known as the EGalim law, modifies certain product flows between
Vilmorin & Cie and its supplier, the Limagrain Cooperative.
Coming disclosures and events* |
| For any further information |
|
|
|
The 4th largest seed company in the world, pure play in its sector, Vilmorin & Cie creates, produces, and distributes vegetable and field seeds with high added value, contributing to meeting global food requirements in a context of accelerating climatic, environmental, and demographic challenges.
Vilmorin & Cie is a historical expert in plant breeding, with around 6,000 varieties in its portfolio and several hundred new varieties marketed each year. It has become an international leader, offering all forms of agriculture, on all continents, the capacity to produce more and to produce better, while preserving the independence and freedom of choice of farmers and growers with regard to their other production factors.
Vilmorin & Cie relies on research & development for its ongoing development and growth, by investing more than 16% of its sales in R&D each year, and on the controlled internationalization of its business activities, in order to durably strengthen its competitive positions in the long term on structurally buoyant world markets.
True to its long-term vision of development, Vilmorin & Cie's strategy and performance are based on respect for the values shared with its parent company and reference Shareholder, the agricultural cooperative Limagrain: progress, perseverance, and cooperation.
You can consult the presentation of sales at the end of the third quarter 2022-2023 on the website www.vilmorincie.com, on the homepage.
Appendix 1:
Sales for the third quarter 2022-2023 and evolution compared to 2021-2022
In millions of euros | 2021-2022 | 2022-2023 | Variation | Variation | Of which: Impact of | Impact of scope |
First quarter | 258.4 | 331.9 | +28.5% | +23.7% | +10.1 | 0.0 |
Vegetable Seeds | 101.4 | 105.4 | +4.0% | +0.4% | +3.6 | 0.0 |
Field Seeds | 148.2 | 219.5 | +48.1% | +41.9% | +6.5 | 0.0 |
Garden Products and Holdings | 8.9 | 7.1 | -20.0% | -19.8% | 0.0 | 0.0 |
Second quarter | 308.8 | 374.6 | +21.3% | +16.2% | +13.5 | 0.0 |
Vegetable Seeds | 149.9 | 153.7 | +2.6% | -1.5% | +6.2 | 0.0 |
Field Seeds | 150.5 | 212.7 | +41.3% | +34.8% | +7.3 | 0.0 |
Garden Products and Holdings | 8.4 | 8.2 | -3.5% | -3.3% | 0.0 | 0.0 |
Third quarter | 591.2 | 694.4 | +17.5% | +15.9% | +7.9 | 0.0 |
Vegetable Seeds | 203.7 | 234.6 | +15.2% | +13.6% | +2.9 | 0.0 |
Field Seeds | 361.6 | 438.5 | +21.3% | +19.6% | +5.1 | 0.0 |
Garden Products and Holdings | 25.8 | 21.3 | -17.7% | -17.4% | -0.1 | 0.0 |
Sales at the end of the third quarter | 1,158.4 | 1,401.0 | +20.9% | +17.7% | +31.5 | 0.0 |
Vegetable Seeds | 455.0 | 493.8 | +8.5% | +5.6% | +12.7 | 0.0 |
Field Seeds | 660.3 | 870.7 | +31.9% | +28.2% | +18.9 | 0.0 |
Garden Products and Holdings | 43.1 | 36.5 | -15.4% | -15.1% | -0.1 | 0.0 |
Appendix 2:
Financial glossary
Like-for-like data
Like-for-like data is data that is restated for constant scope and currency translation. Financial data for
2021-2022 is restated with the average rate for fiscal year 2022-2023. and any other changes to the consolidation scope. in order to be comparable with data for fiscal year 2022-2023.
Current data
Current data is data expressed at the historical currency exchange rate for the period. and without adjustment for any changes in scope.
Research investment
Research investment refers to gross research expenditure before recording any research costs and tax relief as fixed assets.
Current operating margin
The current operating margin is defined as the accounting operating margin restated for any impairment and reorganization costs.
Attachment
