Floridienne S A : Annual result 2021

Press release - Regulated information - Embargo 31 March 2022 at 5.40 pm

Floridienne Group results 2021: Strong growth in net result (+120%) Successful integration of recent acquisitions

•  Strong growth in sales and profitability of the Life Sciences Division, which is developing on a buoyant market led by a strong demand for natural products.

  • o Successful integration of companies acquired by Biobest: Beneficial Insectary Inc., main producer on the US integrated pest management market, acquired in November 2020, and Biological Services, Australian producer, acquired in April 2021

  • o Development of Enzybel's activities and bringing on line of additional production capacities for its plant enzymes

  • o Divestment of 'vanilla' activities

•  Success of the Food Division's strategy to refocus on its specialities markets

  • o Substantial growth in turnover at constant scope (+12%), underpinned by mass retail sales and the success of certain export markets

  • o Tension surrounding supplies and inflation affecting certain ingredients during the second half of the year

  • o Divestment of the subsidiaries Gel Manche S.A.S. and Salm Invest S.A. in January 2021

•  Good performance by the Chemicals Division

  • o Increase in volumes of batteries collected as part of our Recycling activity and clear rise in profitability thanks to a high level of activity at our production sites on the one hand and high prices of purified metals resold on the market on the other.

  • o Good performance of the Turkish subsidiary, Kimflor, active in the production and marketing of PVC stabilisers

  • o Divestment in October 2020 of our German subsidiary, IKA, also active in PVC stabilisers

•  Consolidated net result up by € 10.2 million to € 18.6 million.

•  Outlook

  • o Our Divisions' priorities for the 2022 financial year are the continued growth of our activities, the integration of Plant Products, a Canadian company acquired by Biobest in February 2022, and protecting our margins in a largely inflationist market

Key figures of the FLORIDIENNE Group

The consolidated and statutory financial statements of the Floridienne Group as at 31 December 2021 were adopted by the Board of Directors of Floridienne S.A. on 28 March 2022. They will be presented to the General Meeting on 7 June 2022.

Consolidated key figures (IFRS)	12/2021	12/2020	12/2021	12/2020	12/2021	12/2020
Turnover	EBITDA	Consolidated net result after tax
Gourmet Food Division Life Sciences Division Chemicals Division Corporate	122.5 191.7 38.9 -	166.5 151.4 56.0 -	6.3 33.9 7.9 -2.4	6.1 27.4 6.5 -2.0	2.2 15.0 5.0 -3.6	0.1 8.7 2.0 -2.4
Consolidated	353.1	373.9	45.7	38.0	18.6	8.4
Consolidated result, Floridienne share	13.2	4.3

Consolidated balance sheet data (IFRS)	12/2021	12/2020
Consolidated equity capital Net financial debts [*]	171.9 93.2	142.9 98.7
Balance sheet total	417.4	390.8

Date per share	Base	Diluted
12/2021	12/2020	12/2021	12/2020
Number of shares [**] Consolidated net result, Floridienne share	979,494 13.45	979,494 4.36	979,494 13.45	979,494 4.36

[*] This amount excludes lease commitment debts (IFRS 16, Leases) and debts linked to purchase and sale options concluded with the third-party shareholders of certain holdings.

[**] As at 31 December 2021, the number of own shares held by the group stood at 17,363. Weighted average of the shares in circulation during the financial year, excluding the own shares acquired by the company or its subsidiaries

Alternative performance measures (APM) used in this message

EBITDA: The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) is calculated on the basis of the operating result, adjusted for amortisation and write-downs.

Net debt: The net debt comprises non-current and current financial debts, after deduction of cash.

Diluted result per share: As the company does not have any potential shares (convertible debts, etc.) or option plans, the diluted result per share is equal to the basic result per share (no adjustments necessary).

Comments on the sectors of activity

Life Sciences Division

•  EBITDA: € 33.9 million (+24%), Net result: € 15 million (+€ 6.2 million)

•  Successful integration of companies acquired by Biobest: Beneficial Insectary Inc., main producer on the US integrated pest management market, acquired in November 2020, and Biological Services, Australian producer, acquired in April 2021

•  Development of Enzybel's activities and bringing on line of additional production capacities for its plant enzymes

•  Divestment of 'vanilla' activities

Changes of scope

Capital increase

In application of the shareholders' agreement signed with Mérieux Participations 3 (MP3) when the latter took a stake in BIOBEST in May 2018, Mérieux (MP3) subscribed to a second capital increase of € 10 million in BIOBEST on a preferential basis in June 2021.

Further to this capital increase, Floridienne's holding in BIOBEST stood at 90.10%. Acquisitions made by BIOBEST

During the 2021 financial year, BIOBEST integrated the company BENEFICIAL INSECTARY, which it acquired in November 2020. This company is the main producer on the US integrated pest management market and generated a turnover in excess of € 20 million in 2021.

In addition, BIOBEST continued its external growth strategy and on 15 April 2021, it finalised an agreement allowing the acquisition of a 51% holding in Manchil Altmann Pty.Ltd., an Australian company that operates under the name BIOLOGICAL SERVICES.

BIOLOGICAL SERVICES is located in Loxton (South Australia) and in Muchea (Western Australia) and holds a leading position in Australia in integrated pest management for greenhouse crops. In 2021, this company generated a turnover of almost € 5 million. This acquisition represents a useful addition to the activities of the Australian company BUGS FOR BUGS, which was acquired in 2019.

The combination of the know-how and complementary geographic locations of these two companies now gives BIOBEST a unique position in Australia, able to offer growers varied solutions to promote more sustainable cultivation and hence meet the wishes of Australian consumers in search of healthier products. BIOBEST has also forged partnerships and taken minority holdings in companies that develop new technologies intended for agriculture (Agritech). In this context, in April 2021 BIOBEST acquired a 12% holding in the company Arugga AI Farming. This start-up, based in Israel, was founded in 2017 and develops robotic solutions for greenhouse crops. The company focused its initial product developments on the robotic pollination of tomatoes as an alternative to bumblebees and manual methods. In addition, in August 2021 BIOBEST invested CAD 10 million (€ 6.7 million) in the Canadian company Ecoation Innovative Solutions Inc., which operates in artificial intelligence.

Divestment of 'vanilla' activities

The vanilla production and distribution activities of the companies SOPRAL (Madagascar) and KAMAPIM (Papua New Guinea) were sold on 26 May 2021 without any significant impact on the Group's results given the limited size of these activities.

Activity in 2021

The turnover of the Life Sciences Division amounted to € 191.7 million as at 31 December 2021, compared with € 151.4 million as at 31 December 2020. This 27% rise may be attributed to substantial organic growth (over 10%) and the integration of recent acquisitions made by BIOBEST.

BIOBEST is benefiting from the success of its pest management solutions and from the integration of the companies BENEFICIAL INSECTARY, the main producer on the North American integrated pest management market, acquired in November 2020, and BIOLOGICAL SERVICES, active in Australia, in which a majority holding was taken in April 2021. BIOBEST has succeeded in increasing its profitability despite significant extraordinary costs linked to the disruption to the logistics chains caused by the COVID-19 pandemic.

ENZYBEL continues to develop positively and is having to respond to growing demand among its main customers for its plant and animal enzymes. ENZYBEL has brought on line new plant enzyme production capacities as part of an ambitious development plan.

Finally, since the divestment of the Group's vanilla activities in May 2021, the Division's other activities are resuming the sale of essential oils and solutions based on snail slime. These activities remained stable during the financial year.

The EBITDA of the Division rose by 24% to € 33.9 million as at 31 December 2021, compared with € 27.4 million as at 31 December 2020. The Division is still having to cope with certain extraordinary costs linked to the current pandemic, in particular substantial logistics costs owing to the disruption in air travel in general.

The net result of the Life Sciences Division amounted to € 15 million in 2021, compared with € 8.7 million in the previous financial year. It is worth remembering that the poor results of our other activities in prior years prompted the Group to record impairments totalling € 2.9 million in 2020.

Food Division

•  EBITDA: € 6.3 million, Net result: € 2.2 million

•  Substantial growth in turnover at constant scope (+12%), underpinned by mass retail sales and the success of certain export markets

•  Tension surrounding supplies and inflation affecting certain ingredients during the second half of the year

•  Divestment of the subsidiaries Gel Manche S.A.S. and Salm Invest S.A. in January 2021

Change of scope

In January 2021, the Group concluded the sale of its subsidiary Gel Manche S.A.S. as well as the disposal of its majority holding in the company Salm Invest S.A.

GEL MANCHE, which is located in Carentan, Normandy, specialises in mixed and ground products for hospitals. It also prepares and packs seafood terrines (fish and shellfish) and ready-to-eat salads. SALM INVEST, based in Fleurus (Belgium), specialises in smoked salmon trading and production.

In 2020, these companies represented a combined turnover of € 56.9 million (mainly linked to salmon trading activities) and a negative EBITDA of € 0.5 million. The companies were consolidated during the 2020 financial year and were no longer consolidated in 2021.

These two transactions confirm the Group's strategy for its Food Division to concentrate on its specialities markets.

Activity in 2021

The turnover of the Gourmet Food Division fell by 26% during the financial year to € 122.5 million, compared with € 166.5 million a year earlier. This fall may be attributed to the divestment of the companies SALM INVEST and GEL MANCHE in January 2021. At constant scope, the Division's organic growth stood at 12%, underpinned by mass retail sales and the success of certain export markets. Sales to the hospitality sector recovered in the second half of the year following an easing of the lockdown measures.

The EBITDA of this Division was stable at € 6.3 million as at 31 December 2021. The Division recorded contrasting performances during the 2021 financial year. The first half of the year saw growth of € 1.9 million, attributable mainly to its refocusing on its specialities markets and the positive effects of its strategic plan for simplification and specialisation at its production sites. The second half of the year was marked by supply difficulties affecting certain products and by an increase in the price of the main ingredients. As a result, the profitability of the Division fell by € 1.7 million during the second six-month period. The Division is having to cope with significant inflation in the cost of its supplies and is currently focusing on maintaining its margins.

The net result of the Gourmet Food Division stood at € 2.2 million as at 31 December 2021, compared with € 0.1 million as at 31 December 2020. This rise may be attributed primarily to a gain of € 1.5 million recorded on the divestment of SALM INVEST and GEL MANCHE in January 2021.