VILMORIN & CIE
*On a like-for-like basis. |
Financial statements for fiscal year 2021-2022:
Vilmorin & Cie once again demonstrates the resilience of its model by achieving solid commercial and financial performances
The consolidated financial statements for 2021-2022, closing on June 30, 2022, were approved by the Vilmorin & Cie Board at its meeting of October 12, 2022. The Statutory Auditors have examined this annual financial information with no particular comments or reservations to make in their conclusions.
| In millions of euros | 2021-2022 | 2020-2021 | Variation with current data vs. 2020-2021 |
| Sales for the year | 1,587.2 | 1,476.6 | +7.5% |
| EBITDA | 392.1 | 367.2 | +24.9 M€ |
| Operating income | 136.3 | 127.4 | +8.9 M€ |
| Income from associated companies | 17.9 | 26.3 | -8.4 M€ |
| Financial result | -33.4 | -46.9 | +13.5 M€ |
| Income taxes Of which:
| -25.4 -22.9 -2.5 | -13.4 -21.5 8.1 | -12.0 M€ -1.4 M€ -10.6 M€ |
| Consolidated net income | 95.4 | 93.4 | +2.0 M€ |
| Group share of net income | 92.2 | 92.3 | -0.1 M€ |
Vilmorin & Cie's consolidated financial information has been established, at the close of fiscal year 2021-2022, in compliance with the IFRS reference (International Financial Reporting Standards) as applied by the European Union on June 30, 2022.
Consolidated sales, corresponding to revenue from ordinary activities for fiscal year 2021-2022 came to 1,587.2 million euros, an increase of 7.5% with current data, and 6.2% on a like-for-like basis compared with 2020-2021.
In spite of a general context that was destabilized by the Russian-Ukrainian conflict, Vilmorin & Cie managed to exceed its objective for growth in consolidated sales as revised at the end of the third quarter of the fiscal year (i.e. growth of around 5% on a comparable basis)1.
After taking into account the cost of destruction and depreciation of inventory, the margin on the cost of goods stood at 48.6%, a decrease of 0.7 percentage points compared with 2020-2021.
Net operating charges came to 635.2 million euros, as opposed to 600.6 million euros on June 30, 2021.
In compliance with its strategic orientations, Vilmorin & Cie pursued its research programs, both in terms of conventional plant breeding and biotechnologies. Total research investment came to 275.1 million euros, as opposed to 257.0 million euros in 2020-2021, and represents 16.2% of seed activity sales2, which is in line with the average of the previous three fiscal years.
The consolidated operating income stood at 136.3 million euros, an increase compared to the previous fiscal year (127.4 million euros) for all the seeds activities, including Garden Products, resulting in a current operating margin rate of 8.6%, slightly lower by 0.3 percentage points compared with fiscal year 2020-2021.
The share of income from associated companies came to 17.9 million euros, a marked decrease of 8.4 million euros compared with the previous fiscal year, due in particular to a deterioration in the operating performance of AgReliant (North America. Field Seeds) and the impact of hyperinflation, which severely limited the performance of Seed Co in Zimbabwe (Africa. Field Seeds).
The financial result showed a net charge of 33.4 million euros as opposed to 46.9 million euros in 2020-2021, an improvement of 13.5 million euros, mainly due to lower currency exchange losses.
The net charge of income taxes deteriorated by 12.0 million euros, and stood at 25.4 million euros as opposed to 13.4 million euros in 2020-2021, mainly the result of a deterioration in the deferred tax position of 10.6 million euros, partly attributable to hyperinflation in Argentina (under local standards) and in Turkey.
Vilmorin & Cie's total net income came to 95.4 million euros, an increase of 2.0 million euros compared to the previous fiscal year. This is the highest net income since fiscal year 2012-2013. The group share ("attributable to the controlling Company") stood at 92.2 million euros.
Net of cash and cash equivalents (321.3 million euros), total financial indebtedness came to 901.1 million euros on June 30, 2022 compared with 867.4 million euros on June 30, 2021. The share of non-current financial indebtedness stood at 1,088.3 million euros, compared with 994.8 million euros the previous year. The group's share of equity stood at 1,434.6 million euros and minority interests at 48.8 million euros, with a significant increase over the fiscal year, due to the high level of net income and an increase in translation reserves linked to the appreciation of the US dollar.
Thus, compared with the previous fiscal year, the balance sheet structure on June 30, 2022 was marked by a decrease in the ratio of net indebtedness to equity (a gearing of 61%, compared to 65% on June 30, 2021). The leverage ratio as of June 30, 2022 was 2.3x compared with 2.4x as of June 30, 2021, reflecting an improvement in the group's debt reduction capacity.
2022 dividend:
Proposal of a dividend of 1.60 euros per share at the upcoming Annual General Meeting of Shareholders, in Auvergne
A dividend of 1.60 euros per share, stable compared to the dividend of the previous fiscal year, will be proposed this year. This corresponds to a distribution rate of 39.8%.
This dividend will be submitted to the vote of the Shareholders by the Board of Directors of Vilmorin & Cie, on the occasion of the Annual General Meeting of Shareholders of December 9, 2022, which will be held in the Auvergne-Rhône-Alpes region, where Limagrain, the parent company and reference shareholder of the Company, is located.
Dividends will be detached on December 13, 2021, with payment on December 15, 2021.
News:
A new research partnership concerning pulses in Canada
As explained when sales for the fiscal year 2021-2022 were disclosed, Vilmorin & Cie, through its Field Seeds division, announced the signing of a new partnership with Saskatchewan Pulse Growers3, in July 2022, to set up a joint research and innovation program for pulses, more particularly dry peas and lentils.
This new program, co-financed equally by the two parties, will be based in Saskatoon (Province of Saskatchewan, Canada), where the Limagrain Cereals Research Canada4 joint venture is already established, and will respond directly to the needs of farmers and to major production challenges. Among the targeted goals are resistance to root diseases, increased protein content and, above all, improved yields under variable growing conditions. With the help of a dedicated team, the objective is to bring new expertise to the region in terms of breeding, molecular genetics, treatment of pathologies and field trials.
Canada is the world's largest producer of pulse crops, with more than 2.3 million hectares planted each year5.
Objectives for 2022-2023:
Business growth of between 6% and 8%6
and a current operating margin rate of at least 8%
Market conditions for fiscal year 2022-2023 are likely to remain uncertain and fluctuating, due to inflationary pressures resulting, in particular, from the geopolitical context. In this environment, Vilmorin & Cie will continue to play its role as a leading seed company by continuing to strengthen its competitive positions; the Company will pursue its measured investment in research & development, in particular in upstream technologies, while remaining attentive to any opportunity for external growth, in line with its strategic challenges and foundations.
For fiscal year 2022-2023, Vilmorin & Cie has set itself the objective of achieving an increase in consolidated sales of between 6% and 8%6, excluding the positive impact of the EGalim law on sales (which will however be neutral concerning the operating income) 7.
The Company is aiming for a current operating margin rate of at least 8%, impacted by the evolution of its business mix in favor of Field Seeds. This rate will take 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.
Finally, Vilmorin & Cie is aiming for a contribution from associated companies - mainly AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT (Australia. Field Seeds) - at least equal to that of fiscal year 2021-2022.
| Vilmorin & Cie's commercial prospects in Ukraine-Russia In Ukraine, the outlook for the coming fiscal year remains moderate, due to the difficulty of local farmers and distributors to obtain funding and, more generally, the lack of visibility in the region due to the continuing conflict with Russia. Accordingly, the Company expects a level of activity similar to that of fiscal year 2021-2022. In Russia, thanks to the performance of its sunflower and corn seed varieties in particular, Vilmorin & Cie intends to confirm the momentum observed during the previous fiscal year. Prospects to date are favorable, but their realization remains subject to growing logistical and geopolitical problems, to which the Company is striving to find solutions. |
| Anthony CARVALHO, Vilmorin & Cie's new Chief Financial Officer As announced in the press release of its sales for fiscal year 2021-2022, Vilmorin & Cie appointed Anthony CARVALHO to its Executive Committee, on September 14, 2022, as Chief Financial Officer. Anthony CARVALHO, 33, holds a Master's degree in Information Systems from the Institut Mines-Télécom SudParis, and also a Master's degree in Audit & Financial Advisory from the University of Paris Dauphine and a Master's degree in Finance from ESSEC. He has significant experience in financial functions, acquired in investment funds and then as Head of the integrated Family Office of the Roullier Group. He also has experience in Audit and Advisory, acquired within Deloitte. Previously, Anthony CARVALHO was, as of September 2021, Chief Financial Officer of the Roullier Group. |
| Coming disclosures and events | For any further information | |
| Tuesday November 8, 2022* Disclosure of sales for the first quarter of 2022-2023 Friday December 9, 2022 Annual General Meeting of Shareholders Tuesday December 13, 2022 Detachment of the dividends Thursday December 15, 2022 Payment of the dividends * Disclosure after trading on the Paris stock market. Dates provided as an indication only, and liable to be changed. | Anthony CARVALHO Chief Financial Officer Édouard ROCHE Head of Financial Communication and Investor Relations Tel: + 33 (0)4 73 63 40 08 e-mail: contact@diffusion.vilmorincie.com www.vilmorincie.com |
Vilmorin & Cie, the 4th 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 the results for fiscal year 2021-2022 on the home page of the website www.vilmorincie.com.
Appendix 1:
Sales for the year
and evolution per quarter and per activity
| In millions of euros | 21-22 | 20-21 | Variation with current data | Variation on a like-for-like basis | Of which: Impact of currency | Impact of scope |
| First quarter | 258.4 | 234.4 | +10.3% | +9.7% | +1.3 | 0.0 |
| Vegetable Seeds | 101.4 | 104.8 | -3.2% | -3.8% | +0.6 | 0.0 |
| Field Seeds | 148.2 | 120.5 | +23.0% | +22.2% | +0.8 | 0.0 |
| Garden Products and Holdings | 8.9 | 9.1 | -2.3% | -2.2% | -0.0 | 0.0 |
| Second quarter | 308.8 | 291.4 | +6.0% | +4.2% | +5.0 | 0.0 |
| Vegetable Seeds | 149.9 | 148.3 | +1.1% | -0.2% | +1.9 | 0.0 |
| Field Seeds | 150.5 | 133.7 | +12.5% | +10.0% | +3.1 | 0.0 |
| Garden Products and Holdings | 8.4 | 9.4 | -9.7% | -9.4% | -0.0 | 0.0 |
| Third quarter | 591.2 | 579.8 | +2.0% | +1.7% | +1.4 | 0.0 |
| Vegetable Seeds | 203.7 | 212.2 | -4.0% | -4.7% | +1.5 | 0.0 |
| Field Seeds | 361.6 | 337.7 | +7.1% | +7.1% | +0.0 | 0.0 |
| Garden Products and Holdings | 25.8 | 30.0 | -13.8% | -13.5% | -0.1 | 0.0 |
| Fourth quarter | 428.8 | 371.1 | +15.6% | +12.5% | +10.2 | 0.0 |
| Vegetable Seeds | 263.6 | 235.3 | +12.0% | +9.6% | +5.3 | 0.0 |
| Field Seeds | 156.2 | 124.1 | +25.8% | +21.0% | +4.9 | 0.0 |
| Garden Products and Holdings | 9.0 | 11.6 | -22.1% | -22.0% | -0.0 | 0.0 |
| Sales for the year | 1,587.2 | 1,476.6 | +7.5% | +6.2% | +17.9 | 0.0 |
| Vegetable Seeds | 718.6 | 700.6 | +2.6% | +1.2% | +9.3 | 0.0 |
| Field Seeds | 816.4 | 716.1 | +14.0% | +12.6% | +8.8 | 0.0 |
| Garden Products and Holdings | 52.2 | 60.0 | -13.0% | -12.8% | -0.2 | 0.0 |
Appendix 2:
Consolidated income statement
| In millions of euros | 21-22 | 20-21 |
| 1,587.2 | 1,476.6 |
| Cost of goods sold | -815.7 | -748.6 |
| Marketing and sales costs | -213.0 | -193.4 |
| Research and development costs | -227.5 | -217.0 |
| Administrative and general costs | -198.2 | -189.3 |
| Other operating income and charges | 3.5 | -0.9 |
| 136.3 | 127.4 |
| Profit from associated companies | 17.9 | 26.3 |
| Cost of net financial debt | -25.4 | -25.1 |
| Other financial income and charges | -8.0 | -21.8 |
| Income taxes | -25.4 | -13.4 |
| 95.4 | 93.4 |
| - | - |
| 95.4 | 93.4 |
| Attributable to the controlling Company | 92.2 | 92.3 |
| Attributable to the non-controlling minorities | 3.2 | 1.1 |
| Earnings from continuing operations per share – attributable to the controlling Company | 4.02 | 4.03 |
| Earnings from discontinued operations per share – attributable to the controlling Company | - | - |
| Earnings for the period per share – attributable to the controlling Company | 4.02 | 4.03 |
| Diluted earnings from continuing operations per share – attributable to the controlling Company | 3.98 | 4.02 |
| Diluted earnings from discontinued operations per share – attributable to the controlling Company | - | - |
| Diluted earnings for the period per share – attributable to the controlling Company | 3.98 | 4.02 |
Appendix 3:
Details of the gains and losses for the fiscal year
| In millions of euros | 21-22 | 20-21 |
| Income for the period | 95.4 | 93.4 |
| Variation in currency translations | 77.0 | -38.1 |
| Variation in the fair value of forward cover instruments | -0.4 | 7.0 |
| Impact of hyperinflationary currency adjustments | -10.1 | - |
| Impact of taxes | -0.8 | -0.3 |
| Items that might be reclassified to profit or loss | 65.7 | -31.4 |
| Variation in the fair value of forward cover instruments | -0.3 | -0.9 |
| Actuarial losses and gains | 11.9 | 19.1 |
| Impact of taxes | -2.1 | -4.6 |
| Items not to be reclassified to profit or loss | 9.5 | 13.6 |
| Other items in the total gains and losses for the period net of taxes | 75.2 | -17.8 |
| Total gains and losses for the period | 170.6 | 75.6 |
| > of which attributable to controlling company | 171.9 | 74.7 |
| > of which attributable to non-controlling minorities | -1.3 | 0.9 |
Appendix 4:
Financial progress report
Assets
| In millions of euros | 06.30.22 | 06.30.21 |
| Goodwill | 455.5 | 429.5 |
| Other intangible fixed assets | 774.1 | 741.5 |
| Tangible fixed assets | 319.0 | 297.6 |
| Right-of-use leased assets | 88.0 | 61.6 |
| Non-current financial assets | 21.4 | 24.6 |
| Equity shares | 411.5 | 385.0 |
| Deferred taxes | 30.0 | 28.3 |
| 2,099.5 | 1,968.1 |
| Inventories | 583.8 | 504.8 |
| Trade receivables and other receivables | 557.7 | 505.5 |
| Cash and cash equivalents | 321.3 | 280.5 |
| 1,462.8 | 1,290.8 |
| Total assets | 3,562.3 | 3,258.9 |
Liabilities
| In millions of euros | 06.30.22 | 06.30.21 |
| Share capital | 349.5 | 349.5 |
| Reserves and income | 1 085.1 | 931.7 |
| 1,434.6 | 1,281.2 |
| 48.8 | 47.8 |
| 1,483.4 | 1,329.0 |
| Provisions for employee benefits | 36.3 | 49.0 |
| Non-current financial debts | 1,088.3 | 994.8 |
| Non-current lease obligations | 63.1 | 43.0 |
| Deferred income taxes | 101.0 | 92.4 |
| 1,288.7 | 1,179.2 |
| Other provisions | 13.8 | 16.8 |
| Accounts payable | 587.0 | 527.2 |
| Deferred income | 31.0 | 29.7 |
| Current financial debts | 134.1 | 157.3 |
| Current lease obligations | 24.3 | 19.7 |
| 790.2 | 750.7 |
| Total liabilities | 3,562.3 | 3,258.9 |
Appendix 5:
Variation in consolidated equity
| In millions of euros | Attributable to controlling Company | Attributable to non-controlling minorities | Total | ||||
| Capital | Premiums | Income and other reserves | Currency translation reserves | Total | |||
| 07.01.20 | 349.5 | 300.6 | 661.4 | -96.7 | 1,214.8 | 15.0 | 1,229.8 |
| Other items of the global income net of taxes | - | - | 20.1 | -37.7 | -17.6 | -0.2 | -17.8 |
| Net income | - | - | 92.3 | - | 92.3 | 1.1 | 93.4 |
| Global income for the fiscal year | - | - | 112.4 | -37.7 | 74.7 | 0.9 | 75.6 |
| Variation in treasury shares | - | - | -0.1 | - | -0.1 | - | -0.1 |
| Dividends paid out | - | - | -22.9 | - | -22.9 | -1.6 | -24.5 |
| Variations in scope | - | - | - | - | - | 7.2 | 7.2 |
| Variation in the capital stock of the parent company | - | - | - | - | - | - | - |
| Variation in the capital stock of the subsidiaries | - | - | -0.5 | - | -0.5 | 0.7 | 0.2 |
| Variation in the minorities share | - | - | 0.6 | - | 0.6 | 16.4 | 17.0 |
| Bonds redeemable as shares | - | - | - | - | - | 9.5 | 9.5 |
| Impact of hyperinflationary currency adjustments | - | - | 15.9 | - | 15.9 | - | 15.9 |
| Reclassifications | - | - | -5.7 | 5.7 | - | - | - |
| Others | - | - | -1.3 | - | -1.3 | -0.3 | -1.6 |
| 06.30.21 | 349.5 | 300.6 | 759.8 | -128.7 | 1,281.2 | 47.8 | 1,329.0 |
| Other items of the global income net of taxes | - | - | 0.6 | 79.1 | 79.7 | -4.5 | 75.2 |
| Net income | - | - | 92.2 | - | 92.2 | 3.2 | 95.4 |
| Global income for the fiscal year | - | - | 92.8 | 79.1 | 171.9 | -1.3 | 170.6 |
| Variation in treasury shares | - | - | 0.1 | - | 0.1 | - | 0.1 |
| Dividends paid out | - | - | -36.2 | - | -36.2 | -1.4 | -37.6 |
| Variations in scope | - | - | - | - | - | - | - |
| Variation in the capital stock of the parent company | - | - | - | - | - | - | - |
| Variation in the capital stock of the subsidiaries | - | - | -0.7 | - | -0.7 | 1.4 | 0.7 |
| Variation in the minorities share | - | - | 0.4 | - | 0.4 | -0.1 | 0.3 |
| Bonds redeemable as shares | - | - | - | - | - | - | - |
| Impact of hyperinflationary currency adjustments | - | - | 13.8 | 1.3 | 15.1 | 3.8 | 18.9 |
| Reclassifications | - | - | -0.4 | 0.4 | - | - | - |
| Others | - | - | 2.8 | - | 2.8 | -1.4 | 1.4 |
| 06.30.22 | 349.5 | 300.6 | 832.4 | -47.9 | 1,434.6 | 48.8 | 1,483.4 |
Appendix 6:
Financial glossary
- Current data
Current data is data expressed at the historical currency exchange rate for the period, and without adjustment for any changes in scope.
- Current operating margin
The current operating margin is defined as the accounting operating margin restated for any impairment and reorganization costs.
- EBITDA
The EBITDA is defined as the operating result to which are added any provisions for depreciation, amortization and impairment.
- Gearing
Gearing is defined as the ratio comparing the net financial debt8 to the equity9.
- Leverage ratio
Leverage is defined as the ratio comparing net financial debt8 to EBITDA.
- Like-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.
- Research investment
Research investment refers to gross research expenditure before recording any research costs and tax relief as fixed assets.
1 Cf. press release published on August 1, 2022.
2 Data calculated on the basis of sales of seeds for professional markets and including 50% of AgReliant's activities (North America. Field Seeds).
3 Saskatchewan Pulse Growers is a not-for-profit organization representing and supporting more than 15,000 pulse producers established in the province of Saskatchewan (Canada).
4 Joint venture established in Saskatoon (Province of Saskatchewan. Canada) and held 70% by Vilmorin & Cie and 30% by Canterra Seeds. Vilmorin & Cie also holds 30% of the capital stock of Canterra Seeds.
5 Source: Saskatchewan Pulse Growers.
6 On a like-for-like basis.
7 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, has modified certain product flows between Vilmorin & Cie and its supplier, the Limagrain Cooperative.
8 The net financial debt is equal to the net financial indebtedness.
9 Equity corresponds to the line "Consolidated equity", as presented in the Financial progress report.
Attachment
- PR Annual Results VCO 2021-2022_en_VD
