A SIGNIFICANT INCREASE IN ANNUAL RESULTS FOR 2018-2019, DRIVEN BY BUSINESS DEVELOPMENT, AND ALSO BY NON-RECURRING ITEMS
DIVIDEND OF 1.35 EUROS PER SHARE, REFLECTING SIGNIFICANT GROWTH IN THE PAY-OUT RATE
OUTLOOK FOR 2019-2020: BUSINESS GROWTH OBJECTIVE OF 2% TO 3%* AND A CURRENT OPERATING MARGIN RATE OF AT LEAST 8%
* On a like-for-like basis
FINANCIAL STATEMENTS 2018-2019
The consolidated financial statements for 2018-2019, closing on June 30, 2019, were approved by the
Vilmorin & Cie Board at its meeting of October 15, 2019. The Statutory Auditors have examined this annual financial information with no particular comments or reservations to make in their conclusions.
| In millions of euros | 2017-2018 | 2018-2019 | Variation with current data |
| Sales for the year | 1,346.0 | 1,390.7 | +3.3% |
| EBITDA | 296.7 | 321.8 | +25.1 M€ |
| Operating income | 97.1 | 111.0 | +13.9 M€ |
| Income from associated companies | 23.3 | 26.0 | +2.7 M€ |
| Financial income | -38.0 | -45.0 | -7.0 M€ |
| Income taxes Of which:
| -5.5
-13.0 | -14.1
-22.7 | -8.6 M€
-9.7 M€ |
| Consolidated net income | 76.9 | 77.9 | +1.0 M€ |
| Group share of net income | 74.1 | 73.9 | -0.2 M€ |
The consolidated financial information has been established in compliance with the IFRS reference (International Financial Reporting Standards), as adopted by the European Union on June 30, 2019. It takes into account the application of the standard IAS 29 with regard to the treatment of hyperinflation for business in Argentina.
The accounting methods and principles adopted in the consolidated financial statements on June 30, 2019 have changed compared with June 30, 2018 in order to account for the first application of the standards IFRS 9 and IFRS 15; nevertheless, the impacts are not significant.
No changes in accounting methods or estimates affecting the consolidated financial statements of
Vilmorin & Cie were made by Vilmorin & Cie during fiscal year 2018-2019.
Consolidated sales(1), corresponding to revenue from ordinary activities for the fiscal year 2018-2019, came to 1,390.7 million euros, up 3.3% with current data.
Restated on a like-for-like basis (currency, scope), they grew by 4.5 % compared with the previous fiscal year.
After taking into account the cost of destruction and depreciation of inventory, the margin on the cost of goods stood at 48.8%, a decrease of 0.1 percentage points compared with 2017-2018.
Net operating charges came to 567.7 million euros, as opposed to 561.6 million euros on June 30, 2018.
In compliance with its strategic orientations, Vilmorin & Cie continued its research programs, in 2018-2019, both in terms of conventional plant breeding and biotechnologies.
Total research investment came to 241.5 million euros as opposed to 241.4 million euros in 2017-2018 and now represents 15.9% of seeds activity sales intended for the professional markets, integrating the activities of the North American company AgReliant, held 50%.
Consequently, the consolidated operating income stood at 111 million euros, an increase compared to the previous fiscal year, resulting in a recorded operating margin of 8%, up 0.8 percentage points compared with the previous fiscal year. In particular, it takes into account non-recurring items, including capital gains from the reorganization of the biotechnology research company Biogemma(2) and capital gains on the disposal of an industrial plant devoted to corn seed production in Hungary. The current operating margin stood at 8.4%, a marked increase compared with the previous fiscal year (+1.2 percentage points), as indicated in the last disclosed trend (1).
Income from associated companies came to 26 million euros, including in particular AgReliant and the African companies Seed Co Ltd (Zimbabwe) and Seed Co International (Botswana). It includes a revaluation profit of 11 million euros as a result of the financial and legal reorganization of Seed Co’s international activities(2).
The financial income showed a net charge of 45 million euros as against 38 million euros
in 2017-2018, this year including currency exchange losses of 8.5 million euros compared with 12.1 million euros on June 30, 2018, in extremely disturbed monetary markets for certain foreign currencies, especially the Argentine peso, in a hyperinflationary context in the country impacting the financial income by -4.4 million euros.
Cost of funding came to 30.4 million euros, compared with 24.4 million euros the previous fiscal year, including in particular the impact of funding of the acquisition of the companies Sursem and Geneze (South America. Field Seeds).
The net charge of income taxes came to 14.1 million euros as against 5.5 million euros
in 2017-2018. This reflects an increase in the net current tax charge, which amounted to 22.7 million euros compared with 13 million euros in the previous year.
Finally, the total net income came to 77.9 million euros, up 1 million euros compared with the previous fiscal year; the Group share stood at 73.9 million euros.
Compared with the previous fiscal year, the balance sheet structure on June 30, 2019 was marked by an increase in the net indebtedness to equity ratio (a gearing of 69%, compared to 58% on June 30, 2018); this increase was due in particular to the acquisitions made over the course of the fiscal year in South America and to the increase in the working capital needs.
Net of cash and cash equivalents (248.7 million euros), total net financial indebtedness came to 912 million euros on June 30, 2019 compared with 765.9 million euros on June 30, 2018. The share of non-current financial indebtedness stood at 964.4 million euros.
The Group’s share of equity stood at 1,235.9 million euros and minority interests at 88 million euros.
With these figures, leverage on June 30, 2019 stood at 2.8 compared with 2.6 on June 30, 2018.
(1) Cf. Vilmorin & Cie press release published on August 5, 2019.
(2) Cf. Vilmorin & Cie press release published on October 17, 2018.
DIVIDEND
The Board of Vilmorin & Cie has decided to propose to the Annual General Meeting of Shareholders of December 6, 2019 a dividend of 1.35 euros per share. Stable in nominal value compared to the previous fiscal year, it nevertheless shows an increase of nearly 10%, taking into account the free allotment of shares made during 2018-2019, on the basis of one new share for ten existing shares.
Moreover, this dividend corresponds to a significantly increased pay-out rate of 42%, compared to 38% in 2018.
Dividend detachment date will be on December 11, 2019, with payment on December 13, 2019.
OUTLOOK FOR 2019-2020: OBJECTIVE OF 2% TO 3% GROWTH IN BUSINESS(1) AND A CURRENT OPERATING MARGIN RATE OF AT LEAST 8%
(1) On a like-for-like basis
Fiscal year 2018-2019 was characterized by an environment of uncertain markets, both for Vegetable Seeds and Field Seeds. In spite of this context, Vilmorin & Cie is nevertheless managing to post growth for all its activities, once again showing its real development potentials.
In Vegetable Seeds, thanks to a fiscal year with significant growth, Vilmorin & Cie is now positioned as No. 1 worldwide, demonstrating the pertinence of its strategy, combining innovation and proximity to markets. In Field Seeds, the fiscal year was marked by fine business progression, with a high-quality performance in Europe, in particular, where sales increased for all the products in the portfolio.
Moreover, Vilmorin & Cie pursued the deployment of its strategic orientations, particularly in terms of investment in research and development throughout the world, on professional markets for agriculture and vegetable production.
Fiscal year 2019-2020 should allow Vilmorin & Cie to continue to strengthen its competitive positions in market conditions that will probably remain heterogeneous in vegetable seeds and marked by strong competitive pressure in field seeds. Vilmorin & Cie will continue to strengthen its investments in research and development, particularly in upstream technologies, while remaining on the look-out for any external growth opportunity that fits in with its strategic orientations.
For fiscal year 2019-2020, Vilmorin & Cie is fixing the objective of achieving an increase in its consolidated sales of 2% to 3% on a like-for-like basis, with:
Moreover, Vilmorin & Cie has set the objective of achieving a current operating margin rate of at least 8%. This margin will take into account research investment that should be above 255 million euros, intended to promote growth both for Vegetable Seeds and for Field Seeds.
Finally, Vilmorin & Cie is aiming for a contribution from its associated companies – mainly AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT (Australia. Field Seeds) of at least 20 million euros.
On a seeds market that fundamentally remains buoyant, the objectives for 2019-2020 should allow Vilmorin & Cie to continue its trajectory of business growth and strengthen its position of No. 4 seed company in the world, while confirming its capacity to offer sustainable perspectives for resilient development.
COMING DISCLOSURES AND EVENTS
Monday November 4, 2019(1): Sales at the end of the 1st quarter for fiscal year 2019-2020
Thursday 21 and Friday 22 November 2019: Actionaria Fair in Paris
Friday December 6, 2019: Annual General Meeting of Shareholders in Paris
Wednesday December 11, 2019: Detachment of the dividends
Friday December 13, 2019: Payment of the dividends
Dates provided as an indication only, and liable to be changed.
(1) Disclosure after trading on the Paris stock market.
FOR ANY FURTHER INFORMATION
Vincent SUPIOT
Chief Financial Officer
vincent.supiot@vilmorincie.com
Valérie MONSÉRAT
Head of Financial Communication and Investor Relations
valerie.monserat@vilmorincie.com
Tel: + 33 (0)4 73 63 44 85
Website: 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.
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 strong, sustained investments in research and international development to durably strengthen its market shares on promising world markets.
True to its vision of sustainable development, Vilmorin & Cie ensures its achievements fully respect its three founding values: progress, at the heart of its beliefs and its mission, perseverance, inherent to farming and the seeds business, and cooperation, in the fields of science, industry and commerce.
You can consult a presentation of the results for the fiscal year on the website www.vilmorincie.com
APPENDIX 1:
SALES FOR FISCAL YEAR 2018-2019 AND EVOLUTION PER QUARTER AND PER ACTIVITY
| In millions of euros | 2017-2018 | 2018-2019 | Variation with current data | Variation on a like-for-like basis | Incl: Currency impact | Scope impact |
| First quarter | 207.6 | 207.5 | 0.0% | +5.3% | -7.0 | -3.6 |
| Vegetable Seeds | 109.3 | 103.4 | -5.4% | +0.7% | -3.0 | -3.6 |
| Field Seeds | 90.4 | 96.5 | +6.7% | +11.4% | -3.9 | 0.0 |
| Garden Products and Holdings | 7.9 | 7.6 | -3.2% | -1.5% | -0.1 | 0.0 |
| Second quarter | 252.5 | 252.9 | +0.2% | +2.6% | -7.3 | +1.4 |
| Vegetable Seeds | 139.4 | 135.8 | -2.6% | +0.6% | -2.8 | -1.5 |
| Field Seeds | 107.5 | 112.6 | +4.7% | +6.1% | -4.4 | +2.9 |
| Garden Products and Holdings | 5.6 | 4.6 | -17.7% | -16.5% | -0.1 | 0.0 |
| Third quarter | 528.2 | 541.4 | +2.5% | +3.3% | -8.0 | +3.9 |
| Vegetable Seeds | 190.8 | 198.7 | +4.2% | +3.5% | +0.2 | +1.0 |
| Field Seeds | 314.3 | 317.4 | +1.0% | +2.6% | -7.9 | +2.9 |
| Garden Products and Holdings | 23.1 | 25.3 | +9.4% | +11.2% | -0.3 | 0.0 |
| Fourth quarter | 357.7 | 388.9 | +8.7% | +7.0% | +1.5 | +4.2 |
| Vegetable Seeds | 233.6 | 249.5 | +6.8% | +6.2% | -0.1 | +1.4 |
| Field Seeds | 111.1 | 123.5 | +11.2% | +6.9% | +1.7 | +2.7 |
| Garden Products and Holdings | 13.0 | 15.8 | +21.5% | +22.1% | -0.1 | 0.0 |
| Sales for the year | 1,346.0 | 1,390.7 | +3.3% | +4.5% | -20.8 | +5.8 |
| Vegetable Seeds | 673.1 | 687.5 | +2.1% | +3.5% | -5.8 | -2.8 |
| Field Seeds | 623.3 | 649.9 | +4.3% | +5.2% | -14.4 | +8.6 |
| Garden Products and Holdings | 49.6 | 53.4 | +7.5% | +8.9% | -0.6 | 0.0 |
APPENDIX 2:
CONSOLIDATED INCOME STATEMENT
| In millions of euros | 17-18 | 18-19 |
| ■ Revenue from ordinary activities | 1,346.0 | 1,390.7 |
| Cost of goods sold | -687.3 | -712.0 |
| Marketing and sales costs | -190.0 | -199.0 |
| Research and development costs | -194.4 | -199.5 |
| Administrative and general costs | -180.4 | -189.2 |
| Other operating income and charges | 3.2 | 20.0 |
| ■ Operating income | 97.1 | 111.0 |
| Profit from associated companies | 23.3 | 26.0 |
| Interest costs | -24.4 | -30.4 |
| Other financial income and charges | -13.6 | -14.6 |
| Income taxes | -5.5 | -14.1 |
| ■ Profit from continuing operations | 76.9 | 77.9 |
| ■ Profit from discontinued operations | – | – |
| ■ Net income for the period | 76.9 | 77.9 |
| Attributable to the controlling company | 74.1 | 73.9 |
| Attributable to the non-controlling minority | 2.8 | 4.0 |
| Earnings from continuing operations per share – attributable to controlling company | 3.56 | 3.23 |
| Earnings from discontinued operations per share – attributable to controlling company | – | – |
| Earnings for the period per share – attributable to controlling company | 3.56 | 3.23 |
| Diluted earnings from continuing operations per share – attributable to controlling company | 3.45 | 3.05 |
| Diluted earnings from discontinued operations per share – attributable to controlling company | – | – |
| Diluted earnings for the period per share – attributable to controlling company | 3.45 | 3.05 |
APPENDIX 3:
DETAILS OF THE GAINS AND LOSSES FOR THE FISCAL YEAR
| In millions of euros | 17-18 | 18-19 |
| Income for the period | 76.9 | 77.9 |
| Variation in currency translations | -49.2 | -20.3 |
| Variation in the fair value of assets available for sale | – | – |
| Variation in the fair value of forward cover instruments | 1.6 | -2.3 |
| Change in method | – | – |
| Impact of taxes | -0.5 | 0.5 |
| Items that might be reclassified to profit or loss | -48.1 | -22.1 |
| Variation in the fair value of forward cover instruments | 5.7 | 1.8 |
| Actuarial losses and gains | 5.7 | -3.9 |
| Impact of taxes | -4.4 | -0.4 |
| Items not to be reclassified to profit or loss | 1.3 | -2.5 |
| Other items in the total gains and losses for the period net of taxes | -46.8 | -24.6 |
| Total gains and losses for the period | 30.1 | 53.3 |
| > of which attributable to controlling company | 30.3 | 50.7 |
| > of which attributable to non-controlling minority | -0.2 | 2.6 |
APPENDIX 4:
FINANCIAL PROGRESS REPORT
Assets
| In millions of euros | 06.30.18 | 06.30.19 |
| Goodwill | 368.9 | 434.8 |
| Other intangible fixed assets | 692.7 | 739.5 |
| Tangible fixed assets | 290.2 | 292.8 |
| Financial fixed assets | 14.4 | 29.9 |
| Equity shares | 321.9 | 349.1 |
| Deferred taxes | 22.3 | 23.8 |
| ■ Total non-current assets | 1,710.4 | 1,869.9 |
| Inventories | 474.0 | 533.7 |
| Trade receivables and other receivables | 514.5 | 526.7 |
| Cash and cash equivalents | 196.7 | 248.7 |
| ■ Total current assets | 1,185.2 | 1,309.1 |
| Total assets | 2,895.6 | 3,179.0 |
Liabilities
| In millions of euros | 06.30.18 | 06.30.19 |
| Share capital | 317.7 | 349.5 |
| Reserves and income | 877.3 | 886.4 |
| ■ Equity – controlling company | 1,195.0 | 1,235.9 |
| ■ Equity – non-controlling company | 109.7 | 88.0 |
| ■ Consolidated equity | 1,304.7 | 1,323.9 |
| Provisions for employee benefits | 57.4 | 61.7 |
| Non-current financial debts | 758.3 | 964.4 |
| Deferred income taxes | 97.1 | 99.1 |
| ■ Total non-current liabilities | 912.8 | 1,125.2 |
| Other provisions | 15.5 | 15.2 |
| Accounts payable | 428.7 | 489.4 |
| Deferred income | 29.6 | 29.0 |
| Current financial debts | 204.3 | 196.3 |
| ■ Total current liabilities | 678.1 | 729.9 |
| Total liabilities | 2,895.6 | 3,179.0 |
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 | |||
| 07.01.17 | 317.7 | 332.6 | 552.1 | -5.7 | 1,196.7 | 111.8 | 1,308.5 |
| Other items of the global income net of taxes | – | – | 2.3 | -46.1 | -43.8 | -3.0 | -46.8 |
| Net income | – | – | 74.1 | – | 74.1 | 2.8 | 76.9 |
| Global income for the fiscal year | – | – | 76.4 | -46.1 | 30.3 | -0.2 | 30.1 |
| Variation in treasury shares | – | – | 0.2 | – | 0.2 | – | 0.2 |
| Dividends paid out | – | – | -33.4 | – | -33.4 | -2.1 | -35.5 |
| Variations in scope | – | – | – | – | – | – | – |
| Effect of share purchase commitments | – | – | – | – | – | – | – |
| Variation in the capital stock of the parent company | – | – | – | – | – | – | – |
| Variation in the capital stock of the subsidiaries | – | – | 0.3 | – | 0.3 | 0.2 | 0.5 |
| Variation in the minorities share | – | – | 0.7 | – | 0.7 | – | 0.7 |
| Bonds redeemable as shares | – | – | – | – | – | – | – |
| Restatement | – | -0.2 | 0.2 | – | – | – | – |
| Others | – | – | 0.2 | – | 0.2 | – | 0.2 |
| 06.30.18 | 317.7 | 332.4 | 596.7 | -51.8 | 1,195.0 | 109.7 | 1,304.7 |
| Other items of the global income net of taxes | – | – | -4.2 | -19.0 | -23.2 | -1.4 | -24.6 |
| Net income | – | – | 73.9 | – | 73.9 | 4.0 | 77.9 |
| Global income for the fiscal year | – | – | 69.7 | -19.0 | 50.7 | 2.6 | 53.3 |
| Variation in treasury shares | – | – | 0.1 | – | 0.1 | – | 0.1 |
| Dividends paid out | – | – | -28.0 | – | -28.0 | -2.6 | -30.6 |
| Variations in scope | – | – | -1.1 | – | -1.1 | – | -1.1 |
| Effect of share purchase commitments | – | – | – | – | – | – | – |
| Variation in the capital stock of the parent company | 31.8 | -31.8 | – | – | – | – | – |
| Variation in the capital stock of the subsidiaries | – | – | -4.4 | – | -4.4 | 0.1 | -4.3 |
| Variation in the minorities share | – | – | 5.2 | 8.4 | 13.6 | -21.9 | -8.3 |
| Bonds redeemable as shares | – | – | – | – | – | – | – |
| Impact of adjustments in hyperinflationary currencies | – | – | 11.2 | – | 11.2 | 0.1 | 11.3 |
| Restatement | – | – | -3.5 | 3.5 | – | – | – |
| Others | – | – | -1.2 | – | -1.2 | – | – |
| 06.30.19 | 349.5 | 300.6 | 644.7 | -58.9 | 1,235.9 | 88.0 | 1,323.9 |
APPENDIX 6:
GLOSSARY
Like-for-like data
Like-for-like data is data that is restated for constant scope and currency translation.
Financial data for 2017-2018 is restated with the average rate for fiscal year 2018-2019, and any other changes to the scope, in order to be comparable with data for fiscal year 2018-2019.
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.
Research investment
Research investment refers to gross research expenditure before recording as fixed assets any research costs and research tax relief.
Gearing
Gearing is defined as the ratio comparing the net financial debt(1) to the equity(2).
Leverage
Leverage is defined as the ratio comparing the net financial debt(1) to the EBITDA.
Current operating margin
The current operating margin is defined as the accounting operating margin restated for any impairment and reorganization costs.
(1) The net financial debt is equal to the net financial indebtedness.
(2) Equity corresponds to the line “Consolidated equity”, as presented in the Financial progress report.
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