Vilmorin & Cie sales up 11.8% for the first quarter of 2019-2020

Vilmorin & Cie’s consolidated sales for the first quarter of 2019-2020, closing on September 30, 2019, corresponding to revenue from ordinary activities, stood at 231.9 million euros, up 11.8% with current data and 5.2% on a like-for-like basis.


Consolidated financial information is established in compliance with the IFRS (International Financial Reporting Standards) reference, as applied by the European Union on September 30, 2019. It takes into account the application of the standard IAS 29 with regard to the treatment of hyperinflation for business in Argentina.

SALES FOR THE FIRST QUARTER 2019-2020: 231.9 MILLION EUROS (+5.2% ON A LIKE-FOR-LIKE BASIS)

Vegetable Seeds division: marked increase in business over the first quarter

Sales for the Vegetable Seeds division stood at 108.6 million euros, up 5% compared to the same period of the previous fiscal year. Restated on a like-for-like basis, there was an increase of +2.8%.

Over the course of the first quarter, there was a strong increase in sales of several strategic crops, along the lines of the fourth quarter 2018-2019 which was of a very high level.

Just as in fiscal year 2018-2019, performances varied according to geographical area. Accordingly, business increased fast in certain regions, particularly in North America. Similarly, South America and the Middle East this year posted very significant business growth, whereas sales activity was considerably affected at the beginning of the previous fiscal year by the instability of the geopolitical and monetary context in these regions. However, business was less dynamic in Asia, Africa and Europe, especially Western Europe, where sales were penalized by drops in acreage for certain crops.

At the end of a quarter that is still not very representative of the fiscal year, the Vegetable Seeds division posted marked growth in its sales on September 30, 2019. Consequently, Vilmorin & Cie can confirm its sales growth objective for this activity for fiscal year 2019-2020, i.e. an increase of 3% on a like-for-like basis compared to 2018-2019.

Field Seeds division: a very good start to the fiscal year, boosted by a high-quality rapeseed campaign

Sales for the Field Seeds division for the first quarter reached 116.1 million euros, an increase of 20.3% with current data and 7.9% on a like-for-like basis.

In Europe, the commercial campaign for rapeseed posted another year of excellent growth. This highquality achievement, as for previous campaigns, was built on an extremely technically efficient product portfolio providing Vilmorin & Cie with a solid competitive advantage. Vilmorin & Cie thus continues to gain significant market shares, enabling the company to be positioned among the top European players in this crop.

Moreover, the first part of the commercial campaign for straw cereal seeds (wheat, barley) recorded a fine increase in sales. Sales of forage seeds and amenity grasses, which complement the commercial offer in Europe, fell sharply compared to the previous year, particularly in Germany and the Netherlands, after rising sharply during the previous fiscal year.

In South America, sales increased significantly, as a result of the integration of the companies Sursem (Argentina) and Geneze (Brazil), whose acquisition was finalized in December 2018. Restated on a like for-like basis, business growth was measured.

In Brazil, sales of soybean seeds increased very significantly, in line with previous years; Vilmorin & Cie is thus continuing to expand its commercial offer, enabling it to cover all the needs of South American farmers. Sales for the first corn campaign in Brazil (safra), were down, in a context of almost stable expected cultivated acreage for this crop. Order books for the second corn campaign (safrinha), where acreage is expected to decrease slightly compared to the previous fiscal year, are looking satisfactory.

Moreover, in Argentina, the sales activity is marked by the wait-and-see attitude of farmers, linked to the political context in this country.

For the coming commercial spring campaign, procurement of corn seeds is nearly complete in Europe and North America. They are marked by the difficulties encountered, due to the severe drought, affecting certain European production, the impacts of which will be covered by making use of security reserves.

On the basis of the above, Vilmorin & Cie reaffirms its objective to increase its Field Seeds sales for fiscal year 2019-2020, with growth of 2% on a like-for-like basis compared with the previous fiscal year.

OUTLOOK FOR 2019-2020: CONFIRMATION OF OBJECTIVES FOR BUSINESS GROWTH OF 2% TO 3%⁽¹⁾ AND A CURRENT OPERATING MARGIN RATE OF AT LEAST 8%
(1) On a like-for-like basis.

Consolidated sales for the first quarter in recent years have represented on average around 15% of sales for the year.

Fiscal year 2019-2020 should continue to be marked by heterogeneous market conditions in vegetable seeds and characterized by strong competitive pressure on field seeds.

In this context, and on the basis of business figures at the end of this first quarter, Vilmorin & Cie can confirm its objectives in terms of sales and current operating margin for fiscal year 2019-2020. These objectives correspond to an increase in consolidated sales of 2% to 3% on a like-for-like basis, and a current operating margin rate of at least 8%, including research investment which should be higher than 255 million euros.

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.