(Boursier.com) — As of December 31, 2022, the consolidated revenue of Vilmorin & Co. for the 1st half of 2022-2023, corresponding to income from ordinary activities, amounted to 706.5 million euros, up +24.6% with current data and +19.6% like-for-like.
At the end of the 1st half-year, sales for the Vegetable Seeds division amounted to €259.1 million, up +3.1% at current data, but down -0.7% like-for-like report on the first half of 2021-2022. Sales for the Field Seeds division amounted to €432.2 million, up +44.7% at current data and +38.3% like-for-like compared to the 1st half of 2021-2022 . This development is partly explained by the effects of expectations on the European continent.
The half-year operating result thus shows a gain of 19.2 ME, an improvement of 13.5 ME compared to the operating result for the 1st half of 2021-2022. The operating margin rate was 2.7% (1% as of December 31, 2021).
Half-year net income shows a loss of -13.7 MEan improvement of €25.9 million compared to the first half of the 2021-2022 financial year.
Objectives 2022-2023
Although growing strongly for the 2022-2023 financial year, the consolidated turnover for the 1st half represents, on average, only a third of Vilmorin & Cie’s annual sales. Moreover, market conditions remain uncertain and under stress for several key sectors of activity. In this context, while maintaining its prudential posture, the seed company is partially revising its objectives for the year.
From now on, Vilmorin is aiming for growth in consolidated sales of between 8% and 10% like-for-like (initial objective: growth of between 6% and 8% like-for-like), excluding the positive impact of the EGalim law (which will be neutral on the level of operating profit).
The seed company anticipates a current operating margin rate of at least 8% (objective unchanged), which will take into account a research effort of a similar level (in percentage of turnover) to that of the two previous years and distributed in a balanced way between Vegetable Seeds and Field Seeds.
The contribution of associates will be lower than that of the previous year (initial objective: a minimum contribution equal to that of the previous year), mainly due to a more unfavorable outlook for AgReliant (North America. Field Seeds ) and Seed Co (Africa. Field Crops).
News details
– In Turkey
Following the two violent earthquakes which struck Turkey in particular on February 6, Vilmorin & Cie deplores the death of one of its employees. From the start of the events, the company rolled out support measures for the relocation of its 17 employees and their families present in the east of the country, the most affected area. Material and psychological assistance continues to be provided to all local teams, as well as to the customers concerned.
Through its Business Units Limagrain Europe (Field Crops), Hazera, HM.Clause and Vilmorin-Mikado (Vegetable Gardens), Vilmorin & Cie has 250 employees in Turkey, who perform sales, research and production activities. Most of the company’s infrastructure is located outside the areas affected by these earthquakes.
At the end of the 2021-2022 financial year, the company’s turnover in Turkey amounted to less than 40 ME in product sales.
– In Ukraine and Russia
In Ukraine, Vilmorin & Cie teams ensure the continuity of commercial and research activities, despite the ongoing conflict in the territory. After a stable rapeseed campaign in terms of volumes, sales of corn seeds fell sharply, due to the fall in dedicated areas. Conversely, the expected slight increase in sunflower acreage should benefit activity. As initially announced, the company expects a level of activity for this financial year similar to that of the previous financial year.
In Russia, Vilmorin & Cie recorded very high levels of advance orders in corn and sunflower during the 1st half, with selling prices rising sharply, in connection with the fear of producers and distributors of a lack of availability. in seeds for the 2023 campaign. These orders were subject to prepayments in the 1st half; however, they can only be confirmed during the second part of the financial year, when they are properly delivered, which could be partly compromised due to persistent geopolitical and logistical problems.