(Boursier.com) — The consolidated turnover of Vilmorin amounted to 1.587 billion euros for the 2021-2022 financial year, up 7.5% at current data and 6.2% like-for-like compared to 2020-2021. In a general context, however destabilized by the Russian-Ukrainian conflict, Vilmorin & Cie manages to exceed the growth target for its consolidated sales as revised at the end of the 3rd quarter of the financial year (i.e. a growth of around 5% like-for-like).
The margin on cost of sales was 48.6%, down 0.7 points compared to 2020-2021.
Vilmorin’s consolidated operating profit amounted to 136.3 ME, up on the previous year (127.4 ME) for all of the seeds business, including the Garden Products business; it shows a current operating margin rate of 8.6%, down slightly by 0.3 points compared to the 2020-2021 financial year.
The share in the results of companies accounted for using the equity method was 17.9 million euros, down significantly by 8.4 million euros compared to the previous financial year, in particular due to a deterioration in the operating performance of AgReliant ( North America. Field Crops) and the effects of hyperinflation which severely limited the performance of Seed Co in Zimbabwe (Africa. Field Crops).
Vilmorin & Cie’s consolidated net income amounted to 95.4 ME, up 2 ME compared to the previous year. This is the highest net result since fiscal 2012-2013. The Group’s share (attributable to the owners of the company) amounts to 92.2 ME (92.3 ME a year earlier)
Net of cash and cash equivalents (€321.3 million), total net financial debt stood at €901.1 million as of June 30 (€867.4 million as of June 30, 2021). The share of non-current financial debt stands at 1.088 MdE, (994.8 ME previously). Equity, Group share, stood at 1.434 MdE and minority interests at 48.8 M, marking a significant increase over the financial year, due to the good level of net income and an increase in translation reserves linked to the appreciation of the US dollar.
Thus, compared to the previous financial year, the balance sheet structure as of June 30, 2022 is marked by a drop in the ratio of net debt to equity, i.e. a gearing of 61% (65% as of June 30, 2021) . The leverage ratio as of June 30, 2022 was 2.3x (2.4x as of June 30, 2021) and reflects an improvement in the Group’s debt reduction capacity.
Dividend
Vilmorin will propose a dividend of 1.60 euro per share for the financial year, stable compared to that of the previous financial year. It corresponds to a payout ratio 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 General Meeting of December 9, 2022, which will be held in the Auvergne-Rhône-Alpes region, in the territory of establishment of Limagrain, parent company and reference shareholder of the company.
The ex-dividend will take place on December 13, 2022 and its payment will be effective on December 15, 2022.
Outlook
Market conditions during the 2022-2023 financial year are expected to remain uncertain and fluctuating, due to inflationary pressures arising, in particular, from the geopolitical context. In this environment, Vilmorin & Cie will ensure its role as a leading seed company by continuing to strengthen its competitive positions. The company will continue to invest in research and development in a reasoned way, in particular in upstream technologies, while remaining attentive to any opportunity for external growth, in line with its challenges and strategic foundations.
For the 2022-2023 financial year, Vilmorin & Cie has set itself the objective of achieving an increase in its consolidated turnover of between 6% and 8%, excluding the positive impact of the EGalim law on turnover ( which will however be neutral on the level of operating profit).
The company is aiming for a current operating margin rate of at least 8%, impacted by the change in the mix of its activities in favor of Field Seeds. This rate 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 manner between Vegetable Seeds and Field Seeds. Lastly, Vilmorin & Cie is aiming for a contribution from the companies accounted for using the equity method – mainly AgReliant (North America. Field Seeds), Seed Co (Africa. Field Seeds) and AGT (Australia. Field Seeds) – at least equal to that of financial year 2021-2022.