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MESSAGE FROM
THE BOARD OF DIRECTORS
Dear Shareholders,
At the end of fiscal year 2015-2016, Vilmorin & Cie achieved
significant growth of almost 5% in its sales on a like-for-like
basis; these now stand at 1.6 billion Euros
(1)
.
Nevertheless, once again this year, this performance is the
result of very varied situations for its two strategic activities.
❚
The Vegetable seeds activity achieved another excellent
fiscal year, pursuing its strong, dynamic growth: business
increased by almost 10% on a like-for-like basis.
Accordingly, Vilmorin & Cie repeatedly continues to win
market shares.
❚
The Field seeds activity held up well, with sales virtually stable
on a like-for-like basis, in spite of a market environment that
remains very difficult, globally marked by the persistent low
level of agricultural production prices and the drop of cultivated
acreage for corn in Europe.
Consequently the total net income of 60.8 million Euros
was lower than our ambition. Moreover it was affected by
exceptional extra procurement costs in Western Europe for
the Field seeds activity, by reorganization costs in the Garden
products activity and by financial provisions on minority
participations. Consequently, the dividend proposed is lower,
yet demonstrates our effort to offer a pay-out rate similar to
that of previous years.
For the third consecutive year, Vilmorin & Cie’s financial
performances have therefore been affected by the unfavorable
market conditions for field seeds. For this reason we have
decided to set up an operational action plan, in order once
again to achieve a financial profile that corresponds more
to our expectations. However, this plan in no way calls into
question our strategic fundamentals, which continued to be
applied in fiscal year 2015-2016:
❚
In vegetable seeds, Vilmorin & Cie reinforced its world
leadership through the acquisition of the company Genica
Research in the United States, thus pursuing its strategy
combining innovation and proximity to markets.
❚
In the corn seeds, the performances achieved in North
America and in the new development zones were of a
very high level, demonstrating further globalization of our
business. Furthermore, the agreements signed with Syngenta
opening up access to new GMO corn technologies represent
a major breakthrough towards the development of our
proprietary line-up of genetically modified varieties.
❚
Finally, on the wheat seeds market, Vilmorin & Cie is
continuing its international deployment and aims to become
the world reference for the most widely grown crop in the
world.
Over and beyond current disturbances, our markets
fundamentally remain promising, and we are fully confident
in our capacity to reinforce our market shares and our
profitability. As our competitive environment goes through
a period of restructuring, we are more than ever convinced
that our specific development model, based on a single, core
business of seed, our agile organization working in proximity
to our markets and our long-term vision, represents a major
advantage in attaining our strategic ambitions and offering
regular and sustainable perspectives for growth.
And we can count on the expertise and commitment of our
teams, the unwavering support of Limagrain, our reference
shareholder, and all our Shareholders, faithful and committed to
the long-term. We thank you all for your support and your trust.
Your Board of Directors
VILMORIN & CIE ACHIEVES NEW MILESTONES
IN ITS DEVELOPMENT STRATEGY
WITHIN A MARKET ENVIRONMENT THAT REMAINS TENSE
(1) Integrating 50% of the sales of AgReliant (North America. Field seeds). Sales disclosed for 2015-2016 came to 1,325 million Euros.