VII / 250
Dear Shareholders,
Vilmorin & Cie achieved a truly fine fiscal year 2016-2017,
confirming solid growth in terms of sales, as well as operating
margin and income.
The two main activities completed a high quality fiscal year:
Vegetable Seeds posted an increase in sales of more than
6% on a like-for like basis, and thus, following on from
previous fiscal years, confirms its strong, dynamic growth. This
performance is all the more remarkable in that it concerns all of
Vilmorin & Cie’s main strategic crops and major geographical
regions. Further to this fiscal year, Vilmorin & Cie can reaffirm its
world leadership in vegetable seeds.
Field Seeds achieved a strong increase in activity of more than
8% on a like-for-like basis, in spite of a difficult market context.
Indeed the market is still affected by the low price of agricultural
production as well as the drop in corn acreage, particularly
in Western Europe. This environment clearly had a negative
influence on the commercial campaigns in Europe, in spite of a
remarkable increase in the sale of sunflower seeds (Ukraine and
Russia). Moreover, there was extremely strong growth in corn
seeds in South America, highlighting Vilmorin & Cie’s increasing
internationalization for this strategic crop.
Consequently, the total net income for the year grew considerably,
reaching 90.1 million euros, also thanks to a high quality fiscal year
for associated companies - mainly AgReliant in North America,
Seed Co in Africa and AGT in Australia.
These performances are a reflection of dynamic business activity;
they are also the fruit of the tighter management of all the operating
charges and investments, implemented more than a year ago.
However, this orientation did not change Vilmorin & Cie’s strategic
vision, which was resolutely rolled out during the fiscal year,
particularly in terms of development and innovation, with a long-
term vision.
Our competitive environment is indeed marked by consolidation
operations, which are primarily driven by the agrochemicals sector,
but these movements in no way call into question Vilmorin & Cie’s
ability to pursue its development on its markets. They do not alter
our specific business model around a pure play seed business,
our competitive positions or our strategy, which is based on three
major growth areas: vegetable seeds, corn seeds and wheat
seeds.
In 2017-2018, we will thus pursue with perseverance and
conviction the implementation of our strategy, with the ambition
of continuing to strengthen our market share and profitability on a
regular and sustainable basis.
To achieve this, we can rely on the competence and dynamism
of our teams, the constant support of Limagrain, our reference
shareholder, as well as the faithful support of our Shareholders.
The dividend of 1.60 euros per share proposed by your Board of
Directors, which has risen sharply, is a token of thanks for your
confidence.
Vilmorin & Cie’s Board of Directors
VILMORIN
&
CIE ACHIEVES HIGH QUALITY PERFORMANCES
AND CONFIRMS ITS STRATEGIC ORIENTATIONS
WITHIN A COMPETITIVE ENVIRONMENT UNDER CONSOLIDATION