SALES ON SEPTEMBER 30, 2020 - Seite 2

In line with the previous fiscal year, the Covid-19 health crisis did not have a significant impact on business, despite persistent uncertainties. Thus, at the end of a quarter that is still not very representative of the fiscal year, the Vegetable Seeds division is continuing to grow in markets which confirm their resilience.

Consequently, Vilmorin & Cie can confirm its sales growth objective for this activity for fiscal year 2020-2021, i.e. an increase of at least 3% on a like-for-like basis compared to 2019-2020.

Field Seeds division: a strong increase for the start of the fiscal year, driven by the excellent momentum of business in South America

Sales for the Field Seeds division for the first quarter reached 120.5 million euros, an increase of 9.5 % on a like-for-like basis, and 3.8% with current data.

§  In Europe, the commercial campaign for rapeseed posted a very high level of growth, in a declining market: indeed, acreages were considerably reduced in most countries, the sowing period being affected by drought. Vilmorin & Cie continues to gain market shares. This quality performance is essentially due, as in previous campaigns, to an extremely high technical performance product portfolio, the result of Vilmorin & Cie's research efforts.

Moreover, the first part of the commercial campaign for straw cereal seeds (wheat, barley) recorded a marked drop in sales, mainly because of postponed orders. Sales of forage and amenity grass seeds, which complement the commercial offer in Europe, rose significantly compared to the previous fiscal year.

§  In South America, sales increased very sharply, both in Brazil and in Argentina.
In Brazil, within agricultural markets that were globally dynamic despite the continuing Covid-19 health crisis, sales posted very marked growth. Sales for the first corn campaign in Brazil (safra) rose sharply, against a backdrop of an anticipated slight decline in cultivated acreage devoted to this crop. Order books for the second corn campaign (safrinha), for which acreage is expected to be stable compared to the previous fiscal year, are looking very satisfactory.

In addition, in Argentina, business grew particularly fast, with a strong increase in volumes sold in corn seeds, confirming the successful integration of the company Sursem, acquired in December 2018. Vilmorin & Cie is thus strengthening its commercial presence on this major market for field seeds, which is little affected by the very tense economic situation in the country.