Limagrain Presents its Annual Results, up on Last Year

Dec 22, 2010, 04:00 ET from Limagrain

CHAPPES, France, December 22, 2010 /PRNewswire/ -- In the period from July 1st 2009 until June 30th 2010, Limagrain achieved sales up more than 9% and a net income on line with expectations. The environment of the fiscal year was again characterized by the economic and financial crisis, and difficulties with the prices of agricultural raw materials. All the divisions achieved positive economic results.

Consolidated sales came to EUR1,349 million, as opposed to EUR1,233 million in 2009, an increase of 9.4%. Net income stood at EUR69 million, as opposed to EUR58 million for the previous fiscal year. The operating result fell to EUR108 million from EUR117 million in 2009, with the impact of exceptional items.

Equity rose from EUR618 million in 2009 to EUR927 million. This strong increase can be explained by the entry of the Strategic Investment Fund (SIF) into the capital stock of Groupe Limagrain Holding (GLH), and the capital stock increase of Vilmorin & Cie[1]. Net financial indebtedness represents EUR539 million in 2010. It is down compared with 2009, when it stood at EUR633 million. Investment in research was intensified considerably reaching EUR141 million as opposed to EUR124 million, representing 14% of "professional" sales. During the fiscal year, the group had 6,700 permanent employees spread over 38 countries.

Daniel Cheron, Limagrain's CEO, commented on the Group's results: "Limagrain is pursuing its progression with sales up by 9.4%. This progression is the fruit of sustained internal growth, higher than 5%, stimulated by a flow of novel products and considerable investment in marketing. It is also the result of a dynamic international external growth policy with targeted acquisitions. In seeds this was the case with distributors such as Clovis Matton, for field seeds in Belgium, and Su Tarim, for vegetable seeds in Turkey. Our research programs were strengthened for wheat in the United States with Trigen, Genesis Seed Research, BSF Ag-Research, and Trio Research; and in Argentina, with DonMario. We also acquired research programs in vegetable seeds, in tomatoes with PHRO, in Poland; in cauliflower with Trinity Growers, in the United Kingdom; and in sweet corn with Meza Mais, in the United States. In France, we also consolidated our cereal products activity through the acquisition of Creperie Lebreton and the Moulin de Verdonnet."

Limagrain is an international co-operative group, specialized in field seeds, vegetable seeds and cereal products. It conducts its business within the framework of a global, sustainable vision of agriculture and agri-food based on innovation and regulation of agricultural markets. It is the 4th largest seed company in the world through its subsidiary Vilmorin & Cie, European leader for functional flours through Limagrain Cereales Ingredients and 2nd largest French industrial baker through Jacquet. The Group makes annual sales of more than 1.3 billion Euros and has a headcount of 6,700, spread out over 40 countries, including 1,300 researchers.

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[1] Groupe Limagrain Holding is the majority shareholder of Vilmorin & Cie (listed on Euronext Paris), which has held all the seeds activities since 2006

SOURCE Limagrain