Limagrain: Presents Significant Increase in Results

Chappes / FR. (prn) From July 01st 2010 to June 30th 2011, Limagrain Group achieved a significant increase in sales and net income on line with its expectations. The year passed in a favourable environment, with a rise in cultivated acreage, in spite of the persistent volatility in the prices of agricultural raw materials. All the Divisions showed positive financial results.

Consolidated sales came to 1’555 million EUR, as opposed to 1’349 million EUR in 2010, an increase of 11,6 percent like for like (15,3 percent with acquisitions).

Net income came to 92 million EUR. The Group´s financial structure is solid with equity standing at 915 million EUR and net financial indebtedness at 663 million EUR.

Investment in research rose significantly to 157 million EUR as opposed to 144 million EUR, and represents 14 percent of «professional» sales. This past fiscal year, the Group held subsidiaries in 38 countries with a headcount of nearly 7’200 permanent staff, with multiple nationalities.

Daniel Cheron, CEO for Limagrain, commented on the Group´s results: «Limagrain is a company that is growing fast. Our sales increased by 11,6 percent like for like, reaching 15,3 percent if we include acquisitions». Cheron added: «We are pursuing our dynamic march forward, preparing our future through a strategy of sustained internal growth and targeted external growth. Two highlights of the fiscal year were the acquisition of Brossard in France and the alliance with the Brazilian seeds company Sementes Guerra». He concluded by emphasizing that, «We are intensifying our investment in research, which today stands at 157 million EUR, representing 14 percent of our professional sales. In terms of research it should also be noted that through Vilmorin + Cie we are in the process of creating a 50:50 joint venture with the German seeds company KWS. We have already been working in partnership with KWS in a commercial JV in North America since 2000. Our objective with this GM corn research JV is to pool our work on traits for resistances to herbicide and insects, drought tolerance and more efficient use of nitrogen».

New Chairman for the Co-operative

At the Co-operative´s Annual General Meeting in mid-December, the members of the Board voted in their new Chairman. Pierre Pagesse, Chairman of Limagrain since 1992 handed over the baton to Jean-Yves Foucault, until then first Vice-Chairman of the Co-operative since 2009.

Limagrain is an international agricultural co-operative group, specialized in field seeds, vegetable seeds and cereal products. Founded and managed by French farmers, Limagrain is the fourth largest seed company in the world through its holding Vilmorin + Cie, European leader for functional flours through Limagrain Cereales Ingredients and third largest French industrial producer of Bread-Viennoiseries-Pastries through Jacquet-Brossard. The Group makes annual sales of more than 1,5 billion EUR and has a headcount of 7’200, spread out over 38 countries, including 1’400 researchers. In Auvergne the Co-operative has 3’500 farmer members. 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.