Vilmorin jumps on higher annual sales, raised guidance

Vilmorin & Cie SA

02/08/2022 09:31

** Shares in Vilmorin & Cie  VILM.PA  jump 6% after the
French seed group reported a 7.5% rise in FY 2021/22 sales and
hiked its margin guidance for 2022/23  urn:newsml:reuters.com:*:nL8N2ZD56O
    ** The stock is on track for its best day since October 2021
if gains hold
    ** Vilmorin, which produces and sells vegetable and crop
seeds for agricultural production and market gardeners, on
Monday posted sales of 1.59 billion euros ($1.62 billion) for
the financial year ended June 30
    ** Kepler Cheuvreux analyst Christian Faitz says Vilmorin
had a "very satisfying finish to its fiscal year" in terms of
sales, calling the company a "highly attractive investment"
    ** "The demand environment globally for high quality seeds
remains fully intact, and we believe going forward higher costs
will be passed on via pricing adjustments," the broker adds
    ** Vilmorin now expects an operating margin of at least 8.5%
for the current fiscal year, against its earlier target of at
least 7.5% 
    ** Portzamparc says the dynamic of sales over the year,
price increases and good cost management allow the company to be
more positive about its operating profitability prospects 
    ** FY net income is expected to decline, however, as
hyperinflation in some markets such as Turkey will weigh, the
company says

($1 = 0.9785 euros)

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))