Vilmorin: Shares fall after weak Q1 and lowered guidance

Vilmorin & Cie SA

24/04/2018 09:05

** French seeds producer Vilmorin  VILM.PA  shares down c.
13 pct, on track for worst day in > 2 mo 
    ** Co lowers its FY guidance and now expects just slight
increase in consolidated sales on a like-for-like basis (LFL); 
says current operating margin rate will probably be at least 1
percentage point lower than in 2016-2017  urn:newsml:reuters.com:*:nFWN1S00ZS
    ** Previously co expected sales growth of 4 pct LFL and
stable operating margin  urn:newsml:reuters.com:*:nFWN1QH19X
    ** Co reports a 2.6 pct LFL decrease in its Q3 2017-2018
sales
    ** Kepler Cheuvreux says Q3 sales were weak and points that
"the vegetable seeds market continues to present challenges,
while the field seeds market suffered from a delayed start to
the season" 
    ** "While the downgrade of the FY 2017/18 guidance was
disappointing, the overall demand environment for seeds driven
by weather events and general market issues does not allow for a
favourable growth environment for both the top line and
operating rates," adds brokerage 

 ((marianna.ciabach.thomsonreuters.com@reuters.net))