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attractive growth ambitions

For this player in seeds and young plants, the health crisis is not synonymous with a slowdown in its activity, quite the contrary. As for the strategic plan, which notably involves development in Europe, it must lead to a significant change in size within five years. To carefully monitor this still confidential value.

by Aymeric Val

Suffice to say right away, the Voltz Seeds share does not offer great liquidity to investors. Daily exchanges have averaged around 600 pieces per day for the past year, which is unacceptable for a number of portfolio managers. But this handicap in no way alters the fundamental qualities of this dossier. The leading independent French distributor of seeds and young seedlings of flowers and vegetables, this Alsatian group is currently surfing on promising trends, with enviable positions in France. As an illustration, it should be noted that two flowers out of three and one vegetable out of two, planted in gardens in France are today supplied by this company based in Colmar. The tipping point occurred in 2015 with a strategic change of course decided by the founding president Serge Voltz. It was decided to focus efforts on value-added products: fresh vegetables, organic, variety diversity and products for short circuits. Emphasis was also placed on development in Europe, in particular in Germany, with the same model as in France.

This roadmap has already paid off: in five years, net profit has more than doubled to exceed 9 million euros in the 2018-2019 financial year (ended September 30). As for the outlook for the current season, it looks good. With strong commercial activity, including during confinement, Graines Voltz has allowed itself the luxury of adjusting its forecasts upwards for the first half of 2019-2020: turnover is now expected to increase by nearly 8%, at the top of the + 4 / + 8% range indicated initially. It will be necessary to wait until June 30 to know the landing of the Copts of this first half of the year. But there is no doubt that the results should not disappoint.

An acquisition that appeals to others

This overview of the group’s news would not be complete without mentioning the external growth operation announced last March, therefore just before containment. Graines Voltz got hold of Hild Samen’s business portfolio with BASF (transaction expected to close by end of June). It is a leading supplier of conventional and organic vegetable seeds from Germany, with a diverse range of over 1,200 varieties of seeds in 60 species of vegetables. This initiative, funded by cash and borrowing, is appealing to others, while the French firm aims for a change of dimension within five years (internationalization of sales) and a concomitant increase in its profitability. For Graines Voltz, this development must go hand in hand with a revitalization of transactions on the stock market security via an improvement in its liquidity and the expansion of free float by family shareholders without change of control. This should propel the file to new heights, while the current valuation brings out a multiple less than 10 times our estimate of net profit for 2020-2021 and that the last dividend paid (7 euros) provides a return of… 10% .

Our advice: in a diversification approach, we will not hesitate to start a line on this beautiful family value with a very solid balance sheet, preferably down to 69 euros. Isin code: FR0000065971.

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