Savia
S.A. de C.V. announced today its results for the first
quarter of 2003.
EXECUTIVE SUMMARY
- Savia improved its operating income by $39 million, figure
1.7% higher than reported on the first quarter of 2002.
-
Savia reported consolidated net income by $23 million an 11.5%
of improvement compared to the same period last year. Its
operating cash flow was $44 million, a similar figure than
reported in the same period last year.
-
Seminis registered sales of $160 million, a similar value to
that achieved in the same period previous year, as well as the
gross margin maintained a 64% compared to the same period last
year. Its operating cash flow was $45 million.
REPORTED RESULTS
Main Business Indicators
Million of dollars as of March 2003
Jan-March 2003 Jan-March 2002 Variation
----------------------------------------------
Sales 198 214 -7.7%
Gross Profit 108 108 -0.3%
Gross Profit 54.4% 50.4%
Operating Expenses 69 70 1.4%
Operating Income 39 38 1.7%
EBIT DA 44 44 -0.5%
Consolidated Net Income 23 21 11.5%
Majority Net Income 13 10 21.3%
FIRST QUARTER CONSOLIDATED RESULTS 2003
Consolidated Net Sales
Consolidated net sales reached $198 million, which represents a
decrease of 7.7% compared to the same period last year. This reduction
is primarily due to a decrease in the hectares sown by Agrobionova, a
subsidiary of Bionova. Of the reported sales, 42% were denominated in
dollars, 29% in euros, 12% in Mexican pesos and 17% in other
currencies.
Consolidated Operating Income
Consolidated operating income was $39 million, an improvement of
$1 million (1.7%) compared to the same period last year. This result
was mainly due to the reduction in the Bionova's operating expenses
and the Corporate expenses also. The operating cash flow reached $44
million, similar figure in comparison to the same period last year.
Consolidated Income
During this period, majority net income was $13 million, an
increase of 21.3% respect to that reported in the first quarter of
2002. Consolidated net income was $23 million, $2 million higher than
the obtained in the same period last year.
FIRST QUARTER RESULTS 2003 FOR THE MAIN SUBSIDIARIES
Seminis
Total sales for the first quarter of 2003 reached $160 million,
similar value to the reported sales in the same period last year. The
operating gross profit for this period was 64% of the business sales.
The operating income reported was $42 million, $1 million less than
the first quarter of 2002. This decrease was mainly a result of an
increase in the operating expenses by $4 million in comparison to the
same period last year.
The operating cash flow reached $45 million, a decrease of 4%
compared to $47 million for the first quarter of 2002.
Bionova
The sales of Bionova reported $28 million, which represents a
decrease of 42.2% compared to last year's sales for the same period.
This reduction is the result of decrease in the operation of
Agrobionova. Operating loss was $1 million, a decrease of 122% in
comparison to $3 million of operating income reported in the same
period last year.
RELEVANT EVENT
Savia and Fox Paine & Company had extended through May 15, 2003
the non-binding Letter of Intent signed on Dec. 13, 2002. Under the
terms of this letter Fox Paine and parties related to Savia will
acquire the outstanding shares of Seminis (Nasdaq:SMNS - News). This
transaction is subject to conditions established by the agreement.
Also, Savia continues its negotiations for the payment of its bank
debt. These negotiations are directly related to the Letter of Intent
above mentioned.
Savia participates in industries that offer high growth potential
in Mexico and internationally. Its principal subsidiaries include
Seminis, a global leader in the production and marketing of fruit and
vegetable seeds, Bionova, a company focused on the production,
distribution and commercialization of fruits and vegetables and
Desarrollo Inmobiliario Omega, a company dedicated to the development
of real estate in Northern Mexico.
Savia's financial statements are prepared in compliance with
generally accepted accounting principles in Mexico. For the
consolidation of domestic subsidiaries, Savia follows the guidelines
set forth in bulletin B-10 and for foreign companies follows the
guidelines set forth in bulletin B-15. Seminis and Bionova report
following the generally accepted accounting principles of the United
States (GAAP) that differ from the generally accepted accounting
principles of Mexico. These results are adjusted to reflect the
above-mentioned guidelines. In addition, Seminis reports its fiscal
year the first quarter of October through the last of September. Savia
reports its fiscal year on a calendar basis, including in its
consolidated results the operations of Seminis according to calendar
year.
Savia S.A. de C.V. and Subsidiaries
Statement of Consolidated Results
Results for the Quarter January to March 2003
Million of Mexican Pesos and Dollars, except per share
and per ADR data
As of March 31, 2003 Purchasing Power
Jan-March '03 Jan-March '02
Pesos Dollars Pesos Dollars
Net Sales 2,110 198 2,287 214
Cost of Sales 961 90 1,135 106
------ ------- ------ -------
Gross Profit 1,149 108 1,152 108
Operating Expenses 732 69 742 70
------ ------- ------ -------
Operating Income 418 39 410 38
EBIT DA 470 44 472 44
Comprehensive Financing Income
Financial Expenses (113) (11) (96) (9)
Financial Income 14 1 24 2
Exchange Income (loss) 33 3 (66) (6)
Monetary Result 73 7 40 4
------ ------- ------ -------
7 0 (98) (9)
Other Expenses (39) (4) (31) (3)
Income before Tax and Profit Sharing 385 36 281 26
Provision for Income Tax and Profit
Sharing 140 13 61 6
Net Income before Discontinued
Operations 245 23 220 21
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Net Income 245 23 220 21
Net Majority Income 134 13 111 10
Average Shares Outstanding (million
dollars) 467 462
Net Income per Share (pesos) 0.29 0.24
Net Income per ADR (dollars) 0.11 0.09
