The VIVESCIA Industries Supervisory Board established the new share price during a meeting on 15 October. Following work by Mazars, an independent expert, the price was set at €21.21, taking the shares below their January 2010 issue price.
The new share price, down almost €2 on the previous valuation, was influenced mainly by the conclusion in July 2019* of a legal dispute with the French competition authority and other technical adjustments. The performance issues suffered by the frozen bakery business had already been entirely priced into the previous valuation in April 2019, resulting in a significant fall in the share price.
Although VIVESCIA Industries’ accounts are not due to be published for a few weeks, a negative trend is already clearly visible. The malting business is on track to achieve its 2018-2019 targets, but the position of frozen bakery has not improved.
Given the situation, at the VIVESCIA Industries AGM on 11 December 2019 the Supervisory Board will recommend that no dividend is paid.
All our energy is focused on restoring the profitability of the frozen bakery business, while continuing to develop Malteurop and our other businesses in line with our strategy. To achieve this, in the spring VIVESCIA Industries brought in an audit and strategy consulting firm as external advisors. The firm will assist and support all of the frozen bakery business’s teams to organise and implement an aggressive recovery plan (covering sales, manufacturing and supply chain).
Additionally, in September, VIVESCIA Industries’ new general manager, Olivier Miaux, appointed on 25 July 2019, put in place a new management team at NutriXo, the holding company which includes the industrial bakery (Délifrance) and milling (Grands Moulins de Paris) businesses. He appointed Patrick Bordessoule as Managing Director and Xavier Veret as CFO.
The SICOM, chaired by Christoph Büren, and the supervisory board, chaired by Nicolas Demoury, know they can count on the full commitment of the VIVESCIA Industries staff and the trust of the business’s cooperative, financial, and individual shareholders (farmers and employees) during this testing phase in the Group’s history. Our markets are as buoyant and geographically diversified as ever. Now is the time for action! Through discipline and high standards, we will create the conditions for recovery.
*Summary of the competition authority dispute: following legal action initiated by the French competition authority in 2008, in July 2019 the Paris court of appeal issued fines to Grands Moulins de Paris and other millers for price fixing on the retail packaged flour market between 1965 and 2012. After legal proceedings lasting ten years, Grands Moulins de Paris was ordered to pay €42.6m. Of this sum, €25.7m will be directly reflected in the income statement for the year ended 30 June 2019.