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14.05.2024 07:00:20 - EQS-News: KWS reports significant growth in sales -2-
DJ EQS-News: KWS reports significant growth in sales and earnings for the first nine months of 2023/2024
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EQS-News: KWS SAAT SE & Co. KGaA / Key word(s): Quarterly / Interim Statement
KWS reports significant growth in sales and earnings for the first nine months of 2023/2024
2024-05-14 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
KWS reports significant growth in sales and earnings for the first nine months of 2023/2024
. Preliminary key figures confirmed as published on April 30, 2024
. Revenue up 10.4% to EUR1,360.4 (1,232.2) million (excluding FX effects: +18.4%)
. EBIT rises by 47.8% to EUR336.4 (227.6) million
. Sugarbeet segment with another strong performance thanks to sustainable solutions
. Sale of Chinese corn business completed with significant positive earnings contribution
. Nicolás Wielandt's Executive Board contract extended
"With an extremely strong sugarbeet season, we have laid the foundation for another successful 2023/2024 fiscal year
for KWS," commented Eva Kienle, Chief Financial Officer of KWS. "In addition, with the divestment of our corn
activities in China and South America, we are paving the way for our strategic objectives of increased focus on
plant-based foods and at the same time higher profitability."
Business development 9M 2023/2024
Following the agreement reached at the end of March 2024 to sell the South American corn business, the key figures for
the first nine months of 2023/2024 relate to KWS's continuing operations. The South American corn business will be
reported as a discontinued operation in KWS's financial reporting until the transaction is completed.
In the first nine months of fiscal year 2023/2024, the KWS Group's sales increased significantly by 10.4% to EUR1,360.4
(1,232.2) million. Negative currency effects, especially from Eastern European currencies, the Turkish lira and the US
dollar, had a negative impact on sales. On a comparable basis (excluding currency effects), sales increased by 18.4%.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 37.4% to EUR401.9 (292.4) million, while
earnings before interest and taxes (EBIT) rose by 47.8% to EUR336.4 (227.6) million. EBIT and EBITDA include a one-time
positive earnings contribution of approximately EUR30 million from the completed sale of the Chinese corn portfolio.
The financial result, on the other hand, declined significantly to EUR-24.7 (-3.2) million. Income taxes amounted to
EUR83.2 (57.0) million. This resulted in earnings after tax for continuing operations of EUR228.5 (167.3) million. Free
cash flow amounted to EUR-89.6 (-66.9) million due to seasonally higher trade receivables and higher inventories.
Overview of the key figures (for continuing activities)
===
Business performance of the segments
The corn and sorghum business in Brazil and Argentina is no longer included in the management reporting for the Corn and Cereals Segments because of the intention to sell it. Comparative segment information has been adjusted retroactively.
The Corn Segment posted a decline in net sales by around 9% to EUR572.1 (629.4) million. Negative exchange rate effects, particularly from Eastern European currencies, the Turkish lira and the US dollar, meant that the change on a comparable basis* was -4%. In Europe, net sales after adjustment for exchange rate effects remained stable. However, our U.S. joint venture AgReliant recorded a decline in its business activities in a challenging environment and thus performed worse than expected. The segment's income rose to EUR82.7 (60.7) million and includes a positive earnings contribution of around EUR30 million from the completed divestment of the Chinese corn portfolio.
Net sales in the Sugarbeet Segment rose exceptionally sharply by around 25% to EUR687.6 (551.1) million in the period under review (on a comparable basis*: +38%). The strong increase in net sales resulted from double-digit growth in all main sugarbeet markets. In addition to positive market conditions for sugarbeet cultivation overall, the sustainable product innovations CONVISO® SMART and CR+ made a particular contribution to that and now account for around 56% (40%) of net sales. The success in this year's growing season once again underscores KWS' leading position in the sugarbeet seed market. The segment's income rose above-proportionately to EUR291.0 (194.7) million due to the improved product and price mix.
Net sales in the Cereals Segment, which generates the predominant share of its annual net sales in the first half of the year, rose by 9% to EUR250.9 (230.1) million, mainly due to growth in rye, oilseed rape and wheat seed. Allowing for negative exchange rate effects, particularly in Eastern Europe, the increase on a comparable basis* was even 12%. This growth was mainly achieved in the core markets Central and Northern Europe. The Brazilian sorghum business, which was previously included in the Cereals Segment, was reclassified to discontinued operations. Given the growth in net sales and an improved product mix, the segment posted an increase in income to EUR79.0 (69.8) million.
Net sales at the Vegetables Segment fell by 11% to EUR40.6 (45.7) million, mainly due to lower net sales in China and North America. The segment's income fell to EUR -21.8 (-9.5) million due to greater planned expenditure on the long-term expansion of the vegetable business and lower earnings contributions from existing business operations (mainly spinach and bean seed). The segment's income includes effects from the purchase price allocation as part of company acquisitions totaling EUR -8.8 (-9.0) million.
Net sales in the Corporate Segment totaled EUR7.1 (7.2) million. They are mainly generated from KWS farms. Since all cross-segment costs for the KWS Group's central functions and research expenditure that cannot be allocated to the segments are charged to the Corporate Segment, its income is usually negative. The segment's income fell to EUR -96.0 (-82.6) million, in particular due to higher R&D expenditure.
*excluding exchange rate and portfolio effects
Forecast for fiscal year 2023/2024 increased (see ad-hoc release dated April 30, 2024)
Given the positive business performance in the first nine months and on the basis of KWS' continuing operations, the Executive Board expects net sales in fiscal 2023/2024 to increase by 6% to 8% year on year (adjusted for exchange rate and portfolio effects: 11% to 13%; previous year: EUR1,500 million; previous forecast: 3% to 5%) and anticipates an EBIT margin of 15% to 17% (including the non-recurring positive earnings contribution from the divestment of the Chinese corn business; previous forecast: 11% to 13%). The R&D intensity is expected to be around 20% (previous forecast 18% to 19%).
Nicolás Wielandt's Executive Board contract extended
The Supervisory Board of the personally liable partner (KWS SE) has extended Nicolás Wielandt's Executive Board contract, which was due to expire at the end of 2024, by five years with effect from July 1, 2024. Nicolás Wielandt has been a member of the Executive Board since 2022 and is responsible for the Corn Segment.
Conference Call for analysts and investors
A conference call & webcast for analysts and investors with Eva Kienle (CFO) will be held at 10:00am (CEST). All access information can be found here.
About KWS
KWS is one of the world's leading plant breeding companies. More than 5,000 employees* in over 70 countries generated net sales of around EUR1.8 billion in fiscal 2022/2023. A company with a tradition of family ownership, KWS has operated independently for over 165 years. It focuses on plant breeding and the production and sale of seed for corn, sugarbeet, cereals, vegetables, oilseed rape and sunflowers. KWS uses leading-edge plant breeding methods to continuously improve yield for farmers and plants' resistance to diseases, pests and abiotic stress. To that end, the company invested more than EUR300 million last fiscal year in research and development.
*Excluding seasonal workers
More information: www.kws.de. Follow us on Twitter® at https://twitter.com/KWS_Group.
Contact:
Peter Vogt Head of Investor Relations Phone: +49-30 816914-490 peter.vogt@kws.com
Sina Barnkothe Corporate Communications Phone: +49-5561 311-1783 sina.barnkothe@kws.com
sina.barnkothe@kws.com
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2024-05-14 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com
MORE TO FOLLOW) Dow Jones Newswires
May 14, 2024 01:00 ET (05:00 GMT)
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Grimsehlstraße 31
37555 Einbeck
Germany
Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1901853
End of News EQS News Service
===
1901853 2024-05-14 CET/CEST
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1901853&application_name=news
END) Dow Jones Newswires
May 14, 2024 01:00 ET (05:00 GMT)
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EQS-News: KWS SAAT SE & Co. KGaA / Key word(s): Quarterly / Interim Statement
KWS reports significant growth in sales and earnings for the first nine months of 2023/2024
2024-05-14 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
KWS reports significant growth in sales and earnings for the first nine months of 2023/2024
. Preliminary key figures confirmed as published on April 30, 2024
. Revenue up 10.4% to EUR1,360.4 (1,232.2) million (excluding FX effects: +18.4%)
. EBIT rises by 47.8% to EUR336.4 (227.6) million
. Sugarbeet segment with another strong performance thanks to sustainable solutions
. Sale of Chinese corn business completed with significant positive earnings contribution
. Nicolás Wielandt's Executive Board contract extended
"With an extremely strong sugarbeet season, we have laid the foundation for another successful 2023/2024 fiscal year
for KWS," commented Eva Kienle, Chief Financial Officer of KWS. "In addition, with the divestment of our corn
activities in China and South America, we are paving the way for our strategic objectives of increased focus on
plant-based foods and at the same time higher profitability."
Business development 9M 2023/2024
Following the agreement reached at the end of March 2024 to sell the South American corn business, the key figures for
the first nine months of 2023/2024 relate to KWS's continuing operations. The South American corn business will be
reported as a discontinued operation in KWS's financial reporting until the transaction is completed.
In the first nine months of fiscal year 2023/2024, the KWS Group's sales increased significantly by 10.4% to EUR1,360.4
(1,232.2) million. Negative currency effects, especially from Eastern European currencies, the Turkish lira and the US
dollar, had a negative impact on sales. On a comparable basis (excluding currency effects), sales increased by 18.4%.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 37.4% to EUR401.9 (292.4) million, while
earnings before interest and taxes (EBIT) rose by 47.8% to EUR336.4 (227.6) million. EBIT and EBITDA include a one-time
positive earnings contribution of approximately EUR30 million from the completed sale of the Chinese corn portfolio.
The financial result, on the other hand, declined significantly to EUR-24.7 (-3.2) million. Income taxes amounted to
EUR83.2 (57.0) million. This resulted in earnings after tax for continuing operations of EUR228.5 (167.3) million. Free
cash flow amounted to EUR-89.6 (-66.9) million due to seasonally higher trade receivables and higher inventories.
Overview of the key figures (for continuing activities)
in EUR million 9M 2023/24 9M 2022/23 +/- Net sales 1,360.4 1,232.2 10.4% EBITDA 401.9 292.4 37.4% EBIT 336.4 227.6 47.8% Net financial income/expenses -24.7 -3.2 >-100.0% Earnings before taxes 311.8 224.4 39.0% Income taxes 83.2 57.0 46.0 % Net income 228.5 167.3 36.6 % Earnings per share in EUR 6.90 5.10 36.6 %
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Business performance of the segments
The corn and sorghum business in Brazil and Argentina is no longer included in the management reporting for the Corn and Cereals Segments because of the intention to sell it. Comparative segment information has been adjusted retroactively.
The Corn Segment posted a decline in net sales by around 9% to EUR572.1 (629.4) million. Negative exchange rate effects, particularly from Eastern European currencies, the Turkish lira and the US dollar, meant that the change on a comparable basis* was -4%. In Europe, net sales after adjustment for exchange rate effects remained stable. However, our U.S. joint venture AgReliant recorded a decline in its business activities in a challenging environment and thus performed worse than expected. The segment's income rose to EUR82.7 (60.7) million and includes a positive earnings contribution of around EUR30 million from the completed divestment of the Chinese corn portfolio.
Net sales in the Sugarbeet Segment rose exceptionally sharply by around 25% to EUR687.6 (551.1) million in the period under review (on a comparable basis*: +38%). The strong increase in net sales resulted from double-digit growth in all main sugarbeet markets. In addition to positive market conditions for sugarbeet cultivation overall, the sustainable product innovations CONVISO® SMART and CR+ made a particular contribution to that and now account for around 56% (40%) of net sales. The success in this year's growing season once again underscores KWS' leading position in the sugarbeet seed market. The segment's income rose above-proportionately to EUR291.0 (194.7) million due to the improved product and price mix.
Net sales in the Cereals Segment, which generates the predominant share of its annual net sales in the first half of the year, rose by 9% to EUR250.9 (230.1) million, mainly due to growth in rye, oilseed rape and wheat seed. Allowing for negative exchange rate effects, particularly in Eastern Europe, the increase on a comparable basis* was even 12%. This growth was mainly achieved in the core markets Central and Northern Europe. The Brazilian sorghum business, which was previously included in the Cereals Segment, was reclassified to discontinued operations. Given the growth in net sales and an improved product mix, the segment posted an increase in income to EUR79.0 (69.8) million.
Net sales at the Vegetables Segment fell by 11% to EUR40.6 (45.7) million, mainly due to lower net sales in China and North America. The segment's income fell to EUR -21.8 (-9.5) million due to greater planned expenditure on the long-term expansion of the vegetable business and lower earnings contributions from existing business operations (mainly spinach and bean seed). The segment's income includes effects from the purchase price allocation as part of company acquisitions totaling EUR -8.8 (-9.0) million.
Net sales in the Corporate Segment totaled EUR7.1 (7.2) million. They are mainly generated from KWS farms. Since all cross-segment costs for the KWS Group's central functions and research expenditure that cannot be allocated to the segments are charged to the Corporate Segment, its income is usually negative. The segment's income fell to EUR -96.0 (-82.6) million, in particular due to higher R&D expenditure.
*excluding exchange rate and portfolio effects
Forecast for fiscal year 2023/2024 increased (see ad-hoc release dated April 30, 2024)
Given the positive business performance in the first nine months and on the basis of KWS' continuing operations, the Executive Board expects net sales in fiscal 2023/2024 to increase by 6% to 8% year on year (adjusted for exchange rate and portfolio effects: 11% to 13%; previous year: EUR1,500 million; previous forecast: 3% to 5%) and anticipates an EBIT margin of 15% to 17% (including the non-recurring positive earnings contribution from the divestment of the Chinese corn business; previous forecast: 11% to 13%). The R&D intensity is expected to be around 20% (previous forecast 18% to 19%).
Nicolás Wielandt's Executive Board contract extended
The Supervisory Board of the personally liable partner (KWS SE) has extended Nicolás Wielandt's Executive Board contract, which was due to expire at the end of 2024, by five years with effect from July 1, 2024. Nicolás Wielandt has been a member of the Executive Board since 2022 and is responsible for the Corn Segment.
Conference Call for analysts and investors
A conference call & webcast for analysts and investors with Eva Kienle (CFO) will be held at 10:00am (CEST). All access information can be found here.
About KWS
KWS is one of the world's leading plant breeding companies. More than 5,000 employees* in over 70 countries generated net sales of around EUR1.8 billion in fiscal 2022/2023. A company with a tradition of family ownership, KWS has operated independently for over 165 years. It focuses on plant breeding and the production and sale of seed for corn, sugarbeet, cereals, vegetables, oilseed rape and sunflowers. KWS uses leading-edge plant breeding methods to continuously improve yield for farmers and plants' resistance to diseases, pests and abiotic stress. To that end, the company invested more than EUR300 million last fiscal year in research and development.
*Excluding seasonal workers
More information: www.kws.de. Follow us on Twitter® at https://twitter.com/KWS_Group.
Contact:
Peter Vogt Head of Investor Relations Phone: +49-30 816914-490 peter.vogt@kws.com
Sina Barnkothe Corporate Communications Phone: +49-5561 311-1783 sina.barnkothe@kws.com
sina.barnkothe@kws.com
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2024-05-14 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com
MORE TO FOLLOW) Dow Jones Newswires
May 14, 2024 01:00 ET (05:00 GMT)
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Language: English Company: KWS SAAT SE & Co. KGaA
Grimsehlstraße 31
37555 Einbeck
Germany
Phone: +49 (0)5561 311-0 Fax: +49 (0)5561 311-322 E-mail: info@kws.com Internet: www.kws.de ISIN: DE0007074007 WKN: 707400 Indices: S-DAX Listed: Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin,
Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1901853
End of News EQS News Service
===
1901853 2024-05-14 CET/CEST
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1901853&application_name=news
END) Dow Jones Newswires
May 14, 2024 01:00 ET (05:00 GMT)
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
KWS SAAT KGAA INH O.N. | 707400 | Frankfurt | 59,700 | 28.05.24 08:20:00 | +0,500 | +0,84% | 0,000 | 0,000 | 59,700 | 59,200 |
