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14.05.2024 07:01:00 - dpa-AFX: EQS-News: KWS reports significant growth in sales and earnings for the first nine months of 2023/2024 (english)
KWS reports significant growth in sales and earnings for the first nine
months of 2023/2024
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
14.05.2024 / 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
* EBIT rises by 47.8% to EUR336.4 (227.6) million
* 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
---------------------------------------------------------------------------
14.05.2024 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
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1901853 14.05.2024 CET/CEST
months of 2023/2024
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
14.05.2024 / 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 %
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
---------------------------------------------------------------------------
14.05.2024 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
---------------------------------------------------------------------------
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
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1901853 14.05.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
KWS SAAT KGAA INH O.N. | 707400 | Xetra | 57,600 | 29.05.24 17:36:19 | -1,800 | -3,03% | 0,000 | 0,000 | 59,400 | 59,400 |
