Corporate | 30 October 2008 08:00
KWS SAAT AG / Final Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- KWS SAAT AG again grows net sales and earnings Net sales rise by 11% to €600 million – Investments in market development pay off – EBIT up 10% – Net income increases by 43% – Dividend raised to €1.70 (Einbeck, October 30, 2008/No.33/gf) – KWS SAAT AG (ISIN: DE 0007074007), one of the world’s leading seed companies, again grew strongly and profitably in the financial year ended on June 30, 2008.The Group’s net sales increased by 11.4% to €599.1 million. Earnings before interest and taxes (EBIT) increased by 9.7% to €70.1 million. Net income – aided by a positive financial result – was €54.6 (38.2) million, from which a dividend of €1.70 (€1.40) a share is to be distributed. Earnings per share improved to €7.74 (€5.61). Corn business clearly exceeds expectations Corn, which is now the Group’s largest segment, grew more strongly than expected in fiscal 2007/2008. 'We have greatly increased our net sales in the corn segment, particularly in the strategic growth region of Southeastern Europe, but also in Germany and France,' said Philip von dem Bussche, Chairman of the Executive Board of KWS SAAT AG. 'Net sales in the sugarbeet segment were just under the figure for the previous year, as we largely compensated for the expected decline in net sales in the European Union with our sales of genetically improved seed in the U.S. Cereals business has picked up nicely.' Growth in Germany and abroad In terms of volumes, KWS grew almost equally strongly in Germany and abroad. Only the weaker dollar caused net sales in foreign countries expressed as a ratio of total sales to fall by one percent to 75%. At the previous year’s exchange rates, the KWS Group’s net sales would have been 4% higher. Cash and cash equivalents increase by two-thirds to €113 million The KWS Group’s great financial strength is also reflected in its net cash from operating activities, which increased by 46% to €75 million. The free cash flow was €57 million – more than double the previous year’s figure. Cash and cash equivalents increased by two-thirds to €113 million. 'With an equity ratio of nearly 60% and net cash of €106 million, KWS is solidly financed. That puts KWS in a good position to deal with turbulence in the financial markets,' remarked CFO Hagen Duenbostel. Employees are the foundation of the company’s success 2,856 (2,739) employees worked for the KWS Group worldwide in fiscal 2007/2008, 860 (777) of them at KWS SAAT AG. Solid training and the continuing development of junior staffers form the basis of KWS’ future. For many years, the company has trained young people in numbers in excess of what it itself needs. In the fiscal year just ended, 75 (72) apprentices and 10 (12) trainees were employed by KWS SAAT AG alone. Outlook: growth to continue KWS will continue to increase its net sales in the current fiscal year 2008/2009. 'We currently expect to grow net sales by up to 10%, with all our segments contributing,' said von dem Bussche. 'The higher cost of sales means it will be a considerable challenge to match the previous year’s outstanding results, but that is our goal.' As a medium-sized company with a long tradition of family ownership, the focus of KWS’ corporate strategy is to secure jobs and increase the company’s value for the long term. The product segments in detail:In € million (at 30 June) 2007/2008 Previous year Consolidated net sales 599.1 537.9 Sugarbeet 194.8 199.9 Corn 328.9 275.5 Cereals 67.4 54.5 Breeding & services 8.0 8.1 Consolidated operating income (EBIT) 70.1 63.9 Sugarbeet 28.1 35.1 Corn 23.2 13.3 Cereals 9.0 5.3 Breeding & services 9.8 10.1 Net income for the year (Group) 54.6 38.2 Operative cash flow 74.6 51.1The Annual Report 2007/2008 and the management presentations made at the press conference on October 30, 2008, in Hanover are available as of 10:00 a.m. on the same day at http://www.kws.com/ir. Contact: Cord Warnecke Phone: +49 (0)5561 / 311-622 E-mail: c.warnecke@kws.com 30.10.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: KWS SAAT AG Grimsehlstraße 31 37574 Einbeck Deutschland 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: Regulierter Markt in Frankfurt (Prime Standard), Hannover; Freiverkehr in Berlin, Hamburg, Düsseldorf, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------