Corporate | 29 October 2009 08:00
KWS SAAT AG / Final Results/Final Results 29.10.2009 Dissemination 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 continues to grow in tough economic times Net sales rise by 20 % to EUR717 million - KWS grows in all segments thanks to innovative varieties - EBIT up 11 % to EUR78 million - Dividend increased to EUR1.80 (Einbeck, October 29, 2009/No.39/gf) - KWS SAAT AG (ISIN: DE0007074007), one of the world's leading seed companies, again grew profitably in the financial year ended on June 30, 2009, despite the global financial crisis. Consolidated net sales increased by 19.7 % to EUR717.2 million. Earnings before interest and taxes (EBIT) rose by 11.1 % to EUR77.9 million, less than the increase in net sales as a result of higher production costs for seed multiplication. Net income for the year was impacted by a lower figure for net financial income/expenses and a higher tax rate, due to the fact that the previous year saw higher financial income from a non-recurring tax-free profit from disposals. The KWS Group's net income for the year fell to EUR50.1 (54.6) million. Shareholders will participate in these good earnings through a dividend of EUR1.80 per share, an increase of EUR0.10. Earnings per share were EUR6.98 (EUR7.74). Net corn sales increased for the tenth year in a row Demand for high-quality, certified seed from KWS remained high, despite the global slump in prices for agricultural raw materials. Sales in what is now the largest segment, corn, again grew strongly. Growing demand for bioenergy also contributed to this. 'Particularly our activities in Germany, France and Northern Europe and sales of genetically modified varieties in North America contributed to this gratifying growth in net sales,' said Hagen Duenbostel, Chief Financial Officer of KWS SAAT AG. 'Business with sugarbeet seed surpassed our expectations. In the U.S., we continued the success story of our herbicide-tolerant Roundup Ready(R) sugarbeet in the second year after its launch. The strong increase in net sales in the cereal segment is primarily attributable to very good hybrid rye sales.' Great financial strength and solid equity base The KWS Group's financial strength continued to grow. Net cash from operating activities increased by EUR7.4 million to EUR82.0 million. Following record net cash used in investing activities of EUR59.4 (EUR18.1) million, KWS posted a free cash flow of EUR22.6 (56.5) million. 'We will continue to make large investments in research and development to expand our market position and to secure organic growth long term,' said Duenbostel. Cash and cash equivalents rose by EUR12.7 million to EUR125.6 million. Equity increased by EUR36.5 million as a result of the good profit. Duenbostel noted, 'We are still solidly financed with an equity ratio of almost 58 %.' First prize for family-friendly KWS KWS has selectively created new, high-quality jobs through large investments. The number of people employed worldwide by the KWS Group in fiscal year 2008/2009 increased by just over 10 % to 3,215 (2,856), of whom 913 (860) were at KWS SAAT AG. The German Minister of Family Affairs Ursula von der Leyen bestowed the 'Family-Friendly Business' award on KWS in June 2009. Outlook: Continuing organic growth KWS aims to continue its organic growth in the current fiscal year 2009/2010. 'With continuing moderate growth in net sales, we intend to again achieve the good operating income of the past fiscal year. This growth is mainly expected from the corn segment. While we will probably not be able to achieve the high level of net sales and income of the past year in the cereals business, we expect stable sugarbeet business. We will hire a large number of new employees for our extensive R&D projects, mainly at headquarters in Einbeck,' said Duenbostel in summing up his forecast for the current fiscal year, 2009/2010. The product segments in detail:In EUR million (at 30 June) 2008/2009 Previous year Consolidated net sales 717.2 599.1 Sugarbeet 228.0 194.8 Corn 381.5 328.9 Cereals 84.3 67.4 Breeding & services 23.4 8.0 Consolidated operating income (EBIT) 77.9 70.1 Sugarbeet 23.2 28.1 Corn 25.2 23.2 Cereals 12.0 9.0 Breeding & services 17.5 9.8 Net income for the year (Group) 50.1 54.6 Operative cash flow 82.0 74.6The Annual Report 2008/2009 and the management presentations made at the press conference on October 29, 2009, in Hanover are available as of 10:00 a.m. on the same day at http://www.kws.de/ir. Contact: Dr. Henning von der Ohe Phone: +49 (0)5561 / 311-245 h.vonderohe@kws.com 29.10.2009 Financial News transmitted by DGAP --------------------------------------------------------------------------- Language: English Company: 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, Düsseldorf, München, Hamburg, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------