Corporate | 25 November 2011 07:30


KWS SAAT AG: KWS gets off to a dynamic start in fiscal 2011/2012


KWS SAAT AG / Key word(s): Quarter Results

25.11.2011 / 07:30

Einbeck, November 25, 2011
No. 62 | gf

KWS gets off to a dynamic start in fiscal 2011/2012
Consolidated net sales rise to EUR93.1 million – Operating result improves slightly – Capital spending increased as planned

KWS SAAT AG (ISIN: DE0007074007), one of the leading international seed companies, has gotten off to a dynamic start in the new fiscal year 2011/2012 (ending June 30) and grown its net sales by just over 30% to EUR93.1 (71.1) million. Operating income improved by nearly 6% to EUR -22.6 (-24.0) million. Cereals business, which for seasonal reasons is one of the main contributors to net sales in the first quarter, was positive. Farmers sow primarily winter cereal and winter rapeseed varieties in this period. The first quarter usually accounts for only about 10% of the KWS Group’s net sales for the year as a whole. As usual at this time of the year, operating income is negative. Corn and sugarbeet, the main contributors to net sales, are not grown until the spring. KWS’ business performance in the third quarter (January to March) is therefore crucial to its success for the entire year.

Strong sales of hybrid rye
Sales of hybrid rye for the fall 2011 sowing season benefited from a continuing good price level. Sales of the other winter cereal varieties stabilized at a high level. The new QualityPlus ( seal for cereals was also successful: Seed with this brand name was completely sold out at the end of the quarter. Net sales in the Corn Segment in the first quarter come mainly from winter rapeseed. KWS posted slight growth in net sales here, too.

Number of employees and capital spending grow
In the first quarter, KWS increased its capital spending on property, plant and equipment to secure long-term growth to EUR17.4 (13.5) million, once again well above depreciation at EUR6.4 (5.8) million. These resources were used primarily for the acquisition of new breeding areas and buildings for our potato business in the Netherlands. The number of employees increased to 3,798 in this period. KWS plans to increase the group’s workforce by almost 10% over the previous year (3,560) by the end of this fiscal year.

Outlook: KWS expects growth with a double-digit return
Despite the planned increase in the R&D budget in the new fiscal year, the KWS Group’s target is again to post a double-digit EBIT margin. ‘We still anticipate net sales of almost EUR300 million for the Sugarbeet Segment, including potato activities, and of just over EUR500 million for the Corn Segment. Overall, we aim to generate net sales of around EUR910 million and achieve an EBIT margin of just over 11%,’ said Hagen Duenbostel, Chief Financial Officer of KWS SAAT AG, in giving the company’s forecast for fiscal year 2011/2012.

Contact:

Georg Folttmann
Head of Investor Relations
Tel. +49-5561-311-640
Fax +49-5561-311-510
georg.folttmann@kws.com

KWS SAAT AG
Grimsehlstr. 31
37555 Einbeck
www.kws.com



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Language: English
Company: KWS SAAT AG
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
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover; Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
147643  25.11.2011