Corporate | 24 May 2012 07:30
KWS SAAT AG / Key word(s): Quarter Results
24.05.2012 / 07:30
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Einbeck, May 24, 2012
No. 24 | gf
KWS' quarterly numbers confirm outstanding spring business
Double-digit growth in all segments in the key third quarter - Strong
business in North America boosts corn and sugarbeet sales
KWS SAAT AG (ISIN: DE0007074007), one of the world's leading seed
companies, posted double-digit growth rates across all segments in the
first nine months of fiscal 2011/2012 (ending June 30). Net sales at the
KWS Group increased by 21% to EUR793.7 (previous year: 656.2) million.
Operating income (EBIT) improved by EUR34.6 million or just over 25% to
EUR171.0 (136.4) million. The company's third-quarter performance is
crucial to its success in the year as a whole, since the main contributors
to its net sales - corn and sugarbeet - are sown in this period. There was
particularly strong demand for KWS' high-yielding corn varieties in the
2012 spring sowing season. In the view of the company, the upward revision
of its guidance in April has been borne out by the latest quarterly
figures.
Dynamic growth in the corn segment continues - sugarbeet sales increase
sharply
On the back of strong business in North America and increased sales in
France, Southeastern Europe and Russia, net sales in the Corn Segment grew
by 22% to EUR463.8 (380.4) million. Net sales for the Sugarbeet Segment, in
which KWS' seed potato business has been fully integrated for the first
time, rose to EUR235.0 (198.4) million. The mainstay here was once again
business in North America, which is based almost wholly on
herbicide-tolerant varieties. While KWS maintained its strong position in
its home market of Germany, it significantly expanded business in Russia
and Ukraine.
Cereals Segment profits from hybrid rye
The Cereals Segment posted revenue of EUR87.5 (71.8) million, helped by a
25% increase in sales of hybrid rye. Because the latter is very
winter-hardy, it did not suffer frost damage while, in contrast, long
spells of black frost with extremely low temperatures resulted in regional
failures of the winter wheat and winter barley harvests.
KWS increases workforce and capital spending
The number of employees in the KWS Group increased across all regions. The
Group expects the workforce to total 3,850 at the end of the fiscal year,
an increase of 8%. Apart from the higher headcount, capital spending, which
was increased as planned, will secure KWS' long-term growth. Investments in
the first nine months rose to EUR33.8 (30.3) million, well in excess of
depreciation at EUR19.9 (17.7) million.
Outlook for fiscal 2011/2012
KWS expects to post net sales of EUR980 million and operating income of
around EUR140 million in fiscal 2011/2012, giving an EBIT margin of just
over 14%. 'At the same time, we have increased our product development
investments as planned by 8 million to 122 million euros to further improve
our competitiveness,' stressed Dr. Hagen Duenbostel, Chief Financial
Officer of KWS SAAT AG.
Contact:
Georg Folttmann
Head of Investor Relations
Phone: +49-5561-311-640
Fax: +49-5561-311-510
georg.folttmann@kws.com
KWS SAAT AG
Grimsehlstraße 31
37555 Einbeck, Germany
www.kws.com
End of Corporate News
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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
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
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