Corporate | 26 February 2013 07:30
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KWS SAAT AG / Key word(s): Half Year Results
Einbeck, February 26, 2013
Report on the 1st half of 2012/2013
KWS SAAT AG (ISIN: DE0007074007) has confirmed the higher guidance it published on February 11, 2013, for the end of fiscal 2012/2013. Apart from positive performance in its cereals business, which is now essentially complete for the year, there are signs of higher demand for corn seed in particular. Cereals and corn record sharp growth The first half of fiscal 2012/2013 was impacted by high demand for cereal seed and launch of our business operations in Brazil. KWS' net sales increased year on year from EUR191.5 million to EUR206.3 million. Its operating income in the first half of the year is always negative for seasonal reasons and was EUR -59.1 million compared with EUR -31.2 million in the same period of the previous year. The sharp decline in EBIT is attributable not only to the special effects of the previous year but also to the planned expansion of research and development activities and distribution. KWS grew its net sales in the Corn Segment by 15.9% to EUR82.9 million in the first half of the fiscal year, with this growth coming from the Brazilian market. As usual for the season, the segment's income was negative and totaled EUR -44.3 million compared with EUR -33.1 million in the same period of the previous year. The planned expansion of distribution structures was mainly responsible for this sharp decline. KWS also posted a sharp increase in net sales of 21.0% to EUR94.5 million in its Cereals Segment . In particular, hybrid rye varieties were sold out. Accordingly, the segment's income improved significantly from EUR28.0 million to EUR37.2 million. Since the vast majority of cereals business is transacted in this period, the semi-annual figures are a good indicator of the results for the year as a whole.
By contrast, the performance of the
Sugarbeet Segment
in the first six months is not indicative of its performance for the year as whole, since sugarbeet is not sown until the spring. Net sales in the first half are due to early orders by our customers, which can vary greatly from year to year. Net sales at this segment were EUR25.5 million in the first six months and its income EUR -29.1 million compared with
Forecast: Another year of strong earnings After raising its guidance for fiscal 2012/2013 as a whole, the KWS Group anticipates an increase in consolidated net sales of just over 15% to EUR1.140 billion. On the strength of the increase in demand for corn and cereals that is already visible at this stage of the fiscal year, it will be possible to generate that growth in these segments of the company in particular. KWS now expects its operating income (EBIT) to reach the previous year's level of EUR140 million. Accordingly, an EBIT margin of just over 12% is anticipated. 'Our cereals business is going especially well, and we'll surpass the EUR100 million mark for net sales for the first time. We'll also reach that mark in our North American sugarbeet business – a success story written by our genetically improved varieties,' said Dr. Hagen Duenbostel. Contact:
Georg Folttmann
KWS SAAT AG
End of Corporate News 26.02.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| 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 | |
| End of News | DGAP News-Service |
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| 202268 26.02.2013 |