Report on the first nine months of 2012/2013 - KWS grows in all product segments (2013-05-28)
Guidance confirmed for full fiscal year 2012/2013 – Net sales grow in the first nine months by 11.0% to €880.9 million and EBIT by 8.5% to €185.6 million – R&D budget increased again by 10%
KWS SAAT AG (ISIN: DE0007074007) posted growth in net sales in all product segments in the first nine months of fiscal 2012/2013 (ending June 30). Corn and cereals business recorded double-digit growth rates. KWS’ 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. On the strength of this gratifying trend, the company confirms its guidance for 2012/2013, which it had raised in February, despite a higher R&D budget.
Corn grows strongly – Net sales for cereals over the €100 million mark for the first time
In the first nine months of fiscal 2012/2013, KWS profited substantially from strong corn business in North and South America and from sugarbeet seed business in the U.S. Cereals business also developed very well, surpassing the €100 million net sales mark for the first time. Overall, net sales of the KWS Group rose by 11.0% to €880.9 million, while operating income (EBIT) increased by 8.5% to €185.6 million.
Of the individual segments, the Corn Segment still makes the strongest contribution to the Group’s net sales. The segment was bolstered by the positive performance of its new business operations in South America, further growth of the North American joint venture AgReliant and gains in market share in France. Net sales of corn seed rose by 13.0% to €524.2 million, while EBIT increased by 15.7% to €105.1 million. The segment’s income will fall in the fourth quarter for seasonal reasons.
In the Sugarbeet Segment, which also includes seed potato activities, reductions in cultivation areas resulting from the sugar price led to lower net sales in the EU 27 as well as in Russia and Ukraine. However, this effect was compensated for by gains in market share in North America. Net sales for the segment climbed by 5.3% to €247.5 million. EBIT was €76.8 million, on a par with the previous year.
Net sales in the Cereals Segment increased sharply by 19.8% to €104.8 million. This was boosted by the strong development of business in Germany, Poland and the UK. KWS’ cereals business is significantly influenced by sales of winter cereal varieties. Hybrid rye is the mainstay here, contributing more than 50% of net sales. The segment’s income rose in line with net sales to €31.9 million. However, income will fall by the end of the fiscal year, since only slight net sales from summer cereal varieties are generated, while the planned structural costs will still be incurred.
KWS confirms guidance – Gratifying performance in all segments
The KWS Group expects net sales to grow by just over 15% to €1,140 million for fiscal 2012/2013 as a whole. Operating income is expected to be €145 million, corresponding to an EBIT margin of 12.7%.
“In fiscal 2012/2013, we have again been able to successfully position our innovative product portfolio in Germany and abroad. In doing so we have expanded our market share in our key markets. Our new business operations in China and Brazil are also developing much better than planned, emphasizing our competitive strength,” said Chief Executive Officer Philip von dem Bussche.
Head of Investor Relations
KWS SAAT AG