DGAP-News: KWS SAAT SE / Key word(s): Quarter Results
KWS SAAT SE: Stable growth despite tough market environment
28.05.2015 / 07:30
---------------------------------------------------------------------
Einbeck, May 28, 2015
No. 23 | ww
Stable growth despite tough market environment
Net sales in the first nine months increase by 6.9% year on year to
EUR777.8 million - Function costs increase as planned to strengthen
long-term growth - EBIT margin about 10.0%
KWS SAAT SE (ISIN: DE0007074007) increased its net sales in the first nine
months of fiscal 2014/2015 by 6.9% year on year to EUR777.8 million
(previous year: EUR727.4 million). The Corn and Sugarbeet Segments gained
market share in a tough economic environment thanks to strong variety
performance. In line with our long-term corporate strategy, the planned
expansion of our research and development (R&D) and distribution activities
in the first nine months resulted in higher function costs. Operating
income (EBIT) was therefore down from the previous year at EUR140.1 (145.8)
million.
At the same time we continued our extensive capital spending program aimed
at ensuring our future growth. Capital spending on property, plant and
equipment and intangible assets increased sharply year on year and was
EUR95.3 (37.2) million after nine months. Apart from expansion of R&D and
office capacities at Einbeck, a new corn processing plant in Serbia was
completed. "This is a logical step in the implementation of our long-term
business strategy and strengthens our position in the key growth markets of
Southeastern and Eastern Europe," said Hagen Duenbostel, CEO of KWS SAAT
SE. KWS acquired the remaining 51% stake in the French joint venture
SOCIETE DE MARTINVAL S.A. (MOMONT) last fall.
Renaming of the company completed
The conversion of KWS SAAT AG into a European Stock Corporation ("Societas
Europaea") as adopted by the Shareholders' Meeting in December 2014 was
entered in the commercial register in April 2015 and thus became legally
effective. The company now operates under the name KWS SAAT SE. The
shareholders of KWS SAAT AG are now shareholders of KWS SAAT SE. The name
under which the shares are listed was changed, but this will have no effect
on trading of the shares on the stock market. The change in legal form and
the related establishment of a European Employee Committee reflect our
comprehensive business activities in Europe.
All product segments grow their net sales
In an environment that is still characterized by low selling prices for the
farmer and slight declines in cultivation area in Europe, we were able to
grow net sales at the Corn Segment by 6.3% to EUR596.9 (561.3) million. In
North America, net sales of our joint venture AGRELIANT increased, although
cultivation area is expected to remain stable. This was aided by the
appreciation in the US dollar during the year, which more than compensated
for the negative effects from depreciation of the Ukrainian hryvnia and the
Russian ruble. We again recorded an increase in net sales in South America.
However, the segment's income was clearly lower compared with the same
period of the previous year, mainly as a result of the planned increase in
function costs for research and development and distribution. It was
EUR87.8 (103.4) million after the first nine months of the current fiscal
year.
KWS sugarbeet varieties currently occupy leading positions in terms of
performance in all major markets, enabling us to gain share in just about
all markets in the Sugarbeet Segment, despite difficult conditions. We
again increased our seed sales in North America and Turkey. However, sales
in our seed potato business were below the previous year. Net sales for the
Sugarbeet Segment were higher year on year at EUR288.6 (259.2) million. Its
income was EUR88.6 (75.6) million.
Net sales at the Cereals Segment after the third quarter were slightly up
year on year at EUR98.2 (97.2) million. The course of business was impacted
by the at times sharp differences in producer prices for wheat and rye.
Cultivation area for hybrid rye declined slightly, which had a negative
effect on the segment's income. In addition, expenditure on distribution
and research and development increased, meaning the segment's income was
below the level of the previous year at EUR20.9 (25.4) million.
The Corporate Segment posts cross-segment costs and research expenditures
with long planning timescales. On the other hand, it obtains net sales in
the single-digit million range from our farming activities. Its income is
therefore negative by virtue of its structure. Income has developed as
planned in the current fiscal year and was EUR -40.5 (-36.7) million in the
first three quarters of 2014/2015.
Growth targets confirmed
"We are confident about achieving our annual targets for the KWS Group
despite new challenges in the market environment," summed up Eva Kienle,
CFO of KWS SAAT SE. Expectations for the Corn Segment have been lowered
slightly, but that will be offset by the gratifying business performance at
the Sugarbeet Segment. The KWS Group expects to grow its net sales by just
over 7% to about EUR1.27 billion (previous year: EUR1,178 million) and post
an EBIT margin of about 10% in fiscal 2014/2015. The R&D intensity is
expected to be 13% and the selling expense ratio just over 18%.
The full report on our business performance in the first three quarters of
2014/2015 can be downloaded in the Internet at www.kws.com/ir.
Contact:
Wolf-Gebhard von der Wense
Head of Investor Relations
Phone: +49 (0)5561 311 968
Mobile: +49 (0)151 18 85 56 73
investor.relations@kws.com
KWS SAAT SE
www.kws.com
---------------------------------------------------------------------
28.05.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP 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 SE
GrimsehlstraÃe 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: Regulated Market in Frankfurt (Prime Standard), Hanover;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Munich, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------
362365 28.05.2015
DGAP-News: KWS SAAT SE: Stable growth despite tough market environment
| Source: EQS Group AG