KWS has commenced the challenging 2024/2025 fiscal year with strong operational performance, particularly in its cereals business and early sugarbeet seed sales. “We’ve significantly enhanced our financial standing through the proceeds from selling our South American corn and sorghum operations,” stated Eva Kienle, CFO of KWS. “This solid foundation allows us to address future challenges while maintaining our position as a global leader in seed production.”
Business Highlights for Q1 2024/2025
Following the sale of its South American corn and sorghum business, KWS has adjusted its reporting to focus on continuing operations. The transaction, completed on July 31, 2024, contributed positively to the company’s performance and financial health.
- Net Sales: The Group’s net sales reached €248.6 million, a 18% increase compared to the previous year’s €209.9 million. This was driven primarily by early sugarbeet seed sales.
- Operating Performance:
- EBITDA improved to €–10.0 million from €–24.2 million.
- EBIT rose to €–37.4 million compared to €–46.4 million last year.
- Net Financial Position: Improved net financial income/expenses (€–17.3 million vs. €–22.4 million) and a higher free cash flow (€–66.0 million vs. €–143.7 million) underscore KWS’ improved financial health.
- Equity and Debt: The equity ratio increased to 55.1%, while net debt dropped significantly to €195.3 million from €702.0 million, aided by loan repayments and proceeds from the South American divestiture.
Segment Performance
- Corn Segment
- Sales: €12.2 million (+15%)
- Income: Negative at €–59.3 million, consistent with seasonal trends.
- Sugarbeet Segment
- Sales: €56.9 million (+135%) driven by early sales in Eastern Europe and North Africa.
- Income: Improved to €–16.0 million from €–35.7 million.
- Cereals Segment
- Sales: Stable at €165.2 million.
- Income: Slight increase to €72.0 million from €70.8 million.
- Vegetables Segment
- Sales: Increased to €12.5 million (+7.3%) due to higher bean seed sales.
- Income: Declined to €–13.2 million, reflecting higher R&D and amortization costs.
- Corporate Segment
- Sales: €2.8 million (+47%).
- Income: Negative at €–37.6 million, impacted by higher R&D expenditures.
Outlook for 2024/2025
KWS confirms its guidance for fiscal 2024/2025, expecting:
- Net sales growth of 2%–4% (excluding currency and portfolio effects).
- EBIT margin of 14%–16%.
- R&D intensity between 18% and 19%.
KWS continues to leverage its robust operational and financial position to drive innovation and reinforce its market leadership.
