KWS begins the new fiscal year with growth (2010-11-26)
The KWS Group’s fall business was positive, showing slight growth in net sales in the Corn and Cereals Segments.
(Einbeck, November 26, 2010/No. 36/gf) – KWS SAAT AG (ISIN: DE0007074007), one of the leading international seed companies, has started the new fiscal year 2010/2011 by growing its net sales. In the first three months, from July to September, the company primarily sells winter cereal and winter rapeseed varieties, which are sown in the fall and normally account for about ten percent of annual net sales. Corn and sugarbeet, the largest contributors to net sales, are not sown until the spring. As a result, the third quarter (January – March) is crucial to KWS’ business performance. Consolidated net sales in the first quarter were €71.1 (65.3) million, up around 9% year-on-year. Operating income improved by almost 15% to € -24.0 (-28.1) million.
Corn continues to drive KWS’ growth
Almost 60% of net sales in the first quarter were generated in the Cereals Segment. “In the 2010 fall sowing season, KWS benefited from improved hybrid rye business and excellent business with wheat in the UK,” said Hagen Duenbostel, the Chief Financial Officer of KWS SAAT AG. Despite difficult weather conditions, net sales from rapeseed were stable year-on-year thanks to the increased contribution from hybrid varieties. “The Corn Segment will continue to drive our growth this year,” added Duenbostel. “We are also making advances in young markets, such as Argentina.” Net sales there are trending positively, he noted, adding that a quarter of the corn varieties sold in Argentina are genetically improved.
Workforce is growing steadily
KWS continues to make extensive investments to secure its long-term growth. In the first quarter, the company invested €13.5 (12.7) million in property, plant and equipment. It is thus showing capital expenditure well above quarter-related depreciation at €5.8 (5.1) million. This growth is also reflected in the increase in the headcount: At September 30, 2010, 3,513 people (3,286) were employed worldwide at KWS and its subsidiaries. “We have grown in just about all regions,” said Duenbostel. “We plan to increase the workforce to around 3,600 by the end of the fiscal year.”
Outlook: KWS intends to keep on growing
KWS intends to expand its R&D activities further and strive to maintain its good earnings situation and a double-digit return. “We expect the KWS Group to increase its net sales and income by approximately 5% for fiscal 2010/2011 as a whole,” said Duenbostel in giving his forecast for the current fiscal year.
Contact:
Georg Folttmann
Phone: +49 (0) 55 61 / 311-640
g.folttmann@kws.com
* The figures in parentheses are those for the previous year
