KWS sustains growth
Double-digit growth in the corn segment – Market position further consolidated –
Net income and dividend at last year’s levels
(Einbeck, December 2, 2004, No. 15/gf) Seed sales at KWS (ISIN: DE0007074007) increased again in fiscal 2003/2004 (year-end June 30). Consolidated sales rose by 4.6 percent to €443.7 (previous year: 424.3) million. Had it not been for the decline in the US dollar, this figure would even have been €15 million higher. In the past fiscal year, KWS again expanded its sales activities significantly in Southeast Europe and North America and further strengthened its breeding activities. Despite these additional measures, KWS posted net income of €28.3 million, just below the previous year’s €28.9 million. The dividend is to remain unchanged at €11.
"KWS was able to expand its market position in all product segments – with corn sales developing particularly nicely. This segment grew by more than 11% and accounted for 43% of our business volume," said Dr. Andreas J. Büchting, Chief Executive Office of KWS SAAT AG. The reasons behind this strong business, he said, were the high demand for new varieties and intensive cultivation of the markets in growth regions. "In 2004, we again obtained more than 230 approvals for new varieties – the result of intensive research from past years and a good gauge of our innovative strength," said the CEO of the world’s fifth-largest plant breeder. KWS achieved €316 (previous year: 295) million or 71 (70) % of its sales abroad. The company operates in 68 countries.
Solid financial structure
The Einbeck-based company reduced debt by €17 million to €52.2 million in the past fiscal year. The cash flow (according to DVFA/SG) was €48.7 (52.1) million, and the equity ratio rose to 57.5 (previous year: 52.5) %. Büchting described the capital structure as "stable and sufficient to fund future growth."
Corn segment posts double-digit growth
In the corn segment, KWS recorded a sharp rise in sales of 11% to €191 million. KWS was also able to consolidate its leading international position in the sugar beet arena. Negative currency effects and weather-related extra sales in the previous year meant that sugar beet sales dropped slightly, by 1.8%, to €193.1 million. Cereal sales rose by 6.3% to €52.7 million.
The individual business segments:
|
In millions of euros |
2003/2004 |
2002/2003 |
Change |
|
Sales (consolidated) |
443.7 |
424.3 |
+4.6% |
|
Sugar beet |
193.1 |
196.7 |
-1.8% |
|
Corn |
191.0 |
172.0 |
+11.1% |
|
Cereals |
52.7 |
49.6 |
+6.3% |
|
Breeding & services |
124.7 |
120.9 |
+3.1% |
|
Operating income (consolidated) |
47.6 |
50.0 |
-4.8% |
|
Sugar beet |
28.7 |
32.1 |
-10.6% |
|
Corn |
8.9 |
4.8 |
+85.4% |
|
Cereals |
2.3 |
1.6 |
+ 43.7% |
|
Breeding & services |
7.7 |
11.5 |
-33.0% |
|
Net income (consolidated) |
28.3 |
28.9 |
-2.1% |
Change in the shareholder structure
25% of KWS’ shares are being placed elsewhere under the lead management of HypoVereinsbank. Südzucker AG (around 10%) and HypoVereinsbank (15%) announced on November 26, 2004, that they would dispose of their stake in KWS. KWS welcomes the resultant increase in free-floating stock to around a third of shares.
Jobs created in Germany
KWS again increased its workforce in the past fiscal year, by 180 (+7.7%) to 2,516. Of this total, 1,212 people are employed in Germany, where 11 new jobs were created.
Positive outlook
KWS expects growth in sales and stable earnings again in fiscal 2004/2005. Its aim is to continue expanding its market position, especially in the corn segment and the regions of North America and South and Southeast Europe, and to grow faster than the competition.
The 2003/2004 Annual Report and the speeches held at the Annual Press Conference on December 2, 2004, in Hanover are available at http://www.kws.de.
Contact
Georg Folttmann
Phone: +49 (0)5561 / 311 – 640
Fax: +49 (0)5561 / 311 – 510
E-mail: g.folttmann@kws.de
