KWS SAAT AG continues to grow

(Einbeck, December 16, 2008/No.37/gf) The shareholders of KWS SAAT AG approved all items on the agenda at today’s Annual Shareholders’ Meeting by a large majority. The 2007/2008 annual financial statements were approved, a dividend of €1.70 (previous year: €1.40) was adopted, and the acts of the Executive Board and Supervisory Board were ratified. KWS – one of the leading international seed breeding companies, with operations in 70 countries – grew profitably again in the year under review and posted record net sales and earnings.


Net sales increased by 11% to €600 million and EBIT by 10% to €70 million

The KWS Group’s net sales increased by 11.4% to €599.1 million in fiscal 2007/2008. Corn, which is now the Group’s largest segment, grew more strongly than expected. “We have greatly increased our net sales in the corn segment, particularly in the strategic growth region of Southeastern Europe, but also in Germany and France,” said Philip von dem Bussche, Chairman of the Executive Board of KWS SAAT AG. Net sales in the sugarbeet segment were just under the figure for the previous year. Cereals business picked up well. Earnings before interest and taxes (EBIT) increased by 9.7% to €70.1 million. Net income was €54.6 million, from which a profit-linked dividend of €1.70 a share is to be distributed to shareholders. 

About fifteen critical shareholders and opponents of green genetic engineering also took part in this year’s Annual Shareholders’ Meeting and made numerous contributions to the discussion. The Executive Board of KWS made detailed statements regarding these contributions. In this connection, CEO Philip von dem Bussche emphasized the continuation of the dialogue begun in April 2008 between opponents of genetic engineering and KWS.

Research – a key factor in global competition

Extensive investments in research and development are planned at Einbeck in fiscal 2008/2009. Laboratory, office and greenhouse space will be built for around €20 million by the end of 2009 and 50 additional jobs will be created. “We have confidence in Germany as a place to do research,” said von dem Bussche. “KWS has been committed to progress in agriculture for more than 150 years. We conduct non-ideological and responsible research into all ways of ensuring a sustainable food supply.” As a medium-sized company with a long tradition of family ownership, the focus of KWS’ corporate strategy is to secure jobs and increase the company’s value for the long term.

Forecast for 2008/2009: continued growth

KWS will continue to increase its net sales in the current fiscal year 2008/2009. “We currently expect to grow net sales by around ten percent, with all our segments contributing,” said von dem Bussche. “Despite the higher cost of sales, KWS can match the previous year’s outstanding results as things now stand.”


Contact:
Georg Folttmann
KWS SAAT AG
Phone: +49 (0) 55 61 / 311-640
g.folttmann@kws.com