DGAP-News: KWS SAAT AG: KWS surpasses growth and earnings targets in fiscal 2010/2011
(firmenpresse) - DGAP-News: KWS SAAT AG / Key word(s): Final Results/Final Results
KWS SAAT AG: KWS surpasses growth and earnings targets in fiscal
2010/2011
27.10.2011 / 07:30
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KWS surpasses growth and earnings targets in fiscal 2010/2011
Net sales increase by just over 13% to EUR855 million - Operating income
(EBIT) up by 42% to EUR117 million despite significantly higher R&D
expenditure - Dividend to be raised by EUR0.20 to EUR2.10 plus a bonus
payment of EUR0.20
(Einbeck, October 27, 2011/No. 56/gf) - KWS SAAT AG (ISIN: DE0007074007),
one of the leading international seed companies, clearly exceeded its
growth and earnings targets and continued its long tradition of profitable
business performance in fiscal 2010/2011 (ending June 30). The KWS Group's
net sales rose by 13.4% to EUR855.4 million, with all product segments
contributing to this success. Expansion of operational business and lower
allowances on receivables and inventories helped EBIT grow strongly by
41.5% to EUR116.6 million. Research&development expenditure rose by
EUR16.4 million to EUR113.5 million. Nevertheless, the already double-digit
EBIT return was increased to 13.6% (previous year: 10.9%). Net income for
the year was EUR72.9 million, up EUR21.4 million over the previous year. At
the Annual Shareholders' Meeting, the Executive and Supervisory Boards will
propose increasing the dividend by EUR0.20 to EUR2.10 per share and
distributing a bonus payment of EUR0.20 to let the shareholders of KWS SAAT
AG participate in the company's strong performance in 2010/2011.
Corn: The segment with highest net sales and income - Positive market
environment
All product segments developed very well in fiscal 2010/2011. The highest
net sales and income at the KWS Group was generated by business with corn
seed. Net sales rose by 14% to EUR471.1 million, while operating income
almost doubled to EUR62.0 million. 'Excellent variety performance let us
grow our market share in our key European regions,' said Philip von dem
Bussche, Chief Executive Officer of KWS SAAT AG.
Sugarbeet: High world market prices and growing market share in the EU 27
The Sugarbeet Segment benefited from the fact that world market prices for
sugar remained high and from a bigger market share in the EU 27. Despite
the fact that approval for the cultivation of Roundup Ready(R) sugarbeet in
the U.S. was given late, and then only subject to conditions, sales of
these genetically improved varieties were almost constant. Including potato
business, which was integrated in the Sugarbeet Segment effective April 1,
net sales at the segment increased by a total of 12.6% to EUR293.5 million,
of which potato activities accounted for approximately 10%. The segment's
income rose by 24.2% to EUR42.1 million.
The cereals business also developed well again, but did not reach the high
level of 2008. Net sales in this segment improved by almost 11% to EUR77.4
million and income by 36.2% to EUR14.3 million. Adjusted to account for the
move of potato activities to the Sugarbeet Segment, net sales at the
Breeding&Services Segment were EUR13.4 million. 'We increased our R&D
budget significantly again and, for the first time, invested more than
EUR100 million in enhancing our innovative strength,' said Chief Financial
Officer Dr. Hagen Duenbostel. R&D expenditure of EUR113.5 million (previous
year: EUR97.5 million) was not fully compensated for by additional internal
royalties, meaning the segment's income fell to EUR -1.8 million (previous
year: EUR6.3 million).
Net cash from operating activities rises sharply - Net liquidity above
EUR100 million mark
Duenbostel regards the KWS Group as having an extremely stable foundation.
'The significant increase in net income for the year resulted in a rise in
net cash from operating activities from EUR27.4 million to EUR101.2
million. Extensive investments totaling EUR52.4 million were made in seed
production. The overall result is a strong free cash flow of EUR48.8
million compared with EUR -28.0 million in the previous year.' On the
balance sheet date, cash and cash equivalents, including securities,
amounted to EUR146.9 (113.7) million. Minus financial borrowings, which
hardly increased year-on-year, net liquidity was thus EUR113.3 (81.4)
million. Despite currency losses on the balance sheet date, equity improved
by EUR37.3 million. The equity ratio rose again to 59% (previous year:
58%).
Forward-looking investments in research&development create jobs
Constant expenditure on research&development secures KWS' long-term
growth. Capital spending in the year under review was EUR113.5 million, and
a further 10% increase in the R&D budget is planned for 2011/2012. 'The
success of our R&D activities is ultimately reflected in the approval of
new varieties. We were awarded 296 new distribution approvals worldwide in
2010/2011,' noted Philip von dem Bussche.
These investments also secure new jobs long term. The number of employees
now working for the KWS Group in 70 countries has risen by almost 30% in
the past five years, for example. The workforce increased to an average of
3,560 in the year under review (previous year: 3,492). 'After stepping up
our research&development efforts considerably in Einbeck in the past
years, we also plan to keep the focus of our research activities in Germany
and continuously expand our research and breeding work,' said von dem
Bussche. 'However, internationalization at KWS has made it necessary for us
to reorganize our administration. We have reduced the burden on our
operating companies by establishing four Service Centers that pool
administrative tasks,' he added.
Outlook: Continuation of profitable growth with a double-digit EBIT margin
For fiscal 2011/2012, KWS sees good business opportunities in the Corn
Segment and expects its net sales to increase by up to 10%, above all on
the back of growth from the regions North America, France and Southeastern
Europe. In the Sugarbeet Segment, a reduction in area due to good harvests
cannot be ruled out. Including seed potato business, which will probably
contribute a volume of about EUR40 million, KWS expects net sales of around
EUR300 million in this segment. The 2011 cereal sowing season has gone well
thus far and will likely result in a slight rise in net sales.
In summary, Philip von dem Bussche said, 'Demand for seed remains high at
present, but we do not anticipate the same level of dynamic growth as in
fiscal year 2010/2011. We expect net sales at the KWS Group to rise by 5%
overall in fiscal 2011/2012. We will increase our R&D budget by
approximately 10%. This also includes additional expenses for developing
genetically improved traits for corn as part of our new research joint
venture with the French plant breeder Vilmorin. Sales and marketing
expenditure will also rise proportionately. Overall, we therefore
anticipate operating income (EBIT) of just over EUR100 million and a
double-digit EBIT margin.'
Contact:
Wolf-Gebhard von der Wense
Phone: +49 (0)5561 / 311-968 / w.vonderwense(at)kws.com
The 20010/2011 Annual Report can be downloaded from http://www.kws.com/ir
as of 7:30 a.m. on October 27, 2011.
End of Corporate News
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Language: English
Company: KWS SAAT AG
Grimsehlstraße 31
37555 Einbeck
Germany
Phone: +49 (0)5561 311-0
Fax: +49 (0)5561 311-322
E-mail: info(at)kws.com
Internet: www.kws.de
ISIN: DE0007074007
WKN: 707400
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover;
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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143668 27.10.2011
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