24.11.2015
KWS SAAT SE DE0007074007
DGAP-News: KWS grows in a difficult market environment
DGAP-News: KWS SAAT SE / Key word(s): Quarter Results
KWS grows in a difficult market environment
24.11.2015 / 07:30
---------------------------------------------------------------------
Einbeck, November 24, 2015
No. 55 | ww
KWS grows in a difficult market environment
Revenue increased in the first quarter - Quarterly earnings (EBIT) mainly
impacted by exchange rate effects - An EBIT margin of at least 10% expected
for the fiscal year as a whole
KWS SAAT SE (ISIN: DE0007074007) and its international subsidiaries have
grown net sales by 11.3% to EUR 117.2 million in the opening quarter of
fiscal 2015/2016. The currencies of countries in some agricultural regions
that are important for KWS' first quarter were devalued or exhibited sharp
fluctuations against the euro, which had a negative impact on operating
income (EBIT) in the first quarter. Nevertheless, KWS assumes that it will
be able to achieve its long-term goal of an EBIT margin of at least 10% at
the end of the fiscal year.
"Despite the still demanding market environment, we will continue to pursue
our long-term corporate strategy in unchanged form, particularly the
continuous development of new, high-yield varietal products," said Hagen
Duenbostel, Chief Executive Officer of KWS SAAT SE. "For that reason we
will continue our investments as planned in new production facilities and
research and development." Expenditure on research and development
increased as planned in the first quarter by 8.7% to EUR 45.8 (42.1)
million. Along with that, spending to strengthen the company's distribution
structures was increased by 13.6% to EUR 36.7 (32.3) million).
Administrative expenses increased slightly to EUR 18.0 (17.2) million.
EBIT, which is typically negative in the first quarter, was EUR -47.0
(-35.1) million. Negative exchange rate effects and the planned increase in
expenditure on distribution and on research and development were the main
reasons for the year-on-year decline.
Total capital expenditure in the first quarter was EUR 15.7 (56.2) million.
It was sharply higher in the previous year due to the acquisition of the
remaining shares in the French cereal breeder SOCIETÉ DE MARTINVAL S.A
(MOMONT).
Segment reporting: Corn and Sugarbeet post positive net sales performance
The Corn Segment increased its net sales by 5.2% to EUR 50.3 (47.8) million
in the first quarter. Revenue in the first quarter is generated in
particular from corn and soybean in South America and from winter rapeseed
business in Europe. Net sales from corn seed business in South America
remained at the level of the previous year, despite low cultivation area
and negative exchange rate trends. In contrast, winter rapeseed business in
Europe increased. Allowing for negative exchange rate influences, the
segment's income (EBIT) in the first quarter was EUR -45.2 (-34.6) million.
It is usually negative at this stage of the fiscal year, since seasonal
factors mean that the segment's seed business in the first quarter accounts
for only a small share of its annual net sales.
Net sales at the Sugarbeet Segment rose overall by 70.7% to EUR 12.8 (7.5)
million. However, the first quarter is not a reliable indicator for the
year as a whole; in addition, part of the increase in net sales was due to
the sale of a production plant to Japan. Net sales are reduced by
expenditures distributed evenly over the year, meaning that the segment's
income decreased to EUR -16.4 (-15.3) million.
Net sales in the Cereals Segment were EUR 56.4 million and thus at the
Level of the previous year (EUR 56.2 million). The situation on the
commodities markets for cereals was still difficult at the time of the
sowing season. The price of rye remained far weaker than the already low
price of wheat. There were declines in net sales of hybrid rye, although
they were compensated for by the previous year's takeover of MOMONT. The
planned increases in expenditure on research and development and on
Distribution were the main reasons for the fall in the segment's income
(EBIT) in the first quarter to EUR 15.7 (19.6) million.
All cross-segment costs, such as expenditure for all central functions at
the KWS Group and long-term research projects, are carried in the Corporate
Segment. Its income is therefore always negative. Its EBIT was EUR -16.8
(-17.6) million after the first quarter.
Forecast: Sustainable earnings situation expected for 2015/2016
"Our strategy remains unchanged. Apart from expanding our business
activities in growth markets, we will not lose sight of strengthening KWS'
position in our core markets," noted Eva Kienle, Chief Financial Officer of
KWS SAAT SE. "We're sticking to our long-term objective of an EBIT margin
of at least 10%." Expansion of business activities requires further
capital-spending projects. A particular focus of that will be on expanding
and modernizing production plants in the growth markets of Eastern and
Southeastern Europe and in the U.S. and on expanding research and
development facilities at several locations. All in all, the Executive
Board currently expects net sales to grow between 5% and 10% and an EBIT
margin of at least 10% at the end of fiscal year 2015/2016. The R&D
intensity is expected to be around 17%.
Expectations for fiscal 2015/2016
Forecast in EUR millions Net sales EBIT margin for 2015/2016 for 2015/2016 (e) (e) According to IFRS statement of 1,035 - 1,085 At least 10% comprehensive incomeThe full report for the first quarter of 2015/2016 can be downloaded from the Internet at www.kws.com/ir. Contact: Wolf-Gebhard von der Wense Head of Investor Relations Phone +49-5561-311-968 Mobile +49-151-18855673 [email protected] KWS SAAT SE http://www.kws.com --------------------------------------------------------------------- 24.11.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: KWS SAAT SE Grimsehlstraße 31 37555 Einbeck Germany Phone: +49 (0)5561 311-0 Fax: +49 (0)5561 311-322 E-mail: [email protected] Internet: www.kws.de ISIN: DE0007074007 WKN: 707400 Indices: S-DAX Listed: Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart End of News DGAP News Service --------------------------------------------------------------------- 415591 24.11.2015
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
KWS SAAT SE ISIN: DE0007074007 können Sie bei EQS abrufen
Agrar , 707400 , KWS , XETR:KWS