Net sales increased by 20% and by 23% on a like-for-like basis – Strong growth in South America – Guidance for the year confirmed
The KWS Group (ISIN: DE0007074007) increased its net sales by 20% to €220.8 million in the first quarter of fiscal 2021/2022. The KWS Group’s key figures for EBITDA, EBIT and net income for the period are typically negative in the first quarter, but they improved year over year. Due to the strongly seasonal nature of our business, the first quarter (July 1 to September 30) contributes only around 15% of KWS’ total net sales for the fiscal year.
“We’ve gotten off to a very dynamic start to the new fiscal year,” said Eva Kienle, Chief Financial Officer of KWS. “Apart from seasonal effects, the overall increase in demand for seed had a very positive impact on our business. We are optimistic about the further course of the year and confirm our guidance.”
Net sales in the period under review rose by 19.9% to €220.8 (184.1) million. On a like-for-like basis, the growth was 23.0%. The key figures for operating income and net income for the period improved year over year: EBITDA was € –19.7 (–27.3) million, while EBIT was € –42.1 (–50.5) million. A significantly improved gross profit was partly offset by increased functional costs for research and development, sales and administration.
Net financial income/expenses came to € –17.2 (–15.2) million. Income taxes totaled € –15.9 (–17.9) million. The result was net income for the period of € –43.3 (–47.9) million and earnings per share of € –1.31 (–1.45).
The free cash flow improved slightly to € –105.7 (–112.1) Million.
Txheej txheem cej luam ntawm cov nuj nqis tseem ceeb
hauv € lab | Qh1 2021/2022 | Qh1 2020/2021 | +/- | |
Cov muag muag | 220.8 | 184.1 | 19.9% | |
EBITDA | -19.7 | -27.3 | 27.8% | |
EBIT | -42.1 | -50.5 | 16.6% | |
Net nyiaj tau los/cov nuj nqis | -17.2 | -15.2 | -13.2% | |
Qhov tshwm sim ntawm cov dej num zoo tib yam | -59.2 | -65.6 | 9.8% | |
Cov nyiaj tau los cov se | -15.9 | -17.7 | 10.2% | |
Cov nyiaj khwv tau los | -43.3 | -47.9 | 9.6% | |
Nyiaj tau los ntawm kev faib tawm | hauv € | -1.31 | -1.45 | 9.7% |
Kev ua lag luam ntawm cov ntu
cov Pob kws ntu grew its net sales by around 52% to €71.2 (46.9) million in the first quarter. Argentina and Brazil, KWS’ main markets in South America, made a major contribution to that and we expanded business strongly in them. Apart from an earlier start to the winter sowing season, greater cultivation area and higher sales prices in Brazil, coupled with the continuing success of KWS’ innovative varieties, had a significant positive impact on net sales. In the regions of Europe and North America, the segment does not generate any significant net sales in the first quarter due to seasonal reasons. The segment’s income was € –40.1(–41.0) million.
cov Qab Zib Segment posts only low net sales in the first quarter due to seasonal reasons. The figure for the quarter under review was €18.3 (16.1) million. The revenue mainly comes from the sale of sugarbeet seed in Chile and North Africa. The segment’s income was € –32.4 million, on a par with the previous year’s figure of € –32.2 million.
Net muag hauv lub Cereals Segment rose by around 11% to €121.2 (109.1) million. The increase was mainly due to sharp expansion in rapeseed seed business (+56%). Apart from favorable market conditions, the improved performance of KWS’ variety portfolio was a further contributory factor. However, sales of rye seed fell by around 5%. The sharp increase in wheat prices has meant that growing rye has become economically disadvantageous in some regions by comparison. Wheat and barley seed business plays a minor role for KWS in the first quarter. The segment’s income rose sharply to €43.1 (36.0) Million.
Net muag ntawm lub Zaub Seg fell year over year to €10.2 (13.3) million. Continued high inventory levels at distributors mean there is still moderate demand for spinach and bean seed at present. Business is expected to pick up in the second half of the fiscal year. As a result of the course of business and further expansion of the Business Unit Vegetables, the segment’s income fell to € –4.5 (–3.3) million. Excluding effects from the purchase price allocation as part of company acquisitions, the segment’s income was €0.4 (3.1) million.
Net muag hauv lub Kev Lag Luam Segment totaled €2.3 (1.8) million. They are mainly generated from KWS farms. Since all cross-segment costs for the KWS Group’s central functions and basic research expenditure are charged to the Corporate Segment, its income is usually negative. At €–25.2 million, the segment’s income was slightly below the level of previous year (€–22.0 million).
Qhov txawv ntawm KWS Group cov lus tshaj tawm ntawm cov nyiaj tau los thiab ntu qhia tawm yog vim qhov yuav tsum tau ua ntawm International Financial Reporting Standards (IFRSs) thiab tau sau tseg rau cov cim tseem ceeb ntawm kev muag khoom thiab EBIT hauv cov lus sib tham hauv qab no:
Rooj sib tham
hauv € lab | theem | Reconciliation | KWS Group1 |
Cov muag muag | 223.2 | -2.5 | 220.8 |
EBIT | -59.1 | 17.1 | -42.1 |
1 Tsis suav nrog cov koom haum ntawm cov tuam txhab kev lag luam AGRELIANT GENETICS LLC., AGRELIANT GENETICS INC. thiab KENFENG - KWS SEEDS CO., LTD.
Guidance for the 2021/2022 fiscal year confirmed
The Executive Board still anticipates that the KWS Group will grow net sales by 5% to 7%. The EBIT margin is expected to be around 10% and in a range from 11% to 12% after adjustment for the noncash effects from purchase price allocations as part of company acquisitions. R&D intensity is expected to be in the range of 18% to 20%.
Annual General Meeting 2021 in virtual format
The Annual General Meeting of KWS SAAT SE & Co. KGaA will take place on December 2, 2021 from 11:00 a.m. (CET) in virtual format. The documents and further information on the Annual General Meeting are available at www.kws.com.