Business performance of the segments
The Corn Segment grew its net sales by around 6% to €46.9 (44.4) million in the first quarter despite negative exchange rate effects. In main markets in South America, Argentina and Brazil, business expanded significantly in them (in terms of local currency). However, net sales were impacted heavily by negative exchange rate effects from the fall in value of the Argentinean peso and the Brazilian real. 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 € –41.0 (–37.5) million.
The Sugarbeet Segment posts only low net sales in the first quarter due to seasonal reasons. Net sales in the first three months were €16.1 million and thus above the level of the previous year (€10.6 million). The revenue mainly comes from the sale of sugarbeet seed in Chile and North Africa. The segment’s income fell to € –32.2 (€ –28.5) million
Net sales in the Cereals Segment in the first quarter declined by around 3% to €109.1 (112.0) million, but were at the level of the previous year after adjustment for exchange rate effects. The level of hybrid rye seed business varied in our sales regions, and net sales from it were around 5% below the same period of the previous year. However, the growth prospects for hybrid rye remain positive. Winter rapeseed business grew by around 5% on the back of improved conditions in the sowing season in a number of European countries. The segment’s income was €36.0 million and thus at the level of the previous year (€36.6 million).
Net sales in the Vegetables Segment fell significantly to € 13.3 (27.0) million compared to the same quarter of the previous year, which showed a strong sales development. In addition, the food service market segment saw lower demand in connection with the
COVID-19 pandemic. As a result of the course of business, EBITDA fell to € 2.4 (8.7) million and EBIT (including non-cash effects as part of the purchase price allocation for the acquisition of Pop Vriend Seeds) also fell to € –3.3 (3.0) million.
Net sales in the Corporate Segment totaled €1.8 (1.6) 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. The segment’s income improved to € –22.0 (–30.9) million, mainly due to positive, exchange rate-related measurement effects from financial instr
The difference from the KWS Group’s statement of comprehensive income and segment reporting is due to the requirements of the International Financial Reporting Standards (IFRSs) and is summarized for the key indicators of net sales and EBIT in the reconciliation table below:
