Business development by segment
Net sales at the Corn Segment fell in the first quarter of 2023/2024 by around 16% to €68.9 (82.1) million. This was mainly due to a decline in demand in the summer season in Brazil, which accounts for a low share of total annual net sales. In the regions of Europe and North America, no significant net sales were generated in the quarter under review due to seasonal reasons. Since the segment does not generate the major part of its annual net sales until the third quarter (January to March), the segment’s earnings were negative, as customary for the period under review, and totaled €–62.3 (–46.5) million.
Net sales at the Sugarbeet Segment, which posts only low sales volumes in the first quarter due to seasonal reasons, rose to €24.2 (20.1) million in the quarter under review. This increase is mainly attributable to earlier deliveries compared with the previous year. The segment’s income was €–35.1 (–34.4) million, on a par with the previous year.
Net sales at the Cereals Segment rose by around 5% year over year in the quarter under review to €163.1 (155.7) million; on a comparable basis*, the increase was around 9%. The increase in net sales is mainly attributable to stronger demand and higher sales prices for oilseed rape seed (€+9.9 million or +16%). Our product portfolio again performed impressively in national variety comparisons. Meanwhile, the rye seed business recorded a decline of €3.4 million in the first quarter due to seasonal fluctuations (–4% compared to the previous year). Net sales from other activities in the Cereals Segment were at the level of the previous year. The segment’s income rose to €71.5 (62.3) million on the back of its successful business performance.
Net sales at the Vegetables Segment rose by around 6% to €11.6 (10.9) million, mainly due to higher sales of spinach seed in North America. The segment’s income fell to €–6.4 (–2.6) million, in particular due to greater planned expenditure on expanding vegetable breeding.
Net sales at the Corporate Segment were €1.9 (1.5) 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 was €–32.7 million and thus down on the previous year’s figure of €–30.7 million, in particular due to planned higher administrative expenses and research costs.
*excluding exchange rate and portfolio effects
Outlook for the KWS Group for fiscal 2023/2024 confirmed
For the KWS Group, the Executive Board continues to expect sales growth of 3 to 5% (on a comparable basis, excluding currency and portfolio effects) with an EBIT margin of between 11 and 13%. The research & development quota should be in a range of 18 to 19%..