Business development by segment
Net sales in the Corn Segment rose sharply by 11.9% to €1,046.8 (935.4) million, in particular as a result of higher sales prices in the core markets of Brazil and Europe. However, the segment’s income fell to €45.8 (57.2) million. That was attributable to negative contributions to earnings from the joint ventures in North America and China, while earnings increased in Europe and Brazil. The segment’s EBIT margin fell accordingly from 6.1% to 4.4%.
Net sales in the Sugarbeet Segment rose sharply by 21.7% to €716.3 (588.4) million. The strong expansion of business is attributable to the market success of innovative KWS varieties (CONVISO® SMART and CR+). The segment’s income was €253.4 (195.0) million thanks to the positive net sales trend and was likewise significantly above the previous year’s figure. The Sugarbeet Segment’s EBIT margin improved to 35.4% (33.1%).
Net sales in the Cereals Segment increased by 19.1% to €257.8 (216.4) million, mainly due to buoyant growth in oilseed rape, wheat and rye seed. The segment’s income rose sharply to €40.1 (29.5) million on the back of the large growth in net sales and a more advantageous product mix, while the EBIT margin improved to 15.6% (13.6%).
Net sales in the Vegetables Segment increased by 21.5% to €66.0 (54.3) million. The growth is mainly attributable to stronger spinach and bean seed business. The segment’s income improved to € –11.8 (–18.5) million as a result of the positive course of business and lower effects from the purchase price allocation as part of company acquisitions. The segment’s income considers significant planned R&D expenditure for the establishment of breeding programs for new vegetables varieties.
Net sales in the Corporate Segment totaled €8.3 (8.3) million. They are mainly generated from KWS’ farms. Since all cross-segment costs for the KWS Group’s central functions and research expenditure that cannot be allocated to the segments are charged to the Corporate Segment, its income is usually negative. The segment’s income declined sharply to € –115.3 (–97.7) million due to higher expenditure on research and administration.
Forecasts for the 2023/2024 fiscal year
The KWS Group expects to grow its net sales by 3% to 5% (on a comparable basis, excluding exchange rate and portfolio effects) and to achieve an EBIT margin between 11% and 13%. The R&D intensity is expected to be in the range of 18% to 19%.
Planned appropriation of profits: Increase in the dividend to €0.90 (0.80) per share
In view of the company’s positive performance, the Executive and Supervisory Boards will propose a dividend of €0.90 (0.80) per share for fiscal year 2022/2023 to the Annual Shareholders’ Meeting on December 13, 2023. €29.7 (26.4) million would thus be distributed to KWS SAAT SE & Co. KGaA’s shareholders. That would correspond to a dividend payout ratio of 23.4% (24.5%), once again in line with the KWS Group’s earnings-oriented policy of paying a dividend of 20% to 25% of its net income.
Contracts with Executive Board members Eva Kienle (CFO) and Peter Hofmann extended
The Supervisory Board of the personally liable partner (KWS SE) has made a long-term extension of the contract with Chief Financial Officer Eva Kienle (56) until June 2029. The contract of Peter Hofmann (63) was extended by 15 months. Both contracts were due to end effective June 30, 2024.
“With the extension of Eva Kienle's contract, the Supervisory Board is reaffirming its high level of satisfaction with the Chief Financial Officer and is counting on continuity on the Executive Board in order to successfully support the transformation of KWS that has been initiated. In particular, in order to further advance the development of the vegetable business, we have asked Peter Hofmann to extend his contract until September 2025,” stated Philip von dem Bussche, Chairperson of the Supervisory Board. “We look forward to continuing our successful cooperation to the benefit of KWS.”
Eva Kienle has been a member of the Executive Board since 2013 and is responsible for Finance & Procurement, Controlling, Global Transaction Center, Legal Services & IP, Information Technology, Governance, Compliance & Risk Management and the KWS Digital Innovation Accelerator.
Peter Hofmann was appointed to the Executive Board in 2014 and is responsible for the company’s segments Sugarbeet, Vegetables, Cereals, Oilseed Rape, Special Crops & Organic Seeds and for Global Marketing & Communications.
Annual press conference / telephone conference for analysts and investors
The annual press conference with Dr. Felix Büchting (Spokesperson of the Executive Board) and Eva Kienle (CFO) will be held today in Frankfurt/Main starting at 11 a.m. on the occasion of the publication of the 2022/2023 financial statements.
A conference call with Eva Kienle for analysts and investors will take place at 14:00 CEST. Further details can be found here.
The Annual Report 2022/2023 is available for download at Investor relations - Corporate - KWS SAAT SE & Co. KGaA.