• Net sales on previous year's level despite lower acreage 
• Gross margin increases to 63.4% (62.5%) due to improved product mix
• Change in other key earnings figures impacted by one-off effects; adjusted EBIT margin reaches 21.2% (22.7%)
• Sugarbeet business again with growth and high profitability due to the success of sustainable product innovations
• Free cash flow significantly improved – net debt decreases to 0.5x EBITDA
• Annual forecasts for the 2024/2025 fiscal year specified

"Considering the noticeably lower acreage for corn and sugarbeet, our business developed robustly in the first nine months of 2024/2025. Our strong variety portfolio enables us to successfully navigate through the current phase of weaker conditions in the agricultural sector and to maintain our operating profitability," commented Dr. Jörn Andreas, CFO of KWS. "With our strong balance sheet and consistently high investments in our product pipeline, we are well positioned to seize market opportunities in the future."

Business development in the first nine months 2024/2025

Unless otherwise stated, the following key figures relate to KWS' continuing operations following the sale of the South American corn and sorghum business. The transaction was completed on 31 July 2024. The South American corn and sorghum business is reported as a discontinued operation, and the prior-year figures have been adjusted accordingly.

In the first nine months of fiscal year 2024/2025, the KWS Group's net sales were on a par with the previous year at €1,344.3 (1,360.4) million, despite a noticeably lower acreage. Exchange rate effects had a slightly negative impact of –0.6% overall.

The KWS Group's key operating income figures were impacted by one-off effects and recorded a significant year-on-year decline. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 10.2% to €360.8 (401.9) million and earnings before interest and taxes (EBIT) by 16.1% to €282.1 (336.4) million.

The decline is attributable, among other things, to the divestment of the Chinese corn portfolio in the prior-year period, which yielded a positive earnings contribution of around €30 million, and to the amortization of the residual carrying amount of the "Pop Vriend" brand (Vegetables segment) by an amount of €10.4 (2.2) million in the reporting period. By contrast, the reversal of a provision for VAT risks (sugarbeet segment) totaling € 8.0 million led to a positive one-off effect in the reporting period. Adjusted for the aforementioned effects, the EBIT margin remained at a high level of 21.2% (22.7%). 

Thanks to positive portfolio mix effects, gross profit reached the previous year’s level, while the gross margin improved slightly to 63.4% (62.5%). This result was offset by higher general administrative expenses. Adjusted for the one-off effect of the “Pop Vriend” brand amortization, selling expenses remained stable. In addition, KWS continued to invest in research & development to strengthen its future product pipeline, meaning that the related expenses rose significantly as planned.

Net financial result improved sharply to € –11.7 (–24.7) million. This was mainly due to a better interest result of €–6.4m (–17.5m) resulting from a significant reduction in net debt.

Income taxes amounted to €67.7 (83.2) million. This resulted in earnings after tax from continuing operations of 202.8 (228.5) million or € 6.15 (6.93) per share. Considering the discontinued operation’s result of €102.1m (–33.1m) from the sale of the South American corn and sorghum business, earnings per share rose significantly to €9.24m (5.92).

Free cash flow from continuing operations – seasonally negative – improved significantly to €– 3.9 (–89.6) million, mainly due to a lower build-up of working capital. Free cash flow from discontinued operations rose to €270.2 (–12.2) million as a result of the sale of the South American corn and sorghum business.

The equity ratio rose to 58.1% (43.5%) while total assets amounted to €2,950.7 million as of March 31, 2025 (March 31, 2024: €3,349.5 million). Net debt improved significantly to €179.2 (552.8) million.

Business development by segment

Sugarbeet Segment

Despite high comparative figures and a significant reduction in acreage in some regions (expected decline of around 7% in global sugarbeet acreage in 2025), the Sugarbeet Segment grew its net sales slightly to €693.2 (687.6) million. This equates to an increase of 1.5% on a comparable basis*. In particular, the strong market success of our sustainable product innovations CONVISO® SMART and CR+ contributed to this positive trend, accounting for 57% (56%) of net sales. With this year’s launch of unique combination varieties (CONVISO® SMART combined with CR+) in several European markets, KWS is further expanding its innovation leadership in sugarbeet seed and strengthening the segment’s future growth. The segment’s income rose to €309.0 (291.0) million due to an improved product mix and a positive one-off effect (reversal of a provision for VAT risks totaling €8.0 million).

Corn Segment

In a challenging market environment, net sales in the Corn Segment fell by 3.3% to €553.2 (572.1) million (on a comparable basis*: –2.9%). This was mainly attributable to an appreciable decline in acreage in important European markets as a result of various factors, such as low market prices for corn. For the current growing season in Europe, KWS expects a decline in acreage of approximately 3% compared with the previous year. However, the North American joint venture AgReliant reported pleasing net sales in corn business, with higher sales volumes and selling prices. The segment’s income was impacted by the operating performance and a positive earnings contribution of around €30 million from divestment of the Chinese corn portfolio in the same period of the previous year. Excluding this special effect, its income fell to €40.0 (52.7) million. The annual forecast for the Corn Segment has been adjusted based on the business performance in the period under review (see the Forecast Report on page 11).

Cereals Segment

Net sales in the Cereals Segment, which generates the predominant share of its annual net sales in the first half of the year, fell as expected to €243.3 (250.9) million. This equates to a decline of 3.1% on a comparable basis*. KWS’ oilseed rape and wheat business remained at the previous year’s level, while net sales of rye and barley seed declined. Net sales from the other activities in the Cereals Segment remained largely unchanged. The segment’s income was €69.4 million and thus, as expected, below the previous year’s figure of €79.0 million.

Vegetables Segment

The Vegetables Segment posted a significant increase in net sales of 12.1% to €45.5 (40.6) million, mainly due to a higher business volume with spinach seed in North America, which generates above-average profitability. The segment’s income declined to € –32.4 (–21.8) million due to planned expenditure on expanding vegetable breeding and higher amortization of intangible assets totaling €17.0 (8.8) million from the acquisition of Pop Vriend Seeds. The increase in depreciation and amortization is attributable to full amortization of the residual carrying amount of the “Pop Vriend” brand to an amount of €10.4 (2.2) million as a consequence of the switch to the “KWS” brand.

Corporate Segment

Net sales in the Corporate Segment, which are mainly generated by KWS’ farms in Germany, France and Poland, were €9.9 (7.1) million. The segment’s income was € –109.3 million and thus down on the previous year’s figure of € –96.0 million, in particular due to planned higher research and development expenditure and administrative expenses. 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.

*Excluding exchange rate and portfolio effects

Forecast Report for fiscal year 2024/2025

KWS is adjusting its annual forecasts for fiscal year 2024/2025 based on the anticipated business performance. KWS Group’s net sales are expected to be at the level of the previous year (on a comparable basis, excluding exchange rate and portfolio effects; previously: growth of 2% to 4%) due to an appreciable fall in acreage for corn and sugarbeet in Europe. The EBIT margin is now expected to be in the middle of the previously forecast range of 14% to 16%. The R&D intensity is expected to be around 20% (previously: 18% to 19%).

About KWS

KWS is one of the world’s leading plant breeding companies. Nearly 5,000 employees* in more than 70 countries generated net sales of around €1.68 billion in the fiscal year 2023/2024. A company with a tradition of family ownership, KWS has operated independently for almost 170 years. It focuses on plant breeding and the production and sale of seed for sugarbeet, corn, cereals, vegetables, oilseed rape and sunflower. KWS uses leading-edge plant breeding methods to continuously improve yield for farmers and plants’ resistance to diseases, pests and abiotic stress. To that end, the company invested more than €300 million last fiscal year in research and development.
*excl. seasonal workforce

More information: www.kws.com. Follow us on LinkedIn: LinkedIn_KWS Group

Contacts:

Peter Vogt  
Head of Investor Relations
Phone: +49-30 816914-490
peter.vogt@kws.com

Sina Barnkothe
Lead External Communications
Tel. +49-5561 311-1783
sina.barnkothe@kws.com