Net sales increased by 32% – Strong growth in Brazil – Net sales forecast raised
The KWS Group (ISIN: DE0007074007) has increased its net sales by around one-third in the first half of fiscal 2021/2022. The key indicators EBITDA, EBIT and net income for the period were at the level of the previous year. Due to the strongly seasonal nature of the company’s business, the first half of the year (July 1 to December 31) contributes only about 25–30% of total net sales.
Net sales in the period under review rose by 32.4% to €431.6 (326.0) million. The growth was 31.3% on a comparable basis (excluding exchange rate effects). The key earnings figures were on a par with the previous year. The Turkish lira’s depreciation had a significant negative impact on the value of internal financial instruments (€ –6.0 million) and thus reduced operating result.
The free cash flow was € –128.5 million and, due to the increase in working capital, was below the previous year’s figure of € –57.3 million. Given the KWS Group’s strong growth, there was a significant increase in trade receivables and inventories.
“The high growth rates in the first half of the year are a vindication of our long-term corporate strategy geared toward uvumbuzi and a diversity of varieties,” said Eva Kienle, Chief Financial Officer of KWS. “In view of our strong business performance, we are pleased to announce, just halfway through the year, that we’re raising our annual guidance.”
In view of the positive business performance in the first six months, the Executive Board now anticipates that the KWS Group will grow its net sales for fiscal 2021/2022 as a whole by 9% to 11% (previously: 5% to 7%). The EBIT margin is still 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%.
Muhtasari wa takwimu muhimu
katika € mamilioni | H1 2021/2022 | H1 2020/2021 | + / - | |
Uuzaji wa wavu | 431.6 | 326.0 | 32.4% | |
EBITDA | -45.2 | -48.2 | 6.2% | |
EBIT | -89.5 | -93.2 | 4.0% | |
Mapato halisi ya kifedha / gharama | -27.3 | -24.9 | -9.6% | |
Matokeo ya shughuli za kawaida | -116.8 | -118.1 | 1.1% | |
Kodi ya mapato | -31.5 | -31.8 | 0.9% | |
Mapato halisi | -85.3 | -86.2 | 1.0% | |
Mapato kwa kila | katika € | -2.58 | -2.61 | 1.1% |
Utendaji wa biashara wa sehemu
The Sehemu ya Mahindi grew its net sales significantly to €200.7 (131.8) million in the first half of the year. KWS’ core markets in South America, Brazil and Argentina, mainly contributed to that growth. The business in Brazil benefited not only from an increase in cultivation area and sales prices, but also from the growing market success of our variety portfolio. Since the segment does not generate the major part of its annual net sales until the third quarter (January to March) in the Europe and North America regions, the segment’s earnings were negative, as customary for the period under review, and totaled € –66.4 (–69.1) million. However, the operating result improved significantly in Brazil.
Mauzo halisi katika Sehemu ya sukari rose in the first half of the year to €60.9 (43.1) million. The increase is mainly attributable to earlier shipments in Germany and business expansion in North Africa. Due to seasonal reasons, revenue from sugarbeet seed is low in the first half of the year; significant net sales are not generated until the spring sowing season in the third quarter (January to March). The segment’s income was € –45.2 million and thus at the level of the previous year (€ –45.3 million). The Turkish lira’s sharp depreciation impacted the value of internal financial instruments (€ –6.0 million), which thus reduced the segment result.
Uuzaji wa jumla katika Cereals Segment, which generates the predominant share of its annual net sales in the first half of the year, rose by 12% to €174.9 (€156.1) million, mainly due to strong growth in rapeseed seed. That business was boosted (by 41%) in particular on the back of favorable market conditions and an improved performance by the variety portfolio. Rye seed business also developed very strongly. While net sales from wheat seed likewise increased, revenue from barley seed declined due to unfavorable weather conditions. Given the strong growth in net sales and an improved product mix, the segment posted an above-proportionate increase in result to €62.3 (52.3) million.
Mauzo halisi katika Sehemu ya Mboga fell to €21.9 (26.0) million, mainly due to high inventories at distributors in the wake of the COVID-19 pandemic. 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 € –10.6 (–8.7) million. Excluding effects from the purchase price allocation as part of company acquisitions, the segment’s result declined to € –0.8 (4.1) million.
Uuzaji wa jumla katika Sehemu ya Biashara rose to €5.1 (3.6) million. They are mainly generated from KWS’ farms. Since all cross-segment costs for the KWS Group’s central functions and research expenditure are charged to the Corporate Segment, its income is usually negative. The sharp decline in the segment’s results to € –52.9 (–39.1) million is mainly attributable to positive effects of €12.3 million from the valuation of US$-based financial instruments in the same period of the previous year.
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:
Jedwali la upatanisho
katika € mamilioni | Makundi | Upatanisho | KWS Group1 |
Uuzaji wa wavu | 463.4 | -31.8 | 431.6 |
EBIT | -112.8 | 23.3 | -89.5 |
1 Excluding the shares of the equity-accounted companies AGRELIANT GENETICS LLC., AGRELIANT GENETICS INC. and KENFENG – KWS SEEDS CO., LTD.
Picture line press photo: Corn plants in sunlight
Mwandishi wa picha: KWS
Chanzo cha picha: Ruhusa iliyotolewa kwa matumizi ikirejelea chanzo cha nakala za wahariri kuhusu KWS. Ufunuo wa kibiashara kwa mtu wa tatu hairuhusiwi.Kuhusu KWS*
KWS ni mojawapo ya kampuni zinazoongoza duniani za kuzaliana mimea. Takriban wafanyakazi 6,000 katika nchi 70 walizalisha jumla ya mauzo ya takriban €1.3 bilioni katika mwaka wa fedha wa 2020/2021. Kampuni yenye utamaduni wa kumiliki familia, KWS imejiendesha kwa kujitegemea kwa miaka 165. Inaangazia ufugaji wa mimea na uzalishaji na uuzaji wa mbegu za mahindi, miwa, nafaka, mboga mboga, rapa na alizeti. KWS hutumia mbinu za uenezaji wa mimea inayoongoza ili kuendelea kuboresha mavuno kwa wakulima na mimea kustahimili magonjwa, wadudu na msongo wa mawazo. Kwa ajili hiyo, kampuni iliwekeza zaidi ya €250 milioni mwaka wa fedha uliopita katika utafiti na maendeleo.
* All figures exclude the companies carried at equity AGRELIANT GENETICS LLC., AGRELIANT GENETICS INC. and KENFENG – KWS SEEDS CO., LTD.
Kwa habari zaidi: www.kws.com. Tufuate kwenye Twitter® saa https://twitter.com/KWS_Group.
Wasiliana na:
Peter Vogt
Mkuu wa Mahusiano ya Wawekezaji
Phone: +49-30 816914-490
peter.vogt@kws.com
Martin Heistermann
Meneja Mwandamizi Mahusiano ya Wawekezaji
Phone: +49-30 816914-341
martin.heistermann@kws.com
Sina Barnkothe
Mawasiliano ya Mawasiliano
Phone: +49-5561 311-1783
sina.barnkothe@kws.com
KWS SAAT SE & Co KGaA
http://www.kws.com