DGAP-News

KWS SAAT AG: KWS strengthens its foundation for further growth - Dividend to remain unchanged at EUR3.00 a share

DGAP-News: KWS SAAT AG / Key word(s): Final Results
KWS SAAT AG: KWS strengthens its foundation for further growth -
Dividend to remain unchanged at EUR3.00 a share

16.10.2014 / 07:30

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Einbeck, October 16, 2014
No. 45 | gf

KWS strengthens its foundation for further growth - Dividend to remain
unchanged at EUR3.00 a share

Net sales in fiscal 2013/2014 increase by 2.7% to EUR1,178.0 million
despite negative exchange rate effects - Significant expansion in R&D and
distribution activities influence earnings - EBIT margin of 11.8% - Net
sales expected to grow by 5% to 10% in 2014/2015

KWS SAAT AG (ISIN: DE0007074007), one of the world's leading seed
companies, stayed with its long-term corporate strategy in fiscal 2013/2014
and sharply increased its spending on research and breeding while expanding
its distribution structures. Net sales rose by 2.7% to EUR1,178.0 (previous
year: 1,147.2) million. After adjustment for negative exchange rate
effects, net sales would have been 7.1% higher year on year. Expenditure on
product development and distribution increased by EUR22 million while
exchange rate effects reduced earnings by about EUR4 million, and the
company generated operating income (EBIT) of EUR138.4 (152.1) million. Net
income for the year fell above-proportionately to EUR80.3 (92.3) million
due to special tax effects. Nevertheless, the Executive Board and the
Supervisory Board will propose an unchanged dividend payout of EUR3.00 per
share in view of the company's good operating performance.

"Following two exceptionally strong years, the 2013/2014 annual financial
statements are also very gratifying. The KWS Group continues to show high
earnings strength, as reflected in the EBIT margin of 11.8%," said Philip
von dem Bussche, CEO of KWS SAAT AG. "By continuously expanding our
research and development activities, we are strengthening the foundation
for our company's long-term success." KWS obtained 336 (276) marketing
approvals for new varieties across all its crops in fiscal 2013/2014. R&D
expenditure increased by 6.0% to EUR148.8 (140.4) million or 12.6% (12.2%)
of net sales. An average of 1,836 (1,768) of the 4,847 (4,443) employees of
the KWS Group worldwide worked in research and development in the fiscal
year. Selling expenses rose by 7.1% to EUR204.0 (190.5) million as a result
of the expansion of international distribution structures.

In fiscal 2013/2014, the company invested a total of EUR82.6 (65.2) million