DGAP-News

KWS SAAT SE: Stable growth despite tough market environment

DGAP-News: KWS SAAT SE / Key word(s): Quarter Results
KWS SAAT SE: Stable growth despite tough market environment

28.05.2015 / 07:30

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Einbeck, May 28, 2015
No. 23 | ww

Stable growth despite tough market environment

Net sales in the first nine months increase by 6.9% year on year to
EUR777.8 million - Function costs increase as planned to strengthen
long-term growth - EBIT margin about 10.0%

KWS SAAT SE (ISIN: DE0007074007) increased its net sales in the first nine
months of fiscal 2014/2015 by 6.9% year on year to EUR777.8 million
(previous year: EUR727.4 million). The Corn and Sugarbeet Segments gained
market share in a tough economic environment thanks to strong variety
performance. In line with our long-term corporate strategy, the planned
expansion of our research and development (R&D) and distribution activities
in the first nine months resulted in higher function costs. Operating
income (EBIT) was therefore down from the previous year at EUR140.1 (145.8)
million.

At the same time we continued our extensive capital spending program aimed
at ensuring our future growth. Capital spending on property, plant and
equipment and intangible assets increased sharply year on year and was
EUR95.3 (37.2) million after nine months. Apart from expansion of R&D and
office capacities at Einbeck, a new corn processing plant in Serbia was
completed. "This is a logical step in the implementation of our long-term
business strategy and strengthens our position in the key growth markets of
Southeastern and Eastern Europe," said Hagen Duenbostel, CEO of KWS SAAT
SE. KWS acquired the remaining 51% stake in the French joint venture
SOCIETE DE MARTINVAL S.A. (MOMONT) last fall.

Renaming of the company completed

The conversion of KWS SAAT AG into a European Stock Corporation ("Societas
Europaea") as adopted by the Shareholders' Meeting in December 2014 was
entered in the commercial register in April 2015 and thus became legally
effective. The company now operates under the name KWS SAAT SE. The
shareholders of KWS SAAT AG are now shareholders of KWS SAAT SE. The name
under which the shares are listed was changed, but this will have no effect
on trading of the shares on the stock market. The change in legal form and
the related establishment of a European Employee Committee reflect our