EQS-News

KWS SAAT SE & Co. KGaA: KWS posts significant growth in the first quarter - outlook raised

EQS-News: KWS SAAT SE & Co. KGaA / Key word(s): Quarterly / Interim Statement KWS SAAT SE & Co. KGaA: KWS posts significant growth in the first quarter - outlook raised 14.11.2022 / 07:00 CET/CEST The issuer is solely responsible for the content of this announcement. Einbeck, November 14, 2022

 

KWS posts significant growth in the first quarter - outlook raised

• Strong business with cereals and rapeseed drives growth in the first quarter
• KWS Group net sales up 21%
• Significant improvement in EBIT and EBITDA
• Sales forecast raised to 10-12% (previously: 7-9%)

"KWS has made a rapid start to the new fiscal year due to a strong cereals and rapeseed business," commented Eva Kienle, Chief Financial Officer of KWS. "Demand for agricultural seeds continues to develop very positively in view of favourable market prices for agricultural commodities. We expect this trend to continue and therefore expect more growth than originally forecast for the current financial year. At the same time, we continue to see noticeable cost increases in the current inflation environment, partly offset by higher selling prices."

Business development Q1 2022/2023

The KWS Group's net sales rose by around 21% in the first three months of fiscal 2022/2023, reaching €266.3 (220.8) million. The increase resulted in particular from the significant expansion of the cereals business in Europe. Overall, currency effects had a minor impact on sales. The KWS Group's key operating earnings figures are generally negative in the first quarter, but improved year-on-year. EBITDA reached € –7.1 (–19.7) million and EBIT amounted to € –33.1 (–42.1) million. A significant increase in gross profit was partly offset by planned higher costs for research & development, selling and administration. The financial result declined to € –29.8 (–17.2) million, partly due to higher interest expenses in Brazil and Turkey. Earnings after taxes amounted to € –46.2 (–43.3) million or € –1.40 (–1.31) per share. Free cash flow improved to € –72.0 (–105.7) million, mainly due to advance payments received on seed deliveries for the upcoming sales season.