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KWS SAAT AG: KWS strengthens its foundation for further growth - Dividend to remain unchanged at EUR3.00 a share - Seite 2
in property, plant and equipment, an increase of 26.7%. One focus of
capital spending is on expanding corn production capacities, which includes
construction of a new seed processing plant in Serbia. In addition, there
were measures to modernize sugarbeet seed production in North America and
many investments to replace plant and equipment. Depreciation and
amortization totaled EUR45.8 (38.4) million.
The Corn Segment increased its net sales slightly by 1.9% to EUR714.9
(701.7) million. Unfavorable exchange rate influences, in particular from
the US dollar zone but also from South America and Eastern Europe, weighed
on the unit's continuing good operating performance. After adjustment for
negative exchange rate effects totaling EUR28 million, the segment's net
sales would have been EUR742.9 million (+5.9%). Sales markets in South
America developed very dynamically, and a slight increase in net sales was
also achieved in Europe. The segment's income (EBIT) rose by 9.4% to
EUR100.9 (92.2) million, despite higher expenditure on product development
and distribution. That resulted in a return on sales (EBIT margin) of 14.1%
(13.1%).
The Sugarbeet Segment, which also includes KWS' seed potato business, grew
net sales by 6.8% to EUR351.1 (328.6) million. Of this, EUR318.5 (297.8)
million was generated from sugarbeet and EUR32.6 (30.8) million from seed
potatoes. The company again increased net sales in the core markets of
North America and the EU 28 thanks to a portfolio of high-yield varieties
and thus consolidated its leading position in the sugarbeet market. The
segment's income (EBIT) fell by 5.1% to EUR70.1 (73.9) million due to the
costs of restructuring the seed potato business. The return on sales was
20.0% (22.5%).
Net sales in the Cereals Segment fell by 3.9% to EUR107.3 (111.7) million
due to the drop in prices of cereals for consumption. Farmers increasingly
resorted to farm saved seed in the 2013/2014 winter sowing season. Demand
for KWS' rye varieties, which make a strong contribution to profits, was
significantly lower as a result of reductions in cultivation area, which
particularly impacted the segment's income (EBIT). EBIT was EUR17.1 (26.9)
million, giving a return on sales of 15.9% (24.1%).
The company charges its cross-segment costs for long-term research projects
and central administrative functions to the Corporate Segment, whose income
is therefore always negative. The increase in expenditure in the year under
review meant that the segment's income (EBIT) was EUR -49.7 (EUR -40.9)
million.
Comfortable balance sheet ratios underpin growth
net sales by 6.8% to EUR351.1 (328.6) million. Of this, EUR318.5 (297.8)
million was generated from sugarbeet and EUR32.6 (30.8) million from seed
potatoes. The company again increased net sales in the core markets of
North America and the EU 28 thanks to a portfolio of high-yield varieties
and thus consolidated its leading position in the sugarbeet market. The
segment's income (EBIT) fell by 5.1% to EUR70.1 (73.9) million due to the
costs of restructuring the seed potato business. The return on sales was
20.0% (22.5%).
Net sales in the Cereals Segment fell by 3.9% to EUR107.3 (111.7) million
due to the drop in prices of cereals for consumption. Farmers increasingly
resorted to farm saved seed in the 2013/2014 winter sowing season. Demand
for KWS' rye varieties, which make a strong contribution to profits, was
significantly lower as a result of reductions in cultivation area, which
particularly impacted the segment's income (EBIT). EBIT was EUR17.1 (26.9)
million, giving a return on sales of 15.9% (24.1%).
The company charges its cross-segment costs for long-term research projects
and central administrative functions to the Corporate Segment, whose income
is therefore always negative. The increase in expenditure in the year under
review meant that the segment's income (EBIT) was EUR -49.7 (EUR -40.9)
million.
Comfortable balance sheet ratios underpin growth
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