KWS SAAT & (KWS) CMD 2025 summary

Strategic direction and business development

• Focus on seed innovation to address global food security, climate change, and sustainability, leveraging a broad crop portfolio and customer-centric approach.

• Expansion in vegetables, aiming for all strategic crops to be on the market by 2028, targeting EUR 100 million in vegetable sales by 2030 and EUR 300 million by 2040, primarily through organic growth.

• Ambitious growth in sunflower, with a goal to reach 10% market share and EUR 100 million turnover, and significant share in the oilseed sector by 2035.

• Continued leadership in sugarbeet, targeting EUR 1 billion in sales by 2028-2030, driven by trait innovation and new product launches.

• Divestment from GM markets in the Americas and China to focus on European and non-GM markets, resulting in a more robust, less capital-intensive, and more profitable business.

Financial guidance and performance

• Midterm targets reaffirmed: 3%-5% organic sales growth, 19%-21% EBITDA margin, and a 25%-30% dividend payout ratio, with a proposed EUR 1.25 per share (+25% YoY).

• Free cash flow generation is a renewed focus, with CapEx capped at EUR 120 million and improvements in working capital management expected to drive higher cash flows.

• R&D investments have increased, with a current ratio of 18% of sales and EUR 349 million in FY 2024/25, reflecting long-term innovation projects.

• Recent divestments have improved profitability and capital intensity, with the corn business now targeting a 15% EBITDA margin.

• Group sales CAGR of 6.3% over the past decade, targeting EUR 1.5 billion by 2028-2030.

Innovation and technology pipeline

• Strong track record and future pipeline in trait innovation, including herbicide and disease resistance, hybridization, and digital tools for farmers.

• Genome editing, AI-driven breeding, and digitalization are key future drivers, with a dedicated research center and first products expected early in the next decade.

• Hybridization efforts expanding to barley, wheat, and potato, with first hybrid barley varieties expected by 2027/2028 and hybrid wheat in the early 2030s.

• Collaborations with partners like the European Space Agency for advanced digital agriculture solutions.

• Innovation pipeline visibility is high due to regulated markets, with a time lag between product development and market launch.