KWS SAAT & (KWS) New Food Conference summary

Conference overview

• Event focused on the food industry, covering topics from crop breeding to food delivery, with presentations from several companies.

• KWS SAAT presented as a leading seed breeding company with a global presence and a strong focus on innovation and R&D.

• The company highlighted its EUR 1.7 billion in annual sales and EUR 326 million R&D investment, emphasizing crop diversity and high-tech agriculture.

• KWS is the only listed pure-play seed company in the Western world, holding strong positions in Europe and globally.

• Business is highly seasonal, with Q3 accounting for 60% of annual sales and all annual EBIT.

Vegetable seeds business strategy

• Vegetable seeds represent a EUR 7 billion market, with KWS targeting a EUR 3.5 billion addressable segment.

• Acquired Pop Vriend in 2019, gaining market leadership in spinach seeds and expanding into beans, Swiss chard, red beet, and fruity crops like tomato and cucumber.

• Built breeding infrastructure in key regions and expects first new varieties from in-house programs to reach the market this year.

• Current vegetable business generates EUR 62 million in sales with over 20% EBIT margin, but ongoing investments mean segment losses will continue until top-line growth accelerates.

• Break even for the vegetable segment is expected in the early 2030s, with a goal of 5% market share and EUR 250–300 million in sales by the late 2030s.

Market trends and growth drivers

• Vegetable seed market growth is driven by rising global population, health-conscious diets, and urbanization.

• High profitability and market dynamics, including the presence of smaller breeders, make the sector attractive for larger R&D-driven players.

• All business segments are expected to grow, with vegetables offering the highest growth potential, while established crops provide stable margins.

• Balanced R&D investment across the portfolio ensures stability and long-term growth.