KWS SAAT & (KWS) Q1 2025 earnings summary

Executive summary

• Achieved double-digit growth in sales and earnings for FY 2023/2024, with net sales up 12% to €1,678.1m and EBIT up 55% to €302.0m.

• Net sales rose 18% year-over-year to €248.6 million in Q1 2024/25, driven by early Sugarbeet sales.

• Divested corn businesses in China and South America, generating significant one-time gains and reducing net debt by ~€500m year-on-year.

• Group net income reached €69.5 million, mainly due to a €110.5 million gain from discontinued operations.

• Increased dividend to €1.00 per share, up 11% from the previous year.

Financial highlights

• FY 2023/2024 net sales: €1,678.1m (+11.9% year-over-year); EBIT: €302.0m (+54.8%); net income: €184.1m (+46.0%).

• 3M 2024/25 sales: €248.6m (+18.4% year-over-year); net loss reduced to €41.0m from €55.3m.

• Equity ratio improved to 55.1% (from 42.0%); net debt down to €195.3m (from €702.0m).

• R&D ratio: 19.4% of sales; CAPEX: €139.9m; free cash flow: €56.8m.

• Earnings per share: €5.58 (+46.0%); EBIT margin: 18.0% (up from 13.0%).

Outlook and guidance

• FY 2024/2025 sales expected to increase by 2–4% (comparable basis, excluding FX and portfolio effects).

• EBIT margin forecasted at 14–16%; continued high R&D investment (18–19% of sales).

• One-time gain of ~€100m after tax from South America corn business divestment.

• No change in risk or opportunity assessment since last annual report.

• Cautions on potential negative impacts from Russia/Ukraine conflict and localization trends.