KWS SAAT & (KWS) Q4 2024 earnings summary

Executive summary

• Achieved double-digit growth in sales and earnings for FY 2023/2024, with net sales up 11.9% to €1,678.1m and net income up 46% to €184.1m, driven by a strong sugar beet business and strategic divestments.

• Expanded global market share in sugar beet seed to around 70%, supported by innovative products like CONVISO SMART and CR+, and received a record number of new variety approvals.

• Divested corn businesses in China and South America, generating significant one-time gains and refocusing on more profitable growth and core segments.

• Increased dividend to €1.00 per share, at the upper end of the 20%-25% payout ratio, continuing a stable payout policy.

Financial highlights

• Net sales rose 11.9% year-over-year to €1,678.1m; EBIT up 54.8% to €302.0m; EBITDA up 39.2% to €388.1m; EBIT margin improved to 18%.

• Earnings per share increased 46% to €5.58; free cash flow improved to €56.8m.

• R&D ratio at 19.4% of sales, with R&D spending up 9% year-over-year; CAPEX increased to €139.9m.

• Debt reduced by over €300 million, including €143m promissory note repayment, improving financial leverage and extending debt maturities.

• Market capitalization at €1,967m as of June 28, 2024; average daily trading volume 9,911 shares.

Outlook and guidance

• FY 2024/2025 sales expected to grow 2–4% on a comparable basis, with EBIT margin forecast at 14–16%.

• R&D investments to remain high at 18–19% of sales.

• Extraordinary profit of around €100 million from South American divestment to be recognized in FY 2024/25.

• Expects further sales growth and stable high profitability in sugar beet; slight sales increase in corn; significant decline in cereals due to Russian import quotas.