KWS SAAT SE & Co. KGaA

For FY24-25, KWS reported net sales of EUR 1.68 billion, roughly flat year over year, with organic growth of plus 1% and a negative FX impact of about 1%. EBITDA was EUR 351 million, down 13.4%, and adjusted EBITDA margin was 20.4%. Net income from continuing operations was EUR 140 million, or EUR 4.24 per share; including the EUR 96 million gain from the sale of the South American corn and sorghum business, EPS was EUR 7.16. Free cash flow from continuing operations rose to EUR 123 million, and net debt declined to EUR 62 million from EUR 385 million, or 0.2x EBITDA. Segmentally, sugarbeet sales rose 2.2% organically to EUR 872 million with EBITDA margin of 45.5%; corn sales fell 2.7% to EUR 683 million; cereals sales declined 4.6% to EUR 263 million; and vegetables grew 16.2% to EUR 72 million. For FY25-26, KWS expects comparable net sales growth of about 3% and an EBITDA margin of 19% to 21%, excluding a positive special effect of around EUR 30 million from the sale of license rights tied to North American corn divestments.

Jorn Andreas framed the year as evidence that KWS can perform in a difficult agricultural market, saying the company delivered its full-year targets and strengthened both free cash flow and the balance sheet. He emphasized strategic simplification, especially the exit from non-European corn activities, and said this should support higher margins, lower currency and market risk, and more focus on proprietary breeding technologies. His tone was confident and forward-looking, with repeated references to resilience, profitability, and sustainable growth.

The financial picture was supported by several hard metrics: EBITDA of EUR 351 million, adjusted EBITDA margin of 20.4%, free cash flow of EUR 123 million, and net debt down to EUR 62 million. He said the cash improvement came from higher operating cash flow, lower CapEx, lower inventory and receivables outflows, and M&A/divestment proceeds, while the year also included one-offs such as a EUR 7.7 million VAT provision reversal and a EUR 20.7 million write-down related to AgReliant. He also noted the dividend proposal of EUR 1.25 per share and a target payout ratio of 25% to 30% of adjusted earnings after taxes.

Analysts asked about the EUR 7.7 million VAT provision reversal and why guidance shifted from EBIT to EBITDA. Management said the provision related to a VAT dispute in Russia that was successfully defended in court, and that the move to EBITDA was driven by peer comparability and a cleaner view of operating performance, especially after purchase price allocation effects in vegetables. Questions also focused on the cautious outlook for sugarbeet, Russian exposure, and vegetables; management said sugarbeet acreage is expected to be stagnating, Russia is currently stable but more opportunistic for some crops, and vegetables will likely see continued investment in breeding and go-to-market before later product launches drive further growth.