In 2006, KWS celebrates 150 years of operations. In this period, KWS has developed from a breeding firm for sugar beet to a leading international plant breeder, which today is represented in 68 countries worldwide.

The KWS Group has 46 subsidiaries and associates. For five generations, the descendants of its founding families have played a leading role in the management of the company. For the 2006 anniversary year, there are plans for numerous activities, focusing primarily on the company’s employees. The first in this series of events is this year’s Annual Shareholders’ Meeting.

KWS’s sales and earnings reach another record high

At the Annual Shareholders’ Meeting of KWS SAAT AG, shareholders resolved a dividend of 12 euros per share. The reason for the one euro increase in the dividend is that the Einbeck-based company achieved the best result in its history, ending the year to June 30, 2005 with new record sales and earnings.

The Annual Shareholders’ Meeting resolved a 10-for-1 share split, which will in future make the KWS share look lighter and thus easier to trade for shareholders. The number of shares will increase from 660,000 to 6,600,000. As part of the share split, KWS will use company funds to increase the share capital from €17 million to €19.8 million (without issuing new shares).

Compared with the previous year, revenue of the KWS Group rose by 11.4%, from €444 million to €495 million. The operating result (EBIT) was €56.3 million, 7.7% above the previous year (€52.3 million). The Group’s net income for the year increased by 16.9% to €34.8 million (from €29.8 million). Over 600 shareholders, representing 77,2% of the share capital of the leading seed company, attended the Annual Shareholders’ Meeting and approved the annual financial statements and reports with only a few votes against.

Growth driven by corn

As in the previous year, the corn segment was once again KWS’s number one growth driver in the current fiscal year. “Corn net sales rose by 14% and accounted for 44% (43%) of total business volume,” says Dr. Andreas J. Büchting, Chairman of the Executive Board of KWS SAAT AG. Corn seed sales in the United States rose by over 30%. In the sugar beet segment, KWS expanded its leading market position with net sales of €218 million (€194 million), the highest in the company’s history. KWS posted significant increases in sales of sugar beet seeds particularly in countries outside the EU’s Sugar Market Regime, where sales volume grew by 17%. For the current fiscal year, the company expects moderate increase in net sales and a slight decline in earnings compared with the previous year.

Steady sales growth outside Germany

In relation to the KWS Group’s total sales, markets outside Germany are playing an increasingly important role: Around 75% (previous year: 71%) of all sales are now generated there. Dr. Andreas J. Büchting: “The increase in the proportion of international business fortifies KWS’s position as the number 4 among the world’s leading providers of seed for agricultural use.” KWS generated international sales of €371 million (€325 million), expanding its competitive position through intensified sales activities, especially in the markets of South and South East Europe and North America.

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