Segment reports: Net sales grow in Europe
Net sales in the Corn Segment in the first quarter were €39.3 (71.4) million, a drop of 45.0%. The main reason for that was the transfer of our winter rapeseed activities, which were assigned to the Cereals Segment for the first time in the year under review effective July 1, 2017. In addition, corn and soybean seed business in South America declined slightly – in Argentina due to exchange rate effects. For seasonal reasons, no significant net sales are generated in the other regions at this early stage. The segment’s income is therefore outweighed by operating costs at this time of the year and was € –40.4 (–24.5) million.
Net sales in the Sugarbeet Segment were slightly below the good level of the previous year and totaled €10.3 (12.8) million. Revenues in the first quarter come mainly from the sale of sugarbeet seed in Chile, East Asia and the U.S. The segment’s earnings fell, in particular due to lower other operating income, which in the previous year was positively impacted by a special effect. They were € –17.4 (–13.1) million.
KWS increased its net sales in the Cereals Segment by 76.2% to €88.1 (50.0) million. The largest factor influencing that was the transfer of rapeseed activities from the Corn Segment. Positive winter rapeseed and rye seed business also had a positive impact overall. Net sales from rye rose in particular in Germany and Poland. Wheat and barley business remained stable. The segment’s EBIT at the end of the quarter was €27.9 (11.9) million.
The Corporate Segment’s net sales are generated from our farms in Germany and totaled €0.9 (1.4) million. All cross-segment costs are also allocated to the segment. They include expenses for all central functions of the KWS Group and for long-term research projects. As a result, the segment’s income (EBIT) is always well in the red and in the first quarter was € –25.1 (–20.2) million.