Despite the challenges in global agricultural markets, with declining acreage particularly in Europe, the KWS Group generated net sales of €1,676.6 million in fiscal 2024/2025 – in line with the previous year (€1,678.1 million). On a comparable basis (excluding exchange rate and portfolio effects), net sales increased by 1.0%, slightly exceeding the updated guidance issued during the course of the fiscal year.
KWS Group’s key indicators for operating income were impacted by one-off effects in the period under review and declined significantly year on year. Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 13.4% to €350.5 (404.9) million and earnings before interest and taxes (EBIT) by 18.0% to €247.6 (302.0) million. The previous year benefited from a positive one-off effect of €28.1 million from divestment of the Chinese corn business. This was partly offset by a positive effect of €7.7 million from the reversal of a VAT risks provision in the Sugarbeet Segment.
Gross profit grew slightly to €1,057.4 (1,055.7) million, with the gross margin improving to 63.1% (62.9%). This result was offset by higher administrative and selling costs, as well as higher expenditure on research and development (R&D ratio: 20.8%).
The financial result improved significantly to € –35.4 (–50.0) million, mainly driven by a better interest result of € –1.7 (–25.6) million due to the substantial reduction in net debt. However, a write-down of €20.7 million in connection with the sale of the North American corn business (AgReliant) reduced income.
Income taxes amounted to €72.2 (67.9) million. This resulted in earnings after taxes from continuing operations of €140.0 (184.1) million, equivalent to €4.24 (5.58) per share. Including the profit of €96.4 million from the sale of the corn and sorghum business in South America, earnings per share increased sharply to €7.16 (3.96).
Free cash flow from continuing operations improved sharply to €123.2 (56.8) million, mainly due to higher cash flow from operating activities and lower capital spending. Free cash flow from continuing and discontinued operations rose to €393.4 (53.8) million due to the sale of the South America corn and sorghum business.
The equity ratio likewise increased to 59.8% (47.4%). Total assets as of June 30, 2025, were €2,676.2 (June 30, 2024: 2,956.1) million. Net debt decreased sharply to €61.6 (385.1) million or 0.2x (1.0x) EBITDA.
Business development by segments
Net sales in the Sugarbeet Segment rose by 0.8% in the fiscal year to €871.8 (864.9) million. On a comparable basis1, growth was 2.2% despite a sharp decline in acreage. KWS further expanded its global leadership in the sugarbeet market during the fiscal year. Sustainable product innovations CONVISO® SMART and CR+ again increased their contribution to segment’s net sales to around 61% (56%). The segment’s income (EBIT) was €367.2 (350.1) million, a year-over-year increase of 4.9%, supported by the positive net sales trend. This figure includes a positive one-off effect of €7.7 (–7.7) million from the reversal of a provision for VAT risks that was set up in the previous year. The EBIT margin improved to 42.1% (40.5%), while EBITDA rose to €397.0 (378.1) million.
Net sales in the Corn Segment declined by 2.7% to €682.8 (701.5) million in a challenging market environment in Europe, equating to a decline of 1.6% on a comparable basis1. The segment’s income (EBIT) fell significantly to € –4.2 (39.1) million, in particular due to a positive one-off effect of €28.1 million in the previous year from divestment of the Chinese corn portfolio. In the reporting period, EBIT was additionally impacted by an impairment loss of €20.7 million on the carrying amount of AgReliant in connection with the sale agreement concluded in June 2025. The Corn Segment’s EBITDA fell to €53.0 (82.2) million.
Net sales in the Cereals Segment fell by 4.6% to €263.3 (275.9) million, primarily due to lower net sales from oilseed rape and rye. On a comparable basis1, the decline in net sales was 4.5%. Reflecting weaker business performance and higher research and development expenditure – mainly due to the expansion of hybrid breeding activities – the segment’s income (EBIT) fell as expected to €32.1 (50.4) million. The segment’s EBIT margin decreased accordingly to 12.2% (18.3%), while the segment’s EBITDA declined to €42.9 (59.8) million.
Net sales in the Vegetables Segment rose by 16.2% to €72.1 (62.1) million in the reporting year. On a comparable basis1, net sales grew by 16.0%. This increase was largely driven by higher revenues from spinach seed, which accounts for around two-thirds of the segment’s net sales. The segment’s income (EBIT) fell sharply to € –45.8 (–34.7) million, mainly as a result of the planned increase in expenditure on establishing vegetable breeding activities and the related distribution organization. The EBIT margin was –63.5% and thus below the previous year’s figure (–55.9%). EBITDA fell to € –22.0 (–11.2) million.
Net sales in the Corporate Segment rose to €11.3 (9.2) million in the reporting period. They are mainly generated from KWS’ farms in Germany, France and Poland. Since all cross-segment costs for the KWS Group’s central functions and central research expenditure that cannot be allocated to the segments are charged to the Corporate Segment, its income is usually negative. The segment’s income (EBIT) fell to € –135.4 (–127.1) million, mainly due to higher IT costs and general cost increases, especially for personnel. EBITDA decreased to € –120.1 (–112.4) million.
Strategic priorities refined and medium-term targets set
At today’s telephone conference for analysts and investors, as well as the annual press conference, KWS will present a revised strategic framework and medium-term financial targets for the period 2025-2028.
The future strategic priorities focus on three key pillars: expanding market leadership in established crops, scaling activities in areas offering additional value potential, such as vegetable seed, and accelerating innovations in plant breeding.
Based on these strategic drivers, KWS is aiming for organic net sales growth of 3% to 5% and an EBITDA margin of 19% to 21% over the next three years, while rigorously pursuing its sustainability objectives for 2030.
In light of the structural improvement in KWS's financial position and previous dividend payments at the upper end of the previous payout ratio of 20 to 25%, KWS aims to increase the payout ratio of 25 to 30% (of the result after taxes adjusted for portfolio and other one-off effects) in line with future profit development and capital allocation priorities. As in the past, KWS places great importance to the long-term continuity of dividend development.
At the Capital Markets Day in Einbeck announced for November 18, 2025, KWS’ management will present comprehensive insights into the company’s goals and growth ambitions.
Planned appropriation of profits: Sharp increase in the dividend to €1.25 (1.00) per share
On the basis of the adjusted dividend policy, the Executive and Supervisory Boards will propose a dividend of €1.25 (1.00) per share for fiscal year 2024/2025 to the Annual Shareholders’ Meeting on December 3, 2025. This corresponds to a distribution of €41.3 (33.0) million to the shareholders of KWS SAAT SE & Co. KGaA, equating to a payout ratio of 26.2% (25.2%) of the adjusted earnings after taxes.
Forecasts for the 2025/2026 fiscal year
KWS expects net sales growth on a comparable basis(1) to increase by 3% year over year in fiscal 2025/2026. The net sales forecast thus remains within the medium-term target range despite a generally subdued agricultural environment and an anticipated decline in business in Russia as a result of import restrictions and localization efforts for seed.
In line with the medium-term targets, the EBITDA margin is expected to be in the range of 19% to 21%. This figure does not include a positive one-off effect of around €30 million from the sale of license rights as part of the divestment of the North American corn business.
(1) Excluding exchange rate and portfolio effects