KWS SAAT SE & Co. KGaA (ISIN DE0007074007), a leading seed specialist, is hosting its first Capital Markets Day in Einbeck today. The KWS management is presenting its sharpened strategy for profitable growth to numerous investors and analysts. The focus was on the strategic framework “Lead. Build. Advance”, which structures the company's activities and growth ambitions into three clear categories: expanding market leadership in established crops (Lead), scaling activities in areas offering additional value potential (Build), and accelerating innovations in plant breeding (Advance).
Dr. Felix Büchting, CEO of KWS, explains: "Innovative seeds are crucial to sustainable agriculture. They play a key role in overcoming today’s and tomorrow’s agricultural challenges. Our products enable farmers to achieve higher yields while using fewer resources and employing more sustainable farming methods. We continue to invest in research and development to offer innovative solutions across our entire portfolio. Our strategic framework creates clarity about our priorities and our growth ambitions."
Expansion of market leadership in established crops (Lead)
In the Sugarbeet segment, KWS is consistently expanding its global market leadership through innovations. With sustainable product innovations like CONVISO® SMART and CR+, already representing a significant share of segment net sales, the company ensures attractive profitability.
In the Corn segment, following its strategic realignment, KWS is focusing on the European corn market, the largest seed segment in Europe in terms of value. A strong portfolio addresses the specific needs of European agriculture, strengthens the market-leading position in silage corn, and underscores the ambition to evolve to a leading competitor in grain corn. In addition, the expansion of the sunflower seed business with many product launches opens additional growth opportunities.
In the Cereals segment, KWS has a unique crop portfolio with leading positions in hybrid rye, oilseed rape, wheat, and winter barley in Europe. Pipeline innovations and portfolio diversification are expected to lead to above-market growth in the future.
Unlocking additional value potential (Build)
KWS is also providing deeper insights into the development of its infrastructure and product pipeline for vegetable seeds. With the goal of commercializing all strategic crops by 2028 and the ongoing introduction of new varieties, the company aims to become a future market leader in the Vegetables segment.
In addition, the company is tapping into the plant-based food market with KWS Food Ingredients by leveraging its genetic expertise in the food value chain. Through collaborations, KWS supports food producers in improving the taste, processing quality, and texture of plant-based products. The first collaboration for pea protein-based milk alternatives will be presented at the Capital Markets Day.
Innovation leadership in seed development (Advance)
On its Capital Markets Day, KWS is presenting a full innovation pipeline and highlighted its strong track record of successful market launches. With a high R&D ratio of approximately 20% of net sales, KWS underscores its long-term commitment to innovation leadership.
With genome editing and hybridization, the company is focusing on two key technologies of the future. Genome editing offers the possibility of accelerating breeding processes by up to 30% and significantly increasing their precision and efficiency. KWS is already investing significantly in this future technology and presented concrete examples of innovations at its Capital Markets Day. The hybridization of additional crops such as barley and wheat also offers the opportunity to increase yields per hectare and enable further breeding innovations.
Financial strength supports growth strategy
On its Capital Markets Day, KWS underscores its strong positioning for further profitable growth. The company reaffirms its medium-term financial targets for 2025-2028 with organic net sales growth of 3-5% per year and an EBITDA margin of 19-21%. As a seed specialist, KWS operates in attractive markets and can tap into additional value potential through continuous product innovation. With low net debt (Q1 2025/26: 0.3x EBITDA), KWS is financially well positioned for further growth and is operating from a position of strength.
Against the backdrop 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 is aiming for an increased payout ratio of 25 to 30% (of earnings after taxes adjusted for portfolio and other special effects) in line with future earnings development and capital allocation priorities. As in the past, KWS attaches great importance to the long-term continuity of dividend development.
Dr. Jörn Andreas, Chief Financial Officer of KWS, explained: "Innovations are the driving force behind our sustainable business model. They enable us to achieve innovation premiums and thus generate continuous, profitable growth. Our well-balanced and innovative portfolio provides a strong foundation for medium- and long-term growth. In addition, we are accelerating business transformation through digitalization and realizing cost savings. In terms of capital allocation, we are focusing on reinvestments, selective M&A activities, particularly in the vegetable seed segment, and high dividend continuity for our shareholders."
Virtual participation option for Capital Markets Day 2025
You can watch the KWS Capital Markets Day 2025 (starting at 10:30 a.m. CEST) via video stream. To do so, please use this link or visit the KWS homepage.