KWS SAAT profit rises 13% as debt plunges

German seed company KWS SAAT SE & Co. KGaA reported a 13% increase in earnings per share to €4.80 for the fiscal year 2025-2026, despite a 3% decline in revenue. This was due to a significant drop in net debt and a shift from a €35.4 million loss to a €1.1 million positive net financial income. The decrease in net debt was mainly due to a €10 million gain from equity investments, which replaced a previous €33.7 million loss.

Net sales from continuing operations fell by 3% to €1.63 billion, although lower acreage affected sugarbeet and corn. Gross profit decreased by 5.8% to €995.8 million, bringing down the gross margin to 61.2% from 63.1%. EBITDA fell by 2.1% to €343.1 million, with the margin increasing to 21.1% from 20.9%. Excluding certain benefits and expenses, EBITDA fell to €314.1 million, with a margin of 19.3% from 20.4%.

Including a €29 million gain from selling license rights related to the North American corn divestment, EBITDA margin improved to 21.1%. EBIT also fell by 3.5% to €239 million, while pretax profit rose by 13.1% to €240.1 million, helped by the improved net financial income. Earnings after tax from continuing operations increased to €158.4 million from €140 million.

Free cash flow remained stable at €122.5 million. The equity ratio improved to 61.2% from 59.8%. Sugarbeet revenue fell by 2% to €854.2 million, with EBITDA decreasing to €358.1 million, partly due to a prior-year VAT provision reversal. Corn revenue fell by 5.3% to €433.6 million, with EBITDA rising to €92.2 million, boosted by the €29 million license-sale gain.

Excluding this gain, the EBITDA margin was 14.6%. The European corn market share rose to 13% from 11%. KWS will propose a dividend of €1.30 per share, up from €1.25. For the fiscal year 2026-2027, the company expects organic revenue growth of around 3%, contingent on a recovery in agricultural markets, and an EBITDA margin of 19% to 20%.