KWS SAAT & (KWS) CMD 2025 summary

Strategic Priorities and Growth Ambitions

• Focus on leading in core field crops, expanding into vegetables and food ingredients, and advancing innovation through R&D and trait development.

• Targets 3%-5% organic sales growth, 19%-21% EBITDA margin, and 25%-30% dividend payout ratio over the midterm, with a proposed €1.25 per share (+25% YoY).

• Ambition to reach EUR 1 billion in sugarbeet sales and EUR 100 million in vegetables by 2028-2030, with a long-term goal of EUR 300 million in vegetables by 2040.

• Portfolio reshaped to exit GM corn markets in the Americas, focusing on Europe and non-GM markets, and entering the sunflower market to capture oilseed growth by 2035.

• Transformation initiatives include SAP S/4 HANA rollout, shared service centers, and leveraging digital tools for customer support.

Innovation and Product Pipeline

• Strong track record in trait innovation (e.g., CONVISO SMART, Cercospora Plus, InsectPROTECT) and hybridization, driving leadership in sugarbeet, rye, and oilseed rape.

• Major R&D investments (€349M in FY 2024/25; €100M/year for sugarbeet), with 38% of employees in R&D and 65% of sales from new varieties.

• Accelerating breeding progress through genome editing, genomic selection, AI-driven breeding, and digitalization, with collaborations like the European Space Agency.

• Launch of hybrid barley expected by 2027/28, hybrid wheat in the early 2030s, and true potato seed products after 2030.

• Digital tools and precision agriculture enhance efficiency and value for farmers, supporting integrated crop solutions.

Financial Framework and Capital Allocation

• Industry characterized by resilience, high barriers to entry, and low price elasticity, supporting stable growth and premium pricing.

• Group sales CAGR of 6.3% over the past decade, with margin expansion from 16% to 20% and consistent increases in R&D investment.

• Capital allocation prioritizes organic growth, targeted M&A (especially in vegetables and underrepresented regions/crops), and stable, increasing dividends.

• Free cash flow generation is a renewed focus, with capex capped at EUR 120 million and ongoing improvements in working capital management.

• Net debt reduced to 0.3x EBITDA, providing flexibility for future investments and shareholder returns.