Good Outlook For KWS Saat
For the KWS Saat, the first quarter of the new fiscal year is always the weakest. Nevertheless, the company provides a solid start. Investors’ reactions still disappoint.
The SDAX-listed paper in the morning is one of the biggest losers after the stock was delivered yesterday to set up 1.8 percent was even a twelve-month rise high.
In the first quarter of the new fiscal year (July to September), KWS Saat over the previous year but sales increased by nine percent to 71 million euros, after 65 million last year. Operating income also improved, the deficit fell to 24 million euros to 28 million euros a year earlier.
Normal seasonal development
The loss is not unusual, since achieved in the first quarter, the company only a little percent ten of its annual turnover. Sold in this period especially in winter cereals and oilseed rape varieties to be sown in the fall.
Maize and sugar remain the main pillars of the business. These products are mainly sown in spring, so the quarter between January and March is the most important in the financial year for the SDAX-listed company located in Einbeck in Lower Saxony, Germany.
KWS expects a continued growth; mainly the research and development departments should be strengthened. Reading is to the good performance also in the increased number of employees and the investments made. KWS has invested 13.5 million euros in the quarter, mainly in fixed assets.11