KWS Reports 12% Growth in Rapeseed Sales, Reaffirms Fiscal-Year Targets
Key Facts
KWS said sales of oilseed rape rose 12% in the first quarter of fiscal 2026/2027, describing the start to the year as operationally good, while reaffirming its full-year outlook. The company attributed sales growth to positive performance in its cereals and vegetables businesses, while linking the increase in rapeseed to its varietal portfolio and market conditions. Chief Financial Officer Jörn Andreas said the company had started the year "operationally well, particularly thanks to strong rapeseed activity." He added that KWS sees itself on track to meet its annual targets despite continued challenges in the agricultural environment. The company also repaid a loan tranche of more than 100 million euros in full from available cash during the quarter.
The company said rapeseed sales growth was linked to the performance of its varietal portfolio and positive market conditions, with particular growth in Germany and Southeastern Europe. Andreas said this business was one of the factors supporting the start to the year, linking the strong operational performance specifically to rapeseed. KWS also said positive performance in its cereals and vegetables businesses contributed to sales growth. The start-of-year results therefore combined improvement in these businesses with differing seasonality across the company's products. The information available did not provide separate figures for sales growth in cereals or vegetables.
By contrast, first-quarter results are seasonally weighed down by the sugar beet and corn businesses, as most of their annual sales are tied to the spring planting season. That season is concentrated in the third quarter of the fiscal year, from January to March. First-quarter results therefore do not reflect the full picture of sales in these two businesses over the year. This seasonal distribution comes as the company reaffirmed its annual outlook, assuming a recovery in the agricultural environment. KWS tied the achievement of its targets to the continuation of this assumed improvement in industry conditions.
For fiscal 2026/2027, KWS expects comparable sales growth of about 3%, with an earnings before interest, taxes, depreciation and amortization margin of between 19% and 20%. The company reaffirmed this outlook despite continued challenges in the agricultural environment, assuming conditions recover. These targets provide an annual benchmark for assessing the impact of operating performance across its seed businesses, including activities whose sales are concentrated in the spring planting season. Andreas said the company sees itself on track to meet its annual targets. The statement did not announce a change to the outlook range.
On financing, the company repaid a loan tranche of more than 100 million euros in full during the first quarter, using available cash. The CFO said the repayment was made from funds available to the company, with the information provided making no reference to alternative financing for the transaction. The repayment coincided with the start of the fiscal year, which saw growth in rapeseed sales. KWS is scheduled to publish its half-year report for fiscal 2026/2027 on 12 February 2027. The next report will present first-half results as part of the company's financial calendar.