To our shareholders

Dear shareholders, partners and friends of KWS,

I am delighted to present in this 2024/2025 Annual Report a KWS that is successfully navigating challenging times in its operating activities, boasts a strong financial footing, and has a clear plan for its future strategic orientation. 

Challenges in agricultural markets overcome 
There were strong headwinds in agricultural markets this year. Farmers around the world are facing major challenges, not least due to low purchase prices for agricultural products and heavy pressure to cut costs. That also impacted our business: In our corn and sugarbeet seed segments, area under cultivation declined significantly in some cases, particularly in European markets. 
  
The fact that we were able to achieve slight organic growth in net sales and maintain our profitability under these conditions speaks to the resilience of KWS and our business model. Innovative varieties with high agronomic added value and a broad portfolio that strikes a good balance between our opportunities and risks are key factors in this regard. 

Numerous new variety approvals and a keen focus on research and development 
In fiscal year 2024/2025, we generated approximately two-thirds of our net sales from new varieties. This indicator is a key barometer of our innovative strength and thus proof of the efficiency and effectiveness of our research and development. With a record 584 new official variety approvals in the year under review, a year-on-year increase of more than 4%, we are creating the foundation for reaping rewards in the market on the back of an innovative portfolio – now and in the future. 

Plant breeding involves complex cycles and requires staying power. The breeding projects we invest in today will not bring forth commercial varieties until the coming decade. To successfully complete this “marathon,” we need a long-term perspective and powerful resources. In the year under review, we thus once again invested heavily in our research and development, spending around €350 million or some 21% of our net sales and thus underscoring our mission to keep on providing innovative solutions for the future of agriculture moving ahead. 

Financial strength reinforced for forward-looking investments 
Our financial strength is an important guarantor of our ability to make independent commercial decisions. The improvement in our key financial indicators in the past fiscal year – including a sharp increase in free cash flow and a significant reduction in our net debt – are testimony to our great financial strength. 

This healthy capital base allows us to tackle the challenges the future holds and to make the necessary investments in line with our strategic priorities. Our particular focus is on strengthening our growth – both organically and through selective acquisitions – and on expanding the technologies and infrastructure necessary to achieve that. 
  
As a result of the portfolio changes, KWS's net debt and free cash flow have improved structurally. After distributing a dividend at the upper end of the payout ratio range of 20% to 25% in recent years, we have decided to adjust our dividend policy accordingly and increase the payout ratio to 25% to 30%, while continuing to pursue a high degree of dividend continuity. We will therefore propose to the Annual Shareholders’ Meeting a sharp increase in the dividend for fiscal 2024/2025 to €1.25 (1.00).
  
Strategic priorities honed and medium-term targets defined 
After streamlining our portfolio in the Corn Segment in the past 12 months, KWS is now embarking on a new phase of its corporate development. In view of that, we have revised our strategic framework and set ourselves new medium-term financial targets. 

Our strategic priorities focus on three key pillars: expanding our market leadership in established crops, bolstering our activities in areas offering long-term value creation, such as vegetable seed, and pressing ahead with delivering innovations in breeding. 

On the basis of these strategic drivers, we are aiming for organic net sales growth of 3% to 5% and an EBITDA margin of 19% to 21% in the future, while rigorously pursuing our sustainability objectives. We intend to provide more comprehensive insights into our goals and future growth drivers at our Capital Markets Day in Einbeck on November 18, 2025. 

Dear shareholders, KWS is on track and making good progress after a successful fiscal year 2024/2025. Despite all the challenges, we look to the future with confidence – true to our vision of “Seeding the future for generations.” 

KWS’ success would not be possible without the great efforts of our dedicated employees worldwide, to whom I would like to express my special thanks on behalf of the Executive Board team. 

I would also like to take this opportunity to thank our many customers, business partners and shareholders for their trust in KWS. I hope you find our 2024/2025 Annual Report both informative and interesting.

In the year under review, KWS took a further step in the strategic realignment of its product portfolio. In view of steadily rising demand for plant-based foods, KWS is striving to build a significant position in the global vegetable seed market. The product portfolio was streamlined so that the company can press ahead with achieving that faster. Following the sale of its South American corn activities in the previous year, KWS has now divested its North American corn business, which it operated together with its French partner Limagrain in the joint ventures AgReliant Genetics Inc. (Canada) and AgReliant Genetics LLC (U.S.). However, European corn business, in which KWS occupies a leading position, is intended to contribute long-term to the KWS Group’s profitable growth. Moreover, KWS will continue to expand its successful product portfolio in North America with sugarbeet, cereal and vegetable varieties.

The complete Report of the Supervisory Board can be downloaded here.