DSV maintains its market position

For the 2015/16 fiscal year ending on June 30 Deutsche Saatveredelung AG (DSV) reported a profit result above expectations. The Annual General Meeting, which took place in Lippstadt in December, therefore approved the payment of a dividend of € 0.08 per share.

The DSV Group, comprising the German parent company and fully consolidated subsidiaries in the Netherlands, Denmark, France, United Kingdom and Poland, has a workforce of approximately 600 employees and achieved sales of € 163.4 million (previous year: € 167.7 million) in FY 2015/16. The Group's operating profit (EBIT) amounted to € 4.1 million (previous year: € 8.1 million). This result exceeded expectations, because the comprehensive investment program launched by DSV was originally forecast to cause a stronger decrease in profits.

With a workforce of approximately 450 employees, the parent company Deutsche Saatveredelung AG headquartered in Lippstadt achieved total sales of € 151.7 million, maintaining the previous year's level (€ 151.5 million). The result from ordinary operations amounted to € 3.1 million (previous year: € 5.8 million).

"During the last fiscal year our major task was to maintain our market position and establish the structures required for adapting our organization to the strong growth in recent years", DSV Chief Financial Officer Clive Krückemeyer comments. "We can be satisfied with our results for the last fiscal year because we managed to successfully complete this challenging task."

When looking at the sales figures for DSV Germany, both the net product sales of € 129.9 million (previous year: € 129.8 million) and the corresponding royalty income of € 21.2 million (previous year: € 21.4 million) remained stable; other sales totalled € 0.6 million (previous year: € 0.2 million). 55 % of total sales are attributable to the Grasses and Cover Crops business segment, and 45 % to the Field Crops (oilseed rape, cereals, maize) segment. The sales figures for both Grasses and Oilseed Rape remained at a constant level. DSV successfully increased its sales of organic seed by 20.6 %, whereas the upwards trend of the Cover Crops segment in the last few years could not be continued.

"Considering the challenging market situation as a result of the milk crisis and declining field crop producer prices, we can be satisfied with the development of our sales figures", Dr. Axel Kaske, Deputy Managing Director, emphasizes. "DSV’s corporate philosophy of Integrated Quality (IQ), i.e. the consistent integration of development, consulting and service in a standardized quality management system, has proven its worth in this environment."

"We are convinced that our innovative breeding concept lays a solid foundation for the development of new and existing markets, and are therefore driving investments in Research & Development (R&D)", Managing Director Johannes Peter Angenendt comments on the € 12 million invested e.g. in the expansion and conversion of existing breeding stations and the construction of new stations in Thüle (Germany), Terminiers (France) and Cherkassy (Ukraine), as well as in other R&D projects during the last fiscal year. As a breeding company with a long-term focus, DSV will continue its investments begun in this area over the next few years. For this reason, the amount of
€ 7.6 million planned for Germany for the next fiscal year will mainly be invested in the further expansion of the oilseed rape breeding station in Thüle, as well as in replacements and new investments at the manufacturing sites.

Prospects

The international setup of the sales force will extend the foundation of the company. In the face of ever fiercer competition along with economic and political risks, DSV does not expect any significant sales increase in the short term. Nevertheless, the broad business structure in all product groups, based on innovative concepts, is setting the course for continued future success. As a breeding company with a long-term focus, DSV will continue its R&D investment program.

The following members of the Supervisory Board were re-elected during the meeting:

Dr. Dorothea Ahlers, self-employed agricultural journalist, Idstein

Dr. Rüdiger Fuhrmann, Managing Director of Nord/LB, Hannover

Raphael Freiherr von Loë, Farmer, Weeze

Norbert Thiex-Mayer, Farmer, Hüttingen

Martin Klavs Nielsen, Managing Director AB Enzymes, Darmstadt, was elected as a new Member of the Supervisory Board. In accordance with the age limit for Members of the Supervisory Board stipulated in the statutes,
Mr. Jenrich retired from the board.

Effective 15th February, 2016, Clive Krückemeyer joined the Management Board. He is responsible for Finance & HR, IT & Quality as well as Procurement. Johannes Peter Angenendt is Head of Plant Breeding and Manufacturing. At the end of the last fiscal year Dr. Axel Kaske was appointed Deputy Managing Director responsible for Sales and Marketing. As was originally planned, Dr. Dieter Stelling, who successfully contributed to driving the company’s business projects last year, returned to his previous position as Head of Breeding.