Results of Deutsche Saatveredelung AG 2016/17 fiscal year exceed expectations

Date:12-19-2017

Deutsche Saatveredelung AG (DSV) closed the 2016/17 fiscal year ending on June 30 with a profit result that exceeded expectations. The global business was expanded despite a challenging market environment.

The DSV Group, comprising the German parent company and fully consolidated subsidiaries in the Netherlands, Denmark, France, the United Kingdom and Poland, has a workforce of approximately 600 employees and achieved revenues of € 167.4 million in FY 2016/17 (previous year: € 163.4 million). The Group’s earnings before taxes (EBT) amounted to € 4.9 million (previous year: € 3.3 million).

The parent company Deutsche Saatveredelung AG with its headquarters in Lippstadt, Germany has a workforce of approximately 460 employees and achieved total revenues of € 150.8 million, thus remaining stable compared to the previous year (€ 151.7 million).

“In fiscal 2016/17 we had to focus once again on maintaining the market position of DSV while managing the strong growth rates of the previous years within our organization”, comments Clive Krückemeyer, Executive Board Member of DSV. “In light of this situation, we are extremely satisfied with the result for the fiscal year.” Long periods of weak milk prices, as well as the price pressure in the field crop product market, are key factors in this challenging environment. Thanks to its excellent sales work and successful customer relations, DSV managed to achieve a strong market position. This becomes particularly clear when looking at the stable net sales of goods, amounting to € 130.8 million (previous year: € 130.2 million).

Grasses were, and still are, the largest product group of DSV and now achieve sales of € 57 million. A major part of these sales is no longer generated in the agricultural sector alone, but also in the turf grass business, where DSV is able to sustain an excellent position with its varieties.

“Breeding is the core of our activity. In FY 2016/17 the DSV Group invested more than € 6 million in this business. We secure our traditional markets through innovations and are in a position to tackle new markets”, as Executive Board Member Johannes Peter Angenendt comments in explaining this high investment.

In addition, DSV is making major progress in other segments. The corn and organic seed segments have seen continuous growth and contribute significantly to the success of the Lippstadt-based seed expert. The oilseed rape business remained on a constant level. Legume and cover crops in Germany saw a slight decline. Regulatory restrictions and increasing competitive pressure could not be completely compensated.

Outlook for the future

The megatrends in the global agricultural markets continue to evolve. Producers are facing increasing global competitive pressure. In addition, environmental policy has a constantly increasing impact on agriculture, especially in Germany. Thanks to its Integrated Quality strategy with its own breeding, multiplication and production facilities, as well as excellent accredited specialist consulting for farmers and customer proximity, DSV is well positioned and prepared to face increasing competition.

The investments in fixed assets planned for Germany will focus mainly on the progressive extension of our breeding station in Salzkotten-Thüle and on further replacement and new investments at our production sites. Furthermore, we will continue to invest in the modernization of the process and IT infrastructure of DSV. Centralization, digitalization and internationalization are the key words of our strategic roadmap.

About Deutsche Saatveredelung AG
Deutsche Saatveredelung AG, with its headquarters in Lippstadt, Germany, is a plant breeding company which looks back on a rich tradition. Research, breeding, production and distribution of various crops are the business objectives of the company, whose roots go back 90 years. The following companies are members of the DSV Group and are fully considered in the Group's annual consolidated financial statements:

• Deutsche Saatveredelung AG, Lippstadt (parent company)
• DSV France S.a.r.l., Poinville/France
• DSV Frø Danmark A/S, Holstebro/Denmark
• DSV Polska Sp.z o.o., Wagrowiec/Poland
• DSV United Kingdom Ltd., Downham Market/United Kingdom
• DSV zaden Nederland B.V., Ven Zelderheide/The Netherlands

In addition, the financial results of DL Seeds Inc., Morden/Canada are considered in the DSV Group's annual consolidated financial statements on a pro-rata basis.