Germany
December 17, 2024
The DSV Group generated sales of EUR 253.0 million and EBT of EUR 11.1 million. A dividend of EUR 0.10 per share was approved.
`As predicted, the year was challenging - however we achieved a good result well, above expectations’, says Dr Eike Hupe*, member of the DSV Executive Board.
With an unusual increase of cultivation area for European oilseed rape in 2022, oilseed rape sales normalised in 2023 with a decrease in cultivation area in line with previous years. Due to DSV’s excellent winter wheat and winter barley varieties, business in DSV cereals developed very well. DSV met an unexpected and sharp rise in demand for the maize market with significant increases in sales of maize and maize mixtures. The grass market continues to stagnate, as demand remains low with the entire market managing persistently high stocks of forage and turf grasses.
Business development
In the 2023/24 financial year, sales revenue of the German parent company amounted EUR 206.7 million (previous year: EUR 220.2 million) and EUR 253.0 million for the DSV Group (previous year: EUR 264.5 million). Earnings before taxes (EBT) of the German parent company amounted to EUR 11.3 million in 2023/24 (previous year: EUR 17.2 million), and for the DSV Group, EUR 11.1 million (previous year: EUR 20.9 million).
The investment volume amounted to EUR 7.9 million in 2023/2024 (previous year: EUR 8.7 million). Once again, investment focused on expanding the breeding sites. For example, a new machine hall has been put into operation in Thüle/Salzkotten, DSV's oilseed rape breeding site. This investment in the local infrastructure has a significant impact on the efficiency of work processes and thus helps to ensure the high quality standards of the breeding work.
Review of the 2023/2024 fiscal year
Winter oilseed rape cultivation in Europe was negatively impacted by various climatic and economic factors during the 2023 sowing season – oilseed rape cultivation was reduced in many European countries. These developments also affected DSV's sales - the record oilseed rape year of 2022/23 could not be repeated. Nevertheless, Rapool-Ring GmbH was able to maintain its market leadership in the German market.
The impressive achievements of DSV´s cereal breeders continued to materialise in increasing multiplication areas and thus in very pleasing licence income for DSV. In Germany, DSV's share of winter wheat multiplication areas increased significantly on the strong varieties EXSAL and POLARKAP and as well as there was an increase in winter barley multiplication areas for DSV thanks to the varieties JULIA and ESPRIT. DSV will retain the top spot in 2024 as DSV winter barley JULIA will be the most multiplied conventional winter barley variety in Germany.
Unfortunately, there was no recovery in the grass market. As a result, the 2023 turf grass harvest met with a still saturated market with very low global demand. This again led to an oversupply of turf seed. The heavy rainfall in autumn 2023 and spring 2024 in Western Europe delayed access to many fields, with the result that necessary reseeding and maintenance measures could not be carried out. In addition, many farms are under high financial pressure. As a consequence, business in the forage grasses segment was also at a low level.
Preview of the 2024/2025 financial year
‘The geopolitical crises will continue to affect the agricultural markets, and the expected volatility of the markets is causing increasing uncertainty for all companies in the sector. The market for grasses will certainly recover in the coming years. However, it is expected to remain weak for the 2024/25 financial year’, says Clive Krückemeyer**, member of the DSV Executive Board.
In winter oilseed rape, DSV is looking ahead with confidence. The particular strength and innovative power of DSV oilseed rape breeding can be seen, for example, in the variety candidates DETLEF and CHURCHILL. Both varieties were fast-tracked into the 2024 German national variety trials for 2025 harvest. CHURCHILL has a special combination of innovation and safety: the unique combination of four resistance genes (TuYV resistance, phoma double resistance RlmS+Rlm7 and a new resistance to Cylindrosporium) paired with the highest oil content! The DETLEF stem is also due for approval in December as the particularly environmentally and yield-stable winner in terms of grain and oil yield over the past three years. In addition to TuYV resistance, DETLEF has good tolerance to Verticillium.
The success story of DSV cereal breeding also continues: the winter barley varieties JULIA and ESPRIT are leaders in the national conventional variety trials in Germany and hold top positions in the multiplication areas. The positive development in winter wheat is also gaining further international traction: early-maturing DSV winter wheat genetics - such as DJANGO and KAROQUE - are increasingly enriching the portfolio and opening up further markets and market segments.
‘We will continue to set special priorities that emphasize our motto ‘Innovation for your growth’, says Dr Eike Hupe. ‘For example, the biodiversity and cover crop segment will continue to play an important role in the future. We see ourselves as a driver of this market, as an innovator of complete greening systems with cover crops and companion and undersown crops. We at DSV contribute scientifically sound innovations for maintaining soil health and an active soil life, and the creation of evergreen, biodiverse crop rotations. Our TerraLife® programme sets the standard’.
There are numerous trends in the agricultural sector that are characterised by technological innovations, changing environmental awareness and changing consumer and employee needs. ‘We see future trends as an opportunity and will therefore continue to develop DSV sustainably step by step. We are investing in our merchandise management systems and in sustainability, in breeding technologies, logistics solutions and sales strategies - for our employees, our customers and partners in and from agriculture and other sectors with whom we are shaping and sharing the future’, Clive Krückemeyer concludes.
Deutsche Saatveredelung AG (DSV)
DSV is a traditional plant breeding and seed company with its headquarters in Lippstadt, Germany. Research, breeding, production and distribution of various crops are the focus of the company, whose roots go back for more than 100 years. Around 500 employees work for the company in Germany. The Group employs about 780 people. DSV has significant shareholdings in well-known companies in the seed industry in Germany and abroad, and has wholly owned subsidiaries in Argentina, Canada, Denmark, France, Great Britain, the Netherlands, Poland and Ukraine.
The DSV Group includes the following companies, which are fully consolidated.
- Deutsche Saatveredelung AG, Lippstadt (parent company)
- DSV France S.a.r.l., Terminiers/France
- DSV Frø Danmark A/S, Holstebro/Denmark
- DSV Polska Sp.z o.o., Wagrowiec/Poland
- DSV United Kingdom Ltd., Wardington/United Kingdom
- TOV "DSV-Ukraina", Kyiv/Ukraine
- DSV zaden Nederland B.V., Ven Zelderheide/Netherlands
- DSV Northstar Ltd, Neepawa/ Canada
- DL Seeds Inc., Stanley/Canada is also included in the consolidated financial statements on a pro rata basis.
* Dr Eike Hupe, member of the DSV Executive Board responsible for Sales, Product Management, Marketing, Breeding and Customer Service
** Clive Krückemeyer, member of the DSV Executive Board responsible for Finance, IT, Human Resources, Purchasing and Production
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