Germany
December 8, 2021
In 2020/2021, Deutsche Saatveredelung AG (DSV) exceeded the results of the previous fiscal year. The DSV Group increased its revenues to €209 million and reported Earnings Before Tax (EBT) of €7.5 million.
“In light of the varied and complex tasks faced by farmers today, competent advisory service is becoming more and more important. DSV offers a wealth of expertise which is second to none in the seed industry. In fact, we provide much more than just a single crop variety: With our unique portfolio, we serve the whole crop rotation process combined with innovative cultivation concepts. Our excellent annual figures demonstrate that we have pulled the right strategic levers for future success. We once again managed to boost our revenues in a challenging business environment,” stressed Dr. Eike Hupe, Executive Board Member responsible for Sales, Product Management, Marketing and Breeding.
In the 2020/2021 fiscal year, which closed on 30th June, came to an end, the DSV Group generated total revenues of €209 million (previous year €203 million). At €7.5 million, Earnings Before Tax (EBT) were slightly below last year (€11.0 million). In Germany, Deutsche Saatveredelung AG achieved a more than 5% annual growth in sales, corresponding to €190.7 million (previous year €180.7 million). Here, EBT increased from €2.4 million the previous year to €7.4 million.
The company’s investments amounted to a total of €7.5 million, with a continued focus on the modernization of manufacturing facilities at the company’s various production sites.
For this fiscal year, we have planned new investments worth approximately €8.8 million. The focus is again on accelerating our logistics with the goal of expanding and optimizing our delivery performance even further. In addition, we are once again investing in oilseed rape breeding: DSV is planning to build a state-of-the-art greenhouse in Thüle in the German Federal State of North Rhine-Westphalia – our central oilseed rape breeding site.
“We did not entirely succeed in repeating last year’s excellent EBT on the DSV Group level, which also reflects the currently challenging situation in the agricultural sector. But against all the odds, our results are within the budget planned and we are quite satisfied. We will continue to invest a great deal of time and money in order to set the right course for the future,” emphasized Clive Krückemeyer, Member of the DSV Executive Board, on the occasion of the annual DSV shareholders’ meeting in December. He expressed special thanks to the company’s seed producers for their great commitment. “It is only thanks to the outstanding performance of our contracted farmers, and their close relationship with our company, that stable seed market supply is possible.”
Outlook
For the next fiscal year, DSV expects a similar result to the one which has just closed.
According to DSV, the prospects in the oilseed rape sector are encouraging due to the excellent variety situation. In fact, some of the varieties found to be the most productive originate from DSV breeding facilities. Varieties such as LUDGER, SMARAGD, and SCOTCH clearly outperform traditional, proven varieties in the portfolio. And since further excellent variety candidates are already in the pipeline, we are well on track for a highly successful oilseed rape business.
In the Grass product segment, DSV is perfectly positioned as a provider of top-quality mixtures directly from the breeder. In Germany, COUNTRY is a leading brand which has been established on the market for 25 years. The brand portfolio will be extended further on a global scale. We also expect solid business in this segment in the new fiscal year.
As a grass breeder, DSV also occupies top positions in European grass variety lists. Our varieties are expected to continue to arouse great interest on markets worldwide.
DSV is convinced that high-quality cover crops play a key role in environmentally friendly, economically successful farming – and are thus a major success factor for our DSV variety portfolio. Here, the TerraLife® brand is not only ideal for cover crops rich in varieties, but also the perfect choice for intelligent soil-coverage systems in line with the trend towards evergreen systems as part of crop rotation.
DSV also expects further growth in the field of cereals: The new winter barley and winter wheat varieties launched on the market are highly promising due to their excellent health and high performance. Furthermore, the anthracnose-tolerant lupin varieties Frieda and Celina sold by DSV are in great demand.
DSV is also well established in the highly competitive German maize market and expects stable and continuously increasing sales. Our maize portfolio satisfies all the requirements for successful maize cultivation. Varieties providing multiple use, as well as varieties selected for successful milk production, will be a special focus in the coming season. In the DSV portfolio, they bear the “Milk Index” seal.
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