In the 2019/2020 financial year, German plant breeding and seed company Deutsche Saatveredelung AG (DSV) was able to match its record results of the previous year. The group generated sales of 203 million euros and EBT of 11 million euros. The shareholders decided to pay a dividend of EUR 0.08 per share as in the previous year.
"We are highly satisfied: our long-standing LiFT program, designed to increase efficiency and capacity, is bearing fruit and we have achieved good business results despite the difficult conditions of the pandemic. We are proud of our employees, who have been disciplined and dedicated during these special times", said Mr. Clive Krückemeyer, Executive Board member, at the Annual General Meeting of DSV in December, which was conducted virtually due to the corona pandemic.
"In terms of sales, we were able to repeat the record results of the previous year and position our innovative products effectively in the market - an enormous achievement, especially when you consider that our inventories were almost completely cleared after last year," said Dr. Eike Hupe, the Executive Board member responsible for sales, product management, marketing and breeding.
DSV remains on a growth course for the future. At EUR 9.7 million, the company invested exactly EUR 2 million more in the past financial year than in the previous year. The focus of the investment was on expanding capacity in the area of production for the production sites in Germany, Denmark and the Netherlands.
As in the previous year, DSV's business situation in 2019/2020 was characterized by drought. The expected significant recovery in rapeseed cultivation areas failed to materialize in Germany, the most important winter rapeseed market. However, the company was able to further expand its position in this challenging market thanks to new and attractive genetic varieties. DSV's new rapeseed hybrids occupy a leading position within Europe in terms of resistance, yield and quality.
In the grass sector, as in the previous year, there was increased demand for new and reseeding seed in Germany and internationally to secure basic fodder, because of the damage caused by drought. DSV was able to further consolidate its market position with the DSV brand program COUNTRY. Demand for lawn grasses also increased throughout Europe.
The recurring extreme weather events have brought the importance of soil health protection even more into focus for agricultural enterprises. DSV has gained an outstanding reputation as an innovative research company with many years of practical expertise. TerraLife® intercrop mixtures offer solutions for the farmer. The demand for TerraLife® mixtures is growing in Germany as well as out on the international market.
The maize segment remained almost constant compared with the previous year.
Outlook
"Our research and development activities, which have grown significantly in recent years, are now making a significant contribution to DSV's success and will continue to do so in the future, as we have made significant progress in resistance and efficiency breeding," states Dr. Eike Hupe, thus explaining his positive outlook for the coming fiscal year: "Breeding successes in the winter barley segment, such as the virus-resistant variety Sensation or varieties Viola and Esprit, are promising and will make a positive contribution to our licensing income in the coming and future fiscal years. The winter rapeseed varieties Ludger and Smaragd, both virus-resistant, will certainly also hold a leading position in the German market this fiscal year, and there are already other promising variety candidates in the value trials".
DSV also considers itself well positioned in terms of sustainability, biodiversity and soil protection:
White lupin as a domestic soy substitute: the new lupin varieties Frieda and Celina, both anthracnose-tolerant, are making inroads into the markets. The demand can hardly be met.
Sorghum as a drought-tolerant fodder plant: the first varieties from our own sorghum breeding program, which was started eight years ago, are coming onto the market.
DSV continues to see itself as an expert in the grass segment. Here, the company relies on on-site grassland consulting and top-quality mixtures for all areas of application. DSV's extensive COUNTRY mixing program contains top varieties from its own grass breeding program and thus guarantees the latest breeding progress for the highest basic feed performance and quality.
The grass breeding of DSV is also quite successful in the turf sector. This promises great potential for DSV nationally, but above all, internationally. Top varieties from the company's own breeding program have a firm place on the shelves of DIY stores - distributed via major retail brands.
DSV's expertise in soil fertility and crop rotation systems will become even more prominent in the future. DSV is developing new systems aimed at permanent greening of the soil and thus increasing soil fertility and a sustainable increase in yield throughout the entire crop rotation. TerraLife®, the leading brand program for diverse intercrop mixtures, will be expanded in the future.
"All in all, we are well positioned for the next financial year with our products and our expertise" said Dr. Eike Hupe, "giving us a positive outlook moving forward.”
"We will use the tailwind to make DSV fit for the future. We want to grow nationally and internationally and successively translate the good product portfolio into business success. To reach this goal, we will continue to work on our production technology, logistics and, above all, business management." said Mr. Clive Krückemeyer. The Group plans to invest again in the 2020/21 financial year at a similar level to that of the previous year.
The Deutsche Saatveredelung AG (DSV)
DSV is a traditional plant breeding and seed company with headquarters in Lippstadt, Germany. Research, breeding, production and distribution of various crops are the company's mission, whose roots go back almost 100 years. In Germany, the company employs around 500 people. The group employs almost 700 people. The DSV Group includes the following companies, which are fully included in the consolidated financial statements:
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/ Great Britain TOV DSV-Ukraina, Kiew/Ukraine DSV zaden Nederland B.V., Ven Zelderheide/ Netherlands
DL Seeds Inc. of Morden, Canada, is also included in the consolidated financial statements on a proportional basis.