In the 2022/2023 financial year, Deutsche Saatveredelung AG (DSV) once again improved its result from the previous year. The DSV group achieved sales of EUR 264.5 million (+10% on the previous year) and EBT of EUR 20.9 million (+17% on the previous year). A dividend of EUR 0.10 per share was approved.

"The 2022/2023 financial year, in which we celebrated DSV's 100th anniversary, is DSV's most successful to date," says Clive Krückemeyer, the Executive Board member responsible for Finance, IT, Human Resources, Purchasing and Production. "The year was largely characterised by strong oilseed rape sales. With an excellent portfolio of seed varieties, we were also able to meet the strong demand internationally because of good prices for the farmers," says Dr. Eike Hupe, the Executive Board member responsible for Sales, Product Management, Marketing, Breeding and Internal Sales. "The year was characterised by high inflation, increasing energy prices and numerous unpredictable weather conditions. We are proud and grateful to have achieved an excellent result despite these conditions," stated the Executive Board.

Business development

DSV's sales increased in the 2022/2023 financial year to EUR 220.2 million (previous year: EUR 214.2 million) in the German parent company, and in the DSV group from EUR 240.6 million in the previous year to EUR 264.5 million (+10%). Earnings before taxes (EBT) rose to EUR 17.2 million (previous year: EUR 15.5 million, +17%) in the German parent company. The DSV group achieved an EBT of EUR 20.9 million (previous year: EUR 17.9 million).

The company's total investment volume in the 2022/2023 financial year amounted to EUR 8.7 million (previous year: EUR 16.1 million). The focus of this investment was on expanding the breeding sites. For example, a new greenhouse was put into operation in Thüle/Salzkotten, DSV's oilseed rape breeding site. This investment of more than EUR 3 million enables further expansion of research and breeding activities, and the acceleration of the development of new varieties.

Review of the 2022/2023 financial year

The strong DSV oilseed rape variety pipeline met with an increase in oilseed rape acreage driven by high demand. This led to exceptionally high sales by the Rapool-Ring in Germany and Eastern Europe, and to record DSV results in Ukraine.

The strong DSV grain variety pipeline is also celebrating national and international success. For example, the British farmer Tim Lamyman from Lincolnshire was entered in the Guinness Book of Records with his record yield of 17.95 tonnes of wheat per hectare with the DSV winter wheat variety CHAMPION. Overall, the very successful positioning of DSV winter wheat and winter barley breeding is reflected in licence income well above that of the previous year's level.

In the grass business - one of DSV's core competences - the financial year 2022/2023 was difficult after two successful years. In the turf segment, strong sales driven by the COVID-19 pandemic collapsed across the industry. In the forage grasses segment, a wet spring in Germany and northwest Europe meant that areas were not accessible, and therefore grassland could not be reseeded or resown to the extent expected.

Preview of the 2023/2024 financial year

"The 2023/2024 financial year will be challenging. The exceptional sales of oilseed rape have slowed down. In addition, the entire grass sector is facing the challenge of managing the increased stocks of forage and turf grasses," says Dr. Hupe.

In the winter oilseed rape segment, DSV continues to rely on its innovations and broad variety portfolio. The successes of oilseed rape breeding can be seen in the clubroot segment, among others: the new variety CROMAT, which is marketed in Germany by Rapool-Ring GmbH, is resistant to clubroot and at the same time produces above-average yields. Another disease that has a strong negative effect on yield in winter oilseed rape cultivation is Phoma Lingam, the root collar and stem rot. Here, breeders have succeeded in identifying a new effective combination of Phoma lingam resistance genes. In Germany, a variety with this Phoma resistance combination - the Phoma Blocker - is due for approval next year and is therefore expected to become the first variety with this resistance combination on the German market. In France, the first varieties with this trait have already been authorised for DSV.

The success of DSV's long-standing cereal breeding programm are also continuing: the winter barley variety JULIA, which is resistant to the barley yellow mosaic virus type 1 and 2 (BaYMV -1 and -2), is number one in the German post registration trials (line varieties) this year. DSV wheat breeding is equally successful with the varieties DEBIAN, EXSAL and POLARKAP, which are now also finding their way onto the international market and gaining acreage.

DSV is not only a breeder, but also an innovator in the development of new, intelligent cultivation systems that focus on soil fertility. This is based on scientific findings from numerous research projects. For example, the "CATCHY" research project will be completed in 2024 after nine years of research. The project is part of the initiative "Soil as a Sustainable Resource for the Bioeconomy" (BonaRes) and was funded by the Federal Ministry of Education and Research (BMBF). In addition to DSV, microbiologists from the University of Bremen, soil scientists from Leibniz Universität Hannover, plant nutritionists from the Leibniz Institute of Plant Genetics and Crop Plant Research (IPK) Gatersleben and crop farmers and socio-economists from Weihenstephan-Triesdorf University of Applied Sciences (HSWT) were involved in the project. In this long-term project, the effects of intercropping on soil structure and quality, the microbiome, the nutrient and water balance, as well as on yield and profitability were investigated in crop rotation trials. The scientific results confirm DSV's positioning in its Terralife^® brand programme: the targeted use of intelligently combined mixtures has a positive effect on the soil and the subsequent crop. In future, DSV will increasingly focus on evergreen cropping systems. Such systems include the cultivation of cover crops on the one hand, while companion and undersown crops are also used on the other. The aim is always to create the optimum growing conditions for the main crop and thus farm more resilient across the entire crop rotation. In future, the Terralife^® brand will therefore stand for both a first-class cover crop programme and a brand programme for establishing evergreen cultivation systems.

"We are looking to the future with confidence, because our breeding successes and variety innovations, coupled with our 100 years of expertise in the development of intelligent cultivation systems, precisely meet the needs of an industry in transition. For 100 years, DSV has stood for sustainable business and long-term growth," says Clive Krückemeyer.

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 100 years. Around 500 employees work for the company in Germany. The group employs around 800 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 included in full 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/United Kingdom

TOV "DSV-Ukraina", Kyiv/Ukraine

DSV zaden Nederland B.V., Ven Zelderheide/Netherlands

DSV Northstar Ltd, Canada

DL Seeds Inc., Stanley/Canada is also included in the consolidated financial statements on a pro rata basis.

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