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So, how did the vegetable seeds industry perform in Q3 2024?

🟢 Revenue growth: The vegetable seed industry experienced mixed revenue performance, with strong growth in South America (e.g. +29.8% for Sakata Seed) and Europe, but weaker demand in Asia for some players. Most companies saw an increase in net sales, but currency effects had a big impact on like-for-like growth.

🟡 Profitability: Profitability remained under pressure across the industry, with rising costs impacting margins. Kaneko Seeds’ operating profit and net income dropped, despite revenue growth. KWS reported a sharp EBIT decline (-€25.8M vs. -€16.1M YoY), largely due to higher R&D expenses and amortization costs from the acquisitions.

🟡 Market dynamics: While demand remained stable in key markets like Europe and South America, competitive pricing from generic seed providers and regulatory pressures affected overall market conditions. Foreign exchange fluctuations and inventory destocking trends in some regions added further uncertainty.

🟢 Growth outlook: Companies remain cautiously optimistic about future growth, but near-term challenges persist. Investment in hybrid seed varieties, breeding infrastructure, and market expansion is expected to support long-term growth, but the industry is still navigating cost inflation and pricing pressures.

🟡 Profitability outlook: Margins are expected to remain stable but under pressure in 2025, with no immediate recovery in profitability. While some companies, like Sakata Seed, improved gross margins (+3.9pp YoY), rising SG&A expenses, regulatory costs, and input price inflation continue to challenge overall profit expansion.

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