[Earnings Updates] Solid sales but weak margins mark uneven Q1 for seed breeding sector

Sander Koole
Published on
May 22, 2025

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What was the performance of the seed breeding industry in Q1 2025?

Let's have a look at the overall results.

🟢 Revenue growth: Most companies reported strong sales growth, with Sakata (+12.8%), Kaneko (+5.9%), Bayer (+4.3%), KWS (+12.2%), and Syngenta (+4%) all showing solid increases. Only BASF (-7.9%) lagged, the latter reporting a flat trend. The overall momentum is positive, driven by volume increases and regional expansions.

🔴 Profitability: Profitability trends are unfavorable. BASF (-2.1%), KWS (-17.3%) reflect weak to deteriorating EBIT margins. Although BASF showed a high EBIT margin (32.2%), it reported cash flow and revenue pressure, signaling instability.

🔴 Market dynamics: Market headwinds dominate. BASF and Bayer experienced adverse effects from regulatory issues, FX, and volume drops. KWS noted higher amortization expenses. Sakata and Kaneko signal some resilience, but these are exceptions amid broadly tough conditions.

🟡 Growth outlook: Mixed signals on revenue outlook. Sakata and Kaneko are optimistic, while Bayer, BASF, and KWS express caution or show decline-related commentary. yngenta’s outlook is uncertain despite innovation efforts.

🟡 Profitability outlook: Profit outlook remains bearish overall. Companies like BASF and KWS report ongoing or expected earnings pressure due to high costs and investments. Only Kaneko and Sakata indicate stabilization or modest gains.

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