Key Takeaways
- Corteva, Inc. reports a decrease in Q1 2024 net sales and earnings compared to Q1 2023.
- Seed business showed resilience with a slight sales increase, whereas Crop Protection faced significant declines.
- The company reaffirms its full-year 2024 financial guidance, expecting growth in the second half of the year.
Financial Overview
Corteva, Inc. (NYSE: CTVA) announced its financial results for the first quarter ended March 31, 2024. The company reported a decrease in net sales to $4.49 billion, an 8% drop compared to the first quarter of 2023. GAAP income from continuing operations after tax was $376 million, with earnings per share (EPS) of $0.53, marking decreases of 38% and 37% respectively, against the same period last year.
On a non-GAAP basis, organic sales amounted to $4.58 billion, a 6% year-over-year decline, while operating EBITDA was $1.03 billion, down 16%. Operating EPS stood at $0.89, a decrease of 23% compared to the first quarter of the previous year.
Business Segment Performance
Seed Division: The Seed business saw a net sales increase of 2% to $2.8 billion, driven by a 6% increase in price globally. This was partially offset by a slight decline in volume and the impact of unfavorable currency movements, particularly the Turkish lira. Operating EBITDA for the segment grew 15% to $748 million, benefiting from strong price execution and cost management.
Crop Protection Division: In contrast, the Crop Protection segment faced tougher conditions, with net sales falling 20% to approximately $1.7 billion. This decline was driven by an 18% drop in volume and a 3% reduction in price, compounded by adverse weather and destocking in various regions. Operating EBITDA plummeted by 49% to $310 million, with the segment suffering from pricing pressures and increased raw material costs.
Executive Commentary
Chuck Magro, Chief Executive Officer of Corteva, commented, “Corteva’s first quarter 2024 results were largely as expected. The Seed business again delivered exceptional performance driven by our advanced technology and product lineup. However, the Crop Protection sector faced expected headwinds, including residual inventory imbalances and shifts in farmer purchasing behavior. Looking forward, we anticipate growth in the second half of the year driven by our differentiated portfolio and cost actions.”
Forward-Looking Statements
Corteva reaffirmed its full-year 2024 guidance, projecting net sales in the range of $17.4 billion to $17.7 billion and operating EBITDA between $3.5 billion and $3.7 billion. The company also expects operating EPS to be between $2.70 and $2.90. Furthermore, Corteva plans to repurchase approximately $1.0 billion of its shares in 2024, demonstrating confidence in its financial framework and strategic initiatives aimed at enhancing shareholder value.
Read more here.
Corteva Agriscience Latest News
Launches Innovative Investment Platform (2024/03/20)
Corteva, Inc. has launched Corteva Catalyst, an investment and partnership platform to introduce agricultural innovations and accelerate early-stage transformative technologies. The initiative is aimed at advancing research and development priorities and empowering farmers worldwide with sustainable methods to increase food and feed production. Corteva Catalyst will pair Corteva’s expertise and resources with start-ups and universities to deliver new solutions for farmers globally.
Launches Corteva Biologicals (2024/02/29)
Corteva Agriscience has introduced Corteva Biologicals, a move that positions the company as a leader in the biological market. Frederic Beudot, General Manager of Biologicals at Corteva, highlighted the company’s commitment to offering innovative options that enhance performance, resilience, and potential. Key products include Utrisha™ N, X-Cyte™, and Bio Forge® Advanced, designed to optimize plant health and yield while supporting sustainable and efficient farming.
Reports Financial Outcomes for Q4 & FY 2023 (2024/02/01)
Corteva’s adaptive strategies in a fluctuating agricultural market have resulted in growth in the Seed segment and strategic navigation in the Crop Protection segment. The Q4 2023 results showed a 3% decrease in net sales but a 4% increase in operating EBITDA, indicating effective cost control and strategic pricing efforts. Looking ahead to 2024, Corteva has provided an optimistic outlook, with a focus on delivering differentiated products, enhancing technology offerings, and driving value for shareholders. The company’s participation in sustainability initiatives, alongside its technological advancements in seeds and crop protection, positions Corteva as a leading figure in the movement towards more sustainable and efficient agricultural practices globally.
Read the complete report here.
Partners With John Deere To Simplify Digital Farming Solutions (2024/01/31)
John Deere and Corteva Agriscience have partnered to integrate agronomic recommendations into the John Deere Operations Center, aiming to enhance farm productivity and sustainability. The collaboration brings together John Deere’s advanced farm equipment technology with Corteva’s agronomic expertise to provide farmers, Pioneer sales representatives, and equipment with precise, customized agronomic insights. This initiative simplifies data-driven farming and sets a new standard for the industry by leveraging cutting-edge science and advanced technology.
Herbicides Cleared for Broader Use (2023/12/04)
Corteva Agriscience has received expanded approval for its Enlist® herbicides after a review under the Endangered Species Act. The U.S. EPA and FWS issued a favorable Final Biological Opinion, providing farmers in previously restricted areas in Texas and Georgia with effective weed control tools. Enlist system’s near-zero volatility and reduced physical drift make it a preferred choice for sustainable weed control. Farmers and applicators must follow current product labels and consult the Endangered Species Protection Bulletins for specific regional guidelines.
Corteva Agriscience Reports Q3 Performance
Corteva Agriscience, an agriculture company, reported a 1% decrease in net sales and organic sales for the year-to-date 2023 compared to the same period last year, with gains in North America and EMEA offset by Latin America and Asia Pacific declines. Seed net sales grew by 7%, driven by strong demand for Corteva’s proprietary seeds, while Crop Protection net sales decreased by 10% due to volume declines in Latin America and North America. The company believes that the global population will continue to grow, driving demand for food and that farmers will continue to invest in technology to improve their productivity.
Read the complete results here.
Corteva Files Lawsuit Against Inari To Safeguard IP (2023/09/29)
Corteva has filed a lawsuit against Inari Agriculture, Inc. and Inari Agriculture NV for allegedly obtaining its protected seeds through a third-party agent, making minor genetic modifications to the biotech traits of these seeds, and seeking U.S. patents for the modified traits. The lawsuit is significant as it highlights the importance of protecting intellectual property in the agricultural industry, where innovations take decades and substantial investments to develop.
Corteva’s Reklemel: Fighting Against Nematodes (2023/09/14)
Corteva Inc. has developed a new nematicide called Reklemel active in protecting food and row crops from nematodes. The US Environmental Protection Agency (EPA) has given Reklemel a Reduced Risk tag for its effectiveness and reduced usage rates. It has also won the National Association of Manufacturers’ Sustainability and the Circular Economy Award. Reklemel will be launched in the US, India, and Mexico by the end of 2023, and Corteva is seeking regulatory approval in other markets. Reklemel offers farmers flexibility in application and can augment yield potential while mitigating nematode-induced damage and preserving soil organisms.
Reports Mixed Performance In Its Financial Results (2023/08/04)
Corteva Agriscience (NYSE: CTVA) has released its Q2 and H1 2023 financial results, which showcase a mix of growth and challenges across its different segments. The company saw a 1% increase in net sales during H1 2023, with organic sales rising by 2%. The Seed segment was the main driver behind this growth, with seed net sales increasing by 8% and organic sales rising by 9%. The Crop Protection segment, however, saw a decline in both net sales and organic sales, down by 9%. Corteva’s management has revised its full-year 2023 guidance for net sales, Operating EBITDA, and Operating EPS. The CEO highlighted the company’s growth and innovative position, with new product announcements and exclusive agreements.
Corteva Agriscience and Bioceres Crop Solutions Join Forces (2023/07/19)
Corteva Agriscience and Bioceres Crop Solutions have partnered to introduce natural-based agricultural products in Europe. The collaboration aims to meet the growing demand for sustainable farming practices by addressing societal and political demands for environmentally friendly products. The companies will introduce a cutting-edge bioinsecticide developed by Bioceres’s subsidiary, Pro Farm, to the European market, once they have secured the necessary registrations. Corteva Agriscience will exclusively distribute the product in Europe through its Seed Applied Technologies team and apply the technology to its Pioneer® brand seed products. This partnership benefits farmers and contributes to the long-term viability and resilience of agricultural ecosystems.
Enhancing Corn Disease Resistance With Corteva’s Breakthrough (2023/06/13)
Corteva Inc. has published groundbreaking research confirming the natural movement of disease-resistance genes within the genome of corn plants. This can help in utilizing new breeding techniques to combat plant diseases, improve crop resilience, and enhance yield potential. The research demonstrates that gene editing tools like CRISPR can imitate this natural process, allowing for the relocation of multiple disease-resistance genes. This breakthrough can potentially accelerate plant breeding progress and deliver high-performing agricultural products to farmers.
Corteva Agriscience Unveils Bexoveld™ (2023/05/10)
Corteva Agriscience has named its latest herbicide Bexoveld. The herbicide, developed to combat broadleaf weeds in cereal crops, will be launched in North America in 2028 and in Europe by 2030, pending regulatory approval. The product is a third-generation 6-Arylpicolinate (6-AP) herbicide, with a low-dose use rate and minimal crop restrictions in the following season. Corteva plans to offer Bexoveld in pre-mixed formulations alongside other leading Corteva herbicides.
Corteva Q1 2023 Reports Show 6% Increase in Net Sales (2023/05/04)
Corteva Inc. reported a 6% increase in net sales in Q1 2023, with organic sales up by 10%. Seed sales grew by 7%, while crop protection sales increased by 5%. The company’s GAAP income and earnings per share (EPS) from continuing operations were $607 million and $0.84 per share, respectively. Corteva has increased its full-year 2023 guidance, with net sales expected to be $18.6 billion to $18.9 billion, and operating EPS projected to be $2.80 to $3.00 per share.
Corteva Launches Novel Fungicide Adavelt Active (2023/05/29)
Corteva Inc. has launched Adavelt Active, a novel fungicide that protects against crop diseases and will be available for use in lentil crops starting in 2023. The product is built on the discovery of Inatreq active, a natural-origin fungicide. With Adavelt active, farmers can simplify fungal control efforts, reduce resistance risks, and protect crops’ yield potential and quality.
Corteva to Launch Vorceed Enlist Corn Products (2023/04/08)
Corteva Agriscience, a leading agriculture company, has announced its plan to commercially launch Vorceed Enlist corn products to help farmers better manage their corn rootworm acres while providing the added benefit of controlling late-season emerged broadleaf weed pressures. Vorceed Enlist corn technology will be available to U.S. farmers through the exclusive Corteva Horizon Network in areas of high corn rootworm pressure in the Corn Belt. This new technology will give farmers more flexibility in managing their crops and enable them to achieve better yields with less stress.
Corteva Inc. Reports Strong 2022 Financial Results (2023/02/03)
Corteva Inc. (NYSE: CTVA) recently reported strong financial results for the 4th quarter and full year of 2022. Despite facing cost inflation and supply chain issues, Corteva delivered double-digit growth in its operating EBITDA and over 200 basis points of EBITDA margin expansion. The company attributes this success to its innovative portfolio, strong market positions, and disciplined execution. Corteva is focused on becoming the leading global integrated agriculture technology solutions company and has plans to invest in its technology pipeline to achieve this goal. The company expects net sales to range from $18.1 billion to $18.4 billion and operating EBITDA to range from $3.4 billion to $3.6 billion for 2023. Corteva’s future looks bright as the outlook for agriculture fundamentals remains robust. The company is well-positioned to take advantage of market opportunities.
Image provided by Corteva Agriscience
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