10-QPeriod: Q1 FY2023

EIDP, Inc. Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 4, 2023For Securities:CTA-PBCTA-PA

Summary

EIDP, Inc. (CTA-PB), as reported by Corteva, Inc., demonstrated robust financial performance in the first quarter of 2023, with net sales increasing by 6% to $4.88 billion compared to the same period in the prior year. This growth was primarily driven by a significant 14% increase in pricing, reflecting the company's 'price for value' strategy and efforts to offset rising input costs. Despite a 4% decrease in volume and unfavorable currency impacts, the company achieved higher net income of $599 million (EPS $0.83 diluted) from continuing operations, up from $567 million (EPS $0.78 diluted) in Q1 2022. The company also made strategic acquisitions, notably the purchases of Stoller Group Inc. and Quorum Vital Investment, S.L. (Symborg) for approximately $1.6 billion in early March 2023. These acquisitions are expected to enhance Corteva's crop protection portfolio with biological tools. Management has updated its full-year 2023 guidance, now expecting net sales between $18.6 billion and $18.9 billion and Operating EBITDA between $3.55 billion and $3.75 billion, reflecting increased confidence following the acquisitions.

Key Highlights

  • 1Net sales increased by 6% to $4.88 billion in Q1 2023, driven by a 14% rise in pricing.
  • 2Net income grew to $599 million, with diluted EPS of $0.83, compared to $567 million and $0.78 in Q1 2022.
  • 3Completed strategic acquisitions of Stoller Group Inc. and Symborg for approximately $1.6 billion in March 2023.
  • 4Operating EBITDA increased to $1.23 billion, up from $1.04 billion in the prior year's quarter.
  • 5Updated full-year 2023 guidance, increasing net sales and Operating EBITDA expectations.
  • 6Seed segment net sales grew 7% to $2.70 billion, while Crop Protection net sales increased 5% to $2.19 billion.
  • 7Returned approximately $360 million to shareholders through share repurchases and dividends in Q1 2023.

Frequently Asked Questions

Net sales increased by 6% to $4.88 billion, primarily driven by a substantial 14% increase in pricing. This pricing strategy, coupled with a 1% favorable portfolio and other impact, helped offset a 4% decrease in volume and a 5% unfavorable currency impact.

Corteva reported net sales of $4.88 billion, up 6% year-over-year. Net income attributable to Corteva was $595 million, leading to diluted earnings per share of $0.83. Operating EBITDA was $1.23 billion, an increase from $1.04 billion in Q1 2022. The company also raised its full-year 2023 guidance.

Corteva completed the acquisitions of Stoller Group Inc. and Symborg in March 2023 for approximately $1.6 billion. These acquisitions are expected to bolster Corteva's crop protection segment with biological tools. While their operating results did not materially impact the first quarter's financial statements, they are factored into the updated, more optimistic full-year 2023 guidance.

The Seed segment saw net sales rise 7% to $2.70 billion, driven by strong pricing and portfolio mix, despite volume declines in certain regions. The Crop Protection segment's net sales increased 5% to $2.19 billion, also supported by pricing, partially offset by currency headwinds and volume decreases.