10-KPeriod: FY2019

Corteva, Inc. Annual Report, Year Ended Dec 31, 2019

Filed February 14, 2020For Securities:CTVA

Summary

Corteva, Inc. (CTVA) emerged as an independent, publicly traded company on June 1, 2019, following its separation from DowDuPont. This 10-K report details its first full year of operations as a standalone entity in 2019, a period marked by the consolidation of its agricultural businesses, including Pioneer seeds and the Crop Protection segment. The company's strategy is focused on leveraging its strong innovation pipeline to deliver advanced seed and crop protection solutions to farmers globally. Financially, Corteva generated $13.8 billion in net sales for 2019. While this represents a slight decrease from the prior year, it reflects various market dynamics including weather-related planting delays in North America and currency headwinds. The company is actively managing its cost structure, aiming for significant synergies from the integration of its former businesses, with approximately $350 million realized in 2019 towards a target of $1.2 billion by 2021. Corteva is also prioritizing disciplined capital allocation, demonstrated by its dividend payments and share repurchase program, underscoring a commitment to shareholder value creation.

Financial Highlights

54 data points
Beta

Revenue

$13.85B

38.1% Gross Margin

Net Income

-$959.00M

-6.9% Net Margin

EPS (Diluted)

$-1.28

Total Assets

$42.40B

Cash & Equivalents

$1.76B

Free Cash Flow

-$93.00M

Financial Statements
Beta
Revenue$13.85B
Cost of Revenue$8.57B
Gross Profit$5.27B
R&D Expenses$1.15B
SG&A Expenses$3.06B
Net Income-$959.00M
EPS (Basic)$-1.28
EPS (Diluted)$-1.28
Shares Outstanding (Basic)749.50M
Shares Outstanding (Diluted)749.50M

Key Highlights

  • 1Corteva became an independent public company on June 1, 2019, following its separation from DowDuPont.
  • 2The company reported net sales of $13.8 billion in 2019, a 3% decrease compared to 2018, primarily due to currency fluctuations and weather-related planting delays.
  • 3Corteva realized approximately $350 million in cost synergies in 2019, on track to achieve its $1.2 billion target by 2021.
  • 4The company launched new products and is accelerating the ramp-up of its Enlist E3™ soybeans and associated herbicides.
  • 5Corteva returned approximately $220 million to shareholders in 2019 through dividends and share repurchases.
  • 6The company operates through two key segments: Seed and Crop Protection, with a global presence in approximately 140 countries.
  • 7Significant integration and separation costs were incurred in 2019, totaling $744 million, as the company continued to align its operations.

Frequently Asked Questions

Corteva, Inc. is a global leader in the agriculture industry, focusing on providing farmers with a comprehensive portfolio of seed and crop protection solutions. Its business is divided into two main segments: Seed, which develops and supplies seeds with advanced germplasm and traits, and Crop Protection, which offers products to protect crops from weeds, insects, and diseases.

Corteva was formed through the separation of DowDuPont's agriculture business, becoming an independent public company on June 1, 2019. In its first full year as a standalone entity in 2019, Corteva reported net sales of $13.8 billion, a slight decrease from the previous year, impacted by currency headwinds and adverse weather conditions in key markets. The company is focused on integrating its businesses, achieving cost synergies, and driving innovation in its product offerings.

Corteva's strategic priorities include fostering a strong culture, disciplined capital allocation, developing innovative solutions, achieving a best-in-class cost structure, and delivering above-market growth. The company expects a 4-5% increase in net sales for 2020, driven by normalized conditions in North America and new product introductions. It also anticipates growth in Operating EBITDA and earnings per share through synergies and productivity improvements.