01—Abstract
Summary
Summary of the 10-K filed February 10, 2022. Cited figures are marked; the original filing is the authoritative source.
Corteva, Inc. (CTVA) reported strong performance in its 2021 fiscal year, with net sales increasing by 10% to $15.7 billiona, driven by a 5% volume increase and a 4% price increase.
This growth was supported by the successful penetration of new products and the company's "price for value" strategy, which helped offset rising raw material and logistics costs. Operating EBITDA also saw a significant increase, reaching $2.6 billionb, up from $2.1 billion in the prior year, reflecting robust price execution and volume gains across all regions and segments. The company continued to return capital to shareholders, with approximately $1.3 billion deployed through share repurchases and dividends in 2021.
Corteva also announced an increase in its common stock dividend and a new $1.5 billionc share repurchase program, signaling confidence in its ongoing financial strength and commitment to shareholder returns. The company's strategic priorities focus on leveraging its innovation pipeline, driving margin expansion through operational excellence, generating strong cash flow, and deploying capital in a balanced way for growth and shareholder returns.
02—Key points
Key Highlights
- Net sales increased 10% year-over-year to $15.66 billion, driven by both volume (5%) and price (4%) increases.
- Operating EBITDA grew significantly by 23% to $2.58 billion, reflecting strong execution in pricing and volume.
- The company returned approximately $1.3 billion to shareholders in 2021 through dividends and share repurchases.
- Corteva announced a new $1.5 billion share repurchase program, demonstrating confidence in future financial performance.
- Investments in Research and Development remained robust at $1.19 billion, supporting the company's innovation pipeline.
- The Seed segment saw an 8% increase in net sales to $8.40 billion, with strong volume and price growth, particularly in Latin America.
- The Crop Protection segment reported a 12% increase in net sales to $7.25 billion, driven by new product penetration and favorable pricing.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 10, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $15.65B$14.22B | +10.1% |
| Cost of Revenue | $9.22B$8.51B | +8.4% |
| Gross Profit | $6.43B$5.71B | +12.7% |
| R&D Expenses | $1.19B$1.14B | +3.9% |
| SG&A Expenses | $3.21B$3.04B | +5.5% |
| Net Income | $1.77B$681.00M | +159.8% |
| EPS (Basic) | $2.39$0.91 | +162.6% |
| EPS (Diluted) | $2.37$0.91 | +160.4% |
| Shares Outstanding (Basic) | 735.90M748.70M | −1.7% |
| Shares Outstanding (Diluted) | 741.60M751.20M | −1.3% |
05—Questions
Frequently Asked Questions
What were Corteva's key financial results for the fiscal year 2021?
For the fiscal year ended December 31, 2021, Corteva reported net sales of $15.66 billion, a 10% increase from the prior year. Operating EBITDA was $2.58 billion, a 23% increase year-over-year. Net income from continuing operations was $1.82 billion, compared to $756 million in 2020.
How did Corteva's business segments perform in 2021?
Both of Corteva's reportable segments showed strong performance. The Seed segment's net sales increased by 8% to $8.40 billion, driven by higher volume and prices. The Crop Protection segment's net sales grew by 12% to $7.25 billion, also benefiting from increased volume, price, and favorable currency impacts.
What is Corteva's outlook for 2022?
Corteva anticipates net sales in the range of $16.7 billion to $17.0 billion for 2022, driven by new product sales and its price-for-value strategy. Operating EBITDA is projected to be between $2.8 billion and $3.0 billion, with operating earnings per share expected to be between $2.30 and $2.50 per share.
06—Continue