10-KPeriod: FY2022

Corteva, Inc. Annual Report, Year Ended Dec 31, 2022

Filed February 9, 2023For Securities:CTVA

Summary

Corteva, Inc. reported strong performance in 2022 with an 11% increase in net sales, reaching $17.5 billion, driven by robust price execution and volume growth across all regions. The company's Seed segment saw a 7% sales increase, primarily due to price hikes, while the Crop Protection segment experienced a significant 17% sales jump, fueled by both price increases and volume growth, particularly from new product introductions. Despite facing headwinds from unfavorable currency impacts and rising input costs, Corteva demonstrated effective cost management and productivity actions, leading to an improvement in Operating EBITDA by 25% to $3.2 billion. The company also returned approximately $1.4 billion to shareholders through share repurchases and dividends. Looking ahead to 2023, Corteva anticipates continued growth, projecting net sales between $18.1 billion and $18.4 billion and Operating EBITDA between $3.4 billion and $3.6 billion, signaling confidence in its strategic priorities and market position.

Financial Highlights

54 data points
Beta

Revenue

$17.45B

40.2% Gross Margin

Net Income

$1.16B

6.6% Net Margin

EPS (Diluted)

$1.58

Total Assets

$42.62B

Cash & Equivalents

$3.19B

Free Cash Flow

$872.00M

Financial Statements
Beta
Revenue$17.45B
Cost of Revenue$10.44B
Gross Profit$7.02B
R&D Expenses$1.22B
SG&A Expenses$3.17B
Net Income$1.16B
EPS (Basic)$1.59
EPS (Diluted)$1.58
Shares Outstanding (Basic)720.80M
Shares Outstanding (Diluted)724.50M

Key Highlights

  • 1Corteva reported a significant 11% increase in net sales for 2022, reaching $17.5 billion, driven by strong price execution (10% increase) and volume gains (5% increase).
  • 2The Crop Protection segment was a strong performer, with net sales increasing by 17% year-over-year, driven by price (11%) and volume (9%) growth, supported by new product penetration.
  • 3The Seed segment also showed positive momentum, with net sales up 7%, primarily due to a 9% price increase, with strong adoption of its Enlist E3™ soybean trait reaching over 45% of North American acres.
  • 4Operating EBITDA saw a substantial increase of 25% to $3.2 billion, reflecting effective cost and productivity actions that offset inflationary pressures and currency headwinds.
  • 5Corteva returned approximately $1.4 billion to shareholders in 2022 through share repurchases ($1 billion under the $2 billion program) and dividends ($0.58 per share for the year).
  • 6The company announced its intent to acquire Stoller and Symborg for $1.6 billion, expected to close in H1 2023, to bolster its biologicals portfolio.
  • 7Corteva provided a positive 2023 outlook, forecasting net sales between $18.1 billion and $18.4 billion and Operating EBITDA between $3.4 billion and $3.6 billion.

Frequently Asked Questions

Corteva's Seed segment reported a 7% increase in net sales, driven by a 9% price increase and strong global execution, though offset by unfavorable currency impacts and reduced North American corn acres. The Crop Protection segment demonstrated robust growth with a 17% increase in net sales, propelled by an 11% price increase and a 9% volume increase, with new product sales up 33%.

Corteva anticipates continued growth in 2023, projecting net sales in the range of $18.1 billion to $18.4 billion and Operating EBITDA between $3.4 billion and $3.6 billion. This outlook reflects a robust agricultural market with strong demand for grain and oilseeds, healthy farmer balance sheets, and a continued prioritization of technology to maximize returns.

Corteva effectively managed rising input costs, freight, and logistics expenses through ongoing cost and productivity actions. Despite these challenges and currency headwinds, the company's strong price execution and volume gains contributed to a 25% increase in Operating EBITDA, demonstrating operational resilience.

Corteva's strategy focuses on accelerating performance and growth through a value creation network, emphasizing portfolio simplification by prioritizing core markets, achieving royalty neutrality, improving product mix with differentiated solutions, and driving operational improvements. The company also plans increased investment in its innovation pipeline and disciplined capital deployment for growth and complementary M&A opportunities.