Corteva, Inc. Quarterly Report for Q1 Ended Mar 31, 2020

Summary

Corteva, Inc. reported a strong first quarter in 2020, with net sales increasing by 16% year-over-year to $3.96 billion. This growth was primarily driven by a significant 17% increase in volume, particularly in the Seed segment, supported by favorable weather conditions and strong demand. The company also benefited from price increases, though partially offset by currency headwinds. Net income attributable to Corteva was $272 million, a substantial improvement from the prior year's comparable period and a significant rebound from the net loss reported in Q1 2019 from continuing operations. This performance was bolstered by the absence of integration and separation costs incurred in the prior year and improved operating leverage. The company also highlighted operational efficiencies and progress on its "Execute to Win" productivity program, positioning it for continued operational improvements.

Key Highlights

• 1Net sales increased 16% year-over-year to $3.96 billion, driven by a 17% volume increase and a 3% price increase, partially offset by currency impacts.
• 2Net income attributable to Corteva was $272 million, a significant improvement from $164 million in the prior year, reflecting strong operational performance.
• 3Seed segment sales grew 25% to $2.46 billion, driven by strong volume in North America and EMEA, and favorable pricing.
• 4Crop Protection segment sales increased 5% to $1.50 billion, supported by new product launches and strong demand in Latin America and EMEA.
• 5The company repurchased $50 million of its common stock under its $1 billion share repurchase program.
• 6Corteva suspended its full-year 2020 financial outlook due to uncertainty surrounding the COVID-19 pandemic.
• 7Segment Operating EBITDA increased to $819 million from $545 million (pro forma) in the prior year, demonstrating improved profitability.

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