10-QPeriod: Q1 FY2022

Corteva, Inc. Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 5, 2022For Securities:CTVA

Summary

Corteva, Inc. reported a solid first quarter for 2022, with net sales increasing by 10% year-over-year to $4.6 billion. This growth was primarily driven by a 9% increase in price and a 7% rise in volume, reflecting strong demand and successful pricing strategies, although partially offset by a 6% unfavorable currency impact. The company's operating EBITDA also saw a significant improvement, up 15% to $1.04 billion, demonstrating effective cost management and strong sales execution across all regions, despite inflationary pressures on input and logistics costs. The company continues to return capital to shareholders, repurchasing approximately $335 million in common stock and paying dividends in the first quarter. Corteva is affirming its full-year 2022 outlook for net sales and Operating EBITDA, indicating confidence in continued performance. However, investors should note the ongoing global economic uncertainties, including the conflict in Ukraine and associated sanctions, which have led Corteva to announce its withdrawal from Russia, expecting related charges. The company also faces ongoing litigation and environmental matters, which, while managed, represent potential contingent liabilities.

Financial Highlights

51 data points
Beta

Revenue

$4.60B

40.8% Gross Margin

Net Income

$567.00M

12.3% Net Margin

EPS (Diluted)

$0.78

Total Assets

$42.63B

Cash & Equivalents

$2.03B

Free Cash Flow

-$2.73B

Financial Statements
Beta
Revenue$4.60B
Cost of Revenue$2.72B
Gross Profit$1.88B
R&D Expenses$268.00M
SG&A Expenses$735.00M
Net Income$567.00M
EPS (Basic)$0.78
EPS (Diluted)$0.78
Shares Outstanding (Basic)727.00M
Shares Outstanding (Diluted)730.90M

Key Highlights

  • 1Net sales increased by 10% to $4.6 billion in Q1 2022, driven by price (9%) and volume (7%), partially offset by currency headwinds (-6%).
  • 2Operating EBITDA grew by 15% to $1.04 billion, reflecting strong price execution and volume gains, though impacted by inflation and currency.
  • 3The Seed segment saw a 1% net sales increase to $2.5 billion, with an 8% price increase offset by a 1% volume decline and 6% currency impact.
  • 4The Crop Protection segment experienced robust growth, with net sales up 23% to $2.1 billion, driven by an 18% volume increase and an 11% price increase, despite a 5% currency headwind.
  • 5Corteva returned approximately $335 million to shareholders through share repurchases ($235 million) and dividends ($100 million) in Q1 2022.
  • 6The company is affirming its full-year 2022 net sales outlook ($16.7B - $17.0B) and Operating EBITDA outlook ($2.8B - $3.0B).
  • 7Corteva announced its decision to withdraw from Russia, expecting charges between $25 million and $75 million.

Frequently Asked Questions

Corteva's net sales increased by 10% to $4.601 billion for the three months ended March 31, 2022, compared to $4.178 billion in the same period of 2021. This growth was driven by a 9% increase in price and a 7% increase in volume, though partially offset by a 6% unfavorable currency impact.

Corteva is affirming its previously provided outlook for the full-year 2022. Net sales are expected to be in the range of $16.7 billion to $17.0 billion, and Operating EBITDA is expected to be in the range of $2.8 billion to $3.0 billion. The company has adjusted its expectation for Operating Earnings Per Share to be in the range of $2.35 to $2.55.

Yes, the company highlights ongoing global economic uncertainties, including disruptions from the Russia-Ukraine conflict, which has led to Corteva's decision to withdraw from Russia and anticipate related charges. Additionally, the company continues to manage various legal proceedings and environmental matters, which represent potential contingent liabilities, although they are not expected to have a material impact on the financial position in the near term.

Corteva returned approximately $335 million to shareholders in the first quarter of 2022. This included $235 million for share repurchases under its buyback program and $100 million in common stock dividends.