01—Abstract
Summary
Summary of the 10-Q filed May 2, 2024. Cited figures are marked; the original filing is the authoritative source.
Corteva, Inc. reported first quarter 2024 net sales of $4,492 milliona, a decrease of 8% compared to the prior year, primarily driven by a 9% decrease in volume, partially offset by a 3% increase in price.
Net income attributable to Corteva was $419 millionb, or $0.60 per share, down from $595 million, or $0.84 per share, in the first quarter of 2023. The decline in earnings was influenced by lower sales volumes, increased R&D expenses, and higher restructuring charges related to the Crop Protection Operations Strategy Restructuring Program. The company is reaffirming its full-year 2024 outlook, expecting net sales between $17.4 billion and $17.7 billion and Operating EBITDA between $3.5 billion and $3.7 billion.
Despite the year-over-year decline in the first quarter, management anticipates market growth in the second half of 2024, particularly in the Crop Protection segment, and continues to focus on cost and productivity improvements. Corteva also returned approximately $365 millionc to shareholders through share repurchases and dividends in the first quarter.
02—Key points
Key Highlights
- Net sales for Q1 2024 decreased by 8% to $4,492 million compared to Q1 2023, driven primarily by a 9% volume decline, partially offset by a 3% price increase.
- Net income attributable to Corteva decreased to $419 million ($0.60 per share) in Q1 2024 from $595 million ($0.84 per share) in Q1 2023.
- Operating EBITDA (Non-GAAP) was $1,034 million for Q1 2024, down from $1,231 million in Q1 2023, reflecting lower volumes and increased costs.
- The Seed segment saw a 2% increase in net sales to $2,751 million, driven by a 6% price increase, while the Crop Protection segment's net sales decreased by 20% to $1,741 million due to lower volumes and pricing pressure.
- Corteva reaffirmed its full-year 2024 financial outlook, projecting net sales between $17.4 billion and $17.7 billion and Operating EBITDA between $3.5 billion and $3.7 billion.
- The company returned approximately $365 million to shareholders in Q1 2024 through share repurchases ($250 million) and dividends ($112 million).
- Restructuring and asset-related charges increased to $75 million in Q1 2024, primarily related to the Crop Protection Operations Strategy Restructuring Program.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 2, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $4.49B$4.88B | −8.0% |
| Cost of Revenue | $2.55B$2.77B | −8.0% |
| Gross Profit | $1.94B$2.11B | −8.1% |
| R&D Expenses | $332.00M$316.00M | +5.1% |
| SG&A Expenses | $736.00M$726.00M | +1.4% |
| Net Income | $423.00M$595.00M | −28.9% |
| EPS (Basic) | $0.60$0.84 | −28.6% |
| EPS (Diluted) | $0.60$0.83 | −27.7% |
| Shares Outstanding (Basic) | 700.40M712.90M | −1.8% |
| Shares Outstanding (Diluted) | 702.80M716.20M | −1.9% |
05—Questions
Frequently Asked Questions
What is the primary reason for the decrease in net sales and net income in the first quarter of 2024 compared to the first quarter of 2023?
The primary reason for the decrease in net sales was an 8% decline, driven largely by a 9% decrease in sales volume, against a strong prior year comparison. This was partially offset by a 3% increase in price. The decline in net income was influenced by lower sales volumes, increased research and development expenses, and higher restructuring charges.
How did the Seed and Crop Protection segments perform in the first quarter?
The Seed segment performed well, with net sales increasing by 2% to $2,751 million, primarily due to a 6% price increase. However, the Crop Protection segment experienced a significant 20% decrease in net sales to $1,741 million, largely due to an 18% drop in volume and pricing pressures, particularly in North America and Latin America.
What is Corteva's outlook for the full year 2024?
Corteva is reaffirming its previously provided outlook for the full year 2024. The company expects net sales to be in the range of $17.4 billion to $17.7 billion and Operating EBITDA to be between $3.5 billion and $3.7 billion.
What significant events or charges impacted the first quarter results?
The company incurred $75 million in restructuring and asset-related charges in the first quarter of 2024, up from $33 million in the prior year. These charges are primarily related to the Crop Protection Operations Strategy Restructuring Program. Additionally, the company continued to execute its share repurchase program and pay dividends, returning approximately $365 million to shareholders during the quarter.
06—Continue