10-QPeriod: Q1 FY2024

Corteva, Inc. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 2, 2024For Securities:CTVA

Summary

Corteva, Inc. reported first quarter 2024 net sales of $4,492 million, 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 million, 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 million to shareholders through share repurchases and dividends in the first quarter.

Financial Highlights

54 data points
Beta

Revenue

$4.49B

43.2% Gross Margin

Net Income

$423.00M

9.4% Net Margin

EPS (Diluted)

$0.60

Total Assets

$43.63B

Cash & Equivalents

$1.50B

Free Cash Flow

-$2.61B

Financial Statements
Beta
Revenue$4.49B
Cost of Revenue$2.55B
Gross Profit$1.94B
R&D Expenses$332.00M
SG&A Expenses$736.00M
Net Income$423.00M
EPS (Basic)$0.60
EPS (Diluted)$0.60
Shares Outstanding (Basic)700.40M
Shares Outstanding (Diluted)702.80M

Key Highlights

  • 1Net 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.
  • 2Net 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.
  • 3Operating EBITDA (Non-GAAP) was $1,034 million for Q1 2024, down from $1,231 million in Q1 2023, reflecting lower volumes and increased costs.
  • 4The 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.
  • 5Corteva 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.
  • 6The company returned approximately $365 million to shareholders in Q1 2024 through share repurchases ($250 million) and dividends ($112 million).
  • 7Restructuring and asset-related charges increased to $75 million in Q1 2024, primarily related to the Crop Protection Operations Strategy Restructuring Program.

Frequently Asked Questions

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.

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.

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.

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.