10-QPeriod: Q3 FY2024

Corteva, Inc. Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 7, 2024For Securities:CTVA

Summary

Corteva, Inc. reported net sales of $2,326 million for the third quarter of 2024, a decrease of 10% compared to the same period in the prior year, primarily driven by an 8% decrease in price and a 5% unfavorable currency impact, partially offset by a 3% increase in volume. The company experienced a net loss of $521 million for the quarter, compared to a net loss of $318 million in the prior year quarter. For the first nine months of 2024, net sales decreased by 4% to $12,930 million, with a net income of $948 million compared to $988 million in the same period last year. The company is navigating a competitive pricing environment in Crop Protection, particularly in Latin America, and reduced corn planted area in Argentina impacted Seed volumes. Despite these challenges, Corteva continues to invest in R&D and is implementing cost and productivity initiatives. The company also announced a restructuring program for its Crop Protection network, expected to yield significant savings by 2027. Corteva's outlook for full-year 2024 anticipates net sales between $17.0 billion and $17.2 billion, with Operating EBITDA expected to be between $3.35 billion and $3.45 billion. The company remains committed to returning capital to shareholders through dividends and share repurchases.

Financial Highlights

54 data points
Beta

Revenue

$2.33B

32.7% Gross Margin

Net Income

-$521.00M

-22.4% Net Margin

EPS (Diluted)

$-0.76

Total Assets

$41.91B

Cash & Equivalents

$2.42B

Free Cash Flow

$130.00M

Financial Statements
Beta
Revenue$2.33B
Cost of Revenue$1.56B
Gross Profit$761.00M
R&D Expenses$348.00M
SG&A Expenses$671.00M
Net Income-$521.00M
EPS (Basic)$-0.76
EPS (Diluted)$-0.76
Shares Outstanding (Basic)691.10M
Shares Outstanding (Diluted)691.10M

Key Highlights

  • 1Net sales for Q3 2024 decreased by 10% to $2,326 million, driven by lower pricing and unfavorable currency impacts.
  • 2The company reported a net loss of $521 million for Q3 2024, an increase from the net loss of $318 million in Q3 2023.
  • 3Year-to-date net sales for the first nine months of 2024 decreased by 4% to $12,930 million.
  • 4The Seed segment experienced a 21% decline in Q3 net sales due to lower volumes (primarily from reduced corn planted area in Argentina) and pricing.
  • 5The Crop Protection segment's Q3 net sales decreased by 4%, impacted by competitive pricing in Latin America and unfavorable currency, though volume saw an increase.
  • 6Corteva announced a Crop Protection Operations Strategy Restructuring Program with expected pre-tax charges of $650 million to $700 million and anticipated annual savings of $180 million by 2027.
  • 7Full-year 2024 guidance projects net sales between $17.0-$17.2 billion and Operating EBITDA between $3.35-$3.45 billion.

Frequently Asked Questions

The decrease in net sales for the third quarter of 2024 was primarily driven by an 8% decrease in price and a 5% unfavorable currency impact, partially offset by a 3% increase in volume. This was mainly due to a competitive pricing environment in Crop Protection, especially in Latin America, and reduced corn planted area in Argentina affecting Seed volumes.

Corteva announced a restructuring program for its Crop Protection network to optimize manufacturing and partner relationships. This program is expected to incur aggregate pre-tax charges of $650 million to $700 million and is projected to deliver approximately $180 million in annual savings on a run-rate basis by 2027. The actions are expected to be substantially complete by the end of 2026.

Corteva continues to have access to significant committed and uncommitted credit lines, totaling approximately $6.2 billion as of September 30, 2024. The company expects its ability to generate cash from operations and access to capital markets to be adequate to fund its operations, including working capital, capital expenditures, dividends, share repurchases, and litigation costs. For the nine months ended September 30, 2024, cash provided by continuing operations was $(1,871) million, with investing activities using $(466) million and financing activities providing $2,137 million.

Corteva is facing a competitive pricing environment in its Crop Protection segment, particularly in Latin America, and a significant reduction in corn planted area in Argentina, which has impacted its Seed segment volumes. Additionally, unfavorable currency impacts, primarily from the Brazilian Real and Turkish Lira, have presented a headwind.