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 Aug. 1, 2024 Source: Corteva Agriscience news release INDIANAPOLIS -- Corteva, Inc. (NYSE: CTVA) ("Corteva" or the "Company") today reported financial results for the second quarter and six months ended June 30, 2024. First Half 2024 Highlights *First half 2024 net sales declined 3% versus prior year as Crop Protection declines more than offset Seed gains. Organic sales decreased 2% in the same period. *Seed net sales grew 2% and organic sales increased 4%. Price was up 5% globally, led by North America with the continued execution on the Company's price for value strategy. Volume declines were driven primarily by unfavorable weather and reduced planted area in EMEA. *Crop Protection net sales and organic sales both decreased 11%. Volume declines were driven by weather and destocking impacts in EMEA2, as well as just-in-time purchasing behavior in North America2. Price declined 4% reflecting a broad-based competitive price environment.* *GAAP income and earnings per share (EPS) from continuing operations were $1.43 billion and $2.03 per share for the first half of 2024, respectively. *Operating EBITDA and Operating EPS were $2.95 billion, and $2.72 per share for the first half of 2024, respectively. *The Company updated full-year 2024 guidance and expects net sales in the range of $17.2 billion to $17.5 billion. Operating EBITDA is expected to be in the range of $3.4 billion to $3.6 billion. Operating EPS is expected to be in the range of $2.60 to $2.80 per share. Cash provided by operating activities - continuing operations is expected to be in the range of $2.1 billion to $2.6 billion. Free Cash Flow is expected to be in the range of $1.5 billion to $2.0 billion. The Company plans to repurchase approximately $1.0 billion shares in 2024. Chuck Magro, Chief Executive Officer: "Corteva's results for the first half of 2024 were solid, led by the Seed business and overall operational execution. Our Seed business segment had another standout performance, hitting a new record for first half operating EBITDA. This reflects the sustained strength of our product portfolio, as farmers continue to rely on our leading technology. We're very proud of our position as the North America seed market leader for both corn and soybeans. "The Crop Protection market is showing signs of stabilization, however we continue to navigate competitive price pressures. We are encouraged by the Crop Protection business volume improvement in the second quarter and expect that to continue in the second half of the year. "We have adjusted our full year 2024 outlook to reflect market realities and the continued focus on controlling the controllables. We are committed to delivering a strong second half of the year and meeting our commitments to customers and shareholders." Seed Summary Seed net sales were $4.33 billion in the second quarter of 2024, up from $4.26 billion in the second quarter of 2023. The sales increase was driven by a 5% increase in price, partially offset by a 2% decline in volume and a 1% unfavorable impact from portfolio. The price increase was broad-based, led by North America2, on improved product mix and the continued execution of the Company's price for value strategy. Lower volumes were driven by earlier seasonal deliveries in North America versus prior year, partially offset by the delayed season in EMEA2 into the second quarter. Segment operating EBITDA was $1.70 billion in the second quarter of 2024, up 16% from the second quarter of 2023. Price execution, reduction of net royalty expense, and ongoing cost and productivity actions more than offset investment in R&D, higher commodity costs, and lower volumes. Segment operating EBITDA margin improved by approximately 500 basis points versus the prior-year period. Crop Protection Summary Crop Protection net sales were approximately $1.8 billion in the second quarter of 2024, flat with the second quarter of 2023. The flat sales growth over the prior period was driven by a 6% increase in volume offset by a 5% decline in price and a 1% unfavorable impact from currency. The increase in volume was driven primarily by Latin America and North America2 on demand for new products and spinosyns, partially offset by residual destocking and unfavorable weather in EMEA2. The price decline was broad-based, reflecting the competitive pricing environment for the Crop Protection industry globally. Segment operating EBITDA was $255 million in the second quarter of 2024, down 20% from the second quarter of 2023. Competitive pricing and raw material cost inflation more than offset volume growth and productivity savings. Segment operating EBITDA margin declined by 365 basis points versus the prior-year period. To read the entire report click here. Tweet |
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