Corteva Reports Third Quarter and Year-to-Date 2022 Results
Strong Double-Digit Sales Growth Year-to-Date
Company Signs Agreement to Acquire Biological Leader Symborg
3Q 2022 Results Overview |
|||
|
Loss from Cont. Ops |
EPS |
|
GAAP |
|
|
|
vs. 3Q 2021 |
+17 % |
n/m |
n/m |
Organic1 Sales |
Operating EBITDA1 |
Operating EPS1 |
|
NON-GAAP |
|
|
|
vs. 3Q 2021 |
+22 % |
+288 % |
+14 % |
2022 YTD Results Overview |
|||
|
Income from Cont. Ops |
EPS |
|
GAAP |
|
|
|
vs. 2021 YTD |
+12 % |
(25) % |
(23) % |
Organic1 Sales |
Operating EBITDA1 |
Operating EPS1 |
|
NON-GAAP |
|
|
|
vs. 2021 YTD |
+16 % |
+23 % |
+21 % |
2022 YTD Highlights
- 2022 YTD net sales rose 12% versus prior year with gains in both segments. Organic1 sales increased 16% in the same period with double-digit gains in all regions.
- Seed net sales grew 5% and organic1 sales increased 8% year over year, with notable gains in EMEA2 as well as
North America 2 soybeans, partially offset by the reduction of corn acres and canola volumes inNorth America 2. Price was up 7% globally, led by continued execution on the Company's price for value strategy and recovery of higher input costs. - Crop Protection net sales grew 22% and organic1 sales increased 26%, with broad-based gains across all regions. Volume gains were driven by continued penetration of new products, including Enlist™ and Arylex™ herbicides and Onmira™ fungicide. Price gains reflected strong execution across all regions in response to cost inflation.
- GAAP income and earnings per share (EPS) from continuing operations were
$1.26 billion and$1.72 per share for the period, respectively. Operating EBITDA1 was$2.85 billion , a 23% improvement over prior year on strong price execution and volume gains in all regions and productivity actions, partially offset by inflation and currency headwinds. Operating EPS1 was$2.50 per share, up 21% compared to prior year. - The Company affirmed full year 2022 net sales guidance3 of
$17.2 billion to$17.5 billion . The Company increased the mid-point of its Operating EBITDA1 guidance, and now expects it to be in the range of$3.0 billion to$3.1 billion . Operating EPS1 is expected to be in the range of$2.45 to$2.60 per share.
"
"Look ahead to 2023, we expect the near-term operating environment to remain dynamic. While the outlook for ag fundamentals is strong, macroeconomic pressures are expected to continue, including currency and inflation headwinds.
"In this environment, we remain focused on executing our strategic plan and serving customers. We believe farmers will continue to prioritize top-tier technologies to increase productivity on the farm. We are in a unique position to provide industry-leading innovative solutions that will accelerate our performance and growth," said
Company Updates
- Company Signs Agreement to Acquire Biological Leader Symborg
- During the quarter, the Company announced it had signed a definitive agreement to acquire Symborg, a leader in microbiological technologies based in
Murcia, Spain . - The Company first collaborated with Symborg to scale up and bring farmers Utrisha™ N and BlueN™ nutrient efficiency optimizer as part of a distribution agreement between the two companies.
- This transaction continues the Company's commitment to build a more differentiated and sustainably advantaged portfolio that provides cost-effective solutions for farmers.
- During the quarter, the Company announced it had signed a definitive agreement to acquire Symborg, a leader in microbiological technologies based in
- Company Initiates First Significant Steps Towards Portfolio Simplification
- During the quarter, the Company made a business decision to exit commodity glyphosate products, reflecting
Corteva's commitment to disciplined and strategic portfolio management – prioritizing core markets and crops to optimize resource allocation and drive long-term value creation. - This decision allows the Company to simplify operations and focus investments on delivering greater value to growers through more differentiated and sustainably advantaged solutions.
- As a result of this decision, the Company expects an approximate
$300 million headwind to net sales related to commodity glyphosate products in 2023.
- During the quarter, the Company made a business decision to exit commodity glyphosate products, reflecting
- Enlist™ System Crosses
$1B inNet Sales - The Company delivered approximately
$1.1 billion in sales for the Enlist™ system during the nine months endedSeptember 30, 2022 , an increase of nearly 80% versus the same period last year. - The Company expects 2023 Enlist E3™4 U.S. market penetration in the mid 50% range, representing approximately 70% of
Corteva's lineup – a notable accomplishment considering this technology has only been in market for 3 seasons. The percentage of Enlist™ with proprietaryCorteva germplasm is expected to reach approximately 65%.
- The Company delivered approximately
2022 Updated Guidance
The outlook for agriculture remains robust despite recent commodity price volatility. The Company expects record demand for grain and oilseeds in 2022, which should support commodity prices as ending stocks remain under pressure. Grower balance sheets and income levels remain healthy despite increased input costs for fuel and fertilizer, leading farmers to prioritize technology to maximize return.
As a result, the Company affirmed full year 2022 net sales guidance3 of
Click here to download the full press release, including segment detail and reconciliations of non-GAAP and GAAP measures, or visit the Corteva Investor Relations website.
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Cautionary Statement About Forward-Looking Statements
This report contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and may be identified by their use of words like "plans," "expects," "will," "anticipates," "believes," "intends," "projects," "estimates," "outlook," or other words of similar meaning. All statements that address expectations or projections about the future, including statements about
Forward-looking statements and other estimates are based on certain assumptions and expectations of future events which may not be accurate or realized. Forward-looking statements and other estimates also involve risks and uncertainties, many of which are beyond
Additionally, there may be other risks and uncertainties that
Regulation G (Non-GAAP Financial Measures)
This earnings release includes information that does not conform to
Organic sales is defined as price and volume and excludes currency and portfolio impacts. Operating EBITDA is defined as earnings (loss) (i.e., income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, non-operating benefits (costs), foreign exchange gains (losses), and net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting, excluding the impact of significant items. Non-operating benefits (costs) consists of non-operating pension and other post-employment benefit (OPEB) benefits (costs), tax indemnification adjustments, and environmental remediation and legal costs associated with legacy businesses and sites. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between
Operating earnings (loss) per share is defined as "earnings (loss) per common share from continuing operations - diluted" excluding the after-tax impact of significant items, the after-tax impact of non-operating benefits (costs), the after-tax impact of amortization expense associated with intangible assets existing as of the Separation from DowDuPont, and the after-tax impact of net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. Although amortization of the Company's intangible assets is excluded from these non-GAAP measures, management believes it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in amortization of additional intangible assets. Net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting represents the non-cash net gain (loss) from changes in fair value of certain undesignated foreign currency derivative contracts. Upon settlement, which is within the same calendar year of execution of the contract, the realized gain (loss) from the changes in fair value of the non-qualified foreign currency derivative contracts will be reported in the relevant non-GAAP financial measures, allowing quarterly results to reflect the economic effects of the foreign currency derivative contracts without the resulting unrealized mark to fair value volatility. Base income tax rate is defined as the effective tax rate excluding the impacts of foreign exchange gains (losses), non-operating benefits (costs), amortization of intangibles (existing as of the Separation), mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, and significant items.
® TM Corteva Agriscience and its affiliated companies.
1. Organic Sales, Operating EPS and Operating EBITDA are non-GAAP measures. See page A-5 for further discussion. 2.
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SOURCE
Media Contact: Kris Allen, +1 403-485-5205, kris.allen@corteva.com; Investor Contact: Kim Booth, +1 302-485-3190, kimberly.a.booth@corteva.com