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Mar 31, 2023
Corteva Q1 2023 Earnings Report
Corteva reported a solid start to 2023 with sales and earnings growth driven by differentiated portfolio and strong execution.
Key Takeaways
Corteva's first quarter 2023 results showed a 6% increase in net sales compared to the prior year, with gains in both segments. GAAP EPS was $0.84, while non-GAAP operating EPS was $1.16. The company raised its full-year guidance, including the impact of biologicals acquisitions.
Net sales rose 6% versus prior year, with organic sales increasing 10%, led by EMEA and North America.
Seed net sales grew 7%, with price gains driven by the company’s price for value strategy.
Crop Protection net sales grew 5%, led by value capture in EMEA, with price gains reflecting strong execution in response to cost inflation.
GAAP EPS was $0.84 per share, and Operating EPS was $1.16 per share, with strong price execution and product mix offsetting inflation and currency headwinds.
Corteva
Corteva
Corteva Revenue by Segment
Corteva Revenue by Geographic Location
Revenue by Segment
Seed Revenue
CapyFin.comCrop Protection Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comLatin America Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Corteva updated its full-year 2023 guidance, increasing sales and earnings expectations, including the impact of its Biologicals acquisitions. The company expects net sales in the range of $18.6 billion to $18.9 billion, Operating EBITDA in the range of $3.55 billion to $3.75 billion, and Operating EPS in the range of $2.80 to $3.00 per share.
Positive Outlook
- Net sales are expected to be in the range of $18.6 billion to $18.9 billion, representing a growth of 7% at the mid-point.
- Operating EBITDA is projected to be in the range of $3.55 billion to $3.75 billion, indicating a growth of 13% at the mid-point.
- Operating EPS is anticipated to be in the range of $2.80 to $3.00 per share, reflecting a growth of 9% at the mid-point.
- The increased guidance includes the impact of the Biologicals acquisitions, enhancing the company's growth prospects.
- The outlook for agriculture remains robust in 2023, with record demand for grain and oilseeds.
Challenges Ahead
- The company is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures.
- Forecasted higher effective tax rate.
- Forecasted higher interest expense.
- Dynamic weather conditions around the world.
- Ending stocks continue to be under pressure.