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Corteva
🇺🇸 NYSE:CTVA
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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.

Total Revenue
$4.88B
Previous year: $4.6B
+6.2%
EPS
$1.16
Previous year: $0.97
+19.6%
Gross Profit
$2.11B
Previous year: $1.88B
+12.6%
Cash and Equivalents
$1.65B
Previous year: $2.03B
-19.0%
Total Assets
$45.5B
Previous year: $42.6B
+6.7%

Corteva

Corteva

Corteva Revenue by Segment

Corteva Revenue by Geographic Location

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.

Company Overview

Full financial data and analysis

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