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Jun 30, 2021

Corteva Q2 2021 Earnings Report

Net sales and EPS increased, driven by volume and price gains, as well as the adoption of new technologies.

Key Takeaways

Corteva reported an 8% increase in net sales and a 36% increase in EPS for the second quarter of 2021. The company's performance was driven by strong demand for its innovative products, its ability to price for value, and its focus on execution.

Net sales increased 8% versus the same period last year.

Organic sales rose 6%, with increases in most regions.

GAAP income from continuing operations after income taxes was $1.0 billion in second quarter 2021.

Operating EBITDA for the second quarter was $1.46 billion, up 18% compared to the year-ago period.

Total Revenue
$5.63B
Previous year: $5.19B
+8.4%
EPS
$1.4
Previous year: $1.26
+11.1%
Gross Profit
$2.62B
Previous year: $2.36B
+10.8%
Cash and Equivalents
$2.86B
Previous year: $2.81B
+1.9%
Total Assets
$41.5B
Previous year: $42.2B
-1.6%

Corteva

Corteva

Corteva Revenue by Segment

Corteva Revenue by Geographic Location

Forward Guidance

Corteva updated its previously provided guidance for the full year 2021 – increasing sales and earnings expectations for this period.

Positive Outlook

  • Corteva expects net sales in the range of $15.2 billion to $15.4 billion, which at the mid-point represents expected net sales growth of 8% for the year.
  • The Company expects Operating EBITDA to be in the range of $2.5 billion to $2.6 billion, which at the midpoint represents expected Operating EBITDA growth of 22% for the year.
  • Operating EPS is expected to be in the range of $2.00 and $2.10 per share.
  • Strength of the Company’s global footprint evident in market share gains in key markets, notably Latin America in Brazil Safrinha corn and Europe in Crop Protection
  • Driving execution on sustainable innovation, production efficiencies and transition to renewable energy sources

Challenges Ahead

  • Failure to obtain or maintain the necessary regulatory approvals for some Corteva’s products
  • Effect of climate change and unpredictable seasonal and weather factors
  • Effect of volatility in Corteva’s input costs
  • Risks related to COVID-19
  • Risks associated with our CEO transition, including failure to timely identify a successor CEO.

Revenue & Expenses

Visualization of income flow from segment revenue to net income