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Jun 30, 2022

Corteva Q2 2022 Earnings Report

Corteva's second quarter results showcased growth in net sales and operating EBITDA.

Key Takeaways

Corteva reported an 11% increase in net sales and an 18% increase in Operating EBITDA compared to the same quarter last year. The growth was driven by strong demand for crop protection products and price increases. Management also raised full year 2022 net sales and earnings guidance.

Net sales increased by 11% versus the same period last year.

Organic sales rose 13%, with increases in all regions.

Operating EBITDA increased by 18% compared to the year-ago period.

The company recorded $68 million of restructuring and other charges.

Total Revenue
$6.25B
Previous year: $5.63B
+11.1%
EPS
$1.64
Previous year: $1.4
+17.1%
Gross Profit
$2.93B
Previous year: $2.62B
+11.9%
Cash and Equivalents
$2.4B
Previous year: $2.86B
-16.1%
Total Assets
$40.9B
Previous year: $41.5B
-1.4%

Corteva

Corteva

Corteva Revenue by Segment

Corteva Revenue by Geographic Location

Forward Guidance

Corteva expects net sales in the range of $17.2 billion to $17.5 billion, Operating EBITDA in the range of $2.95 billion to $3.10 billion, and Operating EPS in the range of $2.45 to $2.60 per share.

Positive Outlook

  • Record demand for grain and oilseeds in 2022
  • Healthy grower balance sheets and income levels
  • Prioritization of technology to maximize return
  • Net sales growth of 11% expected for the year
  • Operating EBITDA1 growth of 17% expected for the year

Challenges Ahead

  • Recent commodity price volatility
  • Increased input costs for fuel and fertilizer
  • The company is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures
  • Expected total pre-tax restructuring and other charges of approximately $350 million to $420 million
  • Uncertainties related to the Russia and Ukraine military conflict

Revenue & Expenses

Visualization of income flow from segment revenue to net income