Corteva Q2 2024 Earnings Report
Key Takeaways
Corteva reported a 1% increase in net sales for the second quarter of 2024, with organic sales up by 2%. The Seed business showed strength, while the Crop Protection segment faced challenges due to destocking and competitive pressures. The company has updated its full-year guidance to reflect current market dynamics.
Net sales increased by 1% compared to the same period last year.
Organic sales increased by 2% due to Crop Protection growth offsetting lower Seed volumes.
GAAP income from continuing operations after income taxes was $1.06 billion.
Operating EBITDA increased by 10% compared to the prior year.
Corteva
Corteva
Corteva Revenue by Segment
Corteva Revenue by Geographic Location
Forward Guidance
Corteva updated its full-year 2024 guidance, expecting net sales in the range of $17.2 billion to $17.5 billion, operating EBITDA in the range of $3.4 billion to $3.6 billion, and operating EPS in the range of $2.60 to $2.80 per share. The company anticipates cash provided by operating activities to be between $2.1 billion and $2.6 billion, with free cash flow expected to be in the range of $1.5 billion to $2.0 billion. They also plan to repurchase approximately $1.0 billion shares in 2024.
Positive Outlook
- On-farm demand for inputs remains steady.
- Farmers continue to prioritize top-tier seed technology.
- Seed business has outperformed the market, likely gaining market share.
- Seed business is improving operational efficiency.
- Company plans to repurchase approximately $1.0 billion shares in 2024.
Challenges Ahead
- Global Crop Protection industry volume has begun to stabilize, pricing pressures have become more pronounced.
- Pricing pressures are due to the competitive environment.
- Pricing pressures are due to tighter farmer margins.
- Updated 2024 revenue guidance lowered to reflect market dynamics.
- Updated 2024 operating EBITDA guidance lowered to reflect market dynamics.
Revenue & Expenses
Visualization of income flow from segment revenue to net income