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Sep 30, 2022
Corteva Q3 2022 Earnings Report
Corteva reported strong sales growth and made progress on portfolio actions.
Key Takeaways
Corteva's third quarter results showed a 17% increase in net sales and a significant improvement in Operating EBITDA, driven by focused global execution and strong customer demand. The company is progressing with portfolio actions, including the acquisition of Symborg and the decision to exit commodity glyphosate products. Looking ahead to 2023, the company expects a dynamic operating environment with macroeconomic pressures, but remains focused on executing its strategic plan and serving customers.
Net sales increased by 17% compared to the same period last year.
Organic sales rose by 22%, with double-digit increases in all regions.
Operating EBITDA increased to $96 million, up from a loss of $51 million in the year-ago period.
The company signed an agreement to acquire Symborg and made a business decision to exit commodity glyphosate products.
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 affirmed full year 2022 net sales guidance of $17.2 billion to $17.5 billion and increased the mid-point of its Operating EBITDA guidance to be in the range of $3.0 billion to $3.1 billion. Operating EPS is expected to be in the range of $2.45 to $2.60 per share.
Positive Outlook
- The Company expects record demand for grain and oilseeds in 2022, which should support commodity prices as ending stocks remain under pressure.
- Grower balance sheets and income levels remain healthy despite increased input costs for fuel and fertilizer, leading farmers to prioritize technology to maximize return.
- Affirmed full year 2022 net sales guidance of $17.2 billion to $17.5 billion.
- Increased the mid-point of its Operating EBITDA guidance, and now expects it to be in the range of $3.0 billion to $3.1 billion.
- Operating EPS is expected to be in the range of $2.45 to $2.60 per share.
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.
- The outlook for agriculture remains robust despite recent commodity price volatility.
- Macroeconomic pressures are expected to continue, including currency and inflation headwinds.
- The company expects an approximate $300 million headwind to net sales related to commodity glyphosate products in 2023.
- Unfavorable currency impacts were led by the South African Rand and the Euro.
Revenue & Expenses
Visualization of income flow from segment revenue to net income