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Sep 30, 2024
Corteva Q3 2024 Earnings Report
Corteva experienced a decrease in net sales and reported a net loss, impacted by challenges in Latin America and competitive pricing pressures.
Key Takeaways
Corteva's third quarter results were impacted by reduced planted area and market dynamics in Latin America, as well as competitive pricing environment in Crop Protection. Net sales decreased by 10% and the company reported a GAAP loss of $519 million. Crop Protection volume increased due to demand in Latin America and North America, while Seed volume declined due to reduced corn planted area in Argentina. The company updated its full-year 2024 guidance.
Net sales decreased by 10% compared to the same period last year.
GAAP income from continuing operations after income taxes was a loss of $519 million.
Operating EBITDA was a loss of $100 million.
Crop Protection volume increased, driven by Latin America and North America, while Seed volume declined due to reduced corn planted area in Argentina.
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 expects net sales in the range of $17.0 billion to $17.2 billion for full year 2024. Operating EBITDA is expected to be $3.35 billion to $3.45 billion. Operating EPS is expected to be $2.50 to $2.60 per share. For full-year 2025, Corteva has a preliminary outlook of net sales in the range of $17.3 to $17.7 billion and operating EBITDA in the range of $3.6 to $4.0 billion.
Positive Outlook
- Commodity prices are relatively steady.
- Farmers continue to prioritize top-tier seed technology.
- Seed business has continued to outperform the market.
- Gains in Operating EBITDA, including benefits from productivity and raw material deflation, reflect the resilience of our Crop Protection business.
- The Company expects it will have repurchased approximately $1.0 billion shares in 2024.
Challenges Ahead
- Latin America market conditions represent a headwind, including a significant reduction in corn planted area in Argentina.
- The global Crop Protection industry volumes have continued to stabilize, the pricing environment remains competitive.
- Operating EPS is expected to be down 5% at the mid-point.
- Net sales are expected to decline of 1% at the mid-point.
- The Company is not able to reconcile its forward-looking non-GAAP financial measures, except for Free Cash Flow, to its most comparable U.S. GAAP financial measures
Revenue & Expenses
Visualization of income flow from segment revenue to net income