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Dec 31, 2022
Corteva Q4 2022 Earnings Report
Corteva reported mixed results for Q4 2022, with net sales up but a GAAP loss from continuing operations.
Key Takeaways
Corteva's Q4 2022 results showed a 10% increase in net sales, driven by price increases, but the company reported a GAAP loss from continuing operations of $41 million. Operating EBITDA increased by 41% compared to the prior year. The company provided full-year 2023 guidance, expecting net sales in the range of $18.1 billion to $18.4 billion.
Net sales increased by 10% compared to the same period last year, with organic sales rising by 11%.
GAAP loss from continuing operations after income taxes was $41 million, compared to income of $155 million in the fourth quarter of 2021.
Operating EBITDA for the fourth quarter was $370 million, up 41% compared to the prior year.
The company expects net sales in the range of $18.1 billion to $18.4 billion for full-year 2023.
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 provided guidance for the full-year 2023, expecting net sales in the range of $18.1 billion to $18.4 billion. Operating EBITDA is expected to be in the range of $3.4 billion to $3.6 billion. Operating EPS is expected to be in the range of $2.70 to $2.90 per share.
Positive Outlook
- The outlook for agriculture remains robust in 2023, with record demand for grain and oilseeds as ending stocks continue to be under pressure.
- Commodity prices are above historical averages.
- Farmer balance sheets and income levels remain healthy, leading farmers to prioritize technology to maximize return.
- The Company expects an increase in U.S. planted area.
- Operating EBITDA1 is expected to be in the range of $3.4 billion to $3.6 billion, growth of 9% at the mid-point.
Challenges Ahead
- Forecasted higher effective tax rate
- Forecasted higher interest expense
- Volume declined 1% versus the prior-year period, largely driven by lower Pioneer corn deliveries in North America
- The decision to exit Russia, and the war in Ukraine
- Wet weather and low pest pressure in Asia Pacific and drought conditions in Latin America
Revenue & Expenses
Visualization of income flow from segment revenue to net income