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Dec 31, 2023
Corteva Q4 2023 Earnings Report
Corteva's Q4 2023 earnings were impacted by volume declines, particularly in Latin America, though operating EBITDA saw an increase.
Key Takeaways
Corteva's fourth-quarter 2023 results showed a decrease in net sales and a GAAP loss, but operating EBITDA improved. The decline was attributed to volume decreases, especially in Latin America, while price increases partially offset the negative impact. The company provided 2024 guidance, expecting net sales and operating EBITDA growth.
Net sales decreased by 3% compared to the same period last year, with organic sales declining by 8%.
GAAP income from continuing operations after income taxes was a loss of $231 million, compared to a loss of $41 million in the prior year.
Operating EBITDA increased by 4% compared to the prior year, reaching $386 million.
Seed net sales decreased slightly, driven by a volume decline, while Crop Protection net sales also declined due to lower volume and price.
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 full-year 2024 guidance and expects net sales in the range of $17.4 billion to $17.7 billion, Operating EBITDA to be in the range of $3.5 billion to $3.7 billion, and Operating EPS to be in the range of $2.70 to $2.90 per share.
Positive Outlook
- Net sales are expected to be in the range of $17.4 billion to $17.7 billion, growth of 2% at the mid-point.
- Operating EBITDA is expected to be in the range of $3.5 billion to $3.7 billion, growth of 6% at the mid-point.
- Operating EPS is expected to be in the range of $2.70 to $2.90 per share, up 4% at the mid-point.
- Cash provided by operating activities – continuing operations is expected to be in the range of $2.1 billion to $2.6 billion.
- Free cash flow is expected to be in the range of $1.5 billion to $2.0 billion.
Challenges Ahead
- Guidance reflects higher earnings partially offset by interest expense and a higher base tax rate.
- The Crop Protection industry is working to rebalance after the significant destocking in 2023.
- The company is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures.
- Uncertainties related to Significant Items.
- The global outlook for agriculture remains constructive overall in 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income