Corteva Reports Third Quarter and Year-to-Date 2024 Results, Updates Full-Year 2024 Guidance, Provides 2025 Preliminary Outlook
3Q YTD performance reflects Seed price / mix gains and ongoing benefits from controllables
3Q results and Full Year 20243 impacted by Latin America planted area and market dynamics
Preliminary 2025 outlook3 for strong Operating EBITDA1 growth and margin expansion
INDIANAPOLIS, Nov. 6, 2024 /PRNewswire/ -- Corteva, Inc. (NYSE: CTVA) ("Corteva" or the "Company") today reported financial results for the third quarter and nine months ended September 30, 2024.
3Q 2024 Results Overview
Net Sales
Loss from Cont. Ops (After Tax)
EPS
GAAP
$2.33B
$(519)M
$(0.76)
vs. 3Q 2023
(10) %
(65) %
(69) %
Organic1 Sales
Operating EBITDA1
Operating EPS1
NON-GAAP
$2.46B
$(100)M
$(0.49)
vs. 3Q 2023
(5) %
n/m
(113) %
2024 YTD Results Overview
Net Sales
Income from Cont. Ops (After Tax)
EPS
GAAP
$12.93B
$913M
$1.29
vs. 2023 YTD
(4) %
(22) %
(21) %
Organic1 Sales
Operating EBITDA1
Operating EPS1
NON-GAAP
$13.20B
$2.85B
$2.24
vs. 2023 YTD
(2) %
(5) %
(12) %
2024 YTD Highlights
Net sales declined 4% versus prior year. Organic1 sales decreased 2% in the same period.
Seed net sales decreased 1% and organic1 sales increased 1%. Price was up 4% led by North America2 with continued execution on the Company's price for value strategy. Volume declines reflect reduced corn planted area in Latin America, as well as unfavorable weather and reduced planted area in EMEA2.
Crop Protection net sales decreased 9% and organic1 sales decreased 7%. Volume declines were driven by weather and destocking impacts in EMEA2, as well as just-in-time purchasing behavior in North America2, partially offset by volume growth in Latin America on demand for new products and spinosyns. Price declined 5% primarily due to the market dynamics in Latin America.
GAAP income and earnings per share (EPS) from continuing operations were $913 million and $1.29 per share, respectively.
Operating EBITDA1 and Operating EPS1 were $2.85 billion, and $2.24 per share, respectively.
The Company updated full-year 2024 guidance3 and expects net sales in the range of $17.0 to $17.2 billion. Operating EBITDA1 is expected to be $3.35 to $3.45 billion. Operating EPS1 is expected to be $2.50 to $2.60 per share. Cash provided by operating activities from continuing operations is expected to be $2.1 billion to $2.6 billion. Free Cash Flow1 is expected to be $1.5 billion to $2.0 billion. The Company expects it will have repurchased approximately $1 billion shares during 2024.
The Company provided a preliminary outlook3 for 2025 and expects net sales in the range of $17.3 to $17.7 billion. Operating EBITDA1 is expected to be in the range of $3.6 to $4.0 billion.
1. Organic Sales, Operating EPS, Operating EBITDA, and Free Cash Flow are non-GAAP measures. See page 7 for further discussion. 2. North America is defined as U.S. and Canada. EMEA is defined as Europe, Middle East and Africa. 3. The Company does not provide the most comparable GAAP measure on a forward-looking basis. See page 5 for further discussion.
"Corteva's third quarter results were largely in line with expectations. We continued to execute effectively and are on track to deliver over $400 million of savings from controllable levers this year.
The Crop Protection business delivered earnings and margin growth in the quarter led by demand for our differentiated technology along with deflation benefits. Following a strong first half, the Seed business was impacted by lower planted area in Latin America in the quarter.
Despite greater market challenges in the second half of the year, we are still on track for margin expansion in 2024.
Today, we also provided a first look at 2025 with double digit earnings growth expected, driven by factors largely in our control. We remain committed to delivering advanced technology to our customers and generating consistent, incremental value to our shareholders."
Chuck MagroChief Executive Officer
Summary of Third Quarter 2024For the third quarter ended September 30, 2024, net sales decreased 10% versus the same period last year. Organic1 sales decreased 5%.
Volume was up 3% versus the prior-year period as Crop Protection growth offset lower Seed volumes. Crop Protection volume increased 11% over the prior year driven primarily by Latin America and North America2 on demand for new products and spinosyns, partially offset by residual destocking and unfavorable weather in EMEA2. Seed volume declined 12% versus prior year due to reduced corn planted area in Argentina.
Price declined 8% versus prior year, reflecting the competitive price environment in Crop Protection, primarily in Latin America.
GAAP income from continuing operations after income taxes was a loss of $519 million in third quarter of 2024 compared to a loss of $315 million in third quarter of 2023. Operating EBITDA1 for the third quarter of 2024 was a loss of $100 million, down 656% compared to prior year, translating into approximately 500 basis points of Operating EBITDA1 margin decline.
3Q
3Q
%
%
($ in millions, except where noted)
2024
2023
Change
Organic1 Change
Net Sales
$2,326
$2,590
(10) %
(5) %
North America
$610
$572
7 %
7 %
EMEA
$415
$469
(12) %
(9) %
Latin America
$989
$1,224
(19) %
(10) %
Asia Pacific
$312
$325
(4) %
(2) %
2024
2023
%
%
($ in millions, except where noted)
YTD
YTD
Change
Organic1 Change
Net Sales
$12,930
$13,519
(4) %
(2) %
North America
$7,097
$7,093
-
-
EMEA
$2,676
$2,996
(11) %
(5) %
Latin America
$2,154
