Corteva Reviews 2nd Quarter and First Part 2024 Effects, Updates Complete-Presen Steering

• Forged first part effects led through the energy of the Seed industry and operational execution
• Abridge Coverage {industry} impacted through residual destocking and aggressive pressures
• Up to date 2024 income and working EBITDA¹ steerage diminished to replicate marketplace dynamics
• Percentage buyback program and dividend building up reveal robust steadiness sheet and coins current

INDIANAPOLIS, July 31, 2024 /PRNewswire/ — Corteva, Inc. (NYSE: CTVA) (“Corteva” or the “Company”) as of late reported monetary effects for the second one quarter and 6 months ended June 30, 2024.

“Corteva’s results for the first half of 2024 were solid, led by the Seed business and overall operational execution.  Our Seed business segment had another standout performance, hitting a new record for first half operating EBITDA. This reflects the sustained strength of our product portfolio, as farmers continue to rely on our leading technology. We’re very proud of our position as the North The us seed marketplace chief for each corn and soybeans. 

The Abridge Coverage marketplace is appearing indicators of stabilization, alternatively we proceed to navigate aggressive worth pressures.  We’re inspired through the Abridge Coverage industry quantity growth in the second one quarter and be expecting that to proceed in the second one part of the yr.

We have now adjusted our complete yr 2024 outlook to replicate marketplace realities and the ongoing focal point on controlling the controllables.  We’re dedicated to turning in a robust 2d part of the yr and assembly our loyalty to consumers and shareholders.” 

Chuck Magro
Chief Executive Officer

First Half 2024 Highlights

• First part 2024 web gross sales declined 3% as opposed to prior yr as Abridge Coverage declines greater than offset Seed positive factors. Natural¹ gross sales diminished 2% in the similar duration.
• Seed web gross sales grew 2% and natural¹ gross sales larger 4%. Value used to be up 5% globally, led through North The us² with the ongoing execution at the Corporate’s worth for worth technique. Quantity declines have been pushed basically through negative climate and decreased planted branch in EMEA².
• Abridge Coverage web gross sales and natural¹ gross sales each diminished 11%. Quantity declines have been pushed through climate and destocking affects in EMEA², in addition to just-in-time buying habits in North The us². Value declined 4% reflecting a broad-based aggressive worth state.
• GAAP source of revenue and income according to percentage (EPS) from proceeding operations have been $1.43 billion and $2.03 according to percentage for the primary part of 2024, respectively.
• Working EBITDA¹ and Working EPS¹ have been $2.95 billion, and $2.72 according to percentage for the primary part of 2024, respectively.
• The Corporate up to date full-year 2024 steerage³ and expects web gross sales within the field of $17.2 billion to $17.5 billion. Working EBITDA¹ is predicted to be within the field of $3.4 billion to $3.6 billion. Working EPS¹ is predicted to be within the field of $2.60 to $2.80 according to percentage. Money equipped through working actions – proceeding operations is predicted to be within the field of $2.1 billion to $2.6 billion. Isolated Money Tide¹ is predicted to be within the field of $1.5 billion to $2.0 billion. The Corporate plans to repurchase roughly $1.0 billion stocks in 2024.

Abstract of 2nd Quarter 2024
For the second one quarter ended June 30, 2024, web gross sales larger 1% as opposed to the similar duration endmost yr. Natural¹ gross sales larger 2%.

Quantity used to be flat as opposed to the prior-year duration as Abridge Coverage expansion offset decrease Seed volumes. Abridge Coverage quantity larger 6% over the prior-year pushed basically through Latin The us and North The us² on call for for pristine merchandise and spinosyns, in part offset through residual destocking and negative climate in EMEA².  Seed quantity declined 2% as opposed to prior yr because of previous seasonal deliveries in North The us² in part offset through the not on time season in EMEA² into 2d quarter.

Value larger 2% as opposed to prior yr, reflecting persevered execution at the Corporate’s worth for worth technique and stepped forward product combine in Seed, in part offset through the aggressive worth state in Abridge Coverage.

GAAP source of revenue from proceeding operations upcoming source of revenue taxes used to be $1.06 billion in 2d quarter 2024 when compared to $880 million in 2d quarter 2023. Working EBITDA¹ for the 2d quarter used to be $1.92 billion, up 10% in comparison to prior yr, translating into roughly 250 foundation issues of margin growth.

Seed Abstract
Seed web gross sales have been $4.33 billion in the second one quarter of 2024, up from $4.26 billion in the second one quarter of 2023. The gross sales building up used to be pushed through a 5% building up in worth, in part offset through a 2% abate in quantity and a 1% negative affect from portfolio.

The fee building up used to be broad-based, led through North The us², on stepped forward product combine and the ongoing execution of the Corporate’s worth for worth technique. Decrease volumes have been pushed through previous seasonal deliveries in North The us as opposed to prior yr, in part offset through the not on time season in EMEA² into the second one quarter.

Area working EBITDA used to be $1.70 billion in the second one quarter of 2024, up 16% from the second one quarter of 2023. Value execution, relief of web royalty expense, and ongoing price and productiveness movements greater than offset funding in R&D, upper commodity prices, and decrease volumes. Area working EBITDA margin stepped forward through roughly 500 foundation issues as opposed to the prior-year duration.

Seed web gross sales have been $7.1 billion within the first part of 2024, up from $7.0 billion within the first part of 2023. The gross sales building up used to be pushed through a 5% building up in worth, in part offset through a 1% abate in quantity, a 1% negative portfolio affect and a 1% negative forex affect.

The rise in worth used to be pushed through robust call for for zenith era choices and operational execution globally, with world corn and soybean costs up 6% and four%, respectively. Pricing movements greater than offset forex affects in EMEA². The abate in quantity used to be pushed basically through negative climate and decreased planted branch in EMEA².  Negative forex affects have been led through the Turkish Lira.

Area working EBITDA used to be $2.4 billion within the first part of 2024, up 16% from the primary part of 2023. Value execution, relief of web royalty expense, and ongoing price and productiveness movements greater than offset upper commodity prices, funding in R&D, the negative affect of forex, and decrease volumes. Area working EBITDA margin stepped forward through roughly 420 foundation issues as opposed to the prior-year duration.

Abridge Coverage Abstract
Abridge Coverage web gross sales have been roughly $1.8 billion in the second one quarter of 2024, flat with the second one quarter of 2023. The flat gross sales expansion over the prior duration used to be pushed through a 6% building up in quantity offset through a 5% abate in worth and a 1% negative affect from forex.

The rise in quantity used to be pushed basically through Latin The us and North The us² on call for for pristine merchandise and spinosyns, in part offset through residual destocking and negative climate in EMEA². The fee abate used to be broad-based, reflecting the aggressive pricing state for the Abridge Coverage {industry} globally.

Area working EBITDA used to be $255 million in the second one quarter of 2024, ill 20% from the second one quarter of 2023. Aggressive pricing and uncooked subject matter price inflation greater than offset quantity expansion and productiveness financial savings. Area working EBITDA margin declined through 365 foundation issues as opposed to the prior-year duration.

Abridge Coverage web gross sales have been roughly $3.5 billion in the first part of 2024 in comparison to roughly $4.0 billion in the primary part of 2023. The gross sales shorten used to be pushed through a 7% shorten in quantity, a 4% abate in worth, and a 1% negative affect from forex. Those declines have been in part offset through a 1% favorable portfolio affect.

The shorten in quantity used to be basically because of residual destocking and negative climate affects in EMEA², in addition to just-in-time buying habits in North The us².

Pricing positive factors in EMEA² have been greater than offset through declines in North The us² and Latin The us, reflecting aggressive worth force. Negative forex affects have been led through the Turkish Lira. The portfolio affect used to be pushed through the Biologicals acquisitions.

Area working EBITDA used to be $565 million within the first part of 2024, ill 39% from the primary part of 2023. Pricing force, decrease volumes, uncooked subject matter price inflation and the negative affect of forex, greater than offset productiveness financial savings.  Area working EBITDA margin reduced in size through roughly 720 foundation issues as opposed to the prior-year duration.

2024 Steering
On-farm call for for inputs stay stable and farmers proceed to prioritize top-tier seed era.  In contrast backdrop, our Seed industry has outperformed the marketplace, most likely gaining marketplace percentage and bettering operational potency. Time the worldwide Abridge Coverage {industry} quantity has begun to stabilize, pricing pressures have change into extra pronounced because of the aggressive state and tighter farmer margins.

In consequence, Corteva now expects web gross sales within the field of $17.2 billion to $17.5 billion, expansion of one% on the mid-point. Working EBITDA¹ is predicted to be within the field of $3.4 billion to $3.6 billion, expansion of four% on the mid-point. Working EPS¹ is predicted to be within the field of $2.60 to $2.80 according to percentage, flat on the mid-point. Money equipped through working actions – proceeding operations is predicted to be within the field of $2.1 billion to $2.6 billion. Isolated Money Tide¹ is predicted to be within the field of $1.5 billion to $2.0 billion. The Corporate plans to repurchase roughly $1.0 billion stocks in 2024.

The Corporate isn’t ready to reconcile its forward-looking non-GAAP monetary measures, with the exception of for Isolated Money Tide, to its maximum similar U.S. GAAP monetary measures, as it’s not able to expect with cheap simple task pieces out of doors of its regulate, similar to Important Pieces, with out unreasonable struggle.

2nd Quarter Convention Name
The Corporate will host a reside webcast of its 2d quarter and primary part 2024 income convention name with buyers to talk about its effects and outlook the next day to come, August 1, 2024, at 10:00 a.m. ET. The slide presentation that accompanies the convention name is posted at the Corporate’s Investor Occasions and Shows web page. A replay of the webcast will additionally be to be had on the Investor Events and  Presentations page.

About Corteva
Corteva, Inc. (NYSE: CTVA) is a world pure-play agriculture corporate that mixes industry-leading innovation, high-touch buyer engagement and operational execution to profitably ship answers for the arena’s maximum urgent agriculture demanding situations. Corteva generates advantaged marketplace desire via its distinctive distribution technique, at the side of its balanced and globally various mixture of seed, reduce coverage, and virtual services. With one of the vital maximum identified manufacturers in agriculture and a era pipeline neatly situated to power expansion, the corporate is dedicated to maximizing productiveness for farmers, time running with stakeholders all through the meals machine because it fulfills its commitment to counterpoint the lives of those that manufacture and those that eat, making sure walk for generations to return. Additional info will also be discovered at www.corteva.com.

Cautionary Commentary About Ahead-Taking a look Statements
This document comprises positive estimates and forward-looking statements inside the which means of Division 21E of the Securities Trade Office of 1934, as amended, and Division 27A of the Securities Office of 1933, as amended, which can be meant to be coated through the preserve harbor provisions for forward-looking statements contained within the Personal Securities Litigation Reform Office of 1995, and could also be known through their utility of phrases like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates,” “outlook,” or alternative phrases of indistinguishable which means. All statements that deal with expectancies or projections concerning the occasion, together with statements about Corteva’s monetary effects or outlook; technique for expansion; product construction; regulatory approvals; marketplace place; capital allocation technique; liquidity; environmental, social and governance (“ESG”) goals and tasks; the expected advantages of acquisitions, restructuring movements, or price financial savings tasks; and the end result of contingencies, similar to litigation and environmental issues, are forward-looking statements.

Ahead-looking statements and alternative estimates are in line with positive suppositions and expectancies of occasion occasions which is probably not correct or learned. Ahead-looking statements and alternative estimates additionally contain dangers and uncertainties, lots of which can be past Corteva’s regulate. Time the checklist of things introduced beneath is thought of as consultant, incorrect such checklist will have to be regarded as to be a whole remark of all doable dangers and uncertainties. Unlisted elements would possibly provide important spare stumbling blocks to the conclusion of forward-looking statements. Repercussions of subject matter variations in effects as when compared with the ones expected within the forward-looking statements may come with, amongst alternative issues, industry disruption, operational issues, monetary loss, prison legal responsibility to 3rd events and indistinguishable dangers, any of which will have a subject matter opposed impact on Corteva’s industry, result of operations and monetary situation. One of the most noteceable elements that would motive Corteva’s unedited effects to range materially from the ones projected in the sort of forward-looking statements come with: (i) failure to acquire or uphold the vital regulatory approvals for a few of Corteva’s merchandise; (ii) failure to effectively create and commercialize Corteva’s pipeline; (iii) impact of the level of family figuring out and acceptance or perceived family acceptance of Corteva’s biotechnology and alternative agricultural merchandise; (iv) impact of adjustments in agricultural and indistinguishable insurance policies of governments and global organizations; (v) prices of complying with evolving regulatory necessities and the impact of unedited or alleged violations of environmental rules or allow necessities; (vi) impact of surrounding exchange and unpredictable seasonal and climate elements; (vii) failure to agree to festival and antitrust rules; (viii) impact of festival in Corteva’s {industry}; (ix) competitor’s status quo of an middleman platform for distribution of Corteva’s merchandise; (x) affect of Corteva’s dependence on 3rd events with admire to positive of its uncooked fabrics or licenses and commercialization; (xi) impact of volatility in Corteva’s enter prices; (xii) possibility indistinguishable to geopolitical and army battle; (xii) dangers indistinguishable to environmental litigation and the indemnification tasks of legacy EIDP liabilities in reference to the divorce of Corteva; (xiv) dangers indistinguishable to Corteva’s world operations; (xv) failure to successfully top acquisitions, divestitures, alliances, restructurings, price financial savings tasks, and alternative portfolio movements; (xvi) impact of business espionage and alternative disruptions to Corteva’s provide chain, data era or community programs;(xvii) failure of Corteva’s consumers to pay their money owed to Corteva, together with buyer financing techniques; (xviii) failure to lift capital in the course of the capital markets or momentary borrowings on phrases applicable to Corteva; (xix) will increase in pension and alternative post-employment receive advantages plan investment tasks; (xx) capital markets sentiment against ESG issues; (xxi) dangers indistinguishable to pandemics or epidemics; (xxii) Corteva’s highbrow trait rights or protection in opposition to highbrow trait claims asserted through others; (xxiii) impact of counterfeit merchandise; (xxiv) Corteva’s dependence on highbrow trait cross-license contracts; and (xxv) alternative dangers indistinguishable to the Official separation from DowDuPont.

Moreover, there could also be alternative dangers and uncertainties that Corteva is not able to these days establish or that Corteva does now not these days be expecting to have a subject matter affect on its industry. The place, in any forward-looking remark or alternative estimate, an expectation or trust as to occasion effects or occasions is expressed, such expectation or trust is in line with the wave plans and expectancies of Corteva’s control and expressed in excellent religion and believed to have a cheap foundation, however there will also be incorrect guarantee that the expectancy or trust will end result or be accomplished or completed. Corteva disclaims and does now not adopt any legal responsibility to replace or revise any forward-looking remark, with the exception of as required through appropriate legislation. An in depth dialogue of one of the vital important dangers and uncertainties which would possibly motive effects and occasions to range materially from such forward-looking statements is incorporated within the “Risk Factors” category of Corteva’s Annual File on Method 10-Okay, as changed through next Quarterly Reviews on Methods 10-Q and Flow Reviews on Method 8-Okay.

Law G (Non-GAAP Monetary Measures)
This income let go contains data that doesn’t comply with U.S. GAAP and are regarded as non-GAAP measures. Those measures would possibly come with natural gross sales, natural expansion (together with through department and pocket), working EBITDA, working EBITDA margin, working income (loss) according to percentage, and bottom source of revenue tax charge. Control makes use of those measures internally for making plans and forecasting, together with allocating sources and comparing incentive reimbursement. Control believes that those non-GAAP measures very best replicate the continued efficiency of the Corporate all through the classes introduced and lend extra related and significant data to buyers as they lend perception with admire to ongoing working result of the Corporate and a extra helpful comparability of yr over yr effects. Those non-GAAP measures complement the Corporate’s U.S. GAAP disclosures and will have to now not be considered as an extra to U.S. GAAP measures of efficiency. Moreover, such non-GAAP measures is probably not in step with indistinguishable measures equipped or worn through alternative firms. Reconciliations for those non-GAAP measures to U.S. GAAP are equipped within the Decided on Monetary Knowledge and Non-GAAP Measures inauguration on web page A-5 of the Monetary Commentary Schedules.

Corteva isn’t ready to reconcile its forward-looking non-GAAP monetary measures, with the exception of for Isolated Money Tide, to its maximum similar U.S. GAAP monetary measures, as it’s not able to expect with cheap simple task pieces out of doors of the Corporate’s regulate, similar to Important Pieces, with out unreasonable struggle. For Important pieces reported within the classes introduced, the following web page A-8 of the Monetary Commentary Schedules. Starting January 1, 2020, the Corporate items speeded up pay as you go royalty amortization expense as an important merchandise. Speeded up pay as you go royalty amortization represents the non-cash fee related to the popularity of in advance bills made to Monsanto in reference to the Corporate’s non-exclusive license in the US and Canada for Monsanto’s Genuity® Roundup In a position 2 Submit® and Roundup In a position 2 Xtend® herbicide tolerance characteristics. All the way through the ramp-up duration of Enlist E3™, Corteva has begun to considerably shed the quantity of merchandise with the Roundup In a position 2 Submit® and Roundup In a position 2 Xtend® herbicide tolerance characteristics starting in 2021, with anticipated minimum utility of the feature platform thereafter. All the way through 2023, the corporate dedicated to restructuring actions to optimize the Abridge Coverage community of producing and exterior companions, which can be anticipated to be considerably whole in 2024. The corporate expects to report roughly $180 million to $230 million web pre-tax restructuring fees all through 2024 for those actions.

Natural gross sales is outlined as worth and quantity and excludes forex and portfolio and alternative affects, together with important pieces. Working EBITDA is outlined as income (loss) (i.e., source of revenue (loss) from proceeding operations ahead of source of revenue taxes) ahead of hobby, depreciation, amortization, non-operating advantages (prices), foreign currency echange positive factors (losses), and web unrealized acquire or loss from mark-to-market job for positive foreign currencies by-product tools that don’t qualify for hedge accounting, with the exception of the affect of vital pieces. Non-operating advantages (prices) is composed of non-operating pension and alternative post- business receive advantages (OPEB) credit (prices), tax indemnification changes, and environmental remediation and prison prices related to legacy companies and websites. Tax indemnification changes relate to adjustments in indemnification balances, because of the appliance of the phrases of the Tax Issues Word of honour, between Corteva and Dow and/or DuPont which might be recorded through the Corporate as pre-tax source of revenue or expense. Working EBITDA margin is outlined as Working EBITDA as a proportion of web gross sales.

Working income (loss) according to percentage is outlined as “earnings (loss) per common share from continuing operations – diluted” with the exception of the after-tax affect of vital pieces, the after-tax affect of non-operating advantages (prices), the after-tax affect of amortization expense related to intangible belongings present as of the Official separation from DowDuPont, and the after-tax affect of web unrealized acquire or loss from mark-to-market job for positive foreign currencies by-product tools that don’t qualify for hedge accounting. Even if amortization of the Corporate’s intangible belongings is excluded from those non-GAAP measures, control believes it’s noteceable for buyers to needless to say such intangible belongings give a contribution to income year. Amortization of intangible belongings that relate to moment acquisitions will recur in occasion classes till such intangible belongings were absolutely amortized. Any occasion acquisitions would possibly lead to amortization of spare intangible belongings. Web unrealized acquire or loss from mark-to-market job for positive foreign currencies by-product tools that don’t qualify for hedge accounting represents the non-cash web acquire (loss) from adjustments in honest worth of positive undesignated foreign currencies by-product word of honour. Upon agreement, which is inside of the similar calendar yr of execution of the guarantee, the learned acquire (loss) from the adjustments in honest worth of the non-qualified foreign currencies by-product word of honour might be reported within the related non-GAAP monetary measures, permitting quarterly effects to replicate the industrial results of the foreign currencies by-product word of honour with out the ensuing unrealized mark to honest worth volatility. Bottom source of revenue tax charge is outlined because the efficient tax charge with the exception of the affects of foreign currency echange positive factors (losses), non-operating advantages (prices), amortization of intangibles (present as of the Official separation), mark- to- marketplace positive factors (losses) on positive foreign currencies word of honour now not designated as hedges, and critical pieces.

The Corporate additionally makes use of Isolated Money Tide as a non-GAAP measure to judge and speak about its liquidity place and skill to generate coins. Isolated Money Tide is outlined as coins equipped through (worn for) working actions – proceeding operations, much less capital expenditures. We consider that Isolated Money Tide supplies buyers with significant data in regards to the Corporate’s ongoing talent to generate coins via core operations, and our talent to carrier our indebtedness, pay dividends (when declared), build percentage repurchases, and meet our ongoing coins wishes for our operations.

® ™ Corteva Agriscience and its affiliated firms.

SOURCE Corteva, Inc.