On July 31, 2024, Corteva Inc (CTVA, Financial) released its 8-K filing for the second quarter and first half of 2024. Corteva, an agricultural inputs pure play formed in 2019 from a spin-off of DowDuPont, is a leader in developing new seed and crop protection products. The company operates globally, with around half of its revenue coming from North America.
Q2 2024 Financial Highlights
For the second quarter ended June 30, 2024, Corteva Inc (CTVA, Financial) reported net sales of $6.11 billion, a 1% increase compared to the same period last year. The company's GAAP income from continuing operations after income taxes was $1.06 billion, translating to earnings per share (EPS) of $1.51. On a non-GAAP basis, operating EPS was $1.83, and operating EBITDA was $1.92 billion, reflecting a 10% increase from the prior year.
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Sales | $6.11B | $6.05B | +1% |
| GAAP Income from Cont. Ops | $1.06B | $880M | +20% |
| GAAP EPS | $1.51 | $1.23 | +23% |
| Operating EBITDA (Non-GAAP) | $1.92B | $1.75B | +10% |
| Operating EPS (Non-GAAP) | $1.83 | $1.61 | +14% |
Performance Analysis
The company's performance was driven by the strength of its Seed business, which saw net sales of $4.33 billion in Q2 2024, up from $4.26 billion in Q2 2023. This growth was primarily due to a 5% increase in price, partially offset by a 2% decline in volume. The Seed segment's operating EBITDA rose by 16% to $1.70 billion, reflecting improved price execution and cost productivity actions.
However, the Crop Protection segment faced challenges, with net sales remaining flat at $1.8 billion compared to the same period last year. Despite a 6% increase in volume, a 5% decline in price and a 1% unfavorable currency impact offset the gains. The segment's operating EBITDA fell by 20% to $255 million, primarily due to competitive pricing and raw material cost inflation.
First Half 2024 Overview
For the first half of 2024, Corteva Inc (CTVA, Financial) reported net sales of $10.60 billion, a 3% decline from the same period in 2023. GAAP income from continuing operations was $1.43 billion, with an EPS of $2.03. On a non-GAAP basis, operating EPS was $2.72, and operating EBITDA was $2.95 billion.
| Metric | 1H 2024 | 1H 2023 | % Change |
|---|---|---|---|
| Net Sales | $10.60B | $10.93B | -3% |
| GAAP Income from Cont. Ops | $1.43B | $1.49B | -4% |
| GAAP EPS | $2.03 | $2.07 | -2% |
| Operating EBITDA (Non-GAAP) | $2.95B | $2.98B | -1% |
| Operating EPS (Non-GAAP) | $2.72 | $2.75 | -1% |
Updated 2024 Guidance
Corteva Inc (CTVA, Financial) has updated its full-year 2024 guidance, now expecting net sales in the range of $17.2 billion to $17.5 billion. Operating EBITDA is projected to be between $3.4 billion and $3.6 billion, while operating EPS is expected to range from $2.60 to $2.80 per share. The company also plans to repurchase approximately $1.0 billion in shares during 2024.
"Solid first half results led by the strength of the Seed business and operational execution. Crop Protection industry impacted by residual destocking and competitive pressures," the company stated in its earnings release.
Conclusion
Corteva Inc (CTVA, Financial) demonstrated resilience in its Seed business, which offset some of the challenges faced in the Crop Protection segment. The company's ability to navigate competitive pressures and operational challenges will be crucial as it moves forward. Investors will be keenly watching how Corteva manages its updated guidance and strategic initiatives in the coming quarters.
Explore the complete 8-K earnings release (here) from Corteva Inc for further details.
