Q1 2024 Corteva Inc Earnings Call Transcript
Key Points
- Corteva Inc (CTVA) reaffirmed its full-year guidance and remains on track to meet its 2025 financial framework.
- Seed business reported a strong start with a 5% increase in organic sales and a 6% rise in price, reflecting high demand for premium seed technologies.
- Approximately 500 new products, including 300 new seed hybrids and varieties, are planned to be introduced to the market in 2024.
- Crop Protection business anticipates a $1 billion increase in new product sales and a 200 basis point improvement in EBITDA margin by the end of 2024.
- Corteva Inc (CTVA) expects significant benefits from self-help levers, projecting $350 million to $450 million in 2024 and 2025, enhancing value creation and margin improvement.
- Crop Protection segment faces challenges with ample supply and competitive environment due to residual effects of destocking.
- Volume declines in Crop Protection and delays in purchases as farmers opt for just-in-time buying, impacting sales momentum.
- Seed volumes saw declines in all regions except North America, influenced by unfavorable weather in EMEA.
- Operating EBITDA for the quarter was down 16% compared to the previous year, with a decrease in EBITDA margin by approximately 200 basis points.
- Projected shift in U.S. planted areas from corn to soybeans could impact overall crop production dynamics and market demand.
Thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to Corteva Agriscience's First Quarter 2024 Earnings Call. (Operator Instructions)
I would now like to turn the call over to Kim Booth, Vice President of Investor Relations. Please go ahead.
Good morning, and welcome to Corteva's First Quarter 2024 Earnings Conference. Our prepared remarks today will be led by Chuck Magro, Chief Executive Officer; and Dave Anderson, Executive Vice President and Chief Financial Officer. Additionally, Tim Glenn, Executive Vice President, Seed Business Unit; and Robert King, Executive Vice President, Crop Protection business unit, will join the Q&A session.
We have prepared presentation slides to supplement our remarks during this call, which are posted on the Investor Relations section of the Corteva website and through the link to our webcast.
During this call, we will make forward-looking statements, which are our
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