Corteva releases financial results for the second quarter of 2024

GAAP earnings and earnings per share (EPS) from continuing operations were $1,43 billion and $2,03 per share, respectively, in the first half of 2024

31.07.2024 | 18:17 (UTC -3)
Cultivar Magazine

Corteva today announced financial results for the second quarter and first half ended June 30, 2024. Net sales for the first half of 2024 were down 3% compared to the previous year. Organic sales decreased by 2% in the same period. Net seed sales grew 2% and organic sales increased 4%. Crop protection net revenue fell 11%.

GAAP earnings and earnings per share (EPS) from continuing operations were $1,43 billion and $2,03 per share, respectively, in the first half of 2024. Operating EBITDA and operating EPS were $ 2,95 billion and $2,72 per share, respectively. The company updated its forecast for the full year 2024. Net sales are expected to be between US$17,2 billion and US$17,5 billion. Operating EBITDA should be between US$3,4 billion and US$3,6 billion. Operating EPS should be between $2,60 and $2,80 per share. The company plans to repurchase approximately $1,0 billion of shares in 2024.

“We have adjusted our full-year 2024 outlook to reflect market realities and continued focus on controlling controllables. We are committed to delivering a strong second half of the year and meeting our commitments to customers and shareholders,” said Chuck Magro, CEO of Corteva .

Second quarter of 2024

Q2024 1 net sales increased 2% from the same period last year. Organic sales grew 6%. Volume remained stable compared to the previous year. Crop protection revenue grew 2%, mainly in Latin America and North America. Net seed sales fell 2% due to early seasonal deliveries in North America. The price increased by XNUMX%, reflecting the company's value pricing strategy.

GAAP profit from continuing operations after taxes was $1,06 billion in the second quarter of 2024, compared to $880 million in the second quarter of 2023. Operating EBITDA for the second quarter was $1,92 billion, an increase of 10% compared to the previous year.

Seed segment

Net seed sales in Q2024 4,33 were $4,26 billion, up from $2023 billion in Q5 2. The increase in sales was driven by a 1,70% price increase. Sales volume fell 16%. The segment's operating EBITDA was US$2023 billion, an increase of XNUMX% compared to the second quarter of XNUMX. Cost and productivity actions offset higher commodity costs and investments in research and development (R&D) .

In the first half of 2024, net seed sales were US$7,1 billion, up from US$7,0 billion in the first half of 2023. Rising global corn and soybean prices boosted demand. The segment's operating EBITDA was US$2,4 billion, an increase of 16% compared to the first half of 2023.

Crop Protection Segment

Crop protection net sales in Q2024 1,8 were approximately $2023 billion, flat compared to Q6 5. Volume increased 255% while price fell 20%. The segment's operating EBITDA was US$2023 million, a XNUMX% drop compared to the second quarter of XNUMX.

In the first half of 2024, crop protection net sales were approximately $3,5 billion, compared to approximately $4,0 billion in the first half of 2023. Volume fell 7%, price fell 4%, and the unfavorable currency impact was 1%. The segment's operating EBITDA was US$565 million, a 39% drop compared to the first half of 2023.

Forecast for 2024

Corteva said it expects stable demand for agricultural inputs. The company expects net sales to be between $17,2 billion and $17,5 billion, 1% growth at the midpoint. Operating EBITDA should be between US$3,4 billion and US$3,6 billion, a growth of 4% at the midpoint. Operating EPS should be between $2,60 and $2,80 per share. The company plans to repurchase approximately $1,0 billion of shares in 2024.

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