Corteva Reports Third Quarter and Year-to-Date 2023 Results, Affirms Full-Year

• 3Q YTD Net Sales reflects overall positive global Ag fundamentals
• 3Q YTD performance reflects pricing gains, product mix, and productivity
• FY guidance³ reflects recalibrated 4Q Brazil outlook for both Seed and Crop Protection

INDIANAPOLIS, Nov. 8, 2023 /PRNewswire/ — Corteva, Inc. (NYSE: CTVA) (“Corteva” or the “Company”) today reported financial results for the third quarter and nine months ended September 30, 2023.

2023 YTD Highlights

• 2023 YTD net sales and organic¹ sales decreased 1% versus prior year with gains in North America² and EMEA² offset by declines in Latin America and Asia Pacific.
• Seed net sales grew 7% and organic¹ sales increased 9%. Price was up 14% globally, led by continued execution on the Company’s price for value strategy and recovery of higher input costs. Volume declines were driven by the exit from Russia, lower corn planted area in EMEA², and lower corn volumes in Latin America, partially offset by increased corn acres in North America².
• Crop Protection net sales decreased 10% and organic¹ sales decreased 12%. Volume declines, largely in Latin America and North America², were driven by strategic product exits, inventory destocking, and delayed farmer purchases. Price gains reflected pricing for value and strong execution in response to cost inflation led by EMEA² and North America².
• GAAP income and earnings per share (EPS) from continuing operations were $1.17 billion and $1.63 per share for the period, respectively, down from prior year driven by lower volumes, unfavorable currency and non-cash charges associated with legacy retirement plans, partially offset by pricing, productivity, lower restructuring charges and lower effective tax rate. Operating EBITDA¹ was $2.99 billion, a 5% improvement over prior year on price execution and productivity actions, partially offset by lower volumes coupled with cost and currency headwinds. Operating EPS¹ was $2.54 per share, up 2% compared to prior year.
• Management affirmed full year 2023 net sales and earnings guidance³. Net sales is expected to be in the range of $17.0 billion to $17.3 billion and Operating EBITDA¹ is expected to be in the range of $3.25 billion to $3.45 billion. Operating EPS¹ is expected to be in the range of $2.50 to $2.70 per share.

Summary of Third Quarter 2023

For the third quarter ended September 30, 2023, net sales decreased 7% versus the same period last year. Organic¹ sales declined 13%.

Volume declined 15% versus the prior-year period driven by strategic product exits and ongoing headwinds in the Crop Protection segment. Lower Seed volumes were driven by the timing of seasonal demand in Latin America and an earlier operational finish to the season in North America versus prior year.

Price increased 2% versus prior year, reflecting continued execution on the Company’s price for value strategy, while managing increased competitive pressure.

GAAP income from continuing operations after income taxes was a loss of $315 million in third quarter 2023 compared to a loss of $322 million in third quarter 2022. Operating EBITDA¹ for the third quarter was $18 million, down 81% compared to prior year.

The Company announced a plan to further optimize its Crop Protection network of manufacturing facilities and external partners. The plan includes the exit of the Company’s production activities at its site in Pittsburg, California, as well as ceasing operations in select manufacturing lines at other locations. As a result, the Company expects to record total pre-tax restructuring and asset related charges of $410 million to $460 million through 2024, with an estimated $90 million to $120 million of cash payments. The Company expects to achieve approximately $100 million in run-rate savings by 2025 as a result of these actions.