Corteva, Inc. reported financial results for the second quarter and six months ended June 30, 2021.
2Q 2021 Results Overview
|
Net Sales
|
Income from Cont. Ops (After Tax)
|
EPS
|
GAAP
|
$5.6B
|
$1.02B
|
$1.37
|
vs. 2Q 2020
|
+8%
|
+33%
|
+36%
|
|
|
Organic1 Sales
|
Operating EBITDA1
|
Operating EPS1
|
NON-GAAP
|
$5.5B
|
$1.46B
|
$1.40
|
vs. 2Q 2020
|
+6%
|
+18%
|
+11%
|
1H 2021 Results Overview
|
Net Sales
|
Income from Cont. Ops (After Tax)
|
EPS
|
GAAP
|
$9.8B
|
$1.63B
|
$2.18
|
vs. 1H 2020
|
+7%
|
+56%
|
+59%
|
|
|
Organic1 Sales
|
Operating EBITDA1
|
Operating EPS1
|
NON-GAAP
|
$9.7B
|
$2.37B
|
$2.19
|
vs. 1H 2020
|
+6%
|
+17%
|
+18%
|
First Half 2021 Highlights
- Net Sales for the first half of 2021 grew 7% versus prior year. Organic1 sales rose 6% during the same period. Volume and price gains and continued penetration of new products together reflected strong execution globally. Organic1 sales increased in every region, with double-digit growth in Latin America.
- Crop Protection net sales grew 12% and organic1 sales increased 10% for the first half. Sales of new products rose approximately $260 million versus the first half 2020.
- Seed net sales increased 5% and organic1 sales grew 4% compared to the year-ago period. Gains were led by strong corn sales in Latin America, together with increased North America3 planted area and penetration for Enlist E3™2 soybeans. Corn price was up 3% globally.
- GAAP income and earnings per share (EPS) from continuing operations were $1.6 billion and $2.18 per share for the first half 2021, respectively.
- Strong price execution and volume gains in both segments drove Operating EBITDA1 improvement of 17% to $2.37 billion, as compared to the same period last year.
- The Company continued to drive productivity progress in the first half, which partially offset the impact of ongoing market-driven cost headwinds.
- Management increased full year 2021 net sales and earnings guidance4; and expects net sales in the range of $15.2 billion to $15.4 billion. Operating EBITDA1 is expected to be in the range of $2.5 billion to $2.6 billion.
“Corteva’s first half 2021 performance is a direct reflection of strong and growing demand for our innovative products globally, our ability to price for the value we offer, our operational agility, and our focus on execution in a dynamic operating environment.
“During the period, we delivered organic1 sales increases and double-digit Operating EBITDA1 increases across both Seed and Crop Protection. We also returned approximately $750 million in the first half through dividends and share repurchases; and completed the majority of our $1 billion share repurchase program. Now, we are further accelerating shareholder returns by increasing our quarterly dividend and authorizing a new $1.5 billion share repurchase program.
“With our global organization fully aligned around our priorities and carrying tremendous momentum, we are raising our full-year guidance. We remain committed to driving revenue growth and productivity initiatives to deliver substantial margin expansion; and we continue to view 2021 as an important acceleration point on Corteva’s path,” said Jim Collins, Corteva Chief Executive Officer.
Company Update
- Enlist™ System Accelerates Market Penetration for 2021:
- Raised Enlist™ 2021 market penetration outlook to approximately 35% of U.S. soybean acres
- Delivered approximately $600 million in sales for Enlist™ system during first half – with Enlist E3™2 approximately 35% of Corteva’s U.S. soybean units
- Achieved Enlist™ herbicides sales in the U.S. of more than $100 million, up 76% versus the year-ago period
- Advancement of New Product Pipeline in First Half Drives Momentum:
- New and differentiated Crop Protection product portfolio demonstrated continued momentum globally, with 86 registration approvals during the first half
- Product registration approvals in key new Crop Protection products in the half: Arylex™ and Rinskor™ herbicides each approved in 12 countries; Zorvec fungicide approved in seven countries; and Pyraxalt™ insecticide approved in two countries
- New Crop Protection registrations span 20 molecules in 38 countries – demonstrating the balance and diversity of Corteva’s new product portfolio
- Disciplined Execution Globally Strengthens Competitive Advantages:
- Strength of the Company’s global footprint evident in market share gains in key markets, notably Latin America in Brazil Safrinha corn and Europe in Crop Protection
- Rest of World organic1 sales increased 9% versus first half 2020 – led by best-in-class technology portfolio and advantaged route-to-market
- Achieved strong on-time customer delivery, despite weather and logistics-related challenges during the period – reflecting the strength and resilience of the Company’s production and global supply chain network
- Capital Allocation Actions Underscore Commitment to Shareholder Value:
- Returned approximately $750 million to shareholders during first half via declared dividends and share repurchases
- Repurchased $550 million in common stock during first half – nearly completing $1 billion share repurchase program
- Announced 7.7% dividend increase and new $1.5 billion share repurchase program – reflecting the Company’s focus on returning capital to shareholders
- Commitment to Science-Based GHG Targets Reinforces Environmental Sustainability Focus:
- Published inaugural sustainability report, including the Company’s Greenhouse Gas Emissions (GHG) targets
- GHG targets underscore Corteva’s intent to become a more carbon efficient business
- Driving execution on sustainable innovation, production efficiencies and transition to renewable energy sources
Updated 2021 Outlook
The Company updated its previously provided guidance3 for the full year 2021 – increasing sales and earnings expectations for this period. Corteva expects net sales in the range of $15.2 billion to $15.4 billion, which at the mid-point represents expected net sales growth of 8% for the year. The Company expects Operating EBITDA1 to be in the range of $2.5 billion to $2.6 billion, which at the midpoint represents expected Operating EBITDA1 growth of 22% for the year. Operating EPS1 is expected to be in the range of $2.00 and $2.10 per share. Corteva is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures, as it is unable to predict with reasonable certainty items outside of its control, such as Significant Items, without unreasonable effort.
About Corteva
Corteva, Inc. is a publicly traded, global pure-play agriculture company that provides farmers around the world with the most complete portfolio in the industry – including a balanced and diverse mix of seed, crop protection and digital solutions focused on maximizing productivity to enhance yield and profitability. With some of the most recognized brands in agriculture and an industry-leading product and technology pipeline well positioned to drive growth, the Company is committed to working with stakeholders throughout the food system as it fulfills its promise to enrich the lives of those who produce and those who consume, ensuring progress for generations to come. Corteva became an independent public company on June 1, 2019 and was previously the Agriculture Division of DowDuPont. More information can be found at www.corteva.com.