New product sales in Crop Protection increased more than $120 million compared to prior year.
Corteva, Inc. has reported financial results for the three months ended March 31, 2021. Ongoing penetration of new products, coupled with favourable overall market fundamentals, drove volume and price gains globally. First quarter 2021 net sales and organic1 sales both increased 6 per cent versus prior year. Gains were reported in most regions, led by double-digit growth in Latin America.
Sales of new and differentiated products drove volume and price gains in Crop Protection. Net sales and organic1 sales both grew 12 per cent, with double digit net sales increases in every region. New product sales in Crop Protection increased more than $120 million compared to prior year.
Seed net sales rose 2 per cent and organic1 sales grew 3 per cent year over year, driven by continued new product penetration and local price gains which more than offset the impact of seasonal timing of seed deliveries in North America.
GAAP income and earnings per share (EPS) from continuing operations were $613 million and $0.81 per share for the first quarter 2021, respectively. Strong price execution and volume gains, which collectively more than offset cost headwinds, drove an Operating EBITDA1 increase of 14 per cent to $904 million versus the same quarter last year.
The Company experienced market-driven cost headwinds in the quarter, including cost increases in freight and logistics, as well as raw materials. These headwinds were partially offset by the Company’s ongoing execution on its productivity programs. SG&A expense as a percentage of sales improved approximately 160 basis points.
Management increased full year 2021 net sales guidance3 to a range of $14.6 to $14.8 billion – and affirmed full year 2021 Operating EBITDA1 guidance in the range of $2.4 billion to $2.5 billion.
“Building on the momentum from the finish in 2020, the first quarter 2021 results reflect continued strong execution from our global teams. Corteva delivered increased sales across both Seed and Crop Protection, substantial Operating EBITDA1 growth and margin expansion. This performance demonstrates demand for the innovative and differentiated technology that we bring to the market and the ongoing cost and productivity performance, while also managing externally driven cost headwinds.
The first quarter results further demonstrate our commitment to delivering value for our shareholders, which is reflected in the return of approximately $450 million in the first quarter via share repurchases and dividends. We expect to complete the majority of our $1 billion authorized share repurchase program by the end of the first half of 2021.
