Volume gains were driven by continued penetration of new products, including EnlistTM and ArylexTM herbicides and OnmiraTM fungicide, and strong early demand in Latin America
Agrochemical major, Corteva, Inc. has reported financial results for the second quarter and six months ended June 30, 2022. Company posted $6.35 billion net sales registering +11 per cent growth in Q2 2022 compared to $6.25 billion in Q2 2021.
First Half 2022 Highlights
First half 2022 net sales rose 11 per cent versus prior year with gains in both segments. Organic1 sales increased 14 per cent in the same period with gains in all regions.
Seed net sales grew 3 per cent and organic1 sales increased 6 per cent year over year, with notable gains in EMEA2, partially offset by the reduction of corn acres and canola volumes in North America2. Price was up 7 per cent globally, led by continued execution on the company’s price for value strategy and recovery of higher input costs.
Crop Protection net sales grew 24 per cent and organic1 sales increased 28 per cent led by North America2 and Latin America. Volume gains were driven by continued penetration of new products, including EnlistTM and ArylexTM herbicides and OnmiraTM fungicide, and strong early demand in Latin America. Price gains reflected strong execution across all regions in response to cost inflation.
GAAP income and earnings per share (EPS) from continuing operations were $1.58 billion and $2.16 per share for the first half of 2022, respectively. Operating EBITDA1 was $2.76 billion, a 17 per cent improvement over prior year on strong price execution and volume gains in all regions and productivity actions, partially offset by inflation and currency headwinds. Operating EPS1 was $2.61 per share, up 19 per cent compared to prior year.
Management increased full year 2022 net sales and earnings guidance3. Net sales are expected to be in the range of $17.2 billion to $17.5 billion and Operating EBITDA1 is expected to be in the range of $2.95 billion to $3.10 billion. Operating EPS1 is expected to be in the range of $2.45 to $2.60 per share.
The Company announced a 7 per cent annualized dividend increases effective in the third quarter – reflecting continued focus on returning capital to shareholders.
“Corteva delivered an impressive first half with double-digit sales and Operating EBITDA growth and margin expansion, reflecting strong customer demand and focused execution amidst dynamic market conditions.
“We also continue to take actions to accelerate performance, including the completion of strategic portfolio reviews aimed at refining our strategy, driving operational execution, and making disciplined investment decisions in innovation and technology to deliver increased value to farmers and contribute to a more sustainable global food system.
“We believe that we are well-positioned to continue to adapt and execute in a challenging operating environment. Our strong first half momentum and robust market fundamentals have given us confidence to raise our guidance for the year,” said Chuck Magro, Corteva Chief Executive Officer.
