Corteva Reports $16.9 Billion in Net Sales, Initiates $3 Billion Share Repurchase Program

Corteva, Inc. filed its 2024 Form 10-K, a combined report including its wholly-owned subsidiary EIDP, Inc. Corteva reported net sales of $16.9 billion, a 2% decrease from 2023. This decrease resulted from a 1% decline in price and a 3% unfavorable currency impact, partially offset by a 2% volume increase. Cost of goods sold decreased to $9.5 billion, primarily due to favorable currency effects, cost reduction actions, and lower Seed royalty expense. Income from continuing operations after taxes was $863 million, compared to $941 million in 2023. Operating EBITDA decreased slightly to $3.4 billion. The company returned approximately $1.5 billion to shareholders through share repurchases and dividends.

Significant changes from the previous year included a 6.25% increase in the quarterly common stock dividend to $0.17 per share and the authorization of a $3 billion share repurchase program. Corteva also completed acquisitions of Stoller Group Inc. and Symborg for a combined $1.6 billion, expanding its biologicals offerings. A Crop Protection Operations Strategy Restructuring Program, expected to generate $180 million in annual savings by 2027, was initiated, resulting in $461 million in pre-tax restructuring and asset-related charges through 2024. The company also completed its 2022 restructuring actions, which included exiting the Russian market.

Operational developments included a geographically diverse workforce of approximately 22,000 employees, with 47% in North America, 21% in Latin America, 20% in EMEA, and 12% in Asia Pacific. The company holds approximately 5,800 U.S. patents and 10,600 active patents outside the U.S. Corteva's Seed segment saw a 1% increase in net sales, driven by price increases and volume growth, while its Crop Protection segment experienced a 5% decrease due to pricing pressure and currency impacts. The company's sales are seasonally strongest in the first half of the year, with approximately 65% of sales generated during this period.

EIDP, a subsidiary of Corteva, reported a material weakness in its internal control over financial reporting related to the classification of intercompany cash flows. This resulted in a restatement of its Consolidated Statements of Cash Flows for 2023 and the subsequent three quarters of 2024. EIDP's other income (expense) was negatively impacted by exchange losses and settlement reserves, partially offset by interest income from Corteva under a Master In-House Banking Agreement. EIDP's interest expense was higher in 2023 due to higher interest rates and borrowings, although it decreased in 2024 following the repayment of a related-party loan. EIDP's effective tax rate was higher in 2024 due to a valuation allowance and other factors.

Corteva's outlook for 2025 includes share repurchases of approximately $1 billion and capital expenditures of approximately $600 million. The company expects to maintain a strong financial position and investment-grade credit rating, with sufficient liquidity to meet its obligations. The company acknowledges various risks, including regulatory approvals, competition, geopolitical instability, input cost volatility, and environmental liabilities. The company also notes ongoing litigation matters, including disputes with Inari and Bayer, and environmental proceedings related to PFAS.