Corteva, Inc. (CTVA) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 4, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day and welcome to the Corteva 1Q 2023 Earnings Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Kim Booth, Vice President of Investor Relations. Please go ahead.

Kim Booth - VP, IR

Good morning and welcome to Corteva’s first quarter 2023 earnings conference call. Our prepared remarks today will be led by Chuck Magro, Chief Executive Officer; and Dave Anderson, Executive Vice President and Chief Financial Officer. Additionally, Tim Glenn, Executive Vice President, Seed Business Unit; and Robert King, Executive Vice President, Crop Protection business unit, will join the Q&A session. We have prepared presentation slides to supplement our remarks during this call, which are posted on the Investor Relations section of the Corteva website and through the link to our webcast.

During this call, we will make forward-looking statements which are our expectations about the future. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties. Our actual results could materially differ from these statements due to these risks and uncertainties, including, but not limited to, those discussed on this call and in the Risk Factors section of our reports filed with the SEC. We do not undertake any duty to update any forward-looking statements.

Please note in today’s presentation, we will be making references to certain non-GAAP financial measures. Reconciliations of the non-GAAP measures can be found in our earnings press release and related schedules along with our supplemental financial summary slide deck available on our Investor Relations website.

It’s now my pleasure to turn the call over to Chuck.

Chuck Magro - CEO

Thanks, Kim. Good morning, everyone and thanks for joining us today. We are really pleased to report another solid quarter and a solid start to 2023, where we delivered double-digit organic sales and earnings growth alongside meaningful margin expansion. It is the first time we have crossed the 25% EBITDA margin threshold in Q1, which is a milestone for the company and our value creation journey and shows just how far we have come.

Today, we are also updating our previously announced guidance for the full year. Net sales are now expected to grow 7% and operating EBITDA 13% at the midpoint over prior year. Operating EPS is expected to be in the range of $2.80 to $3. This outlook reflects the power of our strategy and the strength of execution in a dynamic ag market. Strategically, we continue to make choices to strengthen our portfolio mix and accelerate growth and margin expansion. Our actions are translating into higher quality earnings. We remain on track with regard to our 2025 value creation plan and are focused on continuing to deliver on our targets.