Corteva has had an excellent start to the fiscal year and delivered an all-around beat as sales and operational EBITDA increased by double digits due to strong client demand and consistent performance in a volatile market environment. Strong organic sales growth across the board proves customers are interested in their unique, competitively advantageous solutions. As producers prioritize yields to help combat inflation, demand for Corteva’s premium genetics remains high. Crop protection saw first-half new product sales top $1 billion, up more than 60% from the same period last year. Enlist herbicides, whose sales have more than doubled since last year, were the industry leader in this. Given its exceptional efficacy and grower confidence, the Enlist system keeps gaining ground on the market. Supply chains are still constrained, and costs are rising due to inflation. Despite this, the company is operating effectively. In addition, the outlook for agriculture is still favorable despite the short-term volatility. The company also signed a definitive agreement to acquire Symborg opening a new chapter in microbiological technology. We give Corteva a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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