41 annotations
Farmers are financially healthy with strong liquidity and they will continue to prioritize yield to meet market demand and offset inflationary pressures.
Farm income is expected to be one of the largest ever, albeit below the record achieved in 2022. And demand for corn and soybean oil, is expected to grow in 2023 supported by strong energy prices and policy adjustments focusing on low-carbon energy sources.
farm income good
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2022 Q4
13 Feb 23
Farmers are financially healthy with strong liquidity and they will continue to prioritize yield to meet market demand and offset inflationary pressures.
Farm income is expected to be one of the largest ever, albeit below the record achieved in 2022. And demand for corn and soybean oil, is expected to grow in 2023 supported by strong energy prices and policy adjustments focusing on low-carbon energy sources.
farm income good
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2022 Q4
13 Feb 23
This is a big step change year for our Enlist platform. We're expecting E3 US soybean market penetration in the mid-50s and a royalty reduction benefit of over $100 million.
enlist penetration to be mid 50s in 2023
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2022 Q4
13 Feb 23
Our 2022 results support the value creation plan presented at Investor Day, where we outlined a framework to achieve $4.4 billion of EBITDA by 2025, with a margin range of 21% to 23% and we're on track to do just that.
4,4bnin enitda by 2025
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2022 Q4
13 Feb 23
Enlist E3 soybeans reached about 45% market penetration in the US and new product sales in Crop Protection reached over $1.9 billion for the full year, an increase of more than 30% over prior year.
enlisrt mkt share in us soybeans at 45%, new product sakes up 30%
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2022 Q4
13 Feb 23
new product sales v strong
(No comment added)
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2022 Q3
7 Nov 22
e laid out a 3-year plan that had significant value creation, right, getting to 21% to 23% EBITDA margins, $4.1 billion to $4.7 billion of EBITDA from where we were at in the last -- in fiscal 2021 at $2.6 billion of EBITDA.
plan to 2025 colour
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2022 Q3
7 Nov 22
$100 million of royalty reduction.
So this is the first year where you're going to see meaningful value creation from the technology. And as -- obviously, as the market continues to be penetrated, we expect that number to grow to approximately $250 million by 2025.
100m in 2023, growing to 250m by 2025
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2022 Q3
7 Nov 22
And as you say, 2023 is a very important year for us because it's when our proprietary genetics really kick in and will have an impact. And what I would tell you is, in terms of our licensing focus right now, we see that as a very important longer-term opportunity. In the near term, it's most important that we convert our own branded business to our proprietary varieties.
And so we're in that process right now.
As you say, it's going to be a major ramp up this year.
So I wouldn't expect in the immediate future to jump on or think about licensing opportunities as first priority. But as we convert over our own branded business, which is substantial, we have a major share of the market both in the Pioneer brand and our other brands
converting btanded business to proprietary varieties
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2022 Q3
7 Nov 22
David's referencing back to our September 13 Investor Day where we said at the midpoint, '23 to '25, looking at about a 5% CAGR on the revenue side and around 13% on the EBITDA side. We see right now, as we look out to 2023, and I use that term a balanced framework, but it's a constructive setup, we think -- Robert, you highlighted for crop very well, all the actions that we're taking and what we're anticipating in terms of an overall market
5% cagr revenue, 13% ebitda
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2022 Q3
7 Nov 22
But broadly, obviously, this year is shaping up to be much larger than anybody ever anticipated. Right now, if you look at our implied numbers, it's in -- around 10%, 10% to 11% on a full year basis in terms of overall cost inflation to include commodity costs as well as input or ingredient costs, freight and logistics.
Just incredible. And again, just want to reinforce what we've been able to do this year in terms of execution, pricing, productivity, what Tim and Robert combined have been able to do to be able to deliver the performance.
For 2023 and specifically to your question, we -- as we said in our prepared remarks, we anticipate that inflation is going to continue, that it's going to continue to be a headwind.
We are anticipating moderation in the rate of inflation. It'd be too early right now for us to say precisely or even within a kind of a guidance range what that could be. We'll provide that together with, obviously, more details around 2023 when we provide our formal guide. But it will be a moderation of the rate but a continued headwind for us.
inflation continuing in 2023 -- not sure yet when will abate
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2022 Q3
7 Nov 22
We'll see an estimated $100 million reduction in net royalty expense next year driven by continued Enlist penetration and the increase of units in our proprietary genetics. Enlist E3 soybeans will represent approximately 70% of our U.S. soybean sales in 2023, and we expect about 65% of those will be in our own Corteva germplasm. This will support increased overall market penetration of the Enlist trait and will, of course, be a direct EBITDA lift.
100m reduction in net rpyalty expense
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2022 Q3
7 Nov 22
Now we're going to continue to use financial hedging to mitigate the risk from certain currencies and use local pricing in key markets to offset the impact wherever possible. Nonetheless, we see another year of foreign currency translation headwind in 2023.
While we expect cost inflation levels to begin to moderate over the course of '23, we will see cost headwinds in 2023 in both Seed and Crop Protection driven by commodity costs as well as raw materials.
fx and cost inflsation headwinds in 2023
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2022 Q3
7 Nov 22
Our current thinking is that these higher working capital levels will result in free cash flow closer to the lower end of our previous guidance range or roughly $1 billion free cash flow for the full year 2022.
higher WC requirements so FCF impacted
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2022 Q3
7 Nov 22
e're affirming our full year revenue guidance to be in the range of $17.2 billion to $17.5 billion or 11% growth at the midpoint, including approximately 3% headwind from currency. And as Chuck said, ag fundamentals remain strong as we finish out the year.
However, we're monitoring supply availability as well as volatility in currency markets. We're raising the midpoint of our full year operating EBITDA guidance, now expected to be in the range of $3 billion to $3.1 billion or 18% growth at the midpoint. This updated guidance includes an estimated $50 million EBITDA favorability in the third quarter that is expected to carry through for the full year.
For the full year, high single-digit pricing is expected to offset headwinds from higher input costs and currency.
rev guidance affirmed, EBITDA upgraded
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2022 Q3
7 Nov 22
Year-to-date, we've incurred approximately $830 million of market-driven headwinds and other costs driven by higher seed commodity costs, crop protection raw material costs and freight and logistics. We've delivered approximately $175 million in productivity savings, which helped to partially offset these cost headwinds.
We continue to maintain disciplined spending with SG&A down as a percent of sales, more than 200 basis points from the same period last year. Currency was a $270 million headwind driven primarily by European currencies.
cost headwnds, productivity savoings, SG & A % sales down
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2022 Q3
7 Nov 22
n addition, we're confident that we gained market share in both corn and soybeans in North America
gain mkt share corn/soy in N America
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2022 Q3
7 Nov 22
Pricing, product mix and productivity more than offset the higher costs incurred as well as an approximate $270 million currency headwind driven predominantly by European currencies. This earnings improvement translated into more than 190 basis points of margin expansion year-over-year, reflecting the execution, including the portfolio decisions that Chuck referenced earlier.
mix offset cost incrtease
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2022 Q3
7 Nov 22
Global pricing was up 10% through the first 9 months with notable increases in both Seed and Crop Protection. Volume growth in Crop Protection of 13% was driven by the strength of new products, which delivered more than $470 million of sales growth year-over-year, an increase of almost 50%. We delivered approximately $2.85 billion in operating EBITDA in the first 9 months, a 23% increase from the same period last year.
pricing up 10% new product sales 470m up 50%
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2022 Q3
7 Nov 22
new product sales improved by almost 50% compared to prior year.
new product sales v strong
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2022 Q3
7 Nov 22