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Corteva Highlights Breakthrough Innovation, Unveils New Financial Framework

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Corteva unveiled its 2024 strategy at its Investor Day, focusing on addressing global challenges through innovation in food security, climate change, and energy transition. The company announced a new financial framework through 2027, targeting $1 billion in incremental net sales from growth platforms, ~$1 billion in cost deflation and productivity benefits, and $4.5 billion in shareholder returns.

The strategy includes six growth platforms: seed and trait out-licensing, biologicals (targeting $1 billion in annual revenues by decade's end), new crop protection technologies, gene editing, biofuels, and hybrid wheat. The company invests ~8% of sales in R&D, equivalent to $4 million daily.

Corteva ha svelato la sua strategia per il 2024 durante il suo Investor Day, concentrandosi sull'affrontare le sfide globali attraverso l'innovazione nella sicurezza alimentare, cambiamento climatico e transizione energetica. L'azienda ha annunciato un nuovo quadro finanziario fino al 2027, puntando a 1 miliardo di dollari in vendite nette incrementali dai suoi settori di crescita, circa 1 miliardo di dollari in deflazione dei costi e benefici di produttività, e 4,5 miliardi di dollari in ritorni per gli azionisti.

La strategia comprende sei piattaforme di crescita: concessione in licenza di semi e tratti, biologici (puntando a 1 miliardo di dollari di ricavi annuali entro la fine del decennio), nuove tecnologie di protezione delle colture, editing genetico, biocombustibili e grano ibrido. L'azienda investe circa l'8% delle vendite in ricerca e sviluppo, equivalente a 4 milioni di dollari al giorno.

Corteva presentó su estrategia para 2024 en su Día del Inversor, enfocándose en abordar los desafíos globales a través de la innovación en seguridad alimentaria, cambio climático y transición energética. La compañía anunció un nuevo marco financiero hasta 2027, con un objetivo de 1 mil millones de dólares en ventas netas incrementales de sus plataformas de crecimiento, aproximadamente 1 mil millones de dólares en deflación de costos y beneficios de productividad, y 4.5 mil millones de dólares en retornos para los accionistas.

La estrategia incluye seis plataformas de crecimiento: licencias de semillas y rasgos, biológicos (con un objetivo de 1 mil millones de dólares en ingresos anuales para el final de la década), nuevas tecnologías de protección de cultivos, edición genética, biocombustibles y trigo híbrido. La empresa invierte aproximadamente el 8% de sus ventas en I+D, lo que equivale a 4 millones de dólares diarios.

Corteva는 투자자 날 행사에서 2024년 전략을 공개하며 식량 안전, 기후 변화 및 에너지 전환을 통한 글로벌 도전에 대한 혁신에 초점을 맞추었습니다. 이 회사는 2027년까지의 새로운 재무 프레임워크를 발표하며, 성장 플랫폼에서 10억 달러의 증가된 순매출, 약 10억 달러의 비용 절감 및 생산성 이익, 그리고 45억 달러의 주주 수익을 목표로 하고 있습니다.

이 전략은 여섯 개의 성장 플랫폼을 포함합니다: 종자 및 특성 라이선스, 생물학적 제품(2020년대 말까지 연간 10억 달러 수익 목표), 새로운 농작물 보호 기술, 유전자 편집, 바이오 연료, 그리고 하이브리드 밀. 이 회사는 매출의 약 8%를 연구 개발에 투자하며, 이는 매일 400만 달러에 해당합니다.

Corteva a dévoilé sa stratégie pour 2024 lors de son Investor Day, se concentrant sur les défis mondiaux à relever grâce à l'innovation dans la sécurité alimentaire, le changement climatique et la transition énergétique. L'entreprise a annoncé un nouveau cadre financier jusqu'en 2027, visant 1 milliard de dollars de ventes nettes supplémentaires issues de ses plateformes de croissance, environ 1 milliard de dollars en réduction des coûts et avantages de productivité, et 4,5 milliards de dollars de retours pour les actionnaires.

La stratégie comprend six plateformes de croissance : la concession de licences de semences et de traits, les produits biologiques (ciblant 1 milliard de dollars de revenus annuels d'ici la fin de la décennie), les nouvelles technologies de protection des cultures, l'édition génomique, les biocarburants et le blé hybride. L'entreprise investit environ 8% de ses ventes dans la recherche et le développement, ce qui équivaut à 4 millions de dollars par jour.

Corteva hat seine Strategie für 2024 an seinem Investor Day vorgestellt und konzentriert sich darauf, globale Herausforderungen durch Innovation in der Ernährungssicherheit, dem Klimawandel und dem Übergang zu erneuerbaren Energien anzugehen. Das Unternehmen kündigte ein neues Finanzierungsframework bis 2027 an, mit dem Ziel, 1 Milliarde Dollar an zusätzlichen Nettoumsätzen aus Wachstumsplattformen, ca. 1 Milliarde Dollar an Kostensenkungen und Produktivitätsgewinnen sowie 4,5 Milliarden Dollar an Rückflüssen für die Aktionäre zu erzielen.

Die Strategie umfasst sechs Wachstumsplattformen: Lizenzvergabe für Saatgut und Merkmale, Biologika (mit dem Ziel von 1 Milliarde Dollar Jahresumsatz bis zum Ende des Jahrzehnts), neue Technologien zum Schutz von Pflanzen, Gentechnik, Biokraftstoffe und hybriden Weizen. Das Unternehmen investiert ca. 8% des Umsatzes in Forschung und Entwicklung, was täglich 4 Millionen Dollar entspricht.

Positive
  • $1 billion expected incremental net sales from growth platforms
  • ~$1 billion targeted in cost deflation and productivity benefits
  • $4.5 billion planned in shareholder returns through 2027
  • Biologicals segment targeting $1 billion in annual revenues by 2030
  • Hybrid wheat technology promising 10-20% yield advantages
  • 8% of sales reinvested in R&D (~$4 million daily)
Negative
  • None.

Insights

Corteva's new financial framework reveals significant growth potential with concrete targets: $1 billion in incremental sales, $1 billion in cost savings and $4.5 billion in shareholder returns through 2027. The six growth platforms represent a comprehensive strategy targeting high-growth markets. The 8% R&D investment ($4 million daily) demonstrates strong commitment to innovation.

The biologicals platform targeting $1 billion in annual revenues by 2030 and hybrid wheat with potential 10-20% yield improvements could be significant revenue drivers. The focus on biofuels aligns with growing ESG trends and energy transition demands. The royalty-neutral target for seed licensing by 2028 suggests improved margins and sustainable revenue streams.

The strategic focus on gene editing, biologicals and hybrid wheat represents a forward-thinking approach to agricultural challenges. The proprietary hybrid wheat system with 10-20% yield improvements in water-stressed environments is particularly significant given global climate challenges. The biologicals initiative shows strong potential in the growing sustainable agriculture market.

The comprehensive technology stack spanning seeds, traits and crop protection creates multiple revenue streams while addressing critical agricultural challenges: food security, climate resilience and sustainable farming. The emphasis on biofuels development also positions Corteva well in the expanding renewable energy sector.

Pipeline of disruptive technology poised to transform future of agriculture, create value for farmers, shareholders 

INDIANAPOLIS, Nov. 19, 2024 /PRNewswire/ -- Today, at its 2024 Investor Day, Corteva outlined its strategy to continue to deliver value to shareholders by helping the world address three global challenges: food security, driven by a growing global population coupled with finite arable land; climate change and the resulting intensification of extreme weather and pressures from insects, weeds and diseases; and the energy transition away from fossil fuels, leading to increased demand for biofuels. Corteva believes innovation is the answer to addressing each.  

The company also unveiled a new financial framework through 2027: $1 billion in incremental net sales from growth platforms, ~$1 billion in cost deflation and productivity benefits and roughly $4.5 billion in shareholder returns. Core to this framework will be the company's six growth platforms, also announced today: 

  1. Seed and trait out-licensing, to strengthen the company's target to be royalty-neutral by the end of 2028;
  2. Biologicals, targeting $1 billion in annual revenues by the end of the decade, harnessing the power of nature to sustainably, effectively increase yields;
  3. New Crop Protection technologies, to keep pace with the growing pressures of insects, weeds and diseases;  
  4. Gene editing, to leverage the power of the most advanced capacity in the industry, including leading germplasm, to transform the way the world farms; 
  5. Biofuels, to help meet rising fuel demand from the long-haul transportation sector with lower-carbon alternatives;
  6. Hybrid wheat, enabled by a one-of-its-kind, proprietary system with potential to deliver yield advantages of 10%  -- and up to 20% in water-stressed environments.1

These platforms are underpinned by the company's commitment to groundbreaking innovation coupled with cost and operational discipline: Corteva reinvests ~8% of its sales into research and development – the equivalent of roughly $4 million per day – to anticipate and solve farmers' most intractable challenges.  

"Corteva is a critical technology provider in an absolutely indispensable industry, and poised to deliver meaningful growth and value," said Corteva CEO Chuck Magro. "Building on nearly a century of agronomic expertise, groundbreaking technology that helps farmers solve some of their toughest challenges and the ability to deliver seed and crop protection solutions for every acre, this company is set to further its strong track record of creating value for farmers, shareholders and society at large. It's an exciting time to be at, and with, Corteva." 

About Corteva
Corteva, Inc. (NYSE: CTVA) is a global pure-play agriculture company that combines industry-leading innovation, high-touch customer engagement and operational execution to profitably deliver solutions for the world's most pressing agriculture challenges. Corteva generates advantaged market preference through its unique distribution strategy, together with its balanced and globally diverse mix of seed, crop protection, and digital products and services. With some of the most recognized brands in agriculture and a technology pipeline well positioned to drive growth, the company is committed to maximizing productivity for farmers, while working with stakeholders throughout the food system as it fulfills its promise to enrich the lives of those who produce and those who consume, ensuring progress for generations to come. More information can be found at www.corteva.com.

Cautionary Statement About Forward-Looking Statements

This press release contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and may be identified by their use of words like "plans," "expects," "will," "anticipates," "believes," "intends," "projects," "estimates," "outlook," or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the Company's financial results or outlook; strategy for growth; product development; regulatory approvals; market position; capital allocation strategy; liquidity; sustainability targets and initiatives; and the anticipated benefits of acquisitions, restructuring actions, or cost savings initiatives are forward-looking statements.

Forward-looking statements and other estimates are based on certain assumptions and expectations of future events which may not be accurate or realized. Forward-looking statements and other estimates also involve risks and uncertainties, many of which are beyond the Company's control. While the list of factors presented below is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company's business, results of operations and financial condition. Some of the important factors that could cause the Company's actual results to differ materially from those projected in any such forward-looking statements include: (i) failure to obtain or maintain the necessary regulatory approvals for some of the Company's products; (ii) failure to successfully develop and commercialize the Company's pipeline; (iii) effect of the degree of public understanding and acceptance or perceived public acceptance of the Company's biotechnology and other agricultural products; (iv) effect of changes in agricultural and related policies of governments and international organizations; (v) costs of complying with evolving regulatory requirements and the effect of actual or alleged violations of environmental laws or permit requirements; (vi) effect of climate change and unpredictable seasonal and weather factors; (vii) failure to comply with competition and antitrust laws; (viii) effect of competition in the Company's industry; (ix) competitor's establishment of an intermediary platform for distribution of the Company's products; (x) impact of the Company's dependence on third parties with respect to certain of its raw materials or licenses and commercialization; (xi) effect of volatility in the Company's input costs; (xii) risk related to geopolitical and military conflict; (xii) risks related to environmental litigation and the indemnification obligations of legacy EIDP, Inc. liabilities in connection with the separation of the Company; (xiv) risks related to the Company's global operations; (xv) failure to effectively manage acquisitions, divestitures, alliances, restructurings, cost savings initiatives, and other portfolio actions; (xvi) effect of industrial espionage and other disruptions to the Company's supply chain, information technology or network systems;(xvii) failure of the Company's customers to pay their debts to the Company, including customer financing programs; (xviii) failure to raise capital through the capital markets or short-term borrowings on terms acceptable to the Company; (xix) increases in pension and other post-employment benefit plan funding obligations; (xx) capital markets sentiment towards sustainability matters; (xxi) risks related to pandemics or epidemics; (xxii) the Company's intellectual property rights or defense against intellectual property claims asserted by others; (xxiii) effect of counterfeit products; (xxiv) the Company's dependence on intellectual property cross-license agreements; and (xxv) other risks related to the Separation from DowDuPont.

Additionally, there may be other risks and uncertainties that the Company is unable to currently identify or that the Company does not currently expect to have a material impact on its business. Where, in any forward-looking statement or other estimate, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of the Company's management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. The Company disclaims and does not undertake any obligation to update or revise any forward-looking statement, except as required by applicable law. A detailed discussion of some of the significant risks and uncertainties which may cause results and events to differ materially from such forward-looking statements is included in the "Risk Factors" section of the Company's Annual Report on Form 10-K, as modified by subsequent Quarterly Reports on Forms 10-Q and Current Reports on Form 8-K.

1 Internal yield trial testing; 2 years of testing with 6-10 locations/year in each of the market classes. Hard Red Winter testing in NE, KS, CO, OK.

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SOURCE Corteva Agriscience

FAQ

What are Corteva's (CTVA) financial targets through 2027?

Corteva aims to achieve $1 billion in incremental net sales from growth platforms, approximately $1 billion in cost deflation and productivity benefits, and roughly $4.5 billion in shareholder returns through 2027.

What are the six growth platforms announced by Corteva (CTVA) in 2024?

Corteva's six growth platforms are: seed and trait out-licensing, biologicals, new crop protection technologies, gene editing, biofuels, and hybrid wheat.

What is Corteva's (CTVA) revenue target for its biologicals segment?

Corteva targets $1 billion in annual revenues from its biologicals segment by the end of the decade.

How much does Corteva (CTVA) invest in research and development?

Corteva invests approximately 8% of its sales into research and development, equivalent to roughly $4 million per day.

Corteva, Inc.

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