Corteva Highlights Breakthrough Innovation, Unveils New Financial Framework
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:
- Seed and trait out-licensing, to strengthen the company's target to be royalty-neutral by the end of 2028;
- Biologicals, targeting $1 billion in annual revenues by the end of the decade, harnessing the power of nature to sustainably, effectively increase yields;
- New Crop Protection technologies, to keep pace with the growing pressures of insects, weeds and diseases;
- Gene editing, to leverage the power of the most advanced capacity in the industry, including leading germplasm, to transform the way the world farms;
- Biofuels, to help meet rising fuel demand from the long-haul transportation sector with lower-carbon alternatives;
- 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