Corteva Agriscience reported financial results for the first quarter of 2020
Ukrainian business demonstrated net sales growth of more than 8%
Corteva, Kyiv, Ukraine,
May 19, Tue, 2020
Corteva, Inc. (NYSE: CTVA) financial results for the quarter ended March 31, 2020. First quarter 2020 reported net sales were $4.0 billion, up 16% versus the year-ago period
Operating EBITDA was $794 million, up 53% versus the same quarter last year, as volume and price gains and ongoing cost-improvement actions more than offset exchange losses and currency headwinds. Seed sales rose 27% on an organic basis primarily due to increased corn deliveries in North America, coupled with strong sunflower and corn sales in Europe. Crop Protection sales improved 10% on an organic basis due to increased demand for new products globally
Results in Ukraine
Ukrainian business of Corteva Agriscience showed net sales growth of more than 8% in the first quarter of 2020.
Net sales of high-quality genetics of Corteva Agriscience in Ukraine increased by more than 7% in the first quarter of 2020.
Thus, by the virtue of the transition to direct sales model of Pioneer® seeds, the company managed to make 50% more shipments compared to the same period last year and achieved a record sales of hybrids of the Pioneer® brand for the last 9 years.
20% of Pioneer® seeds sold were treated with premium LumiGEN protection technology, which is an advanced solution that reduces the environmental impact of agriculture, while taking into account consumer expectations. Currently, the technology is only available for Pioneer® seeds to order, but Corteva is working to expand the opportunities for both seed brands.
Net sales of Brevant™ seeds, which are sold through a distribution network, have doubled compared to the same period last year. The growth was a result of a new portfolio of seeds and high demand for high-oleic sunflower hybrids among Ukrainian farmers.
Corteva Agriscience crop protection business also showed strong results and growth. Net sales of crop protection products rose by more than 10% in the first quarter of 2020 due to increased demand for innovative products of the company. The sales of Slash™ herbicide for winter oil rapeseed exceeded expectations by 5 times. The launch of Helianthex™ herbicide based on the newest Arylex™ active molecule was also successful. The product was shipped for distribution in volumes equivalent for use on more than 300,000 hectares of sunflower due to high demand.
New season offer
Corteva Agriscience continues to provide customers with one of the most extended portfolios of high quality products in the industry. For the 2020 season, the company offers producers more than 50 hybrids of corn seeds, including 8 hybrids with Optimum® AQUAmax® technology, which is one of the most popular among Ukrainian farmers and provides increased yields in conditions of limited moisture. The sunflower seed offer consists of 9 hybrids of Pioneer Protector® Broomrape and 7 Pioneer Protector® Downy Mildew, which have the maximum resistance to sunflower broomrape and downy mildew. In addition, the company offers a large selection of winter oil rapeseeds of Brevant™ seeds brand, which have a high yield potential and the necessary set of characteristics for maximum profit.
The offer of crop protection products includes 21 products, including innovative solutions based on molecules Arylex™ active, Zorvek® and Rinskor™. All Corteva products are protected by unique protection system - IZON® hologram, which allows producers independently verify the originality of products.
The seed production facility of Corteva Agriscience, located in Stasi village of Poltava region successfully finished production season and produced 800,000 sowing units of corn and sunflower seeds for 2020 season, which is about 50,000 more than in 2019. Ukrainian production facility also made the first direct export of premium Pioneer® genetics sowing material (PR37N01 corn hybrid) to foreign producer Agrodairy, one of Azerbaijan's largest agricultural companies.
One of Corteva Agriscience competitive advantages is a special agronomy team that provides free expert agrotechnical consultations to our clients all around Ukraine. In order to ensure the continuity of the consulting process when personal meetings are limited, Corteva's agronomy department has moved online and has already conducted pilot webinar for clients.
In the first quarter of 2020, Corteva also started using financial crop receipts to provide financing for Ukrainian farmers in a volatile market environment. Financial crop receipts are available for purchase of seeds and crop protection products of Corteva Agriscience in Ukraine and provide opportunities to increase the credit limit for the purchase of Corteva products and defer payment if necessary.
“Corteva business in Ukraine has shown strong results both in seeds and crop protection products. We have maintained a strong position and increased financial results in a very challenging market and competitive conditions with our right choice of direct sales model for Pioneer® brand seeds and incredible efforts and dedication of our team, as well as reliable support of our partners – Brevant™ seeds and crop protection distributors, - said Sergii Kharin, Corteva Agriscience Business Leader in Eastern Europe. – During this difficult time, we continue to support our customers with high quality seeds, innovative crop protection products and professional and timely agronomic support, using new approaches in management. I am proud of our team and I am sure that together we will be able to achieve even better results. I am also incredibly grateful for the trust of Ukrainian producers and I want to assure you that Corteva will always be there, at any time and under any circumstances."
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About Corteva Agriscience
Corteva Agriscience is a publicly traded, global pure-play agriculture company that provides farmers around the world with the most complete portfolio in the industry - including a balanced and diverse mix of seed, crop protection and digital solutions focused on maximizing productivity to enhance yield and profitability. With some of the most recognized brands in agriculture and an industry-leading product and technology pipeline well positioned to drive growth, the company is committed to 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. Corteva Agriscience became an independent public company on June 1, 2019, and was previously the Agriculture Division of DowDuPont. More information can be found at www.corteva.com.ua
® ™ Trademarks of DuPont, Dow AgroSciences and Pioneer and affiliated companies or their respective owners. © 2020 Corteva.
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Anastasiya Forina, Corporate Communications Consultant
Tel: +380 44 498 90 00, Mоb: +380 99 080 0216