Corteva(CTVA) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 reached $3,978 million, a 7.3% increase from$ 3,707 million in Q4 2023[2] - Net income attributable to Corteva for the twelve months ended December 31, 2024, was $907 million, compared to a loss of$ 253 million in the previous year[2] - Basic earnings per share from continuing operations for Q4 2024 was $(0.08), an improvement from$ (0.33) in Q4 2023[2] - For the full year 2024, Net Sales totaled $16,908 million, with Organic Sales at$ 17,398 million, reflecting a 3% increase year-over-year[10] - Income from continuing operations before income taxes for Q4 2024 was $88 million, compared to a loss of$ 323 million in Q4 2023, representing a significant improvement[45] Sales and Revenue - Net Sales for Q4 2024 reached $3,978 million, a 7% increase compared to Q4 2023, with Organic Sales at$ 4,194 million, reflecting a 13% growth[10] - Corteva's net sales in North America for seeds increased to $639 million in Q4 2024 from$ 576 million in Q4 2023[8] - The Crop Protection segment saw a 6% increase in Net Sales to $134 million in Q4 2024, with Organic Sales growing by 11%[16] - North America contributed$ 66 million to Net Sales in Q4 2024, representing a 4% increase, while EMEA experienced a 21% increase with $77 million in sales[14] - Total crop protection net sales decreased by$ 391 million, a 5% decline, with herbicides down $435 million, an 11% decline[26] Expenses and Costs - Research and development expenses for Q4 2024 were$ 365 million, slightly up from $357 million in Q4 2023[2] - Corporate Expenses for Q4 2024 were$ 29 million, slightly higher than $26 million in Q4 2023, indicating a controlled increase in overhead costs[10] - The company reported significant items totaling a pre-tax loss of$ 315 million for the year, with crop protection segment losses at $175 million[29] - Restructuring and asset-related charges for the year amounted to$ 315 million, impacting earnings per share by $0.50[29] Cash Flow and Assets - Cash provided by operating activities for the twelve months ended December 31, 2024, was$ 2,145 million, up from $1,769 million in 2023[6] - The company reported a significant increase in cash and cash equivalents, rising to$ 3,422 million in 2024 from $3,158 million in 2023[6] - Total assets decreased to$ 40,825 million in 2024 from $42,996 million in 2023[4] - Free Cash Flow for the twelve months ended December 31, 2024, was$ 1,699 million, an increase of 39.9% from $1,214 million in 2023[52] Taxation - The effective income tax rate (GAAP) for Q4 2024 was 156.8%, compared to 28.5% in Q4 2023, indicating a substantial increase[45] - The base income tax rate from continuing operations (Non-GAAP) for the twelve months ended December 31, 2024, was 22.8%, up from 20.3% in 2023[45] - The company recognized a$ (120) million tax charge in the fourth quarter 2024 related to a valuation allowance against net deferred tax assets in Brazil[35] Future Outlook - Future outlook remains positive with expectations of continued growth in both Seed and Crop Protection segments, supported by ongoing product innovation and market expansion strategies[10] - Future guidance indicates a cautious outlook due to ongoing market challenges and restructuring efforts, with expectations for gradual recovery in sales[30] Regional Performance - Latin America showed a $16 million decrease in crop protection sales, a 1% decline, but saw a 6% increase in seed sales, up$ 132 million[23] - The Asia Pacific region reported a $22 million increase in crop protection sales, a 2% growth, and a 5% increase in seed sales, up$ 43 million[23]