Corteva, Inc reported its first quarter 2022 net sales rose 10% and stood at $4,601 million versus prior year with gains in both segments. Organic sales increased 16% in the same period with double-digit gains in all regions.
GAAP income and earnings per share (EPS) from continuing operations were $577 million and $0.79 per share for the first quarter 2022, respectively. Operating EBITDA was $1.04 billion, a 15% improvement over prior year on strong price execution and volume gains in all regions, partially offset by inflation and currency headwinds. Operating EPS was $0.97 per share, up 23% compared to the same period last year.
Segment Results
Seed net sales were $2.5 billion in the first quarter of 2022, up slightly compared to the first quarter of 2021. The sales increase was driven by an 8% increase in price. This gain was partially offset by a 1% decline in volumes and a 6% unfavorable currency impact. The increase in price was driven by strong execution globally, led by EMEA and North America, with corn price up 8% globally. The decline in volume was driven by seasonal timing of deliveries in North America, which was partially offset by strong demand for corn in Brazil. Unfavorable currency impacts were led by the Turkish Lira and the Euro. Segment Operating EBITDA was $569 million in the first quarter of 2022, down 8% from the first quarter of 2021. Price execution and ongoing cost and productivity actions were more than offset by seasonal timing in North America, higher input and freight costs, the unfavorable impact of currency and the unfavorable year-over-year impact from the remeasurement of an equity investment.
Crop Protection net sales were approximately $2.1 billion in the first quarter of 2022 compared to approximately $1.7 billion in the first quarter of 2021. The sales increase was driven by an 18% increase in volume and an 11% increase in price. These gains were partially offset by a 5% unfavorable currency impact and a 1% unfavorable portfolio impact. The increase in volume was driven by strong early demand for herbicides in North America on supply concerns and continued penetration of new and differentiated products, including Enlist, Arylex and Rinskor herbicides and Zorvec fungicide. The increase in price was broad-based, with gains in all regions led by North America, and mostly reflected pricing for higher raw material and logistical costs. Unfavorable currency impacts were led by the Turkish Lira and the Euro. The portfolio impact was driven by a divestiture in Asia Pacific. Segment Operating EBITDA was $491 million in the first quarter of 2022, up 53% from the first quarter of 2021. Pricing and volume gains and productivity actions more than offset the unfavorable impact of currency, higher input costs, including raw material costs, and higher SG&A. Segment operating EBITDA margin improved by 460 basis points versus the prior-year period largely driven by new and differentiated technology.
“Corteva delivered a solid start to 2022 with double-digit sales and Operating EBITDA growth in the first quarter reflecting continued execution amidst a challenging macro and geopolitical environment, including the current situation in Eastern Europe. The Company made progress on its strategic initiatives to accelerate performance, including the recently announced business realignment that will enhance simplicity and speed of business.
Looking ahead, we expect healthy market fundamentals to continue given record crop prices, strong farm income levels and demand for food globally. We remain committed to bringing industry-leading, sustainable solutions to farmers to drive productivity and ease the current pressure on the global food system.” said Chuck Magro, Chief Executive Officer, Corteva.
The Company affirmed its previously provided net sales and Operating EBITDA guidance for the full year 2022. Corteva expects net sales in the range of $16.7 billion to $17.0 billion, which at the mid-point represents expected net sales growth of 8% for the year and organic sales growth of 11% for the year. Operating EBITDA is expected to be in the range of $2.8 billion to $3.0 billion. The Company adjusted its expectations for Operating EPS for 2022, which is now expected to be in the range of $2.35 to $2.55 per share, to reflect lower average share count. The Company is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures, as it is unable to predict with reasonable certainty items outside of its control, such as significant Items, without unreasonable effort.
