Corteva Agriscience said market penetration of its herbicide-tolerant Enlist E3 soybeans reached 45% of total acres in North America in 2022 as it reported net sales for the year of $17.46 billion, 11% higher than 2021.
Sales for the quarter were $3.83 billion, up 10% over the prior-year period and above analysts’ estimates. Seed sales were $1.6 billion, up 18% over the fourth quarter of 2021. “The sales increase was driven by a 19% increase in price, partially offset by a 1% decline in volume,” Corteva said.
The company reported a GAAP-adjusted operating loss for the quarter of $41 million but income for the year of $1.22 billion, down 33% from 2021, which it attributed to “lower non-cash benefits associated with legacy retirement plans.”
Farm income is higher, and both corn and soybean acreage are expected to be higher in 2023, Corteva CEO Chuck Magro said in an investor presentation today.
“Farmers are financially healthy with strong liquidity, and they will continue to prioritize yield to meet market demand and offset inflationary pressures,” Magro said. “Farm income is expected to be one of the largest ever, albeit below the record achieved in 2022. And demand for corn and soybean oil is expected to grow in 2023, supported by strong energy prices and policy adjustments focusing on low carbon energy sources.”
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Corteva expects its Enlist soybeans and accompanying herbicides to continue to make headway against Bayer’s Xtendimax system. Magro predicted market penetration would grow another 10 percentage points or so and hit the “mid-50s” in 2023.
Crop Protection net sales grew 7% in the fourth quarter, to nearly $2.2 billion. “Volume gains were driven by continued penetration of new products, including Enlist and Arylex herbicides and Isoclast insecticide,” Corteva said. As with seeds, the sales increase was due in part to price increases.
For the year, crop protection net sales were $8.5 billion, up from $7.3 billion for 2021. In 2023, Corteva said it expects net sales “in the range of $18.1 billion to $18.4 billion, growth of 5% at the mid-point.”
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