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