Don’t Miss Out On The Corteva Inc. (CTVA) Growth Story


Crop and seed protection provider Corteva Inc. (NYSE: CTVA), like many other companies, is grappling with supply chain disruptions and inflation. However, the company is on track to improve margins through better price management.

Cortéva Inc. (CTVA) raised average selling prices by 9% last quarter to help offset rising costs. As a result, EBITDA from operating profit increased to 22.6%. By way of comparison, a year earlier, it was 21.7%. Growth was driven by sales of new crop protection products, sales of which increased by more than 60% year on year.

Another reason for Corteva’s growing margins is the increased share of proprietary patents, which lower licensing and royalty costs. In particular, Corteva Inc. (CTVA) made significant progress in sales of its Enlist and Magro brands.

The use of such protective equipment is gradually developing, and their share in the sales structure is increasing. Consequently, Corteva’s long-term margin should also increase as demand for its own products increases.

It should be noted that Corteva Inc. (CTVA) operates in a market where demand is inelastic. Food is an essential item that will sell even when prices rise. As food prices continue to rise, American farmers expect their incomes to rise.

This could probably be a harbinger of increased spending on new seeds and drugs. Corteva Inc. (CTVA) management predicts this year could be a year of record profits for US farmers, although they too are under pressure from inflation.

The 5-day range for CTVA stock was $50.76 to $55.62, with a cumulative performance of -0.89 percent. This stock’s range in price for the previous month of trading was between $50.76 and $64.03, a change of -13.74 percent. The price of this stock has moved by -8.43% during the last three months, fluctuating between $50.76 and $64.03.

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