Aleksey V. Yefremov

Aleksey V. Yefremov asked about Corteva's crop protection (CP) business, specifically the competitive positioning of the 35% of the portfolio that is not classified as 'differentiated,' given the increasingly competitive market.

Answer

EVP of Crop Protection Business Unit Robert King clarified that the 'not differentiated' portion of the portfolio does not equate to commodity generics. He explained that these are still formulated products, typically positioned at a lower price point within the brand ladder, offering value to farmers. King emphasized that Corteva's strategy, as an innovation company, is to focus on the upper end of the market and avoid playing in commodity generic molecules, aiming for premium products that add value.

Aleksey V. Yefremov asked for clarification on the remaining 35% of Corteva's Crop Protection portfolio that is not classified as 'differentiated,' inquiring about their competitive positioning in a potentially more competitive market.

Answer

EVP of Crop Protection Business Unit Robert King explained that the non-differentiated 35% of the portfolio consists of formulated products that are not commodity generics but offer value at a lower price point than premium differentiated products. He reiterated Corteva's strategy to focus on the upper end of the market as an innovation company, avoiding commodity generic molecules.

Aleksey V. Yefremov questioned RPM's growth algorithms, asking if the current year's guidance (single-digit sales, high single-digit EBIT) reflects a normal year or temporary challenges, and if higher incremental margins are expected in a more typical growth environment, also inquiring about Consumer pricing intentions.

Answer

Frank Sullivan, Chairman and CEO, stated that the current year is not normal due to tariff uncertainty, raw material costs, stalled capital investment, and SG&A inflation. He believes that in a normal environment, 7% revenue growth should yield mid-teens earnings growth, and RPM's strategy is to outperform when markets improve. He confirmed that price increases enacted at the end of Q1 will benefit the Consumer Group in Q2.