2023 John Deere Annual Report Highlights and Analysis
Index
Introduction
2023 Performance
Outlook for 2024
Operating Margins and New Capabilities
Leaps Ambitions Progress
Research and Development
Dealer Incentives
Financial Services
Final Comments
Follow Up Resources
Source: Deere.com
Introduction
John Deere continues to be one of the most compelling organizations in agriculture.
Not only are the color and branding iconic, but they continue to innovate internally, acquire strategically (e.g., Bear Flag Robotics, Blue River Technology), and evolve the frame of how farmers tackle agronomic and precision challenges within agriculture, even at the age of 187 years old.
Even with a great 2023, John Deere stock did decline year over year:
2023 Performance
John Deere grew revenue by almost $8 billion in 2023, with the most significant portion of their business continuing to be the large-scale production and precision pillar of their business, accounting for 43% of their $61.3 billion in revenue:
North America remains Deere’s largest revenue geography, making up 61% of their revenue.
The Production and Precision business, which includes their large equipment for corn/soy, small grains, sugar cane and cotton production systems, accounted for almost half of their revenue increase with a 22% growth, made up between 7% in volume and 15% in increased pricing:
Deere’s operating margin in the Production agriculture segment grew to 26.1%, pulling up the overall operating margin to above 25%.
Comparisons of Deere competitors like AGCO and CNH Industrial will be added in as they become available.
Of interest might be the John Deere employee number and total number of agriculture dealerships in North America:
On a per-employee basis, that means Deere generates about $738,000 per employee and about $123,000 of net income.