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Mar 31, 2021
Ingredion Q1 2021 Earnings Report
Ingredion reported an outstanding first quarter with significant net sales and adjusted operating income growth, marking their best quarter since 2018.
Key Takeaways
Ingredion Incorporated reported strong first-quarter results with significant growth in net sales and adjusted operating income. The company saw operating income growth across all four regions, driven by strong performance in South America and Asia-Pacific. Specialty ingredients growth was underpinned by double-digit growth in Asia-Pacific and South America, with sugar reduction sales up over 200 percent versus the prior year.
Delivered an outstanding first quarter with significant net sales and adjusted operating income growth.
Operating income grew across all four regions, reflecting exceptionally strong performance in South America and Asia-Pacific.
Specialty ingredients growth was underpinned by double-digit growth in Asia-Pacific and South America.
Sugar reduction sales were up over 200 percent versus prior year.
Forward Guidance
For the second quarter, the Company expects net sales to increase 20 to 30 percent and operating income growth to be slightly better than net sales growth, when both are compared to the prior year. The Company expects full-year net sales to be up low double-digits, and adjusted operating income to be up mid-single-digits.
Positive Outlook
- Net sales to increase 20 to 30 percent in the second quarter.
- Operating income growth to be slightly better than net sales growth in the second quarter.
- Full-year net sales expected to be up low double-digits.
- Adjusted operating income expected to be up mid-single-digits.
- Driven by the pass through of higher corn costs, strong price mix and volume recovery.
Challenges Ahead
- Continued uncertain environment impacts full-year EPS and cash flow guidance.
- Anticipated higher corn costs in the second half of the year.
- Reported effective tax rate of 70 percent to 75 percent.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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