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Mar 31, 2022
Ingredion Q1 2022 Earnings Report
Ingredion reported a strong start to 2022, overcoming inflationary headwinds with net sales growth and operating income growth.
Key Takeaways
Ingredion reported a strong first quarter with 17% net sales growth driven by higher demand and strong price mix. The company achieved 6% operating income growth despite inflationary pressures. Specialties ingredients net sales grew by 20%, and plant-based proteins net sales grew by more than 250%.
Delivered 17% net sales growth due to high demand and strong price mix.
Achieved 6% operating income growth, offsetting increased input costs.
Specialties ingredients net sales increased by 20%.
Plant-based proteins net sales grew by over 250%.
Ingredion
Ingredion
Forward Guidance
For the second quarter 2022, the Company expects net sales to increase by low double-digits and operating income growth to be relatively flat, when both are compared to second quarter 2021. The Company expects full-year 2022 reported EPS to be in the range of $6.80 to $7.40, and maintains its expectation of adjusted EPS to be in the range of $6.85 to $7.45, compared to adjusted EPS of $6.67 in 2021.
Positive Outlook
- North America operating income is expected to be up low to mid-double-digits, driven by favorable price mix more than offsetting higher corn and input costs
- South America operating income is expected to be up low single-digits, driven by favorable pricing
- Asia-Pacific operating income is expected to be flat compared to the prior year period, driven by higher corn costs in Korea related to the Ukraine conflict, offsetting PureCircle growth
- EMEA operating income is expected to be up low single-digits, driven by favorable price mix
- Corporate costs are expected to be flat
Challenges Ahead
- Second quarter 2022, the Company expects net sales to increase by low double-digits and operating income growth to be relatively flat, when both are compared to second quarter 2021.
- Higher corn costs in Korea related to the Ukraine conflict.
- New U.S. tax regulations that reduced the Company’s ability to claim certain foreign tax credits against U.S. taxes.
- The increase in the reported and adjusted full year effective tax rate is driven by favorable foreign exchange impacts, which were partially offset by new U.S. tax regulations that reduced the Company’s ability to claim certain foreign tax credits against U.S. taxes.
- The amounts above may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance.