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Jun 30, 2022
Ingredion Q2 2022 Earnings Report
Ingredion reported a strong quarter since 2017, driven by robust customer demand and active price mix management.
Key Takeaways
Ingredion reported strong second-quarter results with net sales growth of 16%, reflecting robust customer demand and effective price mix management. This performance enabled the company to offset higher input costs, leading to an increase in adjusted operating income compared to the previous year. The company's specialty ingredients segment continued to exhibit strong growth, supported by the Driving Growth Roadmap.
Net sales increased by 16% due to strong customer demand and price mix management.
Specialty ingredients maintained growth momentum, exceeding the four-year specialties growth outlook across all regions.
The Sugar Reduction and Specialty Sweetener platform experienced a net sales increase of over 20%, driven by PureCircle's stevia franchise.
Core ingredients achieved net sales growth in the mid-teens, supported by strong customer demand and enhanced contract terms.
Forward Guidance
For the third quarter 2022, Ingredion expects net sales growth to be in the high teens and operating income growth to be in the high single-digits, when both are compared to third quarter 2021. The Company expects full-year 2022 reported EPS to be in the range of $6.95 to $7.35, and adjusted EPS to be in the range of $6.90 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 double-digits, driven by favorable price mix
- Asia-Pacific operating income is expected to be flat compared to the prior year, driven by higher corn costs in Korea related to the Ukraine conflict and the impact of COVID-19 lockdowns in China, offsetting PureCircle growth
- EMEA operating income is expected to be flat to down low single-digits, driven by higher input costs and negative foreign exchange impacts.
- Corporate costs are expected to be up mid-single digits.
Challenges Ahead
- Higher corn costs in Korea related to the Ukraine conflict
Historical Earnings Impact
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Avg. Return Before/After Earnings
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