Ingredion Q3 2020 Earnings Report
Key Takeaways
Ingredion Incorporated reported positive results for the third quarter of 2020, with sequential improvement in customer volume demand across all regions. Reported and adjusted operating income increased significantly from the second quarter, and the company is focused on managing uncertainties related to the pandemic while supporting customers.
Experienced sequential improvement in customer volume demand across all four regions due to easing COVID-19 restrictions.
Reported and adjusted operating income increased 35% and 41%, respectively, from the second quarter.
Announced the pending acquisition of Verdient Foods Inc. to expand plant-based protein capabilities.
Integrated PureCircle’s global team and operations to enhance sugar reduction capabilities.
Ingredion
Ingredion
Forward Guidance
Due to the continued uncertainty of COVID-19 impacts, the company is withdrawing its full-year guidance. The company anticipates continued impacts from COVID-19 on net sales volume across our operating segments in the fourth quarter, with recovery in net sales generally correlated with increased consumer activity. With pandemic case rates rising and falling across many geographies, we expect away-from-home consumption to continue to fluctuate, suppressing volume demand for ingredients that are formulated in food and beverages consumed away-from-home. We anticipate modestly higher demand for food consumed in home, increasing volumes for ingredients that are part of the recipes for these meals.
Positive Outlook
- Modestly higher demand for food consumed in home.
- Increasing volumes for ingredients that are part of the recipes for these meals.
- Focus on the resilience of our workforce.
- Responsibility to the communities in which we operate.
- Ensuring business continuity for our customers.
Challenges Ahead
- Continued uncertainty of COVID-19 impacts
- Guidance remains withdrawn.
- Continued impacts from COVID-19 on net sales volume across our operating segments in the fourth quarter.
- Recovery in net sales generally correlated with increased consumer activity.
- Expect away-from-home consumption to continue to fluctuate, suppressing volume demand for ingredients that are formulated in food and beverages consumed away-from-home.