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Ingredion
🇺🇸 NYSE:INGR
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Sep 30, 2023

Ingredion Q3 2023 Earnings Report

Ingredion demonstrated strong results driven by effective pricing strategies, customer mix management, operational excellence, and productivity improvements.

Key Takeaways

Ingredion reported a strong third quarter with a 15% increase in adjusted operating income. The company's resilience is evident in its diverse markets and product portfolio. Ingredion has raised its full-year adjusted EPS outlook to $9.05 - $9.45, up from $8.80 - $9.40.

Third quarter reported and adjusted operating income grew 17% and 15%, respectively, compared to prior year.

Third quarter reported and adjusted EPS were $2.36 and $2.33, an increase of 48% and 35%, respectively.

The company raised its full-year adjusted EPS outlook to $9.05 - $9.45, up from $8.80 - $9.40.

Ingredion's Food Systems business in Europe demonstrated mid-single-digit volume growth from greater penetration into private label.

Total Revenue
$2.03B
Previous year: $2.02B
+0.5%
EPS
$2.33
Previous year: $1.73
+34.7%
Gross Profit
$421M
Previous year: $374M
+12.6%
Cash and Equivalents
$335M
Previous year: $294M
+13.9%
Free Cash Flow
$289M
Previous year: $25M
+1056.0%
Total Assets
$7.55B
Previous year: $7.4B
+2.0%

Ingredion

Ingredion

Ingredion Revenue by Geographic Location

Forward Guidance

The Company expects its outlook for full-year 2023 reported and adjusted EPS to be in the range of $9.25 to $9.65 and $9.05 to $9.45, respectively. The Company now expects full-year 2023 net sales to be up mid-single-digits reflecting softer volume demand. Reported and adjusted operating income are both expected to be up high double-digits.

Positive Outlook

  • North America operating income is expected to be up 20% to 25%, with price mix continuing to outpace lower volume and cost increases
  • Asia-Pacific operating income is expected to be up high double-digits, driven by favorable price mix and PureCircle growth, partially offset by higher input costs
  • EMEA operating income is expected to be up 40% to 45% driven by favorable price mix
  • Cash from operations for full-year 2023 is now expected to be in the range of $650 million to $750 million.
  • Capital expenditures for the full year are expected to be approximately $310 million.

Challenges Ahead

  • South America operating income is expected to be down mid to high-teens, with higher input costs more than offsetting favorable price mix
  • Corporate costs are expected to be up high single-digits
  • Full-year 2023 net sales to be up mid-single-digits reflecting softer volume demand.
  • Assumes higher input costs
  • Assumes lower volume

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Ingredion