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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.
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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