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Dec 31, 2023
Ingredion Q4 2023 Earnings Report
Ingredion reported strong fourth quarter and full-year results, with operating income growth driven by targeted pricing actions and cost savings initiatives.
Key Takeaways
Ingredion's Q4 2023 results showed strong performance with a 29% increase in reported operating income and a 21% increase in adjusted operating income. The company's targeted pricing actions and cost savings initiatives helped overcome inflation and raw material volatility, leading to gross margin expansion. Cash from operations exceeded $1 billion, and $295 million was returned to shareholders in 2023.
Fourth quarter reported and adjusted operating income grew 29% and 21%, respectively.
Full-year reported and adjusted EPS were $9.60 and $9.42, an increase of 31% and 26%, respectively, which includes S. Korea business results that contributed $0.47 and $0.45, respectively.
Full-year cash from operations was $1,057 million, up from $152 million in 2022.
The Company expects its full-year 2024 outlook for reported EPS to be in the range of $10.20 to $11.15 and adjusted EPS to be in the range of $9.15 to $9.85, reflecting the impact of the S. Korea business divestiture
Ingredion
Ingredion
Forward Guidance
The Company expects its full-year 2024 outlook for reported EPS to be in the range of $10.20 to $11.15 and adjusted EPS to be in the range of $9.15 to $9.85, reflecting the impact of the S. Korea business divestiture.
Positive Outlook
- Full-year 2024 net sales to be flat to up low single-digits reflecting greater volume demand partially offset by price mix.
- Reported operating income is expected to be up low to mid-double-digits including the expected gain on the divestiture.
- Adjusted operating income is expected to be up mid-single-digits.
- Corporate costs are expected to be up low single-digits.
- Cash from operations for full-year 2024 is expected to be in the range of $750 million to $900 million.
Challenges Ahead
- The Company expects its full-year 2024 outlook for reported EPS to be in the range of $10.20 to $11.15 and adjusted EPS to be in the range of $9.15 to $9.85, reflecting the impact of the S. Korea business divestiture.
- For full-year 2024, the Company expects a reported and adjusted effective tax rate of 24.0% to 26.0%, and 25.5% to 26.5%, respectively.
- Capital expenditures for the full year are expected to be approximately $340 million.
- For the first quarter of 2024, the Company expects net sales to be down mid-single-digits
- Reported and adjusted operating income to be down 25-35%, which includes the impact of the Argentina peso devaluation.