INGREDION EPS ABOVE EXPECTATIONS, REVENUE DECLINES FOR FIRST QUARTER 2024

KUALA LUMPUR, May 9 (Bernama) -- Ingredion Incorporated, a global ingredient solutions provider to the food and beverage manufacturing industry, reported a 12 per cent decrease in net sales to US$1.882 billion for the first quarter of 2024 from US$2.137 billion in same period, a year ago. (US$1=RM4.74)

This was mainly driven by both price mix and volume declines, partially offset by foreign exchange impacts. The impact of the South Korea divestiture resulted in a US$51 million drop in sales volume for the period.

Ingredion president and chief executive officer, Jim Zallie in a statement said against a strong comparison with last year's record first quarter performance, this quarter’s results exceeded expectations.

“As anticipated, our net sales volumes in the quarter improved sequentially, despite the impact of extreme cold weather on shipments in the United States (US) and taking into account the sale of our South Korea business.

“Looking forward, our Driving Growth Roadmap continues to guide our long-term value creation. Also, in support of our new Winning Aspiration, the reorganisation is enabling clearer focus on the opportunities presented by our global customers to drive growth,” concluded Zallie.

First quarter reported and adjusted earnings per share (EPS) were US$3.23 and US$2.08, an increase of 13 per cent and decrease of 26 per cent, respectively, and is expected to raise guidance for full-year reported EPS to be in the range of US$10.35 to US$11.00 and adjusted EPS to be in the range of US$9.20 to US$9.85.

Meanwhile, the first quarter reported and adjusted operating income were US$213 million and US$216 million, respectively, a 27 per cent drop for both, versus the prior year, was driven by downtime associated with cold weather, hyperinflation in Argentina, and the carry-forward of higher cost inventory.

The company declared a quarterly dividend of US$0.78 per share which was paid on April 23, and paid US$51 million in dividends to shareholders in the first quarter. It repurchased US$1 million of outstanding shares of common stock, during the quarter.

For the 2024 second quarter, Ingredion expects net sales to be flat to down low single-digits and reported and adjusted operating income to be up low to mid-single-digits.

-- BERNAMA