INGREDION INCORPORATED DECLARES SOLID GROWTH IN 2022 FIRST QUARTER

KUALA LUMPUR, May 6 (Bernama) -- Ingredion Incorporated, a leading global provider of ingredient solutions to the food and beverage manufacturing industry, has reported results for the first quarter of 2022.

According to a statement, the results, reported in accordance with U.S. generally accepted accounting principles (GAAP) for 2022 and 2021, include items that are excluded from the non-GAAP financial measures that the Company presents.

“Ingredion overcame inflationary headwinds and is off to a strong start in 2022. We delivered 17 per cent net sales growth driven by higher-than-expected demand and strong price mix,” said Ingredion’s president and chief executive officer, Jim Zallie.

“In a highly inflationary environment, we achieved significant, favourable price mix that more than offset increased input costs and contributed to six per cent operating income growth.

“We also made progress in the quarter improving the resilience of our supply chain despite continued global logistics constraints, which enabled us to better meet customers’ changing needs.”

Financial Highlights include at March 31, 2022, total debt and cash including short-term investments were US$2.3 billion and US$329 million, respectively, compared to US$2.0 billion and US$332 million, respectively, at Dec 31, 2021. (US$1 = RM4.363)

Net financing costs were US$24 million, or US$5 million higher in the first quarter than in the year-ago period, driven by higher transactional foreign exchange losses related to country-specific net working capital balances.

In addition, first quarter net sales were up from the year-ago period. The increase was driven by strong price mix, including the pass through of higher corn costs. Excluding foreign exchange impacts, net sales were up 19 per cent for the quarter.

Meanwhile, reported and adjusted operating income for the quarter were US$210 million and US$213 million, respectively, an increase of 224 per cent and an increase of six per cent, respectively, from the same period last year.

In March 2022, the Company announced a quarterly dividend of US$0.65 per share, totalling US$43 million. During the quarter, the Company repurchased US$39 million of outstanding shares of common stock.

For the second quarter 2022, the Company expects net sales to increase by low double-digits and operating income growth to be relatively flat, when both are compared to second quarter 2021.

-- BERNAMA