INGREDION INCORPORATED REPORTS FIRST QUARTER 2023 RESULTS, RAISES FULL-YEAR OUTLOOK

KUALA LUMPUR, May 5 (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 2023.

“We started 2023 with exceptional performance delivering record quarterly profit and EPS. Entering this year, we anticipated a second consecutive year of corn and manufacturing cost inflation.

“Our sales teams effectively executed product and customer mix management, including price adjustments against expiring multi-year customer contracts, to successfully rebuild margins for the third consecutive quarter.

“In addition, as economic growth slowed, supply chain costs moderated contributing to higher gross margins and operating income,” said Ingredion president and chief executive officer, Jim Zallie in a statement.

Among the financial highlights include, at March 31, 2023, total debt and cash including short-term investments were US$2.6 billion and US$221 million, respectively, versus US$2.5 billion and US$239 million, respectively, at Dec 31, 2022. (US$1=RM4.43)

Reported net financing costs for the first quarter were US$32 million versus US$24 million for the year-ago period, while capital expenditures were US$76 million, down US$9 million from the year-ago period.

The net sales for the first quarter was up 13 per cent from the year-ago period, driven by strong price mix through both customer and product mix management, partially offset by lower volumes and foreign currency impacts.

In the first quarter, the company paid US$47 million in dividends to shareholders and announced its quarterly dividend of US$0.71 per share to be paid in the second quarter.

Ingredion considers return of value to shareholders through cash dividends and share repurchases as part of its capital allocation strategy to support total shareholder return.

For the second quarter 2023, the company expects net sales growth to be up mid-single digits and operating income to be up low double digits to mid-double digits, compared to second quarter 2022.

It also expects full-year 2023 net sales to be up high single-digits to low double-digits reflecting softer sales volumes and the anticipated layout of corn costs. Reported and adjusted operating income are both expected to be up high double-digits.

The company expects its outlook for full-year 2023 reported and adjusted Earnings Per Share (EPS) to be in the range of US$8.85 to US$9.35 and US$8.70 to US$9.40, respectively.

-- BERNAMA