Ingredion Posts Solid Third Quarter Results

KUALA LUMPUR, Nov 8 (Bernama) -- A global provider of ingredient solutions to the food and beverage manufacturing industry, Ingredion Incorporated’s reported and adjusted operating income for third quarter of this year grew 17 per cent and 15 per cent, respectively, compared to previous year.

Ingredion president and chief executive officer, Jim Zallie said the company continued to successfully manage its business in the third quarter with its approach to product pricing and customer mix, while also driving operational excellence and productivity to mitigate the impact of cost inflation.

“Our business continues to demonstrate resilience, evidenced by the diversity of our markets and product portfolio, and the strength of our business model. Our updated full-year guidance reflects our confidence to deliver revenue and profit growth above our four-year growth outlook.

“We continue to execute against our Driving Growth Roadmap creating long-term value for shareholders, and are committed to total shareholder return as evidenced by the increase in the dividend rate and shares repurchased during the quarter,” he said in a statement.

As of Sept 30, total debt and cash, including short-term investments, were US$2.4 billion and US$341 million, respectively, versus US$2.5 billion and US$239 million, respectively, as of Dec 31, 2022. (US$1=RM4.66)

The company’s reported net financing costs for the third quarter were US$26 million versus US$24 million for the year-ago period, while its net capital expenditures were US$231 million, up US$35 million from the year-ago period.

In addition, third quarter and year-to-date net sales were up from the year-ago period one per cent and five per cent, respectively, driven by both price mix and foreign exchange impacts, partially offset by volume declines.

Meanwhile, third quarter reported and adjusted operating income were US$213 million and US$219 million, an increase of 17 per cent and 15 per cent, respectively, versus the prior year, driven by favourable price mix, partially offset by higher input costs and lower volume.

In the first nine months of this year, the company paid US$143 million in dividends to shareholders and declared a quarterly dividend of US$0.78 per share that was paid on Oct 24, which represented a 10 per cent increase from the prior quarterly dividend rate, for the ninth consecutive annual increase.

Ingredion now expects full-year 2023 net sales to be up mid-single-digits reflecting softer volume demand, while reported and adjusted operating income are both expected to be up high double-digits.

-- BERNAMA