NYSE$INGR

Ingredion Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Ingredion reported strong results, driven by favorable price mix and effective adaptation to market dynamics.

Ingredion Incorporated reported a 1% increase in net sales for the second quarter of 2023, driven by price and product mix, which offset volume declines. Reported and adjusted operating income increased by 18% and 17%, respectively, due to favorable price mix. The company raised its full-year adjusted EPS outlook to $8.80-$9.40.

  • Second quarter reported and adjusted operating income grew 18% and 17%, respectively, compared to the prior year.
  • Second quarter reported and adjusted EPS were $2.42 and $2.32, an increase of 14% and 9%, respectively.
  • Net sales growth of specialty ingredients was driven by price and customer mix.
  • The company raised its full-year adjusted EPS outlook to be in the range of $8.80-$9.40, up from $8.70-$9.40.

Headline financials

Total Revenue

$2.07B

Previous: $2.04B+1.2%
EPS (adj)

$2.32

Previous: $2.12+9.4%
Capital Expenditures

-$154M

Previous: -$144M-6.9%
Free Cash Flow

$9M

Previous: -$2M+550.0%
Net Income

$163M

Previous: $142M+14.8%
Operating Income

$251M

Previous: $213M+17.8%
Gross Profit

$441M

Previous: $390M+13.1%
Cash & Equivalents

$257M

Previous: $318M-19.2%
Total Assets

$7.6B

Previous: $7.39B+2.9%

Revenue & EPS history

Ingredion · Revenue · Quarterly

$2.07B

Q2 2023+1.2%vs Q2 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Ingredion · $289M total across 1 segment · Q4 2022

  • F&II LATAM
    $289M

Forward guidance

The Company expects net sales growth to be up mid-single digits and operating income to be up high-single digits to low double-digits compared to the third quarter of 2022. The Company expects its outlook for full-year 2023 reported and adjusted EPS to be in the range of $8.95 to $9.55 and $8.80 to $9.40, respectively. The Company now expects full-year 2023 net sales to be up mid to high single digits reflecting softer volume demand. Reported and adjusted operating income are both expected to be up high double-digits.

Tailwinds

  • North America operating income is expected to be up 20% to 25%, with price mix continuing to outpace lower volumes and increasing costs.
  • Asia-Pacific operating income is expected to be up high double-digits, driven by favorable price mix and PureCircle growth, partially offset by higher input costs.
  • EMEA operating income is expected to be up 40% to 50% driven by favorable price mix.
  • Cash from operations for full-year 2023 is now expected to be in the range of $600 million to $700 million.
  • Capital expenditures for the full year are expected to be approximately $300 million.

Headwinds

  • South America operating income is expected to be down mid to high-single digits, with higher input costs more than offsetting favorable price mix.
  • Corporate costs are expected to be up high single digits.
  • Full-year 2023 net sales to be up mid to high single digits reflecting softer volume demand.
  • Volumes continued to be impacted by inventory rebalancing throughout the food supply chain and shifts in consumer spending behavior.
  • Higher raw material and input costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.8%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-0.2%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+12.6%

Q4 2015

Best reaction

-11.4%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+0.7%-6.8%
Q4 2025+2.9%+2.4%-3.8%
Q3 2025-5.7%-4.9%-5.2%
Q1 2025+3.5%+2.6%+2.3%
Q4 2024-5.6%-5.1%-2.7%
Q3 2024+12.3%+13.1%+10.3%
Q2 2024+5.3%+8.5%+12.4%
Q1 2024+2.9%+4.1%-0.5%
Q4 2023+0.1%-2.2%+5.2%
Q3 2023+4.6%+7.1%+11.0%
Q2 2023-7.8%-9.9%-9.2%
Q1 2023+2.7%+2.6%+1.7%
Q4 2022-2.8%-1.6%-4.8%
Q3 2022+6.3%+6.1%+14.6%
Q2 2022+2.5%+3.0%-6.3%
Q1 2022-1.3%-3.3%+4.1%
Q4 2021-11.4%-10.3%-11.4%
Q3 2021+0.3%+2.7%-1.6%
Q2 2021-4.5%-3.4%-1.1%
Q1 2021-2.8%+0.5%+2.2%
Q4 2020+11.7%+14.1%+22.0%
Q3 2020+1.7%-2.3%+10.5%
Q2 2020-10.3%-9.0%-8.7%
Q1 2020+1.6%+6.7%+11.2%
Q4 2019+7.4%+6.9%-23.6%
Q3 2019+3.8%+5.7%+5.1%
Q2 2019+1.6%-0.5%-0.0%
Q1 2019-5.9%-7.3%-17.4%
Q4 2018-4.6%-5.6%-6.0%
Q3 2018+2.3%+4.3%+3.2%
Q2 2018+2.5%+6.1%+5.0%
Q1 2018-4.4%-6.3%-6.3%
Q4 2017-5.8%-9.3%-8.7%
Q3 2017+3.1%+3.4%+11.5%
Q2 2017-0.3%-1.1%+0.4%
Q1 2017-2.0%-2.8%-6.7%
Q4 2016-7.5%-6.0%-3.8%
Q3 2016-1.6%-0.2%-9.7%
Q2 2016+1.2%+1.6%+3.2%
Q1 2016+7.4%
Q4 2015+12.6%
Q3 2015+1.2%
Q2 2015+6.7%
Q1 2015+4.7%
Q4 2014-4.5%
Q3 2014+1.7%
Q2 2014-3.3%
Q1 2014+3.1%
Q4 2013+5.1%
Q3 2013-5.9%
Q2 2013+9.9%
Q1 2013-1.3%
Q4 2012-0.7%
Q3 2012+10.7%
Q2 2012+1.9%
Q4 2011+0.4%
Q1 2012-1.3%
Q4 2008-1.3%
Q3 2011-0.5%
Q2 2011-6.8%
Q4 2010+2.8%
Q1 2010+2.8%
Q1 2011+2.8%
Q3 2010+4.3%
Q3 2009+4.3%
Q2 2009+1.6%
Q4 2009+1.6%
Q2 2010+1.6%

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