NYSE$INGR

Ingredion Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Ingredion demonstrated strong results driven by effective pricing strategies, customer mix management, operational excellence, and productivity improvements.

Ingredion reported a strong third quarter with a 15% increase in adjusted operating income. The company's resilience is evident in its diverse markets and product portfolio. Ingredion has raised its full-year adjusted EPS outlook to $9.05 - $9.45, up from $8.80 - $9.40.

  • Third quarter reported and adjusted operating income grew 17% and 15%, respectively, compared to prior year.
  • Third quarter reported and adjusted EPS were $2.36 and $2.33, an increase of 48% and 35%, respectively.
  • The company raised its full-year adjusted EPS outlook to $9.05 - $9.45, up from $8.80 - $9.40.
  • Ingredion's Food Systems business in Europe demonstrated mid-single-digit volume growth from greater penetration into private label.

Headline financials

Total Revenue

$2.03B

Previous: $2.02B+0.5%
EPS (adj)

$2.33

Previous: $1.73+34.7%
Capital Expenditures

-$233M

Previous: -$203M-14.8%
Free Cash Flow

-$75M

Previous: -$97M+22.7%
Net Income

$158M

Previous: $106M+49.1%
Operating Income

$213M

Previous: $182M+17.0%
Gross Profit

$421M

Previous: $374M+12.6%
Cash & Equivalents

$335M

Previous: $294M+13.9%
Total Assets

$7.55B

Previous: $7.4B+2.0%

Revenue & EPS history

Ingredion · Revenue · Quarterly

$2.03B

Q3 2023+0.5%vs Q3 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 its outlook for full-year 2023 reported and adjusted EPS to be in the range of $9.25 to $9.65 and $9.05 to $9.45, respectively. The Company now expects full-year 2023 net sales to be up mid-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 volume and cost increases
  • 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 45% driven by favorable price mix
  • Cash from operations for full-year 2023 is now expected to be in the range of $650 million to $750 million.
  • Capital expenditures for the full year are expected to be approximately $310 million.

Headwinds

  • South America operating income is expected to be down mid to high-teens, 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-single-digits reflecting softer volume demand.
  • Assumes higher input costs
  • Assumes lower volume

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 Q3 2023

Historical avgQ3 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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