NYSE$INGR

Ingredion Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Ingredion reported strong fourth quarter and full-year results, with operating income growth driven by targeted pricing actions and cost savings initiatives.

Ingredion's Q4 2023 results showed strong performance with a 29% increase in reported operating income and a 21% increase in adjusted operating income. The company's targeted pricing actions and cost savings initiatives helped overcome inflation and raw material volatility, leading to gross margin expansion. Cash from operations exceeded $1 billion, and $295 million was returned to shareholders in 2023.

  • Fourth quarter reported and adjusted operating income grew 29% and 21%, respectively.
  • Full-year reported and adjusted EPS were $9.60 and $9.42, an increase of 31% and 26%, respectively, which includes S. Korea business results that contributed $0.47 and $0.45, respectively.
  • Full-year cash from operations was $1,057 million, up from $152 million in 2022.
  • The Company expects its full-year 2024 outlook for reported EPS to be in the range of $10.20 to $11.15 and adjusted EPS to be in the range of $9.15 to $9.85, reflecting the impact of the S. Korea business divestiture

Headline financials

Total Revenue

$1.92B

Previous: $1.99B-3.3%
EPS (adj)

$1.97

Previous: $1.65+19.4%
Capital Expenditures

-$83M

Previous: $97M-185.6%
Net Income

$133M

Previous: $115M+15.7%
Operating Income

$202M

Previous: $157M+28.7%
Gross Profit

$400M

Previous: $351M+14.0%

Revenue & EPS history

Ingredion · Revenue · Quarterly

$1.92B

Q4 2023-3.3%vs Q4 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 full-year 2024 outlook for reported EPS to be in the range of $10.20 to $11.15 and adjusted EPS to be in the range of $9.15 to $9.85, reflecting the impact of the S. Korea business divestiture.

Tailwinds

  • Full-year 2024 net sales to be flat to up low single-digits reflecting greater volume demand partially offset by price mix.
  • Reported operating income is expected to be up low to mid-double-digits including the expected gain on the divestiture.
  • Adjusted operating income is expected to be up mid-single-digits.
  • Corporate costs are expected to be up low single-digits.
  • Cash from operations for full-year 2024 is expected to be in the range of $750 million to $900 million.

Headwinds

  • The Company expects its full-year 2024 outlook for reported EPS to be in the range of $10.20 to $11.15 and adjusted EPS to be in the range of $9.15 to $9.85, reflecting the impact of the S. Korea business divestiture.
  • For full-year 2024, the Company expects a reported and adjusted effective tax rate of 24.0% to 26.0%, and 25.5% to 26.5%, respectively.
  • Capital expenditures for the full year are expected to be approximately $340 million.
  • For the first quarter of 2024, the Company expects net sales to be down mid-single-digits
  • Reported and adjusted operating income to be down 25-35%, which includes the impact of the Argentina peso devaluation.

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 Q4 2023

Historical avgQ4 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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