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06.02.2024 12:05:07 - dpa-AFX: GNW-Adhoc: Ingredion Incorporated Reports Strong 2023 Fourth Quarter and Full-Year Results
* Fourth quarter 2023 reported and adjusted operating income(*) grew 29% and
* Full-year 2023 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
WESTCHESTER, Ill., Feb. 06, 2024 (GLOBE NEWSWIRE) -- Ingredion Incorporated
(http://www.ingredionincorporated.com/news-events.html) (NYSE: INGR), a leading
global provider of ingredient solutions to the food and beverage manufacturing
industry, today reported results for the fourth quarter of 2023 and full-year
2023. The results, reported in accordance with U.S. generally accepted
accounting principles ("GAAP") for the fourth quarter of 2023 and 2022 and full-
year 2023 and 2022, include items that are excluded from the non-GAAP financial
measures that the Company presents.
"Our business performed exceptionally well and remained resilient throughout
2023, delivering more than 20% operating income growth for both the fourth
quarter and full year. Our targeted pricing actions and proactive cost savings
initiatives helped overcome inflation and raw material volatility, leading to a
sixth consecutive, quarter-over-quarter expansion of gross margin. Additionally,
cash from operations exceeded $1 billion dollars, and we returned $295 million
dollars to shareholders in the year," said Jim Zallie, Ingredion's president and
CEO.
"We continue to make significant progress strengthening our diversified and
balanced portfolio of ingredients and solutions. Specialty ingredients grew mid-
single digits, despite volume headwinds as customers destocked and managed
inventories lower. In the second half of 2023, we saw a steady recovery of
volumes as customer demand strengthened. Throughout the year, our teams
demonstrated agility and operational excellence as they continued to balance
production schedules and optimize inventory levels at year end.
"As we look ahead to 2024, we are confident that the reorganization of our
business operations will better align our resources and capabilities with
customers' needs to better target growth opportunities. We are well positioned
to deliver profitable growth and margin expansion, as well as generate strong
cash flow. We believe our Driving Growth Roadmap continues to guide long-term
value creation for our shareholders as we deepen our customer relationships, and
drive innovation and operational excellence to win in the marketplace," Zallie
concluded.
*Adjusted diluted earnings per share ("adjusted EPS"), adjusted operating
income and adjusted effective income tax rate are non-GAAP financial measures.
See section II of the Supplemental Financial Information entitled "Non-GAAP
Information" following the Condensed Consolidated Financial Statements
included in this news release for a reconciliation of these non-GAAP financial
measures to the most directly comparable GAAP measures.
Diluted Earnings Per Share (EPS)
+--------------------------------+--------+--------+--------+--------+
| | 4Q22 | 4Q23 | FY22 | FY23 |
+--------------------------------+--------+--------+--------+--------+
| Reported EPS | $1.71 | $1.97 | $7.34 | $9.60 |
+--------------------------------+--------+--------+--------+--------+
| Restructuring/Impairment costs | - | 0.02 | 0.05 | 0.12 |
+--------------------------------+--------+--------+--------+--------+
| Acquisition/Integration costs | 0.06 | - | 0.08 | - |
+--------------------------------+--------+--------+--------+--------+
| Tax items and other matters | (0.12) | (0.02) | (0.02) | (0.30) |
+--------------------------------+--------+--------+--------+--------+
| Adjusted EPS(**) | $1.65 | $1.97 | $7.45 | $9.42 |
+--------------------------------+--------+--------+--------+--------+
Estimated factors affecting changes in Reported and Adjusted EPS
+-------------------------------+--------+--------+
| | 4Q23 | FY23 |
+-------------------------------+--------+--------+
| Total items affecting EPS(**) | 0.32 | 1.97 |
+-------------------------------+--------+--------+
| Total operating items | 0.41 | 1.99 |
+-------------------------------+--------+--------+
| Margin | 0.94 | 3.78 |
+-------------------------------+--------+--------+
| Volume | (0.76) | (1.65) |
+-------------------------------+--------+--------+
| Foreign exchange | 0.03 | (0.16) |
+-------------------------------+--------+--------+
| Other income | 0.20 | 0.02 |
+-------------------------------+--------+--------+
| Total non-operating items | (0.09) | (0.02) |
+-------------------------------+--------+--------+
| Other non-operating income | (0.03) | (0.10) |
+-------------------------------+--------+--------+
| Financing costs | 0.05 | (0.21) |
+-------------------------------+--------+--------+
| Tax rate | (0.10) | 0.28 |
+-------------------------------+--------+--------+
| Shares outstanding | 0.01 | - |
+-------------------------------+--------+--------+
| Non-controlling interests | (0.02) | 0.01 |
+-------------------------------+--------+--------+
**Totals may not foot due to rounding;
Financial Highlights
* At December 31, 2023, total debt and cash, including short-term investments,
from non-taxable incentives related to our South America operations recorded
Business Review
Total Ingredion
Net Sales
+--------------+-----+-------+-------+---------+-----+------+------+
+--------------+-----+-------+-------+---------+-----+------+------+
|Fourth Quarter|1,987| 19 |(148) | 63 |1,921|-3% |-4% |
+--------------+-----+-------+-------+---------+-----+------+------+
|Full Year |7,946|(81) |(648) | 943 |8,160|3% |4% |
+--------------+-----+-------+-------+---------+-----+------+------+
Reported Operating Income
+--------+----+------+--------+-----------+-------------+-----+----+------+------+
+--------+----+------+--------+-----------+-------------+-----+----+------+------+
+--------+----+------+--------+-----------+-------------+-----+----+------+------+
+--------+----+------+--------+-----------+-------------+-----+----+------+------+
Adjusted Operating Income
+----------------+------+-----------+----------+------+---------+----------+
+----------------+------+-----------+----------+------+---------+----------+
| Fourth Quarter | 168 | 3 | 32 | 203 | 21% | 19% |
+----------------+------+-----------+----------+------+---------+----------+
| Full Year | 787 | (15) | 197 | 969 | 23% | 25% |
+----------------+------+-----------+----------+------+---------+----------+
Net Sales
price mix, partially offset by volume declines and foreign exchange impacts.
Operating Income
* Fourth quarter reported and adjusted operating income were $202 million and
$203 million, respectively, an increase of 29% and 21%, respectively, versus the 2022 fourth quarter. The increases were driven by lower raw material and
attributable to favorable price mix, partially offset by higher raw material and input costs and lower volumes. Excluding foreign exchange impacts, full-
North America
Net Sales
+--------------+-----+-------+-------+---------+-----+------+------+
+--------------+-----+-------+-------+---------+-----+------+------+
|Fourth Quarter|1,214| 0 |(116) | 92 |1,190|-2% |-2% |
+--------------+-----+-------+-------+---------+-----+------+------+
|Full Year |4,934|(18) |(432) | 704 |5,188|5% |6% |
+--------------+-----+-------+-------+---------+-----+------+------+
Segment Operating Income
+----------------+------+-----------+----------+------+---------+----------+
+----------------+------+-----------+----------+------+---------+----------+
| Fourth Quarter | 122 | (1) | 22 | 143 | 17% | 18% |
+----------------+------+-----------+----------+------+---------+----------+
| Full Year | 565 | (4) | 157 | 718 | 27% | 28% |
+----------------+------+-----------+----------+------+---------+----------+
The increases for both periods were driven by favorable price mix, partially offset by lower volumes and higher fixed costs.)
South America
Net Sales
+--------------+-----+---------+------+---------+-----+------+------+
+--------------+-----+---------+------+---------+-----+------+------+
|Fourth Quarter| 289 | 27 | 2 |(51) | 267 |-8% |-17% |
+--------------+-----+---------+------+---------+-----+------+------+
|Full Year |1,124| 25 |(61) |(26) |1,062|-6% |-8% |
+--------------+-----+---------+------+---------+-----+------+------+
Segment Operating Income
+----------------+------+-----------+----------+------+----------+----------+
+----------------+------+-----------+----------+------+----------+----------+
| Fourth Quarter | 44 | 5 | (3) | 46 | 5% | -7% |
+----------------+------+-----------+----------+------+----------+----------+
| Full Year | 169 | 3 | (30) | 142 | -16% | -18% |
+----------------+------+-----------+----------+------+----------+----------+
in our joint venture results, which are reported on a one-month lag. For the
Asia-Pacific
Net Sales
+--------------+-----+-------+------+---------+-----+------+------+
+--------------+-----+-------+------+---------+-----+------+------+
|Fourth Quarter| 282 | 2 |(10) |(1) | 273 |-3% |-4% |
+--------------+-----+-------+------+---------+-----+------+------+
|Full Year |1,107|(19) |(75) |76 |1,089|-2% |0% |
+--------------+-----+-------+------+---------+-----+------+------+
Segment Operating Income
+----------------+------+-----------+----------+------+---------+----------+
+----------------+------+-----------+----------+------+---------+----------+
| Fourth Quarter | 23 | 0 | 15 | 38 | 65% | 65% |
+----------------+------+-----------+----------+------+---------+----------+
| Full Year | 93 | (2) | 35 | 126 | 35% | 38% |
+----------------+------+-----------+----------+------+---------+----------+
benefit in the quarter, partially offset by lower volumes. Excluding foreign exchange impacts, segment operating income was up 65% and 38% for the fourth quarter and full year, respectively.
Europe, Middle East, and Africa (EMEA)
Net Sales
+--------------+----+-------+------+---------+----+------+------+
+--------------+----+-------+------+---------+----+------+------+
|Fourth Quarter|202 |(10) |(24) | 23 |191 |-5% |0% |
+--------------+----+-------+------+---------+----+------+------+
|Full Year |781 |(69) |(80) | 189 |821 |5% |14% |
+--------------+----+-------+------+---------+----+------+------+
Segment Operating Income
+----------------+------+-----------+----------+------+---------+----------+
+----------------+------+-----------+----------+------+---------+----------+
| Fourth Quarter | 20 | (1) | 6 | 25 | 25% | 30% |
+----------------+------+-----------+----------+------+---------+----------+
| Full Year | 110 | (12) | 58 | 156 | 42% | 53% |
+----------------+------+-----------+----------+------+---------+----------+
* Fourth quarter operating income for EMEA was $25 million, up $5 million from
impacts. Excluding foreign exchange impacts, segment operating income was up 30% and 53%, for the fourth quarter and full year, respectively.
Dividends and Share Repurchases
For full-year 2023, the Company paid $194 million in dividends to shareholders,
and in the fourth quarter declared a quarterly dividend of $0.78 per share that
was paid in the first quarter of 2024. During 2023, the Company repurchased 1.0
million outstanding shares of common stock at a net cost of $101 million. To
support total shareholder return, the Company is dedicated to returning value to
shareholders through cash dividends and share repurchases.
2024 Full-Year Outlook
The Company expects its full-year 2024 outlook for reported EPS to be in the
range of $10.20 to $11.15, which includes the impact of the expected gain on the
divestiture of its S. Korea business completed on February 1, 2024, and adjusted
EPS to be in the range of $9.15 to $9.85, reflecting the impact of the S. Korea
business divestiture.
Excluding the effects of the divestiture of its S. Korea business, the Company
expects 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.
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.
Cash from operations for full-year 2024 is expected to be in the range of $750
million to $900 million, which reflects an anticipated increase in our working
capital balances. 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 and reported and adjusted operating income to be down 25-35%,
which includes the impact of the Argentina peso devaluation.
Conference Call and Webcast Details
Ingredion will host a conference call on Tuesday, February 6, 2024, at 8 a.m.
CT/9 a.m. ET, hosted by Jim Zallie (https://www.ingredion.com/na/en-
us/company/meet-ingredion/executive-leadership-team/zallie.html), president and
chief executive officer, and Jim Gray (https://www.ingredion.com/na/en-
us/company/meet-ingredion/executive-leadership-team/gray.html), executive vice
president and chief financial officer. The call will be webcast in real-time and
can be accessed at https://ir.ingredionincorporated.com/events-and-
presentations. A presentation (https://ir.ingredionincorporated.com/financial-
information/quarterly-results) containing additional financial and operating
information will be accessible through the Company's website and available to
download a few hours prior to the start of the call. A replay will be available
for a limited time at https://ir.ingredionincorporated.com/financial-
information/quarterly-results.
About the Company
Ingredion Incorporated (NYSE: INGR) headquartered in the suburbs of Chicago, is
a leading global ingredient solutions provider serving customers in nearly 120
countries. With 2023 annual net sales of approximately $8 billion, the Company
turns grains, fruits, vegetables, and other plant-based materials into value-
added ingredient solutions for the food, beverage, animal nutrition, brewing and
industrial markets. With Ingredion's Idea Labs(®) innovation centers around the
world and approximately 12,000 employees, the Company co-creates with customers
and fulfills its purpose of bringing the potential of people, nature and
technology together to make life better. Visit ingredion.com
(https://ir.ingredionincorporated.com/) for more information and the latest
Company news.
Forward-Looking Statements
This news release contains or may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The Company intends
these forward-looking statements to be covered by the safe harbor provisions for
such statements.
Forward-looking statements include, among others, any statements regarding the
Company's expectations for full-year 2024 reported and adjusted EPS, net sales,
reported and adjusted operating income, corporate costs, reported and adjusted
effective tax rate, cash from operations, working capital, capital expenditures,
the Company's expectations for 2024 first quarter net sales and reported and
adjusted operating income, and any other statements regarding the Company's
prospects and its future operations, financial condition, volumes, cash flows,
expenses or other financial items, including management's plans or strategies
and objectives for any of the foregoing and any assumptions, expectations or
beliefs underlying any of the foregoing.
These statements can sometimes be identified by the use of forward-looking words
such as "may," "will," "should," "anticipate," "assume," "believe," "plan,"
"project," "estimate," "expect," "intend," "continue," "pro forma," "forecast,"
"outlook," "propels," "opportunities," "potential," "provisional," or other
similar expressions or the negative thereof. All statements other than
statements of historical facts therein are "forward-looking statements."
These statements are based on current circumstances or expectations, but are
subject to certain inherent risks and uncertainties, many of which are difficult
to predict and beyond our control. Although we believe our expectations
reflected in these forward-looking statements are based on reasonableassumptions, investors are cautioned that no assurance can be given that our
expectations will prove correct.
Actual results and developments may differ materially from the expectations
expressed in or implied by these statements, based on various risks and
uncertainties, including effects of the conflict between Russia and Ukraine,
including the impacts on the availability and prices of raw materials and energy
supplies and volatility in foreign exchange and interest rates; changing
consumption preferences relating to high fructose corn syrup and other products
we make; the effects of global economic conditions and the general political,
economic, business, and market conditions that affect customers and consumers in
the various geographic regions and countries in which we buy our raw materials
or manufacture or sell our products, and the impact these factors may have on
our sales volumes, the pricing of our products and our ability to collect our
receivables from customers; future purchases of our products by major industries
which we serve and from which we derive a significant portion of our sales,
including, without limitation, the food, beverage, animal nutrition, and brewing
industries; the uncertainty of acceptance of products developed through genetic
modification and biotechnology; our ability to develop or acquire new products
and services at rates or of qualities sufficient to gain market acceptance;
increased competitive and/or customer pressure in the corn-refining industry and
related industries, including with respect to the markets and prices for our
primary products and our co-products, particularly corn oil; price fluctuations,
supply chain disruptions, and shortages affecting inputs to our production
processes and delivery channels, including raw materials, energy costs and
availability and freight and logistics; our ability to contain costs, achieve
budgets and realize expected synergies, including with respect to our ability to
complete planned maintenance and investment projects on time and on budget as
well as with respect to freight and shipping costs; operating difficulties at
our manufacturing facilities and liabilities relating to product safety and
quality; the effects of climate change and legal, regulatory, and market
measures to address climate change; our ability to successfully identify and
complete acquisitions or strategic alliances on favorable terms as well as our
ability to successfully integrate acquired businesses or implement and maintain
strategic alliances and achieve anticipated synergies with respect to all of the
foregoing; economic, political and other risks inherent in conducting operations
in foreign countries and in foreign currencies; the behavior of financial and
capital markets, including with respect to foreign currency fluctuations,
fluctuations in interest and exchange rates and market volatility and the
associated risks of hedging against such fluctuations; the failure to maintain
satisfactory labor relations; our ability to attract, develop, motivate, and
maintain good relationships with our workforce; the impact on our business of
natural disasters, war, threats or acts of terrorism, the outbreak or
continuation of pandemics, or the occurrence of other significant events beyond
our control; the impact of impairment charges on our goodwill or long-lived
assets; changes in government policy, law, or regulation and costs of legal
compliance, including compliance with environmental regulation; changes in our
tax rates or exposure to additional income tax liability; increases in our
borrowing costs that could result from increased interest rates; our ability to
raise funds at reasonable rates and other factors affecting our access to
sufficient funds for future growth and expansion; security breaches with respect
to information technology systems, processes, and sites; volatility in the stock
market and other factors that could adversely affect our stock price; risks
affecting the continuation of our dividend policy; and our ability to maintain
effective internal control over financial reporting.
Our forward-looking statements speak only as of the date on which they are made,
and we do not undertake any obligation to update any forward-looking statement
to reflect events or circumstances after the date of the statement as a result
of new information or future events or developments. If we do update or correct
one or more of these statements, investors and others should not conclude that
we will make additional updates or corrections. For a further description of
these and other risks, see "Risk Factors" and other information included in our
Annual Report on Form 10-K for the year ended December 31, 2022, and our
subsequent reports on Form 10-Q and Form 8-K filed with the Securities and
Exchange Commission.
CONTACT:
Other operating (income)
expense (14 ) 9 (8 ) 13
Restructuring/impairment
Other non-operating
Income before income
taxes 176 124 42 % 839 668 26 %
Provision for income
Less: Net income
attributable to non-
Net income attributable
Earnings per common
share attributable to
Ingredion common
shareholders:
Weighted average common
shares outstanding:
Earnings per common
share of Ingredion:
Current assets
Liabilities and stockholders' equity
Current liabilities
Ingredion stockholders' equity:
Preferred stock - authorized 25.0 shares - $0.01
par value, none issued - -
Common stock - authorized 200.0 shares - $0.01 par
Less: Treasury stock (common stock: 12.6 and 12.1
shares at December 31, 2023 and 2022, respectively)
Adjustments to reconcile net income to net cash
provided by operating activities:
Cash from investing activities:
Capital expenditures and mechanical stores purchases (316 ) (300 )
Proceeds from disposal of manufacturing facilities
Cash from financing activities:
Issuances of common stock for share-based
Dividends paid, including to non-controlling
I. Geographic Information of Net Sales and Operating Income
Net Sales
Operating Income
Acquisition/integration
costs - - - (1 )
Restructuring/impairment
II. Non-GAAP Information
To supplement the consolidated financial results prepared in accordance with
U.S. generally accepted accounting principles ("GAAP"), we use non-GAAP
historical financial measures, which exclude certain GAAP items such as
acquisition and integration costs, restructuring and impairment costs, Mexico
tax items, and other specified items. We generally use the term "adjusted" when
referring to these non-GAAP amounts.
Management uses non-GAAP financial measures internally for strategic decision
making, forecasting future results and evaluating current performance. By
disclosing non-GAAP financial measures, management intends to provide investors
with a more meaningful, consistent comparison of our operating results and
trends for the periods presented. These non-GAAP financial measures are used in
addition to and in conjunction with results presented in accordance with GAAP
and reflect an additional way of viewing aspects of our operations that, when
viewed with our GAAP results, provide a more complete understanding of factors
and trends affecting our business. These non-GAAP measures should be considered
as a supplement to, and not as a substitute for, or superior to, the
corresponding measures calculated in accordance with GAAP.
Non-GAAP financial measures are not prepared in accordance with GAAP; so our
non-GAAP information is not necessarily comparable to similarly titled measures
presented by other companies. A reconciliation of each non-GAAP financial
measure to the most comparable GAAP measure is provided in the tables below.
Ingredion Incorporated
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings
Per Share ("EPS") to
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS
Net income attributable
to Ingredion $ 131 $ 1.97 $ 114 $ 1.71 $ 643 $ 9.60 $ 492 $ 7.34
Add back:
Acquisition/integration
costs (i) - - 4 0.06 - - 5 0.08
Restructuring/impairment
Non-GAAP adjusted net
income attributable to
Net income, EPS and tax rates may not foot or recalculate due to rounding.
Notes
(i) During the three and twelve months ended December 31, 2022, we recorded
$4 million and $5 million, respectively, of pre-tax acquisition and integration
charges primarily related to our investment in the Argentina joint venture.
(ii) During the three and twelve months ended December 31, 2023, we recorded $1
million and $10 million, respectively, of pre-tax charges primarily related to
an other-than-temporary impairment on our equity method investments. During the
twelve months ended December 31, 2022, we recorded $4 million of remaining pre-
tax restructuring-related charges for our Cost Smart programs.
(iii) During the twelve months ended December 31, 2023, we recorded pre-tax
charges of $5 million primarily related to the impacts of a U.S.-based work
stoppage. This was partially offset by $4 million of insurance recoveries.
During the three and twelve months endedDecember 31, 2022, we recorded pre-tax
charges of $11 million and $20 million, respectively, primarily related to the
impacts of a U.S.-based work stoppage.
(iv) During the twelve months ended December 31, 2023, we recorded a tax benefit
of $15 million. We also recorded tax benefits of $2 million and $4 million for
the three and twelve months ended December 31, 2022, respectively. These
benefits were a result of the movement of the Mexican peso against the U.S.
dollar and its impact on the remeasurement of our Mexico financial statements
during the periods.
(v) This item relates to net prior year tax liabilities and contingencies,
impacts from the Pakistan Super Tax, IRS Notice 2023-55, and tax results of the
above non-GAAP addbacks. These were offset by interest on previously recognized
tax benefits for certain Brazilian local incentives which were previously
taxable.
Ingredion Incorporated
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income
---------------------------------------- --------------- -------- -------------
Operating income $ 202 $ 157 $ 957 $ 762
Add back:
Acquisition/integration costs
(i) - - - 1
Restructuring/impairment costs
Non-GAAP adjusted operating
For notes (i) through (iii), see notes (i) through (iii) included in the
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.
Ingredion Incorporated
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective
31, 2023 31, 2023
Add back:
Acquisition/integration
costs (i) - - - -
Restructuring/impairment
-------- ----------- -------- ----------- Adjusted Non-GAAP $ 177 $ 44 24.9 % $ 851 $ 212 24.9 %
-------- ----------- -------- ----------- Three Months Ended December Twelve months ended December
31, 2022 31, 2022
Add back:
Acquisition/integration
costs (i) 4 - 5 -
Restructuring/impairment
-------- ----------- -------- ----------- Adjusted Non-GAAP $ 139 $ 28 20.1 % $ 697 $ 188 27.0 %
-------- ----------- -------- ----------- For notes (i) through (v), see notes (i) through (v) included in the
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.
Above is a reconciliation of our expected full-year 2024 diluted EPS to our
expected full-year 2024 adjusted diluted EPS. The amounts above may not reflect
certain future charges, costs and/or gains that are inherently difficult to
predict and estimate due to their unknown timing, effect and significance, such
as acquisition and integration costs, impairment and restructuring costs, and
certain other items that we generally exclude from our adjusted EPS guidance.
For these reasons, we are more confident in our ability to forecast adjusted EPS
than we are in our ability to forecast GAAP EPS.
The adjustment to GAAP EPS for 2024 includes the after tax net (gain) on the
sale of our S. Korea business.
Above is a reconciliation of our expected full-year 2024 GAAP ETR to our
expected full-year 2024 adjusted ETR. The amounts above may not reflect certain
future charges, costs and/or gains that are inherently difficult to predict and
estimate due to their unknown timing, effect and/or significance. These amounts
may include, but are not limited to, adjustments to GAAP ETR for acquisition and
integration costs, impairment and restructuring costs, and certain other items.
We generally exclude these adjustments from our adjusted ETR guidance. For these
reasons, we are more confident in our ability to forecast adjusted ETR than we
are in our ability to forecast GAAP ETR.
The adjustment to GAAP ETR for 2024 includes the impact of the sale of our S.
Korea business.
Â
21%, respectively
* Full-year 2023 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 2023 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
WESTCHESTER, Ill., Feb. 06, 2024 (GLOBE NEWSWIRE) -- Ingredion Incorporated
(http://www.ingredionincorporated.com/news-events.html) (NYSE: INGR), a leading
global provider of ingredient solutions to the food and beverage manufacturing
industry, today reported results for the fourth quarter of 2023 and full-year
2023. The results, reported in accordance with U.S. generally accepted
accounting principles ("GAAP") for the fourth quarter of 2023 and 2022 and full-
year 2023 and 2022, include items that are excluded from the non-GAAP financial
measures that the Company presents.
"Our business performed exceptionally well and remained resilient throughout
2023, delivering more than 20% operating income growth for both the fourth
quarter and full year. Our targeted pricing actions and proactive cost savings
initiatives helped overcome inflation and raw material volatility, leading to a
sixth consecutive, quarter-over-quarter expansion of gross margin. Additionally,
cash from operations exceeded $1 billion dollars, and we returned $295 million
dollars to shareholders in the year," said Jim Zallie, Ingredion's president and
CEO.
"We continue to make significant progress strengthening our diversified and
balanced portfolio of ingredients and solutions. Specialty ingredients grew mid-
single digits, despite volume headwinds as customers destocked and managed
inventories lower. In the second half of 2023, we saw a steady recovery of
volumes as customer demand strengthened. Throughout the year, our teams
demonstrated agility and operational excellence as they continued to balance
production schedules and optimize inventory levels at year end.
"As we look ahead to 2024, we are confident that the reorganization of our
business operations will better align our resources and capabilities with
customers' needs to better target growth opportunities. We are well positioned
to deliver profitable growth and margin expansion, as well as generate strong
cash flow. We believe our Driving Growth Roadmap continues to guide long-term
value creation for our shareholders as we deepen our customer relationships, and
drive innovation and operational excellence to win in the marketplace," Zallie
concluded.
*Adjusted diluted earnings per share ("adjusted EPS"), adjusted operating
income and adjusted effective income tax rate are non-GAAP financial measures.
See section II of the Supplemental Financial Information entitled "Non-GAAP
Information" following the Condensed Consolidated Financial Statements
included in this news release for a reconciliation of these non-GAAP financial
measures to the most directly comparable GAAP measures.
Diluted Earnings Per Share (EPS)
+--------------------------------+--------+--------+--------+--------+
| | 4Q22 | 4Q23 | FY22 | FY23 |
+--------------------------------+--------+--------+--------+--------+
| Reported EPS | $1.71 | $1.97 | $7.34 | $9.60 |
+--------------------------------+--------+--------+--------+--------+
| Restructuring/Impairment costs | - | 0.02 | 0.05 | 0.12 |
+--------------------------------+--------+--------+--------+--------+
| Acquisition/Integration costs | 0.06 | - | 0.08 | - |
+--------------------------------+--------+--------+--------+--------+
| Tax items and other matters | (0.12) | (0.02) | (0.02) | (0.30) |
+--------------------------------+--------+--------+--------+--------+
| Adjusted EPS(**) | $1.65 | $1.97 | $7.45 | $9.42 |
+--------------------------------+--------+--------+--------+--------+
Estimated factors affecting changes in Reported and Adjusted EPS
+-------------------------------+--------+--------+
| | 4Q23 | FY23 |
+-------------------------------+--------+--------+
| Total items affecting EPS(**) | 0.32 | 1.97 |
+-------------------------------+--------+--------+
| Total operating items | 0.41 | 1.99 |
+-------------------------------+--------+--------+
| Margin | 0.94 | 3.78 |
+-------------------------------+--------+--------+
| Volume | (0.76) | (1.65) |
+-------------------------------+--------+--------+
| Foreign exchange | 0.03 | (0.16) |
+-------------------------------+--------+--------+
| Other income | 0.20 | 0.02 |
+-------------------------------+--------+--------+
| Total non-operating items | (0.09) | (0.02) |
+-------------------------------+--------+--------+
| Other non-operating income | (0.03) | (0.10) |
+-------------------------------+--------+--------+
| Financing costs | 0.05 | (0.21) |
+-------------------------------+--------+--------+
| Tax rate | (0.10) | 0.28 |
+-------------------------------+--------+--------+
| Shares outstanding | 0.01 | - |
+-------------------------------+--------+--------+
| Non-controlling interests | (0.02) | 0.01 |
+-------------------------------+--------+--------+
**Totals may not foot due to rounding;
Financial Highlights
* At December 31, 2023, total debt and cash, including short-term investments,
were $2.2 billion and $409 million, respectively, versus $2.5 billion and
$239 million, respectively, at December 31, 2022.
* Cash from operations was $1,057 million, up from $152 million in 2022,
reflecting changes in working capital and current period net income.
* Reported net financing costs for the fourth quarter were $26 million versus
$34 million for the year-ago period.
* Reported and adjusted effective tax rates for the fourth quarter were 24.4%
and 24.9%, respectively, compared to 7.3% and 20.1%, respectively, for the
year-ago period. The increase in the reported tax rate resulted primarily
from non-taxable incentives related to our South America operations recorded
in the fourth quarter of 2022.
* Capital expenditures were $314 million, net of disposals, up $21 million
from the year-ago period.
Business Review
Total Ingredion
Net Sales
+--------------+-----+-------+-------+---------+-----+------+------+
| | | | | | | |Change| | | | FX | | | | |excl. | |$ in millions |2022 |Impact |Volume |Price/Mix|2023 |Change| FX |
+--------------+-----+-------+-------+---------+-----+------+------+
|Fourth Quarter|1,987| 19 |(148) | 63 |1,921|-3% |-4% |
+--------------+-----+-------+-------+---------+-----+------+------+
|Full Year |7,946|(81) |(648) | 943 |8,160|3% |4% |
+--------------+-----+-------+-------+---------+-----+------+------+
Reported Operating Income
+--------+----+------+--------+-----------+-------------+-----+----+------+------+
| | | | |Acquisition| | | | |Change| |$ in | | FX |Business| / |Restructuring| | | |excl. | |millions|2022|Impact|Drivers |Integration|/ Impairment |Other|2023|Change| FX |
+--------+----+------+--------+-----------+-------------+-----+----+------+------+
|Fourth | | | | | | | | | | |Quarter |157 | 3 | 32 | - |(1) | 11 |202 |29% |27% |
+--------+----+------+--------+-----------+-------------+-----+----+------+------+
|Full | | | | | | | | | | |Year |762 |(15) | 197 | 1 |(7) | 19 |957 |26% |28% |
+--------+----+------+--------+-----------+-------------+-----+----+------+------+
Adjusted Operating Income
+----------------+------+-----------+----------+------+---------+----------+
| | | | Business | | | Change | | $ in millions | 2022 | FX Impact | Drivers | 2023 | Change | excl. FX |
+----------------+------+-----------+----------+------+---------+----------+
| Fourth Quarter | 168 | 3 | 32 | 203 | 21% | 19% |
+----------------+------+-----------+----------+------+---------+----------+
| Full Year | 787 | (15) | 197 | 969 | 23% | 25% |
+----------------+------+-----------+----------+------+---------+----------+
Net Sales
* Fourth quarter and full-year net sales were down -3% and up 3% from the
2022 fourth quarter and prior year, respectively. The decrease in the
quarter was led by volume declines, partially offset by price mix and
foreign exchange impacts. For the full year, the increase was driven by
price mix, partially offset by volume declines and foreign exchange impacts.
Excluding foreign exchange impacts, fourth quarter and full-year net sales
were down -4% and up 4%, respectively, from the 2022 fourth quarter and
prior year, respectively.
Operating Income
* Fourth quarter reported and adjusted operating income were $202 million and
$203 million, respectively, an increase of 29% and 21%, respectively, versus the 2022 fourth quarter. The increases were driven by lower raw material and
input costs and favorable price mix, partially offset by lower volumes.
Excluding foreign exchange impacts, reported and adjusted operating income
were up 27% and 19%, respectively, from the same period last year.
* Full-year reported and adjusted operating income were $957 million and $969
million, respectively, an increase of 26% and 23%, respectively, versus the
prior year. The increases in reported and adjusted operating income were
attributable to favorable price mix, partially offset by higher raw material and input costs and lower volumes. Excluding foreign exchange impacts, full-
year reported and adjusted operating income were up 28% and 25%,
respectively, from the prior year.
North America
Net Sales
+--------------+-----+-------+-------+---------+-----+------+------+
| | | | | | | |Change| | | | FX | | | | |excl. | |$ in millions |2022 |Impact |Volume |Price/Mix|2023 |Change| FX |
+--------------+-----+-------+-------+---------+-----+------+------+
|Fourth Quarter|1,214| 0 |(116) | 92 |1,190|-2% |-2% |
+--------------+-----+-------+-------+---------+-----+------+------+
|Full Year |4,934|(18) |(432) | 704 |5,188|5% |6% |
+--------------+-----+-------+-------+---------+-----+------+------+
Segment Operating Income
+----------------+------+-----------+----------+------+---------+----------+
| | | | Business | | | Change | | $ in millions | 2022 | FX Impact | Drivers | 2023 | Change | excl. FX |
+----------------+------+-----------+----------+------+---------+----------+
| Fourth Quarter | 122 | (1) | 22 | 143 | 17% | 18% |
+----------------+------+-----------+----------+------+---------+----------+
| Full Year | 565 | (4) | 157 | 718 | 27% | 28% |
+----------------+------+-----------+----------+------+---------+----------+
* Fourth quarter operating income for North America was $143 million, an
increase of $21 million from the year-ago period, and full-year operating
income was $718 million, an increase of $153 million from the prior year.
The increases for both periods were driven by favorable price mix, partially offset by lower volumes and higher fixed costs.)
South America
Net Sales
+--------------+-----+---------+------+---------+-----+------+------+
| | | | | | | |Change| | | | | | | | |excl. | |$ in millions |2022 |FX Impact|Volume|Price/Mix|2023 |Change| FX |
+--------------+-----+---------+------+---------+-----+------+------+
|Fourth Quarter| 289 | 27 | 2 |(51) | 267 |-8% |-17% |
+--------------+-----+---------+------+---------+-----+------+------+
|Full Year |1,124| 25 |(61) |(26) |1,062|-6% |-8% |
+--------------+-----+---------+------+---------+-----+------+------+
Segment Operating Income
+----------------+------+-----------+----------+------+----------+----------+
| | | | Business | | | Change | | $ in millions | 2022 | FX Impact | Drivers | 2023 | Change | excl. FX |
+----------------+------+-----------+----------+------+----------+----------+
| Fourth Quarter | 44 | 5 | (3) | 46 | 5% | -7% |
+----------------+------+-----------+----------+------+----------+----------+
| Full Year | 169 | 3 | (30) | 142 | -16% | -18% |
+----------------+------+-----------+----------+------+----------+----------+
* Fourth quarter operating income for South America was $46 million, an
increase of $2 million from the year-ago period, and full-year operating
income was $142 million, a decrease of $27 million from the prior year. The
increase in fourth quarter operating income was driven by favorable foreign
exchange impacts and strong performance by our Argentina joint venture,
largely offset by lower price mix in Brazil and Andean markets. The effects
of the devaluation of the Argentina peso in December 2023 are not reflected
in our joint venture results, which are reported on a one-month lag. For the
full year, the decrease in operating income was driven by lower volumes and
higher energy costs, primarily from our transition to biomass boilers in
Brazil. Excluding foreign exchange impacts, segment operating income was
down -7% and -18%, for the fourth quarter and full year, respectively.
Asia-Pacific
Net Sales
+--------------+-----+-------+------+---------+-----+------+------+
| | | | | | | |Change| | | | FX | | | | |excl. | |$ in millions |2022 |Impact |Volume|Price/Mix|2023 |Change| FX |
+--------------+-----+-------+------+---------+-----+------+------+
|Fourth Quarter| 282 | 2 |(10) |(1) | 273 |-3% |-4% |
+--------------+-----+-------+------+---------+-----+------+------+
|Full Year |1,107|(19) |(75) |76 |1,089|-2% |0% |
+--------------+-----+-------+------+---------+-----+------+------+
Segment Operating Income
+----------------+------+-----------+----------+------+---------+----------+
| | | | Business | | | Change | | $ in millions | 2022 | FX Impact | Drivers | 2023 | Change | excl. FX |
+----------------+------+-----------+----------+------+---------+----------+
| Fourth Quarter | 23 | 0 | 15 | 38 | 65% | 65% |
+----------------+------+-----------+----------+------+---------+----------+
| Full Year | 93 | (2) | 35 | 126 | 35% | 38% |
+----------------+------+-----------+----------+------+---------+----------+
* Fourth quarter operating income for Asia-Pacific was $38 million, up $15
million from the year-ago period, and full-year operating income was $126
million, an increase of $33 million from the prior year. The increases in
both periods were driven by lower input costs and a $7 million customer
benefit in the quarter, partially offset by lower volumes. Excluding foreign exchange impacts, segment operating income was up 65% and 38% for the fourth quarter and full year, respectively.
Europe, Middle East, and Africa (EMEA)
Net Sales
+--------------+----+-------+------+---------+----+------+------+
| | | | | | | |Change| | | | FX | | | | |excl. | |$ in millions |2022|Impact |Volume|Price/Mix|2023|Change| FX |
+--------------+----+-------+------+---------+----+------+------+
|Fourth Quarter|202 |(10) |(24) | 23 |191 |-5% |0% |
+--------------+----+-------+------+---------+----+------+------+
|Full Year |781 |(69) |(80) | 189 |821 |5% |14% |
+--------------+----+-------+------+---------+----+------+------+
Segment Operating Income
+----------------+------+-----------+----------+------+---------+----------+
| | | | Business | | | Change | | $ in millions | 2022 | FX Impact | Drivers | 2023 | Change | excl. FX |
+----------------+------+-----------+----------+------+---------+----------+
| Fourth Quarter | 20 | (1) | 6 | 25 | 25% | 30% |
+----------------+------+-----------+----------+------+---------+----------+
| Full Year | 110 | (12) | 58 | 156 | 42% | 53% |
+----------------+------+-----------+----------+------+---------+----------+
* Fourth quarter operating income for EMEA was $25 million, up $5 million from
the year-ago period, and full-year operating income was $156 million, an
increase of $46 million from the prior year. The increases were driven by
favorable price mix, partially offset by lower volumes and foreign exchange
impacts. Excluding foreign exchange impacts, segment operating income was up 30% and 53%, for the fourth quarter and full year, respectively.
Dividends and Share Repurchases
For full-year 2023, the Company paid $194 million in dividends to shareholders,
and in the fourth quarter declared a quarterly dividend of $0.78 per share that
was paid in the first quarter of 2024. During 2023, the Company repurchased 1.0
million outstanding shares of common stock at a net cost of $101 million. To
support total shareholder return, the Company is dedicated to returning value to
shareholders through cash dividends and share repurchases.
2024 Full-Year Outlook
The Company expects its full-year 2024 outlook for reported EPS to be in the
range of $10.20 to $11.15, which includes the impact of the expected gain on the
divestiture of its S. Korea business completed on February 1, 2024, and adjusted
EPS to be in the range of $9.15 to $9.85, reflecting the impact of the S. Korea
business divestiture.
Excluding the effects of the divestiture of its S. Korea business, the Company
expects 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.
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.
Cash from operations for full-year 2024 is expected to be in the range of $750
million to $900 million, which reflects an anticipated increase in our working
capital balances. 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 and reported and adjusted operating income to be down 25-35%,
which includes the impact of the Argentina peso devaluation.
Conference Call and Webcast Details
Ingredion will host a conference call on Tuesday, February 6, 2024, at 8 a.m.
CT/9 a.m. ET, hosted by Jim Zallie (https://www.ingredion.com/na/en-
us/company/meet-ingredion/executive-leadership-team/zallie.html), president and
chief executive officer, and Jim Gray (https://www.ingredion.com/na/en-
us/company/meet-ingredion/executive-leadership-team/gray.html), executive vice
president and chief financial officer. The call will be webcast in real-time and
can be accessed at https://ir.ingredionincorporated.com/events-and-
presentations. A presentation (https://ir.ingredionincorporated.com/financial-
information/quarterly-results) containing additional financial and operating
information will be accessible through the Company's website and available to
download a few hours prior to the start of the call. A replay will be available
for a limited time at https://ir.ingredionincorporated.com/financial-
information/quarterly-results.
About the Company
Ingredion Incorporated (NYSE: INGR) headquartered in the suburbs of Chicago, is
a leading global ingredient solutions provider serving customers in nearly 120
countries. With 2023 annual net sales of approximately $8 billion, the Company
turns grains, fruits, vegetables, and other plant-based materials into value-
added ingredient solutions for the food, beverage, animal nutrition, brewing and
industrial markets. With Ingredion's Idea Labs(®) innovation centers around the
world and approximately 12,000 employees, the Company co-creates with customers
and fulfills its purpose of bringing the potential of people, nature and
technology together to make life better. Visit ingredion.com
(https://ir.ingredionincorporated.com/) for more information and the latest
Company news.
Forward-Looking Statements
This news release contains or may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The Company intends
these forward-looking statements to be covered by the safe harbor provisions for
such statements.
Forward-looking statements include, among others, any statements regarding the
Company's expectations for full-year 2024 reported and adjusted EPS, net sales,
reported and adjusted operating income, corporate costs, reported and adjusted
effective tax rate, cash from operations, working capital, capital expenditures,
the Company's expectations for 2024 first quarter net sales and reported and
adjusted operating income, and any other statements regarding the Company's
prospects and its future operations, financial condition, volumes, cash flows,
expenses or other financial items, including management's plans or strategies
and objectives for any of the foregoing and any assumptions, expectations or
beliefs underlying any of the foregoing.
These statements can sometimes be identified by the use of forward-looking words
such as "may," "will," "should," "anticipate," "assume," "believe," "plan,"
"project," "estimate," "expect," "intend," "continue," "pro forma," "forecast,"
"outlook," "propels," "opportunities," "potential," "provisional," or other
similar expressions or the negative thereof. All statements other than
statements of historical facts therein are "forward-looking statements."
These statements are based on current circumstances or expectations, but are
subject to certain inherent risks and uncertainties, many of which are difficult
to predict and beyond our control. Although we believe our expectations
reflected in these forward-looking statements are based on reasonableassumptions, investors are cautioned that no assurance can be given that our
expectations will prove correct.
Actual results and developments may differ materially from the expectations
expressed in or implied by these statements, based on various risks and
uncertainties, including effects of the conflict between Russia and Ukraine,
including the impacts on the availability and prices of raw materials and energy
supplies and volatility in foreign exchange and interest rates; changing
consumption preferences relating to high fructose corn syrup and other products
we make; the effects of global economic conditions and the general political,
economic, business, and market conditions that affect customers and consumers in
the various geographic regions and countries in which we buy our raw materials
or manufacture or sell our products, and the impact these factors may have on
our sales volumes, the pricing of our products and our ability to collect our
receivables from customers; future purchases of our products by major industries
which we serve and from which we derive a significant portion of our sales,
including, without limitation, the food, beverage, animal nutrition, and brewing
industries; the uncertainty of acceptance of products developed through genetic
modification and biotechnology; our ability to develop or acquire new products
and services at rates or of qualities sufficient to gain market acceptance;
increased competitive and/or customer pressure in the corn-refining industry and
related industries, including with respect to the markets and prices for our
primary products and our co-products, particularly corn oil; price fluctuations,
supply chain disruptions, and shortages affecting inputs to our production
processes and delivery channels, including raw materials, energy costs and
availability and freight and logistics; our ability to contain costs, achieve
budgets and realize expected synergies, including with respect to our ability to
complete planned maintenance and investment projects on time and on budget as
well as with respect to freight and shipping costs; operating difficulties at
our manufacturing facilities and liabilities relating to product safety and
quality; the effects of climate change and legal, regulatory, and market
measures to address climate change; our ability to successfully identify and
complete acquisitions or strategic alliances on favorable terms as well as our
ability to successfully integrate acquired businesses or implement and maintain
strategic alliances and achieve anticipated synergies with respect to all of the
foregoing; economic, political and other risks inherent in conducting operations
in foreign countries and in foreign currencies; the behavior of financial and
capital markets, including with respect to foreign currency fluctuations,
fluctuations in interest and exchange rates and market volatility and the
associated risks of hedging against such fluctuations; the failure to maintain
satisfactory labor relations; our ability to attract, develop, motivate, and
maintain good relationships with our workforce; the impact on our business of
natural disasters, war, threats or acts of terrorism, the outbreak or
continuation of pandemics, or the occurrence of other significant events beyond
our control; the impact of impairment charges on our goodwill or long-lived
assets; changes in government policy, law, or regulation and costs of legal
compliance, including compliance with environmental regulation; changes in our
tax rates or exposure to additional income tax liability; increases in our
borrowing costs that could result from increased interest rates; our ability to
raise funds at reasonable rates and other factors affecting our access to
sufficient funds for future growth and expansion; security breaches with respect
to information technology systems, processes, and sites; volatility in the stock
market and other factors that could adversely affect our stock price; risks
affecting the continuation of our dividend policy; and our ability to maintain
effective internal control over financial reporting.
Our forward-looking statements speak only as of the date on which they are made,
and we do not undertake any obligation to update any forward-looking statement
to reflect events or circumstances after the date of the statement as a result
of new information or future events or developments. If we do update or correct
one or more of these statements, investors and others should not conclude that
we will make additional updates or corrections. For a further description of
these and other risks, see "Risk Factors" and other information included in our
Annual Report on Form 10-K for the year ended December 31, 2022, and our
subsequent reports on Form 10-Q and Form 8-K filed with the Securities and
Exchange Commission.
CONTACT:
Investors: Noah Weiss, 773-896-5242
Media: Becca Hary, 708-551-2602
Ingredion Incorporated
Condensed Consolidated Statements of Income
(in millions, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- Change ------------------------- Change
2023 2022 % 2023 2022 %
------------- ------------- -------- ------------- ----------- -------
(unaudited) (unaudited) (unaudited)
Net sales $ 1,921 $ 1,987 (3 %) $ 8,160 $ 7,946 3 %
Cost of sales 1,521 1,636 6,411 6,452
------------- ------------- ------------- -----------
Gross profit 400 351 14 % 1,749 1,494 17 %
Operating expenses 211 187 13 % 789 715 10 %
Other operating (income)
expense (14 ) 9 (8 ) 13
Restructuring/impairment
charges 1 (2 ) 11 4
------------- ------------- ------------- -----------
Operating income 202 157 29 % 957 762 26 %
Financing costs 26 34 114 99
Other non-operating
(income) expense - (1 ) 4 (5 )
------------- ------------- ------------- -----------
Income before income
taxes 176 124 42 % 839 668 26 %
Provision for income
taxes 43 9 188 166
------------- ------------- ------------- -----------
Net income 133 115 16 % 651 502 30 %
Less: Net income
attributable to non-
controlling interests 2 1 8 10
------------- ------------- ------------- -----------
Net income attributable
to Ingredion $ 131 $ 114 15 % $ 643 $ 492 31 %
------------- ------------- ------------- -----------
Earnings per common
share attributable to
Ingredion common
shareholders:
Weighted average common
shares outstanding:
Basic 65.4 65.8 66.0 66.2 Diluted 66.4 66.7 67.0 67.0
Earnings per common
share of Ingredion:
Basic $ 2.00 $ 1.73 16 % $ 9.74 $ 7.43 31 %
Diluted $ 1.97 $ 1.71 15 % $ 9.60 $ 7.34 31 %
Ingredion Incorporated
Condensed Consolidated Balance Sheets
(dollars and shares in millions, except per share amounts)
December December
31, 31,
2023 2022
------------- -----------
Assets (unaudited)
Current assets
Cash and cash equivalents $ 401 $ 236
Short-term investments 8 3
Accounts receivable, net 1,279 1,411
Inventories 1,450 1,597
Prepaid expenses and assets held for sale 261 62
------------- -----------
Total current assets 3,399 3,309
------------- -----------
Property, plant and equipment, net 2,370 2,407
Intangible assets, net 1,303 1,301
Other assets 570 544
------------- -----------
Total assets $ 7,642 $ 7,561
------------- -----------
Liabilities and stockholders' equity
Current liabilities
Short-term borrowings $ 448 $ 543
Accounts payable 778 873
Accrued liabilities and liabilities held for sale 546 466
------------- -----------
Total current liabilities 1,772 1,882
------------- -----------
Long-term debt 1,740 1,940
Other non-current liabilities 480 477
------------- -----------
Total liabilities 3,992 4,299
------------- -----------
Share-based payments subject to redemption 55 48
Redeemable non-controlling interests 43 51
Ingredion stockholders' equity:
Preferred stock - authorized 25.0 shares - $0.01
par value, none issued - -
Common stock - authorized 200.0 shares - $0.01 par
value, 77.8 issued at December 31, 2023 and 2022 1 1 Additional paid-in capital 1,146 1,132
Less: Treasury stock (common stock: 12.6 and 12.1
shares at December 31, 2023 and 2022, respectively)
at cost (1,207 ) (1,148 )
Accumulated other comprehensive loss (1,056 ) (1,048 )
Retained earnings 4,654 4,210
------------- -----------
Total Ingredion stockholders' equity 3,538 3,147
Non-redeemable non-controlling interests 14 16
------------- -----------
Total stockholders' equity 3,552 3,163
------------- -----------
Total liabilities and stockholders' equity $ 7,642 $ 7,561
------------- -----------
Ingredion Incorporated
Condensed Consolidated Statements of Cash Flows
(in millions)
Twelve Months Ended
December 31,
-----------------------
2023 2022
------------- ---------
Cash from operating activities: (unaudited)
Net income $ 651 $ 502
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 219 215
Mechanical stores expense 62 55
Deferred income taxes (6 ) (3 )
Margin accounts 10 (44 )
Changes in other trade working capital 67 (620 )
Other 54 47
------------- ---------
Cash provided by operating activities 1,057 152
------------- ---------
Cash from investing activities:
Capital expenditures and mechanical stores purchases (316 ) (300 )
Proceeds from disposal of manufacturing facilities
and properties 2 7
Payments for acquisitions, net of cash acquired - (29 )
Other (15 ) 2
------------- ---------
Cash used for investing activities (329 ) (320 )
------------- ---------
Cash from financing activities:
Payments on (proceeds from) borrowings, net (229 ) 293 Commercial paper (repayments) borrowings, net (63 ) 140 Repurchases of common stock, net (101 ) (112 )
Issuances of common stock for share-based
compensation, net 20 9 Purchases of non-controlling interests (2 ) (46 )
Dividends paid, including to non-controlling
interests (194 ) (181 )
------------- ---------
Cash (used for) provided by financing activities (569 ) 103
------------- ---------
Effect of foreign exchange rate changes on cash 6 (27 )
------------- ---------
Increase (decrease) in cash and cash equivalents 165 (92 )
Cash and cash equivalents, beginning of period 236 328
------------- ---------
Cash and cash equivalents, end of period $ 401 $ 236
------------- ---------
Ingredion Incorporated
Supplemental Financial Information
(unaudited)
(in millions, except for percentages)
I. Geographic Information of Net Sales and Operating Income
Three Months Ended Twelve Months Ended
December 31, Change December 31, Change
----------------------- Excl. ----------------------- Excl.
2023 2022 Change FX 2023 2022 Change FX
----------- ----------- -------- -------- ----------- ----------- -------- -------
Net Sales
North America $ 1,190 $ 1,214 (2 %) (2 %) $ 5,188 $ 4,934 5 % 6 %
South America 267 289 (8 %) (17 %) 1,062 1,124 (6 %) (8 %)
Asia-Pacific 273 282 (3 %) (4 %) 1,089 1,107 (2 %) - %
EMEA 191 202 (5 %) - % 821 781 5 % 14 %
----------- ----------- -------- -------- ----------- ----------- -------- -------
Total Net Sales $ 1,921 $ 1,987 (3 %) (4 %) $ 8,160 $ 7,946 3 % 4 %
----------- ----------- -------- -------- ----------- ----------- -------- -------
Operating Income
North America $ 143 $ 122 17 % 18 % $ 718 $ 565 27 % 28 %
South America 46 44 5 % (7 %) 142 169 (16 %) (18 %)
Asia-Pacific 38 23 65 % 65 % 126 93 35 % 38 %
EMEA 25 20 25 % 30 % 156 110 42 % 53 %
Corporate (49 ) (41 ) (20 %) (20 %) (173 ) (150 ) (15 %) (15 %)
----------- ----------- -------- -------- ----------- ----------- -------- -------
Sub-total 203 168 21 % 19 % 969 787 23 % 25 %
Acquisition/integration
costs - - - (1 )
Restructuring/impairment
costs (1 ) - (11 ) (4 )
Other matters - (11 ) (1 ) (20 )
----------- ----------- -------- -------- ----------- ----------- -------- -------
Total Operating Income $ 202 $ 157 29 % 27 % $ 957 $ 762 26 % 28 %
----------- ----------- -------- -------- ----------- ----------- -------- -------
II. Non-GAAP Information
To supplement the consolidated financial results prepared in accordance with
U.S. generally accepted accounting principles ("GAAP"), we use non-GAAP
historical financial measures, which exclude certain GAAP items such as
acquisition and integration costs, restructuring and impairment costs, Mexico
tax items, and other specified items. We generally use the term "adjusted" when
referring to these non-GAAP amounts.
Management uses non-GAAP financial measures internally for strategic decision
making, forecasting future results and evaluating current performance. By
disclosing non-GAAP financial measures, management intends to provide investors
with a more meaningful, consistent comparison of our operating results and
trends for the periods presented. These non-GAAP financial measures are used in
addition to and in conjunction with results presented in accordance with GAAP
and reflect an additional way of viewing aspects of our operations that, when
viewed with our GAAP results, provide a more complete understanding of factors
and trends affecting our business. These non-GAAP measures should be considered
as a supplement to, and not as a substitute for, or superior to, the
corresponding measures calculated in accordance with GAAP.
Non-GAAP financial measures are not prepared in accordance with GAAP; so our
non-GAAP information is not necessarily comparable to similarly titled measures
presented by other companies. A reconciliation of each non-GAAP financial
measure to the most comparable GAAP measure is provided in the tables below.
Ingredion Incorporated
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted Earnings
Per Share ("EPS") to
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS
(unaudited)
Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended
December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
----------------------- ----------------------- ----------------------- ----------------------
(in Diluted (in Diluted (in Diluted (in Diluted
millions) EPS millions) EPS millions) EPS millions) EPS
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Net income attributable
to Ingredion $ 131 $ 1.97 $ 114 $ 1.71 $ 643 $ 9.60 $ 492 $ 7.34
Add back:
Acquisition/integration
costs (i) - - 4 0.06 - - 5 0.08
Restructuring/impairment
costs (ii) 1 0.02 - - 8 0.12 3 0.05
Other matters (iii) - - 8 0.12 1 0.01 15 0.22
Tax item - Mexico (iv) - - (2 ) (0.03 ) (15 ) (0.22 ) (4 ) (0.06 )
Other tax matters (v) (1 ) (0.02 ) (14 ) (0.21 ) (6 ) (0.09 ) (12 ) (0.18 )
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Non-GAAP adjusted net
income attributable to
Ingredion $ 131 $ 1.97 $ 110 $ 1.65 $ 631 $ 9.42 $ 499 $ 7.45
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Net income, EPS and tax rates may not foot or recalculate due to rounding.
Notes
(i) During the three and twelve months ended December 31, 2022, we recorded
$4 million and $5 million, respectively, of pre-tax acquisition and integration
charges primarily related to our investment in the Argentina joint venture.
(ii) During the three and twelve months ended December 31, 2023, we recorded $1
million and $10 million, respectively, of pre-tax charges primarily related to
an other-than-temporary impairment on our equity method investments. During the
twelve months ended December 31, 2022, we recorded $4 million of remaining pre-
tax restructuring-related charges for our Cost Smart programs.
(iii) During the twelve months ended December 31, 2023, we recorded pre-tax
charges of $5 million primarily related to the impacts of a U.S.-based work
stoppage. This was partially offset by $4 million of insurance recoveries.
During the three and twelve months endedDecember 31, 2022, we recorded pre-tax
charges of $11 million and $20 million, respectively, primarily related to the
impacts of a U.S.-based work stoppage.
(iv) During the twelve months ended December 31, 2023, we recorded a tax benefit
of $15 million. We also recorded tax benefits of $2 million and $4 million for
the three and twelve months ended December 31, 2022, respectively. These
benefits were a result of the movement of the Mexican peso against the U.S.
dollar and its impact on the remeasurement of our Mexico financial statements
during the periods.
(v) This item relates to net prior year tax liabilities and contingencies,
impacts from the Pakistan Super Tax, IRS Notice 2023-55, and tax results of the
above non-GAAP addbacks. These were offset by interest on previously recognized
tax benefits for certain Brazilian local incentives which were previously
taxable.
Ingredion Incorporated
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income
(unaudited)
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ ----------------------
(pre-tax) 2023 2022 2023 2022
---------------------------------------- --------------- -------- -------------
Operating income $ 202 $ 157 $ 957 $ 762
Add back:
Acquisition/integration costs
(i) - - - 1
Restructuring/impairment costs
(ii) 1 - 11 4
Other matters (iii) - 11 1 20
-------- --------------- -------- -------------
Non-GAAP adjusted operating
income $ 203 $ 168 $ 969 $ 787
-------- --------------- -------- -------------
For notes (i) through (iii), see notes (i) through (iii) included in the
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.
Ingredion Incorporated
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective
Income Tax Rate
(unaudited)
(in millions, except for percentages)
Three Months Ended December Twelve Months Ended December
31, 2023 31, 2023
-------------------------------- -------------------------------
Income Income
before Provision Effective before Provision Effective
Income for Income Income for Income
Taxes Income Tax Rate Taxes Income Tax Rate
(a) Taxes (b) (b/a) (a) Taxes (b) (b/a)
-------- ----------- ----------- -------- ----------- ----------
As Reported $ 176 $ 43 24.4 % $ 839 $ 188 22.4 %
Add back:
Acquisition/integration
costs (i) - - - -
Restructuring/impairment
costs (ii) 1 - 11 3 Other matters (iii) - - 1 - Tax item - Mexico (iv) - - - 15 Other tax matters (v) - 1 - 6
-------- ----------- -------- ----------- Adjusted Non-GAAP $ 177 $ 44 24.9 % $ 851 $ 212 24.9 %
-------- ----------- -------- ----------- Three Months Ended December Twelve months ended December
31, 2022 31, 2022
-------------------------------- -------------------------------
Income Income
before Provision Effective before Provision Effective
Income for Income Income for Income
Taxes Income Tax Rate Taxes Income Tax Rate
(a) Taxes (b) (b/a) (a) Taxes (b) (b/a)
-------- ----------- ----------- -------- ----------- ----------
As Reported $ 124 $ 9 7.3 % $ 668 $ 166 24.9 %
Add back:
Acquisition/integration
costs (i) 4 - 5 -
Restructuring/impairment
costs (ii) - - 4 1 Other matters (iii) 11 3 20 5 Tax item - Mexico (iv) - 2 - 4 Other tax matters (v) - 14 - 12
-------- ----------- -------- ----------- Adjusted Non-GAAP $ 139 $ 28 20.1 % $ 697 $ 188 27.0 %
-------- ----------- -------- ----------- For notes (i) through (v), see notes (i) through (v) included in the
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to
Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS.
Ingredion Incorporated
Reconciliation of Expected GAAP Diluted Earnings per Share ("GAAP EPS")
to Expected Adjusted Diluted Earnings per Share ("Adjusted EPS")
(unaudited)
Expected EPS Range
for Full-Year 2024
------------------------------------
Low End of High End of
Guidance Guidance
----------------- ----------------
GAAP EPS $ 10.20 $ 11.15
Add:
Gain on divestiture, net of tax (1.05 ) (1.30 )
----------------- ----------------
Adjusted EPS $ 9.15 $ 9.85
----------------- ----------------
Above is a reconciliation of our expected full-year 2024 diluted EPS to our
expected full-year 2024 adjusted diluted EPS. The amounts above may not reflect
certain future charges, costs and/or gains that are inherently difficult to
predict and estimate due to their unknown timing, effect and significance, such
as acquisition and integration costs, impairment and restructuring costs, and
certain other items that we generally exclude from our adjusted EPS guidance.
For these reasons, we are more confident in our ability to forecast adjusted EPS
than we are in our ability to forecast GAAP EPS.
The adjustment to GAAP EPS for 2024 includes the after tax net (gain) on the
sale of our S. Korea business.
Ingredion Incorporated
Reconciliation of Expected U.S. GAAP Effective Tax Rate ("GAAP ETR")
to Expected Adjusted Effective Tax Rate ("Adjusted ETR")
(unaudited)
Expected Effective Tax Rate Range
for Full-Year 2024
------------------------------------
Low End of High End of
Guidance Guidance
-------------- -------------------
GAAP ETR 24.0 % 26.0 %
Add:
Gain on divestiture 1.5 % 0.5 %
-------------- -------------------
Adjusted ETR 25.5 % 26.5 %
-------------- -------------------
Above is a reconciliation of our expected full-year 2024 GAAP ETR to our
expected full-year 2024 adjusted ETR. The amounts above may not reflect certain
future charges, costs and/or gains that are inherently difficult to predict and
estimate due to their unknown timing, effect and/or significance. These amounts
may include, but are not limited to, adjustments to GAAP ETR for acquisition and
integration costs, impairment and restructuring costs, and certain other items.
We generally exclude these adjustments from our adjusted ETR guidance. For these
reasons, we are more confident in our ability to forecast adjusted ETR than we
are in our ability to forecast GAAP ETR.
The adjustment to GAAP ETR for 2024 includes the impact of the sale of our S.
Korea business.
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| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
INGREDION INC. DL-,01 | A1JYNM | Frankfurt | 107,150 | 29.05.24 08:44:41 | -1,000 | -0,92% | 0,000 | 0,000 | 107,150 | 107,150 |
