INGREDION INCORPORATED REGISTERS STRONG GROWTH IN Q2 2022

KUALA LUMPUR, Aug 11 (Bernama) --  Ingredion Incorporated (Ingredion) -- a leading global provider of ingredient solutions to the food and beverage manufacturing industry -- has delivered its strongest financial performance in five years during the second quarter of 2022 (Q2 2022).

In a statement today, its president and chief executive officer, Jim Zallie said the company’s teams had delivered its strongest quarter since 2017.

“Overall, I am extremely proud of how our global teams continue to perform in this inflationary environment.

“While the business landscape remains challenging, our positive results in the first half of this year position us well to deliver a strong second half as we continue to execute against each of our four strategic growth pillars,” he said.

He noted that the company’s net sales growth of 16 per cent reflected robust customer demand, which drove comparable volume growth.

“This, along with active price mix management, enabled us to fully offset higher input costs,” said Zallie.

The results, reported in accordance with the United States (US) generally accepted accounting principles (GAAP) for 2022 and 2021, included items that were excluded from the non-GAAP financial measures that the company presents.

As of June 30, 2022, Ingredion’s total debt and cash, including short-term investments, stood at US$2.4 billion and US$322 million, respectively.

Net financing costs in Q2 2022 were US$17 million, compared to US$19 million a year ago.

Additionally, Q2 2022’s net sales were up year-on-year, driven by a strong price mix, including the pass-through of higher corn and input costs.

“Excluding foreign exchange impacts, net sales were up 18 per cent, respectively, for the quarter and year-to-date,” the company said.

Meanwhile, Q2 2022 reported and adjusted operating income stood at US$213 million and US$215 million, respectively -- a decrease of four per cent and an increase of three per cent, respectively, from Q2 2021.

For the first half of 2022, Ingredion has paid total dividends of US$90 million and has declared a quarterly dividend of US$0.65 per share for Q2 2022, payable in Q3 2022. 

Moving forward, the company expects net sales growth to be in the high teens and operating income growth to be in the high single-digits in Q3 2022, compared to Q3 2021.

-- BERNAMA