17% net sales growth offset inflationary pressures contributing to strong year-over-year performance
WESTCHESTER, Ill., May 05, 2022 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, today reported results for the first quarter of 2022. The results, reported in accordance with U.S. generally accepted accounting principles (“GAAP”) for 2022 and 2021, include items that are excluded from the non-GAAP financial measures that the Company presents.
“Ingredion overcame inflationary headwinds and is off to a strong start in 2022,” said Jim Zallie, Ingredion’s president and chief executive officer. “We delivered 17% net sales growth driven by higher-than-expected demand and strong price mix. In a highly inflationary environment, we achieved significant, favorable price mix that more than offset increased input costs and contributed to 6% operating income growth. We also made progress in the quarter improving the resilience of our supply chain despite continued global logistics constraints, which enabled us to better meet customers’ changing needs.”
“We continued to advance our Driving Growth Roadmap, growing our specialties ingredients net sales by 20% in the quarter, led by strong demand for texturizing ingredients. Additionally, plant-based proteins net sales grew more than 250% in the quarter, as our quality and yield improved and our production ramp-up accelerated at our two manufacturing facilities. PureCircle also achieved another high double-digit net sales growth quarter, reflecting strong demand for high intensity, nature-based sweeteners,” stated Zallie.
“As we started 2022, new challenges arose, and our team continued to show exceptional agility in responding to events such as the dislocations brought on by the Ukraine conflict, its impact on global corn supply, and, most recently, the resurgence of the pandemic in China. I am incredibly proud of our people as they operate with an owner’s mindset to adapt and engage each day to create value for our stakeholders. We look forward to a year of meaningful growth, as we leverage technology and the best of nature, to deliver an expanding set of innovative ingredient solutions for our customers and consumers alike.”
*Adjusted diluted earnings per share (“adjusted EPS”), adjusted operating income, adjusted effective income tax rate and adjusted diluted weighted average common shares outstanding 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 press release for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures.
Diluted Earnings Per Share (EPS)
1Q21 | 1Q22 | ||
Reported EPS | $(3.66) | $1.92 | |
Restructuring/Impairment Costs | $0.12 | $0.03 | |
Acquisition/Integration Costs | $0.01 | $0.01 | |
Impairment*** | $5.35 | - | |
Tax Items | $0.05 | $(0.01) | |
Diluted share impact | $(0.02) | - | |
Adjusted EPS** | $1.85 | $1.95 |
Estimated factors affecting change
1Q22 vs 1Q21 | |
Total items affecting EPS** | $0.10 |
Total operating items | $0.12 |
Margin | 0.19 |
Volume | (0.03) |
Foreign exchange | (0.04) |
Other income | - |
Total non-operating items | $(0.02) |
Other non-operating income | - |
Financing costs | (0.04) |
Non-controlling interests | - |
Shares outstanding | 0.01 |
Tax rate | 0.01 |
**Totals may not foot due to rounding*** Q1 2021 impairment reflects the initial $360 million net asset impairment charge recorded for 2021 related to the contribution of the Company’s Argentina operations to the Arcor joint venture. The final impairment charge recorded for 2021 was $340 million.
Financial Highlights
Business Review
Total Ingredion
$ in millions | 2021 Net Sales | FX Impact | Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 1,614 | (24) | 19 | 283 | 1,892 | 17% | 19% |
Reported Operating Income
$ in millions | 2021 | FX Impact | Business Drivers | Acquisition / Integration | Restructuring / Impairment | Other | 2022 | % change | % change excl. FX |
First Quarter | (170) | (4) | 16 | 0 | 8 | 360 | 210 | 224% | 226% |
Adjusted Operating Income
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 201 | (4) | 16 | 213 | 6% | 8% |
Operating income
North AmericaNet Sales
$ in millions | 2021 Net Sales | FX Impact | Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 945 | 0 | 41 | 188 | 1,174 | 24% | 24% |
Segment Operating Income
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 134 | 0 | 22 | 156 | 16% | 16% |
South America Net Sales
$ in millions | 2021 Net Sales | FX Impact | Volume | Excluding Arcor JV Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 273 | 0 | (7) | (66) | 52 | 252 | -8% | -8% |
Segment Operating Income
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 40 | 1 | (3) | 38 | -5% | -8% |
Asia-Pacific Net Sales
$ in millions | 2021 Net Sales | FX Impact | Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 235 | (12) | 33 | 16 | 272 | 16% | 21% |
Segment Operating Income
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 25 | (2) | (1) | 22 | -12% | -4% |
Europe, Middle East, and Africa (EMEA)Net Sales
$ in millions | 2021 Net Sales | FX Impact | Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 161 | (12) | 18 | 27 | 194 | 20% | 28% |
Segment Operating Income
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 31 | (3) | 3 | 31 | 0% | 10% |
Dividend and Share RepurchasesIn March 2022, the Company announced a quarterly dividend of $0.65 per share, totaling $43 million. During the quarter, the Company repurchased $39 million of outstanding shares of common stock. Ingredion considers return of value to shareholders through cash dividends and share repurchases as part of its capital allocation strategy to support total shareholder return.
2022 Second Quarter Outlook and Full-Year PerspectiveFor the second quarter 2022, the Company expects net sales to increase by low double-digits and operating income growth to be relatively flat, when both are compared to second quarter 2021.
The Company expects full-year 2022 reported EPS to be in the range of $6.80 to $7.40, and maintains its expectation of adjusted EPS to be in the range of $6.85 to $7.45, compared to adjusted EPS of $6.67 in 2021. This expectation excludes acquisition-related integration and restructuring costs, as well as any potential impairment costs.
Compared with last year, the 2022 full-year outlook assumes the following: North America operating income is expected to be up low to mid-double-digits, driven by favorable price mix more than offsetting higher corn and input costs; South America operating income is expected to be up low single-digits, driven by favorable pricing; Asia-Pacific operating income is expected to be flat compared to the prior year period, driven by higher corn costs in Korea related to the Ukraine conflict, offsetting PureCircle growth; EMEA operating income is expected to be up low single-digits, driven by favorable price mix. Corporate costs are expected to be flat.
The Company expects full-year adjusted operating income to be up low double-digits.
For full year 2022, the Company expects a reported effective tax rate of 27.0 percent to 30.5 percent and an adjusted effective tax rate of 28.0 percent to 29.5 percent. The increase in the reported and adjusted full year effective tax rate is driven by favorable foreign exchange impacts, which were partially offset by new U.S. tax regulations that reduced the Company’s ability to claim certain foreign tax credits against U.S. taxes.
Cash from operations for full-year 2022 is expected to be in the range of $580 million to $660 million. Capital expenditures for the full year are expected to be between $300 million and $335 million.
Conference Call and Webcast DetailsIngredion will conduct a conference call on Thursday, May 5, 2022, at 10 a.m. Central Time hosted by Jim Zallie, president and chief executive officer, and James Gray, 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. The accompanying presentation 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 CompanyIngredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2021 annual net sales of nearly $7 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 for more information and the latest Company news.
Forward-Looking Statements
This news release contains 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, statements regarding the Company’s expectations for second quarter 2022 net sales and operating income, its expectations for full-year 2022 reported and adjusted operating income, segment operating income, reported and adjusted EPS, reported and adjusted effective tax rates, cash flow from operations, and capital expenditures, and any other statements regarding the Company’s prospects, future operations, or future financial condition, net sales, operating income, volumes, corporate costs, tax rates, capital expenditures, 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 in this news release 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 reasonable assumptions, 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 the impact of COVID-19 on the demand for our products and our financial results; 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, including, particularly, economic, currency and political conditions in South America and economic and political conditions in Europe, 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; the availability of raw materials, including potato starch, tapioca, gum Arabic, and the specific varieties of corn upon which some of our products are based, and our ability to pass along potential increases in the cost of corn or other raw materials to customers; energy costs and availability, including energy issues in Pakistan; 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; 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; operating difficulties at our manufacturing facilities; 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; 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 such as COVID-19, 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, 2021 and in our subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.
CONTACTS:Investors: Jason Payant, 708-551-2584Media: Becca Hary, 708-551-2602
Ingredion Incorporated ("Ingredion") | |||||||||||||
Condensed Consolidated Statements of Income (Loss) | |||||||||||||
(Unaudited) | |||||||||||||
(in millions, except per share amounts) | Three Months Ended March 31, | Change % | |||||||||||
2022 | 2021 | ||||||||||||
Net sales | $ | 1,892 | $ | 1,614 | 17 | % | |||||||
Cost of sales | 1,513 | 1,263 | |||||||||||
Gross profit | 379 | 351 | 8 | % | |||||||||
Operating expenses | 169 | 153 | 10 | % | |||||||||
Other operating (income) | (2 | ) | (2 | ) | |||||||||
Restructuring/impairment charges | 2 | 370 | |||||||||||
Operating income (loss) | 210 | (170 | ) | 224 | % | ||||||||
Financing costs | 24 | 19 | |||||||||||
Other non-operating income | (1 | ) | (1 | ) | |||||||||
Income (loss) before income taxes | 187 | (188 | ) | 199 | % | ||||||||
Provision for income taxes | 54 | 55 | |||||||||||
Net income (loss) | 133 | (243 | ) | 155 | % | ||||||||
Less: Net income attributable to non-controlling interests | 3 | 3 | |||||||||||
Net income (loss) attributable to Ingredion | $ | 130 | $ | (246 | ) | 153 | % | ||||||
Earnings per common share attributable to Ingredion | |||||||||||||
common shareholders: | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 66.9 | 67.3 | |||||||||||
Diluted | 67.6 | 67.3 | |||||||||||
Earnings (loss) per common share of Ingredion: | |||||||||||||
Basic | $1.94 | ($3.66 | ) | 153 | % | ||||||||
Diluted | $1.92 | ($3.66 | ) | 152 | % | ||||||||
Ingredion Incorporated ("Ingredion") | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(in millions, except share and per share amounts) | March 31, 2022 | December 31, 2021 | |||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 324 | $ | 328 | |||||||
Short-term investments | 5 | 4 | |||||||||
Accounts receivable – net | 1,431 | 1,130 | |||||||||
Inventories | 1,306 | 1,172 | |||||||||
Prepaid expenses | 63 | 63 | |||||||||
Total current assets | 3,129 | 2,697 | |||||||||
Property, plant and equipment – net | 2,446 | 2,423 | |||||||||
Intangible assets – net | 1,339 | 1,348 | |||||||||
Other assets | 521 | 531 | |||||||||
Total assets | $ | 7,435 | $ | 6,999 | |||||||
Liabilities and equity | |||||||||||
Current liabilities | |||||||||||
Short-term borrowings | $ | 514 | $ | 308 | |||||||
Accounts payable and accrued liabilities | 1,207 | 1,204 | |||||||||
Total current liabilities | 1,721 | 1,512 | |||||||||
Long-term debt | 1,739 | 1,738 | |||||||||
Other non-current liabilities | 561 | 524 | |||||||||
Total liabilities | 4,021 | 3,774 | |||||||||
Share-based payments subject to redemption | 31 | 36 | |||||||||
Redeemable non-controlling interests | 71 | 71 | |||||||||
Equity | |||||||||||
Ingredion stockholders' equity: | |||||||||||
Preferred stock – authorized 25,000,000 shares – $0.01 par value, none issued | - | - | |||||||||
Common stock – authorized 200,000,000 shares – $0.01 par value, 77,810,875 | |||||||||||
shares issued at March 31, 2022 and December 31, 2021 | 1 | 1 | |||||||||
Additional paid-in capital | 1,160 | 1,158 | |||||||||
Less: Treasury stock (common stock; 11,464,034 and 11,154,203 shares at | |||||||||||
March 31, 2022 and December 31, 2021, respectively) at cost | (1,091 | ) | (1,061 | ) | |||||||
Accumulated other comprehensive loss | (763 | ) | (897 | ) | |||||||
Retained earnings | 3,986 | 3,899 | |||||||||
Total Ingredion stockholders' equity | 3,293 | 3,100 | |||||||||
Non-redeemable non-controlling interests | 19 | 18 | |||||||||
Total equity | 3,312 | 3,118 | |||||||||
Total liabilities and equity | $ | 7,435 | $ | 6,999 | |||||||
Ingredion Incorporated ("Ingredion") | |||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
For the Three Months Ended March 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Cash (used for) provided by operating activities: | |||||||||||
Net income (loss) | $ | 133 | $ | (243 | ) | ||||||
Adjustments to reconcile net income (loss) to | |||||||||||
net cash (used for) provided by operating activities: | |||||||||||
Depreciation and amortization | 53 | 52 | |||||||||
Mechanical stores expense | 13 | 14 | |||||||||
Deferred income taxes | 3 | (4 | ) | ||||||||
Impairment charge for assets held for sale | - | 360 | |||||||||
Margin accounts | 28 | (16 | ) | ||||||||
Changes in other trade working capital | (290 | ) | (130 | ) | |||||||
Other | 8 | (11 | ) | ||||||||
Cash (used for) provided by operating activities | (52 | ) | 22 | ||||||||
Cash used for investing activities: | |||||||||||
Capital expenditures and mechanical stores purchases | (85 | ) | (65 | ) | |||||||
Proceeds from disposal of manufacturing facilities and properties | 5 | 2 | |||||||||
Other | 4 | (1 | ) | ||||||||
Cash used for investing activities | (76 | ) | (64 | ) | |||||||
Cash provided by (used for) financing activities: | |||||||||||
Proceeds from borrowings, net | 24 | 10 | |||||||||
Commercial paper borrowings, net | 178 | - | |||||||||
Repurchases of common stock, net | (39 | ) | (14 | ) | |||||||
(Settlements) issuances of common stock for share-based compensation, net | (1 | ) | 7 | ||||||||
Dividends paid, including to non-controlling interests | (43 | ) | (43 | ) | |||||||
Cash provided by (used for) financing activities | 119 | (40 | ) | ||||||||
Effect of foreign exchange rate changes on cash | 5 | (7 | ) | ||||||||
Decrease in cash and cash equivalents | (4 | ) | (89 | ) | |||||||
Cash and cash equivalents, beginning of period | 328 | 665 | |||||||||
Cash and cash equivalents, end of period | $ | 324 | $ | 576 | |||||||
Ingredion Incorporated ("Ingredion") | |||||||||||||||
Supplemental Financial Information | |||||||||||||||
(Unaudited) | |||||||||||||||
I. Geographic Information of Net Sales and Operating Income | |||||||||||||||
(in millions, except for percentages) | Three Months Ended March 31, | Change | |||||||||||||
2022 | 2021 | Change | Excl. FX | ||||||||||||
Net Sales | |||||||||||||||
North America | $ | 1,174 | $ | 945 | 24 | % | 24 | % | |||||||
South America | 252 | 273 | (8 | %) | (8 | %) | |||||||||
Asia-Pacific | 272 | 235 | 16 | % | 21 | % | |||||||||
EMEA | 194 | 161 | 20 | % | 28 | % | |||||||||
Total Net Sales | $ | 1,892 | $ | 1,614 | 17 | % | 19 | % | |||||||
Operating Income | |||||||||||||||
North America | $ | 156 | $ | 134 | 16 | % | 16 | % | |||||||
South America | 38 | 40 | (5 | %) | (8 | %) | |||||||||
Asia-Pacific | 22 | 25 | (12 | %) | (4 | %) | |||||||||
EMEA | 31 | 31 | 0 | % | 10 | % | |||||||||
Corporate | (34 | ) | (29 | ) | (17 | %) | (17 | %) | |||||||
Sub-total | 213 | 201 | 6 | % | 8 | % | |||||||||
Acquisition/integration costs | (1 | ) | (1 | ) | |||||||||||
Restructuring/impairment charges | (2 | ) | (10 | ) | |||||||||||
Impairment charge for assets held for sale | - | (360 | ) | ||||||||||||
Total Operating Income | $ | 210 | $ | (170 | ) | 224 | % | 226 | % | ||||||
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 provision (benefit), and certain other special 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; therefore, the 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 ("Ingredion") | ||||||||||||||
Reconciliation of GAAP Net Income (Loss) 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 | |||||||||||||
March 31, 2022 | March 31, 2021 | |||||||||||||
(in millions) | Diluted EPS | (in millions) | Diluted EPS | |||||||||||
Net income (loss) attributable to Ingredion | $ | 130 | $ | 1.92 | $ | (246 | ) | $ | (3.66 | ) | ||||
Add back: | ||||||||||||||
Acquisition/integration costs, net of $ - million income tax benefit for the three months ended March 31, 2022 and 2021 (i) | 1 | 0.01 | 1 | 0.01 | ||||||||||
Restructuring/impairment charges, net of income tax benefit of $ - million and $2 million for the three months ended March 31, 2022 and 2021, respectively (ii) | 2 | 0.03 | 8 | 0.12 | ||||||||||
Impairment on assets held for sale, net of $ - million of income tax benefit for the three months ended March 31, 2021 (iii) | - | - | 360 | 5.35 | ||||||||||
Tax (benefit) provision - Mexico (iv) | (1 | ) | (0.01 | ) | 3 | 0.05 | ||||||||
Diluted share impact (v) | - | - | - | (0.02 | ) | |||||||||
Non-GAAP adjusted net income attributable to Ingredion | $ | 132 | $ | 1.95 | $ | 126 | $ | 1.85 | ||||||
Net income, EPS and tax rates may not foot or recalculate due to rounding. | ||||||||||||||
Notes | ||||||||||||||
(i) During the first quarter of 2022, the Company recorded pre-tax acquisition and integration charges of $1 million for our acquisition and integration of KaTech, as well as our investment in the Arcor joint venture. During the first quarter of 2021, the Company recorded pre-tax acquisition and integration charges of $1 million for our acquisition of PureCircle Limited. | ||||||||||||||
(ii) During the first quarter of 2022, the Company recorded $2 million of remaining pre-tax restructuring-related charges for the Cost Smart program. During the first quarter of 2021, the Company recorded $10 million of pre-tax restructuring/impairment charges, consisting of $5 million of employee-related and other costs, including professional services, associated with our Cost Smart SG&A program, $3 million of restructuring-related charges as part of our Cost Smart Cost of sales program, primarily in North America, and $2 million of employee-related and other costs related to the Arcor joint venture. | ||||||||||||||
(iii) During the first quarter of 2021, the Company recorded a $360 million held for sale impairment charge related to entering the Arcor joint venture. The impairment charge primarily reflected a $49 million write-down of contributed net assets to the agreed upon fair value and a $311 million valuation allowance for the cumulative foreign translation losses related to the net assets to be contributed. | ||||||||||||||
(iv) The Company recorded a tax benefit of $1 million for the first quarter of 2022, and a tax provision of $3 million for the first quarter of 2021, as a result of the movement of the Mexican peso against the U.S. dollar and its impact to the remeasurement of the Company's Mexico financial statements during the periods. | ||||||||||||||
(v) When GAAP net income is negative and Non-GAAP Adjusted net income is positive, adjusted diluted weighted average common shares outstanding will include any options, restricted share units, or performance share units that would be otherwise dilutive. During the first quarter of 2021, the incremental dilutive share impact of these instruments was 0.6 million shares of common stock equivalents. | ||||||||||||||
Ingredion Incorporated ("Ingredion") | ||||||||||||||
Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Adjusted Operating Income | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(in millions, pre-tax) | 2022 | 2021 | ||||||||||||
Operating income (loss) | $ | 210 | $ | (170 | ) | |||||||||
Add back: | ||||||||||||||
Acquisition/integration costs (i) | 1 | 1 | ||||||||||||
Restructuring/impairment charges (ii) | 2 | 10 | ||||||||||||
Impairment on assets held for sale (iii) | - | 360 | ||||||||||||
Non-GAAP adjusted operating income | $ | 213 | $ | 201 | ||||||||||
For notes (i) through (iii), see notes (i) through (iii) included in the Reconciliation of GAAP Net Income (Loss) attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. |
II. Non-GAAP Information (continued) | ||||||||||||
Ingredion Incorporated ("Ingredion") | ||||||||||||
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||
Income before | Provision for | Effective Income | ||||||||||
(in millions) | Income Taxes (a) | Income Taxes (b) | Tax Rate (b / a) | |||||||||
As Reported | $ | 187 | $ | 54 | 28.9 | % | ||||||
Add back: | ||||||||||||
Acquisition/integration costs (i) | 1 | - | ||||||||||
Restructuring/impairment charges (ii) | 2 | - | ||||||||||
Tax item - Mexico (vi) | - | 1 | ||||||||||
Adjusted Non-GAAP | $ | 190 | $ | 55 | 28.9 | % | ||||||
Three Months Ended March 31, 2021 | ||||||||||||
Income (Loss) before | Provision for | Effective Income | ||||||||||
(in millions) | Income Taxes (a) | Income Taxes (b) | Tax Rate (b / a) | |||||||||
As Reported | $ | (188 | ) | $ | 55 | (29.3 | %) | |||||
Add back: | ||||||||||||
Acquisition/integration costs (i) | 1 | - | ||||||||||
Restructuring/impairment charges (ii) | 10 | 2 | ||||||||||
Impairment on assets held for sale (iii) | 360 | - | ||||||||||
Tax item - Mexico (iv) | - | (3 | ) | |||||||||
Adjusted Non-GAAP | $ | 183 | $ | 54 | 29.5 | % | ||||||
For notes (i) through (iv), see notes (i) through (iv) included in the Reconciliation of GAAP Net Income (Loss) attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. | ||||||||||||
II. Non-GAAP Information (continued) | |||||||||||||
Ingredion Incorporated ("Ingredion") | |||||||||||||
Reconciliation of Anticipated GAAP Diluted Earnings per Share ("GAAP EPS") | |||||||||||||
to Anticipated Adjusted Diluted Earnings per Share ("Adjusted EPS") | |||||||||||||
(Unaudited) | |||||||||||||
Anticipated EPS Range | |||||||||||||
for Full Year 2022 | |||||||||||||
Low End | High End | ||||||||||||
GAAP EPS | $ | 6.80 | $ | 7.40 | |||||||||
Add: | |||||||||||||
Acquisition/integration costs (i) | 0.02 | 0.02 | |||||||||||
Restructuring/impairment charges (ii) | 0.04 | 0.04 | |||||||||||
Tax benefit- Mexico (iii) | (0.01 | ) | (0.01 | ) | |||||||||
Adjusted EPS | $ | 6.85 | $ | 7.45 | |||||||||
Above is a reconciliation of our anticipated full year 2022 diluted EPS to our anticipated full year 2022 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/or significance. These amounts include, but are not limited to, adjustments to GAAP EPS for acquisition and integration costs, impairment and restructuring costs, and certain other special items. We generally exclude these adjustments from our adjusted EPS guidance. For these reasons, we are more confident in our ability to predict adjusted EPS than we are in our ability to predict GAAP EPS. | |||||||||||||
These adjustments to GAAP EPS for 2022 include the following: | |||||||||||||
(i) Pre-tax acquisition and integration charges for our acquisition and integration of KaTech, as well as our investment in the Arcor joint venture. | |||||||||||||
(ii) Remaining pre-tax restructuring-related charges for the Cost Smart programs. | |||||||||||||
(iii) Tax benefit as a result of the movement of the Mexican peso against the U.S. dollar and its impact to the remeasurement of the Company's Mexico financial statements during the periods. | |||||||||||||
II. Non-GAAP Information (continued) | ||||||||||||
Ingredion Incorporated ("Ingredion") | ||||||||||||
Reconciliation of Reported U.S. GAAP Effective Tax Rate ("GAAP ETR") | ||||||||||||
to Anticipated Adjusted Effective Tax Rate ("Adjusted ETR") | ||||||||||||
(Unaudited) | ||||||||||||
Anticipated Effective Tax Rate Range | ||||||||||||
for Full Year 2022 | ||||||||||||
Low End | High End | |||||||||||
GAAP ETR | 27.0 | % | 30.5 | % | ||||||||
Add: | ||||||||||||
Acquisition/integration costs (i) | - | % | - | % | ||||||||
Restructuring/impairment charges (ii) | 0.1 | % | 0.1 | % | ||||||||
Tax item - Mexico (iv) | - | % | - | % | ||||||||
Impact of adjustment on Effective Tax Rate and other tax matters (vi) | 0.9 | % | (1.1 | ) | % | |||||||
Adjusted ETR | 28.0 | % | 29.5 | % | ||||||||
Above is a reconciliation of our anticipated full year 2022 GAAP ETR to our anticipated full year 2022 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 include, but are not limited to, adjustments to GAAP ETR for acquisition and integration costs, impairment and restructuring costs, and certain other special items. We generally exclude these adjustments from our adjusted ETR guidance. For these reasons, we are more confident in our ability to predict adjusted ETR than we are in our ability to predict GAAP ETR. | ||||||||||||
For items (i) through (iv), see footnotes 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. | ||||||||||||
(vi) Indirect impact of tax rate after items (i) through (iv) and other tax matters. | ||||||||||||
Рост чистых продаж на 17% компенсировал инфляционное давление, что способствовало высоким годовым показателям
ВЕСТЧЕСТЕР, Иллинойс, 05 мая 2022 г. (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), ведущий мировой поставщик решений для производства ингредиентов для пищевой промышленности и производства напитков, сегодня сообщила о результатах за первый квартал 2022 года. Результаты, представленные в соответствии с общепринятыми принципами бухгалтерского учета США (“GAAP”) за 2022 и 2021 годы, включают статьи, которые исключены из финансовых показателей, не относящихся к GAAP, которые представляет Компания.
“Ingredion преодолел инфляционные препятствия и уверенно стартовал в 2022 году”, - сказал Джим Залли, президент и главный исполнительный директор Ingredion. “Мы обеспечили 17%-ный рост чистых продаж благодаря более высокому, чем ожидалось, спросу и сильному сочетанию цен. В условиях высокой инфляции мы добились значительного и благоприятного сочетания цен, которое с лихвой компенсировало возросшие производственные затраты и способствовало росту операционной прибыли на 6%. В этом квартале мы также добились прогресса в повышении устойчивости нашей цепочки поставок, несмотря на сохраняющиеся глобальные логистические трудности, что позволило нам лучше удовлетворять меняющиеся потребности клиентов”.
“Мы продолжали продвигать нашу Дорожную карту стимулирования роста, увеличив чистые продажи наших фирменных ингредиентов на 20% за квартал, чему способствовал высокий спрос на текстурирующие ингредиенты. Кроме того, чистые продажи растительных белков выросли более чем на 250% за квартал, поскольку наши качество и урожайность улучшились, а производство ускорилось на двух наших производственных мощностях. PureCircle также добилась еще одного высокого двузначного роста чистых продаж за квартал, что отражает высокий спрос на высокоинтенсивные натуральные подсластители”, - заявила Залли.
“Когда мы начали 2022 год, возникли новые проблемы, и наша команда продолжала демонстрировать исключительную гибкость в реагировании на такие события, как беспорядки, вызванные конфликтом на Украине, его влияние на мировые поставки кукурузы и, совсем недавно, возобновление пандемии в Китае. Я невероятно горжусь нашими сотрудниками, поскольку они работают с мышлением собственника, чтобы адаптироваться и участвовать каждый день, создавая ценность для наших заинтересованных сторон. Мы с нетерпением ожидаем года значительного роста, поскольку мы используем технологии и лучшее из природы, чтобы предлагать расширяющийся набор инновационных решений для ингредиентов как для наших клиентов, так и для потребителей ”.
* Скорректированная разводненная прибыль на акцию (“скорректированная прибыль на акцию”), скорректированный операционный доход, скорректированная эффективная ставка налога на прибыль и скорректированные средневзвешенные разводненные обыкновенные акции в обращении являются финансовыми показателями, не относящимися к GAAP. Смотрите раздел II Дополнительной финансовой информации, озаглавленный “Информация, не относящаяся к GAAP”, после Сокращенной Консолидированной финансовой отчетности, включенной в этот пресс-релиз, для сверки этих финансовых показателей, не относящихся к GAAP, с наиболее непосредственно сопоставимыми показателями GAAP.
Разводненная Прибыль На Акцию (EPS)
1Q21 | 1Q22 | ||
Reported EPS | $(3.66) | $1.92 | |
Restructuring/Impairment Costs | $0.12 | $0.03 | |
Acquisition/Integration Costs | $0.01 | $0.01 | |
Impairment*** | $5.35 | - | |
Tax Items | $0.05 | $(0.01) | |
Diluted share impact | $(0.02) | - | |
Adjusted EPS** | $1.85 | $1.95 |
Оценочные факторы, влияющие на изменение
1Q22 vs 1Q21 | |
Total items affecting EPS** | $0.10 |
Total operating items | $0.12 |
Margin | 0.19 |
Volume | (0.03) |
Foreign exchange | (0.04) |
Other income | - |
Total non-operating items | $(0.02) |
Other non-operating income | - |
Financing costs | (0.04) |
Non-controlling interests | - |
Shares outstanding | 0.01 |
Tax rate | 0.01 |
**Итоговые суммы могут отличаться из-за округления *** Обесценение в 1 квартале 2021 года отражает первоначальные расходы на обесценение чистых активов в размере 360 миллионов долларов США, зарегистрированные за 2021 год, связанные с вкладом операций Компании в Аргентине в совместное предприятие Arcor. Окончательные расходы на обесценение, учтенные в 2021 году, составили 340 миллионов долларов.
Основные финансовые показатели
Обзор бизнеса
Всего ПСЕВДОНИМОВ_0
$ in millions | 2021 Net Sales | FX Impact | Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 1,614 | (24) | 19 | 283 | 1,892 | 17% | 19% |
Отчетные Операционные Доходы
$ in millions | 2021 | FX Impact | Business Drivers | Acquisition / Integration | Restructuring / Impairment | Other | 2022 | % change | % change excl. FX |
First Quarter | (170) | (4) | 16 | 0 | 8 | 360 | 210 | 224% | 226% |
Скорректированный Операционный Доход
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 201 | (4) | 16 | 213 | 6% | 8% |
Операционный доход
Продажи в Северной Америке
$ in millions | 2021 Net Sales | FX Impact | Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 945 | 0 | 41 | 188 | 1,174 | 24% | 24% |
Операционный доход Сегмента
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 134 | 0 | 22 | 156 | 16% | 16% |
Чистые продажи в Южной Америке
$ in millions | 2021 Net Sales | FX Impact | Volume | Excluding Arcor JV Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 273 | 0 | (7) | (66) | 52 | 252 | -8% | -8% |
Операционный доход Сегмента
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 40 | 1 | (3) | 38 | -5% | -8% |
Чистые продажи в Азиатско-Тихоокеанском регионе
$ in millions | 2021 Net Sales | FX Impact | Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 235 | (12) | 33 | 16 | 272 | 16% | 21% |
Операционный доход Сегмента
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 25 | (2) | (1) | 22 | -12% | -4% |
Европа, Ближний Восток и Африка (EMEA) Чистые продажи
$ in millions | 2021 Net Sales | FX Impact | Volume | Price mix | 2022 Net Sales | % change | % change excl. FX |
First Quarter | 161 | (12) | 18 | 27 | 194 | 20% | 28% |
Операционный доход Сегмента
$ in millions | 2021 | FX Impact | Business Drivers | 2022 | % change | % change excl. FX |
First Quarter | 31 | (3) | 3 | 31 | 0% | 10% |
Дивиденды и выкуп акций В марте 2022 года Компания объявила о ежеквартальных дивидендах в размере 0,65 доллара на акцию на общую сумму 43 миллиона долларов. В течение квартала Компания выкупила размещенные обыкновенные акции на сумму 39 миллионов долларов. Ingredion рассматривает возврат стоимости акционерам через денежные дивиденды и выкуп акций как часть своей стратегии распределения капитала для поддержки общей доходности акционеров.
Прогноз на второй квартал 2022 года и перспектива на весь год Во втором квартале 2022 года Компания ожидает, что чистые продажи увеличатся на низкие двузначные цифры, а рост операционной прибыли будет относительно неизменным, если сравнивать их со вторым кварталом 2021 года.
Компания ожидает, что прибыль на акцию за весь 2022 год составит от $6,80 до $7,40, и сохраняет свои ожидания, что скорректированная прибыль на акцию составит от $6,85 до $ 7,45 по сравнению с скорректированной прибылью на акцию в размере $ 6,67 в 2021 году. Это ожидание исключает связанные с приобретением затраты на интеграцию и реструктуризацию, а также любые потенциальные затраты на обесценение.
По сравнению с прошлым годом прогноз на весь 2022 год предполагает следующее: Ожидается, что операционная прибыль в Северной Америке вырастет до средних двузначных цифр, что обусловлено благоприятным сочетанием цен, более чем компенсирующим более высокие затраты на кукурузу и сырье; Ожидается, что операционная прибыль в Южной Америке вырастет до низких однозначных цифр, обусловлено благоприятным ценообразованием; Ожидается, что операционная прибыль в Азиатско-Тихоокеанском регионе останется неизменной по сравнению с предыдущим периодом, что обусловлено более высокими ценами на кукурузу в Корее, связанными с конфликтом на Украине, что компенсирует рост PureCircle; Ожидается, что операционная прибыль в регионе EMEA составит низкие однозначные цифры, что обусловлено благоприятным сочетанием цен. Ожидается, что корпоративные расходы останутся неизменными.
Компания ожидает, что скорректированный операционный доход за весь год составит низкие двузначные цифры.
На весь 2022 год Компания ожидает, что заявленная эффективная налоговая ставка составит от 27,0% до 30,5%, а скорректированная эффективная налоговая ставка составит от 28,0% до 29,5%. Увеличение заявленной и скорректированной эффективной налоговой ставки за весь год обусловлено благоприятным влиянием валютных курсов, которое было частично компенсировано новыми налоговыми правилами США, которые снизили способность Компании претендовать на определенные иностранные налоговые льготы по налогам США.
Ожидается, что денежные средства от операций за весь 2022 год составят от 580 до 660 миллионов долларов. Ожидается, что капитальные затраты за весь год составят от 300 до 335 миллионов долларов.
Конференц-связь и подробная информация о веб-трансляции в четверг, 5 мая 2022 года, в 10 часов утра по центральному времени Компанияredion проведет телефонную конференцию, которую проведут Джим Залли, президент и главный исполнительный директор, и Джеймс Грей, исполнительный вице-президент и финансовый директор. Вызов будет транслироваться по Интернету в режиме реального времени, и доступ к нему можно получить по адресу https://ir.ingredionincorporated.com/events-and-presentations . Сопроводительная презентация будет доступна через веб-сайт Компании и доступна для загрузки за несколько часов до начала звонка. Повтор будет доступен в течение ограниченного времени по адресу: https://ir.ingredionincorporated.com/financial-information/quarterly-results .
О компании Компанияredion Incorporated (NYSE: INGR) со штаб-квартирой в пригороде Чикаго является ведущим мировым поставщиком решений для производства ингредиентов, обслуживающим клиентов в более чем 120 странах. С годовым объемом чистых продаж в 2021 году почти в 7 миллиардов долларов Компания превращает зерновые, фрукты, овощи и другие растительные материалы в решения с добавленной стоимостью для продуктов питания, напитков, кормов для животных, пивоварения и промышленных рынков. Благодаря инновационным центрам Ingredion Idea Labs® по всему миру и примерно 12 000 сотрудников Компания сотрудничает с клиентами и реализует свою цель - объединить потенциал людей, природы и технологий, чтобы сделать жизнь лучше. Посещение Ingredion.com для получения дополнительной информации и последних новостей компании.
Прогнозные заявления
Этот пресс-релиз содержит прогнозные заявления по смыслу Раздела 27A Закона о ценных бумагах 1933 года с внесенными в него поправками и Раздела 21E Закона о ценных бумагах и биржах 1934 года с внесенными в него поправками. Компания намерена, чтобы эти прогнозные заявления подпадали под действие положений о безопасной гавани для таких заявлений.
Прогнозные заявления включают, среди прочего, заявления относительно ожиданий Компании относительно чистых продаж и операционной прибыли во втором квартале 2022 года, ее ожиданий в отношении отчетных и скорректированных операционных доходов за весь 2022 год, операционных доходов сегмента, отчетных и скорректированных EPS, отчетных и скорректированных эффективных налоговых ставок, движения денежных средств от операций и капитальные затраты и любые другие заявления, касающиеся перспектив Компании, будущих операций или будущего финансового состояния, чистых продаж, операционных доходов, объемов, корпоративных расходов, налоговых ставок, капитальных затрат, денежных потоков, расходов или других финансовых статей, включая планы или стратегии и цели руководства в отношении любого из вышеперечисленных, а также любые предположения, ожидания или убеждения, лежащие в основе любого из вышеизложенного.
Эти утверждения иногда можно идентифицировать с помощью прогнозных слов, таких как “может”, “будет”, “должен”, “предвидеть”, “предполагать”, “верить”, “планировать”, “проектировать”, “оценивать”, “ожидать”, “намереваться”, “продолжение”, ”проформа“, ”прогноз“, ”перспективы“, ”стимулы“, "возможности”, “потенциал”, “предварительные” или другие подобные выражения или их отрицательные значения. Все заявления, кроме изложения исторических фактов в этом пресс-релизе, являются прогнозными заявлениями.
Эти заявления основаны на текущих обстоятельствах или ожиданиях, но подвержены определенным неотъемлемым рискам и неопределенностям, многие из которых трудно предсказать и находятся вне нашего контроля. Хотя мы считаем, что наши ожидания, отраженные в этих прогнозных заявлениях, основаны на разумных предположениях, инвесторы предупреждаются, что нельзя дать никаких гарантий того, что наши ожидания окажутся верными.
Фактические результаты и события могут существенно отличаться от требований, отраженных в или предполагаемых такими заявлениями, на основании различных рисков и неопределенностей, в том числе о влиянии COVID-19 на спрос на нашу продукцию и наших финансовых результатов; изменения в потребительских предпочтениях, связанных с высоким содержанием фруктозы Кукурузный сироп и другие продукты, которые мы делаем; последствия глобальных экономических условий и общей политической, экономической, деловой, и рыночные условия, которые влияют на клиентов и потребителей в различных географических регионов и стран, в которых мы покупаем сырье и производим или продаем наши продукты, в том числе, в частности, экономических, валютных и политических условий в Южной Америке и экономические и политические условия в Европе, и влияние этих факторов на объемы продаж, ценообразования наших товаров и наша способность собрать наши дебиторской задолженности от клиентов; будущие покупки наших товаров в разрезе основных отраслей промышленности, которые мы обслуживаем, и из которого мы черпаем значительную часть наших продаж, в том числе, без ограничения, продукты питания, напиток, животное питания, и пивоваренной промышленности; неопределенность товары, созданное с помощью генной модификации и биотехнологии; наша способность к развитию и приобретению новых товаров и услуг в цене или качеств, достаточных для завоевания рынка приема; повышение конкурентоспособности и/или поддержки давления в зерно-перерабатывающей промышленности и смежных отраслей, в том числе в отношении рынков и цен на наши сырьевые товары и нашего совместного продукции, в частности кукурузное масло; доступность сырья, в том числе картофельного крахмала, тапиока, гуммиарабик, и конкретные сорта кукурузы, на которой некоторые из наших продуктов основаны, и наша способность передать потенциальному увеличению стоимости кукурузы или другого сырья на клиентов; затраты на энергию и доступность, в том числе вопросы энергетики в Пакистане; наша способность к сдерживанию роста затрат, достижения бюджеты и реализовать ожидается взаимодействия, в том числе применительно к нашей способности завершить плановое техническое обслуживание и инвестиционные проекты вовремя и в рамках бюджета, а также расходов на перевозку грузов и транспортные расходы; последствия изменения климата и нормативно-правовых и рыночных мер для решения проблемы изменения климата; нашу способность успешно выявлять и полного поглощения и стратегические альянсы на льготных условиях, а также способность успешно интегрировать приобретенные предприятия или внедрить и поддерживать стратегические альянсы и достижения ожидаемой синергии с уважением ко всем из вышеперечисленного; эксплуатационные трудности на наших производственных объектах; поведение финансовых рынков и рынков капитала, в том числе с учетом валютных колебаний, колебания процентных ставок и курсов валют и рыночной волатильности и рисков страхуясь от таких колебаний; нашу способность привлекать, развивать, мотивировать и поддерживать хорошие отношения с нашими рабочей силы; воздействие на наш бизнес-стихийных бедствий, войны, угрозы или террористические акты, возникновение или продолжение пандемии COVID-19, либо возникновение иных существенных обстоятельств, находящихся вне нашего контроля; влияние обесценения по нашей доброй воле или долгосрочных активов; изменения в государственной политике, законодательству, или постановление и стоимости соблюдения правовых норм, в том числе соблюдению экологических требований, изменений в нашей налоговых ставок или воздействия дополнительных поступлений налоговых обязательств; увеличение наших затрат по займам, которые могут возникнуть в результате повышения процентных ставок; нашу способность привлекать средства по разумной цене и другие факторы, влияющие на доступ к достаточные средства для будущего роста и расширения; нарушений требований безопасности в отношении информационно-технологических систем, процессов и объектов; волатильность фондового рынка и другие факторы, которые могут негативно повлиять на нашем складе цене; риски, влияющие на продолжение нашей дивидендной политики; и наша способность поддерживать эффективную систему внутреннего контроля за подготовкой финансовой отчетности.
Наши прогнозные заявления относятся только к дате, на которую они сделаны, и мы не берем на себя никаких обязательств обновлять какие-либо прогнозные заявления, чтобы отразить события или обстоятельства после даты заявления в результате новой информации или будущих событий или событий. Если мы обновим или исправим одно или несколько из этих заявлений, инвесторы и другие лица не должны делать вывод, что мы внесем дополнительные обновления или исправления. Для дальнейшего описания этих и других рисков см. раздел “Факторы риска” и другую информацию, включенную в наш Годовой отчет по Форме 10-K за год, закончившийся 31 декабря 2021 года, и в наши последующие отчеты по Форме 10-Q и Форме 8-K, поданные в Комиссию по ценным бумагам и биржам.
КОНТАКТЫ:Инвесторы: Джейсон Пайант, 708-551-2584 СМИ: Бекка Хэри, 708-551-2602
Ingredion Incorporated ("Ingredion") | |||||||||||||
Condensed Consolidated Statements of Income (Loss) | |||||||||||||
(Unaudited) | |||||||||||||
(in millions, except per share amounts) | Three Months Ended March 31, | Change % | |||||||||||
2022 | 2021 | ||||||||||||
Net sales | $ | 1,892 | $ | 1,614 | 17 | % | |||||||
Cost of sales | 1,513 | 1,263 | |||||||||||
Gross profit | 379 | 351 | 8 | % | |||||||||
Operating expenses | 169 | 153 | 10 | % | |||||||||
Other operating (income) | (2 | ) | (2 | ) | |||||||||
Restructuring/impairment charges | 2 | 370 | |||||||||||
Operating income (loss) | 210 | (170 | ) | 224 | % | ||||||||
Financing costs | 24 | 19 | |||||||||||
Other non-operating income | (1 | ) | (1 | ) | |||||||||
Income (loss) before income taxes | 187 | (188 | ) | 199 | % | ||||||||
Provision for income taxes | 54 | 55 | |||||||||||
Net income (loss) | 133 | (243 | ) | 155 | % | ||||||||
Less: Net income attributable to non-controlling interests | 3 | 3 | |||||||||||
Net income (loss) attributable to Ingredion | $ | 130 | $ | (246 | ) | 153 | % | ||||||
Earnings per common share attributable to Ingredion | |||||||||||||
common shareholders: | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 66.9 | 67.3 | |||||||||||
Diluted | 67.6 | 67.3 | |||||||||||
Earnings (loss) per common share of Ingredion: | |||||||||||||
Basic | $1.94 | ($3.66 | ) | 153 | % | ||||||||
Diluted | $1.92 | ($3.66 | ) | 152 | % | ||||||||
Ingredion Incorporated ("Ingredion") | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(in millions, except share and per share amounts) | March 31, 2022 | December 31, 2021 | |||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 324 | $ | 328 | |||||||
Short-term investments | 5 | 4 | |||||||||
Accounts receivable – net | 1,431 | 1,130 | |||||||||
Inventories | 1,306 | 1,172 | |||||||||
Prepaid expenses | 63 | 63 | |||||||||
Total current assets | 3,129 | 2,697 | |||||||||
Property, plant and equipment – net | 2,446 | 2,423 | |||||||||
Intangible assets – net | 1,339 | 1,348 | |||||||||
Other assets | 521 | 531 | |||||||||
Total assets | $ | 7,435 | $ | 6,999 | |||||||
Liabilities and equity | |||||||||||
Current liabilities | |||||||||||
Short-term borrowings | $ | 514 | $ | 308 | |||||||
Accounts payable and accrued liabilities | 1,207 | 1,204 | |||||||||
Total current liabilities | 1,721 | 1,512 | |||||||||
Long-term debt | 1,739 | 1,738 | |||||||||
Other non-current liabilities | 561 | 524 | |||||||||
Total liabilities | 4,021 | 3,774 | |||||||||
Share-based payments subject to redemption | 31 | 36 | |||||||||
Redeemable non-controlling interests | 71 | 71 | |||||||||
Equity | |||||||||||
Ingredion stockholders' equity: | |||||||||||
Preferred stock – authorized 25,000,000 shares – $0.01 par value, none issued | - | - | |||||||||
Common stock – authorized 200,000,000 shares – $0.01 par value, 77,810,875 | |||||||||||
shares issued at March 31, 2022 and December 31, 2021 | 1 | 1 | |||||||||
Additional paid-in capital | 1,160 | 1,158 | |||||||||
Less: Treasury stock (common stock; 11,464,034 and 11,154,203 shares at | |||||||||||
March 31, 2022 and December 31, 2021, respectively) at cost | (1,091 | ) | (1,061 | ) | |||||||
Accumulated other comprehensive loss | (763 | ) | (897 | ) | |||||||
Retained earnings | 3,986 | 3,899 | |||||||||
Total Ingredion stockholders' equity | 3,293 | 3,100 | |||||||||
Non-redeemable non-controlling interests | 19 | 18 | |||||||||
Total equity | 3,312 | 3,118 | |||||||||
Total liabilities and equity | $ | 7,435 | $ | 6,999 | |||||||
Ingredion Incorporated ("Ingredion") | |||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
For the Three Months Ended March 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Cash (used for) provided by operating activities: | |||||||||||
Net income (loss) | $ | 133 | $ | (243 | ) | ||||||
Adjustments to reconcile net income (loss) to | |||||||||||
net cash (used for) provided by operating activities: | |||||||||||
Depreciation and amortization | 53 | 52 | |||||||||
Mechanical stores expense | 13 | 14 | |||||||||
Deferred income taxes | 3 | (4 | ) | ||||||||
Impairment charge for assets held for sale | - | 360 | |||||||||
Margin accounts | 28 | (16 | ) | ||||||||
Changes in other trade working capital | (290 | ) | (130 | ) | |||||||
Other | 8 | (11 | ) | ||||||||
Cash (used for) provided by operating activities | (52 | ) | 22 | ||||||||
Cash used for investing activities: | |||||||||||
Capital expenditures and mechanical stores purchases | (85 | ) | (65 | ) | |||||||
Proceeds from disposal of manufacturing facilities and properties | 5 | 2 | |||||||||
Other | 4 | (1 | ) | ||||||||
Cash used for investing activities | (76 | ) | (64 | ) | |||||||
Cash provided by (used for) financing activities: | |||||||||||
Proceeds from borrowings, net | 24 | 10 | |||||||||
Commercial paper borrowings, net | 178 | - | |||||||||
Repurchases of common stock, net | (39 | ) | (14 | ) | |||||||
(Settlements) issuances of common stock for share-based compensation, net | (1 | ) | 7 | ||||||||
Dividends paid, including to non-controlling interests | (43 | ) | (43 | ) | |||||||
Cash provided by (used for) financing activities | 119 | (40 | ) | ||||||||
Effect of foreign exchange rate changes on cash | 5 | (7 | ) | ||||||||
Decrease in cash and cash equivalents | (4 | ) | (89 | ) | |||||||
Cash and cash equivalents, beginning of period | 328 | 665 | |||||||||
Cash and cash equivalents, end of period | $ | 324 | $ | 576 | |||||||
Ingredion Incorporated ("Ingredion") | |||||||||||||||
Supplemental Financial Information | |||||||||||||||
(Unaudited) | |||||||||||||||
I. Geographic Information of Net Sales and Operating Income | |||||||||||||||
(in millions, except for percentages) | Three Months Ended March 31, | Change | |||||||||||||
2022 | 2021 | Change | Excl. FX | ||||||||||||
Net Sales | |||||||||||||||
North America | $ | 1,174 | $ | 945 | 24 | % | 24 | % | |||||||
South America | 252 | 273 | (8 | %) | (8 | %) | |||||||||
Asia-Pacific | 272 | 235 | 16 | % | 21 | % | |||||||||
EMEA | 194 | 161 | 20 | % | 28 | % | |||||||||
Total Net Sales | $ | 1,892 | $ | 1,614 | 17 | % | 19 | % | |||||||
Operating Income | |||||||||||||||
North America | $ | 156 | $ | 134 | 16 | % | 16 | % | |||||||
South America | 38 | 40 | (5 | %) | (8 | %) | |||||||||
Asia-Pacific | 22 | 25 | (12 | %) | (4 | %) | |||||||||
EMEA | 31 | 31 | 0 | % | 10 | % | |||||||||
Corporate | (34 | ) | (29 | ) | (17 | %) | (17 | %) | |||||||
Sub-total | 213 | 201 | 6 | % | 8 | % | |||||||||
Acquisition/integration costs | (1 | ) | (1 | ) | |||||||||||
Restructuring/impairment charges | (2 | ) | (10 | ) | |||||||||||
Impairment charge for assets held for sale | - | (360 | ) | ||||||||||||
Total Operating Income | $ | 210 | $ | (170 | ) | 224 | % | 226 | % | ||||||
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 provision (benefit), and certain other special 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; therefore, the 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 ("Ingredion") | ||||||||||||||
Reconciliation of GAAP Net Income (Loss) 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 | |||||||||||||
March 31, 2022 | March 31, 2021 | |||||||||||||
(in millions) | Diluted EPS | (in millions) | Diluted EPS | |||||||||||
Net income (loss) attributable to Ingredion | $ | 130 | $ | 1.92 | $ | (246 | ) | $ | (3.66 | ) | ||||
Add back: | ||||||||||||||
Acquisition/integration costs, net of $ - million income tax benefit for the three months ended March 31, 2022 and 2021 (i) | 1 | 0.01 | 1 | 0.01 | ||||||||||
Restructuring/impairment charges, net of income tax benefit of $ - million and $2 million for the three months ended March 31, 2022 and 2021, respectively (ii) | 2 | 0.03 | 8 | 0.12 | ||||||||||
Impairment on assets held for sale, net of $ - million of income tax benefit for the three months ended March 31, 2021 (iii) | - | - | 360 | 5.35 | ||||||||||
Tax (benefit) provision - Mexico (iv) | (1 | ) | (0.01 | ) | 3 | 0.05 | ||||||||
Diluted share impact (v) | - | - | - | (0.02 | ) | |||||||||
Non-GAAP adjusted net income attributable to Ingredion | $ | 132 | $ | 1.95 | $ | 126 | $ | 1.85 | ||||||
Net income, EPS and tax rates may not foot or recalculate due to rounding. | ||||||||||||||
Notes | ||||||||||||||
(i) During the first quarter of 2022, the Company recorded pre-tax acquisition and integration charges of $1 million for our acquisition and integration of KaTech, as well as our investment in the Arcor joint venture. During the first quarter of 2021, the Company recorded pre-tax acquisition and integration charges of $1 million for our acquisition of PureCircle Limited. | ||||||||||||||
(ii) During the first quarter of 2022, the Company recorded $2 million of remaining pre-tax restructuring-related charges for the Cost Smart program. During the first quarter of 2021, the Company recorded $10 million of pre-tax restructuring/impairment charges, consisting of $5 million of employee-related and other costs, including professional services, associated with our Cost Smart SG&A program, $3 million of restructuring-related charges as part of our Cost Smart Cost of sales program, primarily in North America, and $2 million of employee-related and other costs related to the Arcor joint venture. | ||||||||||||||
(iii) During the first quarter of 2021, the Company recorded a $360 million held for sale impairment charge related to entering the Arcor joint venture. The impairment charge primarily reflected a $49 million write-down of contributed net assets to the agreed upon fair value and a $311 million valuation allowance for the cumulative foreign translation losses related to the net assets to be contributed. | ||||||||||||||
(iv) The Company recorded a tax benefit of $1 million for the first quarter of 2022, and a tax provision of $3 million for the first quarter of 2021, as a result of the movement of the Mexican peso against the U.S. dollar and its impact to the remeasurement of the Company's Mexico financial statements during the periods. | ||||||||||||||
(v) When GAAP net income is negative and Non-GAAP Adjusted net income is positive, adjusted diluted weighted average common shares outstanding will include any options, restricted share units, or performance share units that would be otherwise dilutive. During the first quarter of 2021, the incremental dilutive share impact of these instruments was 0.6 million shares of common stock equivalents. | ||||||||||||||
Ingredion Incorporated ("Ingredion") | ||||||||||||||
Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Adjusted Operating Income | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(in millions, pre-tax) | 2022 | 2021 | ||||||||||||
Operating income (loss) | $ | 210 | $ | (170 | ) | |||||||||
Add back: | ||||||||||||||
Acquisition/integration costs (i) | 1 | 1 | ||||||||||||
Restructuring/impairment charges (ii) | 2 | 10 | ||||||||||||
Impairment on assets held for sale (iii) | - | 360 | ||||||||||||
Non-GAAP adjusted operating income | $ | 213 | $ | 201 | ||||||||||
For notes (i) through (iii), see notes (i) through (iii) included in the Reconciliation of GAAP Net Income (Loss) attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. |
II. Non-GAAP Information (continued) | ||||||||||||
Ingredion Incorporated ("Ingredion") | ||||||||||||
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||
Income before | Provision for | Effective Income | ||||||||||
(in millions) | Income Taxes (a) | Income Taxes (b) | Tax Rate (b / a) | |||||||||
As Reported | $ | 187 | $ | 54 | 28.9 | % | ||||||
Add back: | ||||||||||||
Acquisition/integration costs (i) | 1 | - | ||||||||||
Restructuring/impairment charges (ii) | 2 | - | ||||||||||
Tax item - Mexico (vi) | - | 1 | ||||||||||
Adjusted Non-GAAP | $ | 190 | $ | 55 | 28.9 | % | ||||||
Three Months Ended March 31, 2021 | ||||||||||||
Income (Loss) before | Provision for | Effective Income | ||||||||||
(in millions) | Income Taxes (a) | Income Taxes (b) | Tax Rate (b / a) | |||||||||
As Reported | $ | (188 | ) | $ | 55 | (29.3 | %) | |||||
Add back: | ||||||||||||
Acquisition/integration costs (i) | 1 | - | ||||||||||
Restructuring/impairment charges (ii) | 10 | 2 | ||||||||||
Impairment on assets held for sale (iii) | 360 | - | ||||||||||
Tax item - Mexico (iv) | - | (3 | ) | |||||||||
Adjusted Non-GAAP | $ | 183 | $ | 54 | 29.5 | % | ||||||
For notes (i) through (iv), see notes (i) through (iv) included in the Reconciliation of GAAP Net Income (Loss) attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. | ||||||||||||
II. Non-GAAP Information (continued) | |||||||||||||
Ingredion Incorporated ("Ingredion") | |||||||||||||
Reconciliation of Anticipated GAAP Diluted Earnings per Share ("GAAP EPS") | |||||||||||||
to Anticipated Adjusted Diluted Earnings per Share ("Adjusted EPS") | |||||||||||||
(Unaudited) | |||||||||||||
Anticipated EPS Range | |||||||||||||
for Full Year 2022 | |||||||||||||
Low End | High End | ||||||||||||
GAAP EPS | $ | 6.80 | $ | 7.40 | |||||||||
Add: | |||||||||||||
Acquisition/integration costs (i) | 0.02 | 0.02 | |||||||||||
Restructuring/impairment charges (ii) | 0.04 | 0.04 | |||||||||||
Tax benefit- Mexico (iii) | (0.01 | ) | (0.01 | ) | |||||||||
Adjusted EPS | $ | 6.85 | $ | 7.45 | |||||||||
Above is a reconciliation of our anticipated full year 2022 diluted EPS to our anticipated full year 2022 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/or significance. These amounts include, but are not limited to, adjustments to GAAP EPS for acquisition and integration costs, impairment and restructuring costs, and certain other special items. We generally exclude these adjustments from our adjusted EPS guidance. For these reasons, we are more confident in our ability to predict adjusted EPS than we are in our ability to predict GAAP EPS. | |||||||||||||
These adjustments to GAAP EPS for 2022 include the following: | |||||||||||||
(i) Pre-tax acquisition and integration charges for our acquisition and integration of KaTech, as well as our investment in the Arcor joint venture. | |||||||||||||
(ii) Remaining pre-tax restructuring-related charges for the Cost Smart programs. | |||||||||||||
(iii) Tax benefit as a result of the movement of the Mexican peso against the U.S. dollar and its impact to the remeasurement of the Company's Mexico financial statements during the periods. | |||||||||||||
II. Non-GAAP Information (continued) | ||||||||||||
Ingredion Incorporated ("Ingredion") | ||||||||||||
Reconciliation of Reported U.S. GAAP Effective Tax Rate ("GAAP ETR") | ||||||||||||
to Anticipated Adjusted Effective Tax Rate ("Adjusted ETR") | ||||||||||||
(Unaudited) | ||||||||||||
Anticipated Effective Tax Rate Range | ||||||||||||
for Full Year 2022 | ||||||||||||
Low End | High End | |||||||||||
GAAP ETR | 27.0 | % | 30.5 | % | ||||||||
Add: | ||||||||||||
Acquisition/integration costs (i) | - | % | - | % | ||||||||
Restructuring/impairment charges (ii) | 0.1 | % | 0.1 | % | ||||||||
Tax item - Mexico (iv) | - | % | - | % | ||||||||
Impact of adjustment on Effective Tax Rate and other tax matters (vi) | 0.9 | % | (1.1 | ) | % | |||||||
Adjusted ETR | 28.0 | % | 29.5 | % | ||||||||
Above is a reconciliation of our anticipated full year 2022 GAAP ETR to our anticipated full year 2022 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 include, but are not limited to, adjustments to GAAP ETR for acquisition and integration costs, impairment and restructuring costs, and certain other special items. We generally exclude these adjustments from our adjusted ETR guidance. For these reasons, we are more confident in our ability to predict adjusted ETR than we are in our ability to predict GAAP ETR. | ||||||||||||
For items (i) through (iv), see footnotes 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. | ||||||||||||
(vi) Indirect impact of tax rate after items (i) through (iv) and other tax matters. | ||||||||||||