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Ingredion meets the demand for specialty ingredients

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Westchester, Illinois. — In the second quarter ended June 30, Ingredion, Inc. saw its 16% increase in net sales and its Received enthusiastic support from investors. The Westchester-based food maker’s shares traded as high as $95 on Aug. 9, up 4.5% from the previous day’s close of $90.86.

President and Chief Executive Officer James P. Zallie said on a conference call with securities analysts discussing second quarter results. “Net sales growth of 16% reflected strong customer demand, which led to similar volume growth. As a result, the company’s adjusted operating profit outperformed last year’s strong performance and exceeded the company’s expectations.

“Regarding customer demand, we would like to note that on a comparative basis, the volume of products shipped is above pre-pandemic levels for the same quarter in 2019. And it’s an important milestone for us on the industry and our business over the last two years.At the same time, our net sales increased significantly, reflecting our high value mix, both volume and net sales. The ratio of specialty raw materials to total sales increased.

“In response to continued demand for Clean Label texturizing starch, we have accelerated the commissioning of new production capacity at our Indianapolis facility. Another great quarter with net sales up more than 20%, driven by double-digit sales growth.”

Net income for the quarter ended June 30 of $142 million, equal to $2.14 per share of common stock, compared to second quarter earnings of $178 million, or $2.65 per share for the second quarter of the prior year. decreased by 20% from

Quarterly revenue increased to $2.04 billion, up 16% from $1.76 billion a year ago.

Operating income in North America, the company’s largest business unit, was $161 million in the second quarter, up 8% from $149 million in the same period in 2021.

“North America net sales increased 20 percent compared to the same period in 2021,” said executive vice president and chief financial officer James Derek Gray on a conference call. “This increase was driven by strong pricing/mix, largely as a result of the contraction season last fall and dynamic intra-year pricing.”

Second quarter operating income for the South America segment was $39 million, up 18% from $33 million a year ago. Revenue was $290 million, up 8% from $268 million a year ago.

“It also contributed to our second quarter performance, with core ingredients delivering mid-teens net sales growth,” said Zallie. “Our volume growth is a result of strong customer demand in categories such as breweries and confectionery. In addition, our enhanced contract terms allow us to respond more quickly to changes in input costs in our largest markets. Our net sales growth was led by South America and Mexico as we continued to shift our focus to the fastest growing categories in these regions.”

Ingredion’s net income was $272 million for the six months ended June 30, up significantly from a net loss of $68 million in the first half of 2021.

First half sales were $3.94 billion, up 17% from $3.38 billion.

Ingredion provided adjusted earnings per share guidance for fiscal 2022 ranging from $6.90 to $7.45 per share.

“During the first six months of this year, we paid $86 million in dividends to Ingredion shareholders and repurchased $83 million of outstanding common stock,” Gray said. Finally, from minority shareholders he acquired additional shares in PureCircle for $27 million. Full-year 2022 adjusted EPS is expected to range from $6.90 to $7.45. This excludes the impact of acquisition-related integration and restructuring charges and potential impairment charges. ”