Ingredion (INGR) Tops Q4 EPS by 29c, Revenues Beat

February 3, 2021 6:14 AM EST

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Ingredion (NYSE: INGR) reported Q4 EPS of $1.75, $0.29 better than the analyst estimate of $1.46. Revenue for the quarter came in at $1.59 billion versus the consensus estimate of $1.57 billion.

  • Fourth quarter 2020 reported and adjusted EPS* were $1.70 and $1.75, respectively, compared with $1.61 and $1.54 in the fourth quarter 2019, respectively
  • Full-year 2020 reported and adjusted EPS were $5.15 and $6.23, respectively, compared with $6.13 and $6.61 in the year-ago period, respectively
  • The Company anticipates full year 2021 net sales and operating income to be up modestly, driven by specialty ingredients growth, other volume recovery and Cost Smart savings

“We met the challenges of 2020 head-on and delivered strong performance, while advancing our Driving Growth Roadmap across all five of our Specialty platforms. Our teams demonstrated agility throughout the year, efficiently operated our factories, stayed close to customers, anticipated their needs, and enabled us to continue to be a supplier of choice. Pivoting to new ways of working resulted in over 1,300 virtual engagements with customers to co-create and deliver innovative ideas and solutions from our virtual interactive Idea Labs.”

“We delivered outstanding performance in the fourth quarter, with year-over-year 3% net sales growth, with each region contributing to the net sales growth. Three of the four regions saw volume demand recover from COVID-19 impacts, a highly encouraging sign. In addition, we had exceptional performance in South America, led by strong pricing gains that enabled us to keep pace with inflation and changing market conditions,” said Jim Zallie, Ingredion’s president and chief executive officer.

“In the quarter, we also completed our strategic acquisition of 100% ownership in Verdient Foods, Inc., mobilized the integration team, and advanced construction on our Specialty plant-based protein production line. Additionally, we earned recommended food grade certification status for our South Sioux City pea protein isolate facility. Specialty ingredients net sales, excluding foreign exchange impacts, grew in all four regions for the quarter and full year, and now represents 32 percent of our annual net sales,” continued Zallie.

“Operating with an owner’s mindset, our teams made great progress with the redesign and restructuring of our organization across all four regions, resulting in $103 million of run-rate savings, in excess of our 2020 Cost Smart target. We are on track to meet our three-year target of $170 million by year-end 2021.”

“As we enter 2021 with increasing momentum, we are well-positioned to continue advancing our growth strategy and deliver value at every touchpoint of the customer experience. We remain committed to our mission to be a reliable and trusted supplier, as well as innovation partner to our customers. We believe that our focused approach will serve to create long-term value for all of our stakeholders,” Zallie concluded.

2021 Outlook

For the first quarter of 2021, the Company anticipates total net sales to be slightly up and operating income to be modestly up depending on the impact of COVID-19 resurgence trends, as well as the pace and effectiveness of vaccines. Net sales volume during the pandemic has generally correlated with increases in consumer activity and away from home food and beverage consumption.

For the full year, the Company anticipates net sales and region operating income to be modestly up, driven by specialty ingredients growth, other volume recovery and Cost Smart savings. Due to the uncertain environment, the Company is not currently providing guidance for full year 2021 EPS and cash flow from operations.

Full year corporate costs are expected to be flat with a reported and adjusted effective tax rate of 26.5 percent to 28 percent, respectively.

Capital investment commitments are anticipated to be between $330 million and $350 million, of which more than $100 million is being invested to drive Specialty growth.

For earnings history and earnings-related data on Ingredion (INGR) click here.

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