Ingredion Inc., the Westchester, Illinois-based starch, modified starch and starch sugar manufacturer with operations in southwest Cedar Rapids, released their third-quarter financial report Tuesday, with mixed earnings and income results.
For the quarter ending Sept. 30, Ingredion reported adjusted earnings per share (EPS) of $1.67, down from the $1.77 adjusted EPS reported in the third quarter of 2020. Adjusted EPS for the year to date, however, was $5.58, up substantially from the $4.50 adjusted year-to-date EPS from the same period last year.
In a statement, the company said it expects full-year adjusted EPS to be in the range of $6.65 to $7.00, up from the previously provided full-year outlook of $6.45 to $6.85.
Third quarter reported and adjusted operating income were $172 million and $163 million, respectively, an increase of 12 percent and a decrease of 9 percent, respectively, from the same period last year.
In a statement, the company said the increase in reported operating income was driven by a favorable adjustment to the net asset impairment related to the contribution of Argentina assets to the Arcor joint venture, which was partially offset by higher corn and manufacturing costs, including costs associated with the ramp-up of plant-based protein operations at Ingredion facilities in South Sioux City, Nebraska, and Vanscoy, Saskatchewan, Canada.
Company officials said the decrease in adjusted operating income was driven by higher corn and manufacturing costs, including the costs associated with the ramp-up of plant-based protein operations.
Total net sales for the quarter were $1.763 billion, upo 17% from the $1.502 billion reported in the same quarter of 2020.
“We delivered outstanding top-line performance of 17% net sales growth in the quarter resulting from well-managed sales execution to fulfill strong customer demand,” Ingredion president and chief executive officer Jim Zallie said in a statement. “Every region achieved double-digit sales growth through a clear focus on managing price mix and partnering with customers to meet changing demand requirements as a result of global supply chain constraints. At the same time, we kept pace with higher input costs to deliver reported operating income up 12% and adjusted operating income down 9%, against previously anticipated high double-digit corn cost inflation.
“Once again, our specialty ingredients growth platforms achieved double-digit increases in net sales, which outpaced the remainder of our portfolio,” he added. “During the quarter, we generated the largest specialty sales growth from our sugar reduction and specialty sweeteners platform. In addition, consumers’ heightened focus on nutrition and wellness is underpinning the robust demand we are seeing for our clean & simple, texture and plant-based protein solutions.”