Ingredion, a leading maker of sweeteners and food-and-beverage ingredients, has announced its fourth-quarter financial results, revealing a 15% increase in net income despite lower sales. The company also provided an optimistic outlook for 2024, anticipating earnings growth driven by higher demand.
Q4 Earnings and Revenue
Ingredion reported fourth-quarter earnings of $131 million, or $1.97 per share, compared to $114 million, or $1.71 per share, in the same period last year. The company’s restructuring efforts and tax benefits offset each other, resulting in adjusted earnings of $1.97 per share – surpassing the mean analyst estimate of $1.87 per share.
However, the company’s sales declined by 3% to $1.92 billion, falling short of the average Wall Street target of $2.07 billion.
Q1 Projections
Looking ahead to the first quarter of 2024, Ingredion projects a mid-single-digit percentage decline in sales. The company also expects operating income to decrease by 25% to 35%, primarily due to the impact of the devaluation of the Argentine peso.
Strong Outlook for 2024
Despite the challenges faced in the near term, Ingredion remains optimistic about its long-term prospects. The company forecasts earnings between $10.20 and $11.15 per share for the full year of 2024. This projection includes the anticipated gain from the sale of its South Korean operations, which is set to be finalized in February. In comparison, Ingredion achieved earnings of $9.60 per share in 2023.
On an adjusted basis, Ingredion expects its full-year profit for 2024 to fall within a range of $9.15 to $9.85 per share. Excluding the impact of the South Korean divestiture, the company anticipates flat to low single-digit percentage growth in sales for 2024. This growth will be driven by increased volume demand, partially offset by price mix. In 2023, the company recorded a 3% increase in sales, reaching $8.16 billion. Additionally, Ingredion projects a low to mid-double-digit percentage rise in operating income for 2024.
With strong fourth-quarter results and a positive outlook for 2024, Ingredion continues to demonstrate its resilience and strategic positioning in the market.
