Benzinga - Ingredion Inc (NYSE: INGR) reported first-quarter FY23 sales growth of 13% year-on-year to $2.14 billion, missing the consensus of $2.18 billion.
- The manufacturer of sweeteners and starches registered adjusted EPS of $2.80, up 43.6% Y/Y, beating the analyst consensus of $2.01.
- Strength across all segments bolstered Y/Y growth in quarterly revenues, coupled with a solid price mix through both customer and product mix management. However, sales were partially affected by lower volumes and foreign currency impacts.
- Segments: Sales in North America increased 15.5% Y/Y to $1.36 billion, South America rose 6.7% to $269 million, Asia-Pacific grew 1.8% to $277 million, and EMEA climbed 21.1% to $235 million.
- Gross profit increased 28.5% Y/Y to $487 million, and the gross margin expanded 276 basis points to 22.8%.
- The operating income for the quarter was $291 million, an 39% Y/Y increase.
- Ingredion held $216 million in cash and equivalents as of Mar. 31.
- "We anticipate customer demand will steadily strengthen throughout the second half following some sales volume softness in the first quarter," said President and Chief Executive Officer Jim Zallie. "We further invested in our texture and nutrition network capabilities to enable future growth opportunities with customers."
- Outlook: Ingredion raised its FY23 outlook. The Westchester, Illinois-based company expects adjusted EPS of $8.70 to $9.40, higher than earlier guidance of $7.70 - $8.40. The consensus stands at $8.19.
- It expects FY23 sales growth to be high single-digits to low double-digits. Earlier sales were expected to be up mid-double-digits.
- For 2Q, the company expects net sales growth to be up mid-single digits and operating income to be up low double digits to mid-double digits Y/Y.
- Price Action: INGR shares are trading higher by 1.25% at $107 on the last check Wednesday.
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