Q4 2023 Earnings Summary
Reported on Feb 6, 2024 (Before Market Open)
Pre-Earnings Price$110.59Last close (Feb 5, 2024)
Post-Earnings Price$109.29Open (Feb 6, 2024)
Price Change
$-1.30(-1.18%)
- Ingredion expects to improve operating income by reducing losses in plant-based proteins, which totaled $55 million in 2023, and anticipates growth opportunities in sugar reduction and their expanded Kuala Lumpur facility.
- The company is reorganizing its business to focus globally on texture and healthful solutions, investing in consumer insights and advancing capabilities in sugar reduction, protein, and fiber fortification to drive volume and profitability.
- Ingredion is capitalizing on trends towards natural ingredients and affordability, with a strong focus on high-intensity natural sweeteners like stevia, aligning with consumer demand for healthier options and recipe reformulation.
- The plant-based proteins segment incurred an operating loss of over $40 million in 2023, along with a $15 million inventory write-down due to market slowdown, which has been a drag on profitability and may continue to impact future results.
- The divestiture of the South Korea business, which contributed approximately $325 million in net sales and adjusted operating income in the low $30 million range in 2023, may negatively affect future revenue and earnings growth.
- The company faces risks to its 2024 outlook, including potential tax impacts in an election year, concerns about inflation affecting consumer demand, and the need for customers to use promotions to stimulate sales, potentially impacting volumes and margins.
Research analysts covering Ingredion.