Ingredion Clocks 17% Top-Line Growth Amid Inflationary Pressures

Ingredion Inc INGR reported first-quarter FY22 sales growth of 17% year-on-year to $1.89 billion, beating the consensus of $1.77 billion.
Sales in North America increased 24% Y/Y to $1.2 billion, South America fell 8% to $252 million, Asia-Pacific grew 16% to $272 million, and EMEA climbed 20% to $194 million.
The gross profit increased 8% Y/Y to $379 million, and the gross margin compressed 171 basis points to 20%.
The operating margin was 11%, and operating income for the quarter was $210 million versus a $(170) million loss last year.
Adjusted EPS of $1.95 beat the analyst consensus of $1.81.
Ingredion held $329 million in cash and equivalents as of March 31, 2022. Cash used for operating activities for the quarter totaled $(52) million.
Outlook: Ingredion maintained an FY22 adjusted EPS outlook of $6.85-$7.45 against the consensus of $7.02.
For Q2, INGR expects net sales to increase by low double-digits and operating income growth to be relatively flat.
Price Action: INGR shares are trading lower by 2.11% at $87.60 on the last check Thursday.

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