Ingredion Inc INGR reported second-quarter FY23 sales growth of 1.2% year-on-year to $2.07 billion, missing the analyst consensus of $2.20 billion.
Sales in North America increased 5% Y/Y to $1.3 billion, South America decreased 11% to $257 million, Asia-Pacific fell 3% to $267 million, and EMEA climbed 4% to $203 million.
Gross profit increased 13% Y/Y to $441 million, and the gross margin expanded 230 basis points to 21.3%.
The operating margin was 12.1%, and the operating income for the quarter was $251 million, an 18% Y/Y increase.
Adjusted EPS of $2.32 missed the analyst consensus of $2.33.
Ingredion held $263 million in cash and equivalents as of June 30, 2023. Cash from operating activities for six months totaled $279 million.
"Net sales growth of specialty ingredients was driven by price and customer mix. Overall, Ingredion's specialty ingredients led total net sales growth for the Company, reflecting ongoing demand for healthy and natural ingredients, such as solutions to enable sugar reduction," said President and CEO Jim Zallie.
Dividend: Ingredion declared a quarterly dividend of $0.78 per share on the common stock, an increase of 9.9% over the previous quarter's dividend.
The dividend is payable on October 24, 2023, to stockholders of record on October 2, 2023
Outlook: Ingredion revised FY23 adjusted EPS outlook from $8.70 - $9.40 to $8.80 - $9.40 against the consensus of $9.12.
It expects FY23 sales growth to be up mid to high single digits (prior view: up high single-digits to low double-digits).
For Q3, the company expects net sales growth to be up mid-single digits and operating income to be up high-single digits to low double digits Y/Y.
Price Action: INGR shares traded lower by 4.20% at $105.00 premarket on the last check Tuesday.
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