INGREDION INCORPORATED SECOND QUARTER 2021 RESULTS REPORTED

KUALA LUMPUR, Aug 4 (Bernama) -- Ingredion Incorporated, a leading global provider of ingredient solutions to the food and beverage manufacturing industry, has reported results for the second quarter of 2021.

According to a statement, the results, reported in accordance with US generally accepted accounting principles (GAAP) for 2021 and 2020, include items excluded from the non-GAAP financial measures that the Company presents.

“We delivered exceptional second quarter performance, resulting in our strongest quarter since 2017, with reported operating income of US$222 million, up 96 per cent versus prior year, and adjusted operating income of US$208 million, up 64 per cent versus prior year,” said Ingredion president and chief executive officer, Jim Zallie. (US$1 = RM4.226)

“In every region, we saw double-digit volume growth from demand recovery across all customer segments, as well as strong specialties growth. Our strong sales execution and price mix management, in a challenging supply chain landscape, mitigated rising corn costs and contributed to our 31 per cent increase in net sales.”

The Financial Highlights include at June 30, total debt and cash including short-term investments were US$2.2 billion and US$549 million, respectively, versus US$2.2 billion and US$665 million, respectively, at Dec 31, 2020.

Reported and adjusted effective tax rates for the second quarter were 11.7 per cent and 25.7 per cent, respectively, compared to 28.7 per cent and 28.7 per cent, respectively, in the year-ago period. The decrease in reported tax rate resulted primarily from the reversal of an accrual for unremitted earnings.

Second quarter and year-to-date net sales were up from the year-ago period. The increase was driven by higher volumes, including PureCircle and KaTech, as well as strong price mix, including the pass through of higher corn costs.

In addition, second quarter reported and adjusted operating income were US$222 million and US$208 million, respectively, an increase of 96 per cent and 64 per cent, respectively, from the same period last year.

In April 2021, a quarterly cash dividend of US$0.64 per share was paid to shareholders of record on April 1, totaling US$43 million, bringing dividend payments for the first half of the year to US$86 million.

The Company expects full-year 2021 adjusted EPS to be in the range of US$6.45-US$6.85 compared to adjusted EPS of US$6.23 in 2020. This expectation excludes acquisition-related integration and restructuring costs, as well as any potential impairment costs.

-- BERNAMA