Cost cuts and higher demand drive Ingredion’s financial performance

  • Ingredion’s fourth-quarter net income rose 15% after cost cuts offset lower sales
  • Ingredion forecast earnings growth for 2024 as higher demand compensates for less consistent price increases
  • Sales fell 3% to $1.92 billion in the fourth quarter
  • Ingredion projected a sales decline in the mid-single percentage digits for the first quarter
  • For 2024, Ingredion forecast earnings in a range between $10.20 and $11.15 a share
  • Ingredion expects 2024 sales to be flat to up low single-percentage digits

Ingredion, the maker of sweeteners and food-and-beverage ingredients, reported a 15% increase in net income for the fourth quarter. This growth was driven by cost cuts that offset lower sales. The company also projected earnings growth for 2024, as higher demand compensates for less consistent price increases. However, sales in the fourth quarter fell by 3% to $1.92 billion, below expectations. For the first quarter, Ingredion expects a decline in sales and operating income due to the impact of the Argentine peso devaluation. Looking ahead, Ingredion forecasts earnings between $10.20 and $11.15 a share for 2024, including the gain from the sale of its South Korean operations. The company also expects flat to low single-digit sales growth in 2024, driven by greater volume demand. Overall, Ingredion projects a positive financial outlook with rising operating income in 2024.

Public Companies: Ingredion (Unknown)
Private Companies:
Key People: Rob Curran (Unknown)

Factuality Level: 8
Justification: The article provides specific financial information about Ingredion’s fourth-quarter net income, earnings, sales, and projections for future earnings. The information is sourced from FactSet, which adds credibility to the data. However, the article does not provide any analysis or context to support the claims made by Ingredion, so there is a possibility of bias or incomplete information.

Noise Level: 3
Justification: The article provides clear and concise information about Ingredion’s fourth-quarter net income, earnings growth forecast, and projected sales decline. It includes relevant financial data and analyst estimates. However, it lacks in-depth analysis or exploration of long-term trends, antifragility, or accountability of powerful people.

Financial Relevance: Yes
Financial Markets Impacted: Ingredion

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance and forecast of Ingredion, a food-and-beverage ingredients company. There is no mention of any extreme events or their impact.

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