Ingredion(US:INGR)2022-11-07 21:04Financial Performance - Net sales for the three months ended September 30, 2022, were $1,763 million, compared to $1,763 million for the same period in 2021, indicating no growth year-over-year [12]. - Gross profit for the nine months ended September 30, 2022, was $1,143 million, a decrease from $1,440 million in 2021, reflecting a decline of approximately 20.7% [12]. - Net income attributable to Ingredion for the three months ended September 30, 2022, was $109 million, down from $119 million in 2021, representing an 8.4% decrease [15]. - Net income for the nine months ended September 30, 2022, was $387 million, compared to $57 million for the same period in 2021, representing a significant increase [23]. - Net income attributable to Ingredion was $130 million for the nine months ended September 30, 2022, compared to $142 million for the same period in 2021, indicating a decrease of approximately 8.5% [95]. - Net income for the three months ended September 30, 2022, was $106 million, resulting in a basic EPS of $1.61, compared to $118 million and $1.76 for the same period in 2021 [98]. - For the nine months ended September 30, 2022, net income was $378 million, with a basic EPS of $5.69, significantly higher than $50 million and $0.74 for the same period in 2021 [99]. Assets and Liabilities - Total assets as of September 30, 2022, increased to $7,403 million from $6,999 million as of December 31, 2021, marking a growth of approximately 5.8% [17]. - Current liabilities rose to $1,949 million as of September 30, 2022, compared to $1,512 million at the end of 2021, an increase of about 28.9% [17]. - Total liabilities as of September 30, 2022, were $4,224 million, up from $3,774 million as of December 31, 2021, representing an increase of approximately 12% [17]. - Total equity as of September 30, 2022, was $4,143 million, compared to $3,899 million as of December 31, 2021, showing growth in equity [20]. - Total debt outstanding was approximately $2.4 billion as of September 30, 2022, with $1.7 billion consisting of senior notes that do not require principal repayment until 2026 through 2050 [151]. Cash Flow and Investments - Cash and cash equivalents decreased to $294 million as of September 30, 2022, from $328 million at the end of 2021, a decline of approximately 10.4% [17]. - Cash provided by operating activities decreased to $80 million in 2022 from $259 million in 2021, indicating a decline in operational cash flow [23]. - Ingredion's capital expenditures for the nine months ended September 30, 2022, were $203 million, consistent with the previous year [23]. - The company repurchased $112 million of common stock in 2022, compared to $68 million in 2021, reflecting an increase in share buybacks [23]. - Total investments increased to $136 million as of September 30, 2022, compared to $132 million at December 31, 2021, with equity investments rising from $16 million to $23 million [37]. Segment Performance - North America segment reported net sales of $1,262 million for the three months ended September 30, 2022, up from $1,083 million in 2021, reflecting a growth of 16.6% [101]. - South America segment net sales increased to $293 million in the three months ended September 30, 2022, compared to $260 million in 2021, marking an increase of 12.7% [101]. - Asia-Pacific segment net sales rose to $278 million for the three months ended September 30, 2022, from $245 million in 2021, representing a growth of 13.5% [101]. - EMEA segment net sales were $190 million for the three months ended September 30, 2022, compared to $175 million in 2021, indicating an increase of 8.6% [101]. - North America's net sales increased by 20% to $3,720 million for the nine months ended September 30, 2022, driven by a 19% improvement in price mix [141]. - South America's net sales increased by 4% to $835 million for the nine months ended September 30, 2022, with a 28% increase when excluding revenues from the Argentina joint venture [143]. - Asia-Pacific's net sales increased by 13% to $825 million for the nine months ended September 30, 2022, driven by a 13% higher price mix [145]. - EMEA's net sales increased by 13% to $579 million for the nine months ended September 30, 2022, with a 23% increase in price mix [147]. Comprehensive Income and Loss - The company reported a comprehensive loss of $3 million for the three months ended September 30, 2022, compared to a comprehensive income of $348 million in the same period of 2021 [15]. - The company reported a comprehensive loss of $155 million for the nine months ended September 30, 2022 [21]. - Net other comprehensive loss for the nine months ended September 30, 2022, was $(155) million, a significant change from a net income of $256 million for the same period in 2021 [94]. - Accumulated Other Comprehensive Loss increased to $(1,052) million as of September 30, 2022, compared to $(897) million at the end of 2021, reflecting a decline of approximately 17.3% [94]. Shareholder Activities - The company declared dividends of $0.65 per share, totaling $(43) million for common stock during the reporting period [95]. - The stock repurchase program authorized on September 26, 2022, allows for the purchase of up to 6 million shares through December 31, 2025 [80]. - During the three months ended September 30, 2022, the company repurchased 325 thousand shares of common stock at a net cost of $29 million, compared to 500 thousand shares for $44 million in the same period of 2021 [81]. Acquisitions and Joint Ventures - Ingredion acquired shares from minority shareholders in PureCircle for $40 million, increasing ownership from 75% to 85% [30]. - The acquisition of Amishi Drugs and Chemicals for $7 million added $2 million of goodwill and intangible assets to the financial statements [31]. - Ingredion acquired KaTech for a total cash payment of $40 million, adding $26 million of goodwill and intangible assets, and $14 million of tangible assets to its financial statements [34]. - Ingredion entered a joint venture with Amyris, contributing $28 million, which included $10 million in cash and $18 million in intellectual property licenses [38]. - The Argentina joint venture was established with Grupo Arcor, involving a transaction valued at $71 million, resulting in a 49% ownership stake [41]. Derivatives and Hedging - As of September 30, 2022, Ingredion had outstanding futures and options contracts hedging approximately 76 million bushels of corn and swap contracts for 30 million mmbtus of natural gas [57]. - Foreign currency derivatives not designated as hedging instruments had a notional value of $441 million for assets and $282 million for liabilities as of September 30, 2022 [59]. - Ingredion's cash flow hedging instruments for foreign currency had a notional value of $782 million for assets and $914 million for liabilities as of September 30, 2022 [60]. - The company recorded net gains of $86 million on commodities-related derivatives instruments, foreign currency hedges, and T-Locks designated as cash flow hedges expected to be reclassified into earnings within the next 12 months [67]. - For the nine months ended September 30, 2022, Ingredion recognized $254 million in gains on derivatives in cash flow hedging relationships, compared to $211 million for the same period in 2021 [66].