Ingredion(INGR) - 2023 Q1 - Quarterly Report

Financial Performance - Ingredion's net sales for Q1 2023 reached $2.1 billion, a 13% increase from $1.9 billion in Q1 2022[82] - Operating income for Q1 2023 was $291 million, up from $210 million in Q1 2022, reflecting a 38% increase[82] - Net income attributable to Ingredion increased to $191 million in Q1 2023, compared to $130 million in Q1 2022, representing a 47% rise[92] - Gross profit margin improved to 23% in Q1 2023, up from 20% in Q1 2022, driven by a favorable price mix[87] Regional Performance - North America's net sales increased by 16% to $1.356 billion, with a 23% improvement in price mix, despite a 7% decrease in volume[93] - EMEA's operating income surged 84% to $57 million in Q1 2023, primarily due to a favorable price mix[100] Costs and Expenditures - Financing costs rose 33% to $32 million in Q1 2023, attributed to higher average outstanding debt and interest rates[90] - Capital expenditures for Q1 2023 were $76 million, down from $85 million in Q1 2022, with anticipated commitments of approximately $300 million for the year[106] Liquidity and Taxation - Total available liquidity as of March 31, 2023, was approximately $1.204 billion, including $524 million in domestic liquidity[101] - Ingredion's effective income tax rate decreased to 25.1% in Q1 2023 from 28.9% in Q1 2022, influenced by currency appreciation[91] Market and Operational Risks - The company faces competitive pressures in the corn-refining industry, impacting prices for primary products and co-products, particularly corn oil[117] - There are ongoing challenges related to price fluctuations, supply chain disruptions, and shortages affecting production inputs and delivery channels[117] - Economic and political risks are inherent in conducting operations in foreign countries, including foreign currency fluctuations and market volatility[117] - There are risks associated with natural disasters, pandemics, and other significant events that could impact business operations[117] - The company is subject to changes in government policy, legal compliance costs, and potential increases in tax liabilities[117] Internal Controls and Forward-Looking Statements - The company is committed to maintaining effective internal control over financial reporting[117] - The company does not undertake any obligation to update forward-looking statements after their initial release[118] - The company has disclosed no material changes in market risk factors related to interest rates, raw material costs, and foreign currencies during Q1 2023[119]