Ingredion Incorporated's fourth quarter, full-year 2020 results

KUALA LUMPUR, Feb 4 -- Ingredion Incorporated, a leading global provider of ingredient solutions to the food and beverage manufacturing industry, has reported results for the fourth quarter and full-year 2020.

The results, reported in accordance with US generally accepted accounting principles (GAAP) for 2020 and 2019, include items that are excluded from the non-GAAP financial measures that the Company presents.

“We delivered outstanding performance in the fourth quarter, with year-over-year three per cent sales growth, with each region contributing to the net sales growth. Three of the four regions saw volume demand recover from COVID-19 impacts, a highly encouraging sign.

“In addition, we had exceptional performance in South America, led by strong pricing gains that enabled us to keep pace with inflation and changing market conditions,” said Ingredion president and chief executive officer, Jim Zallie.

As at Dec 31, 2020, total debt and cash and short-term investments were US$2.2 billion and US$665 million, respectively, versus US$1.8 billion and US$268 million, respectively, at Dec 31, 2019. (US$1 = RM4.047)

Net financing costs were US$22 million, or US$3 million higher in the fourth quarter from the year-ago period. The increase resulted from a higher foreign exchange impact, partially offset by lower net interest expense due to lower interest rates.

In addition, fourth quarter net sales were up from the year-ago period. The increase was driven by strong price mix and higher volumes in South America, inclusion of PureCircle results, and specialty volume growth in all four regions.

For the first quarter of 2021, the Company anticipates total net sales to be slightly up and operating income to be modestly up depending on the impact of COVID-19 resurgence trends, as well as the pace and effectiveness of vaccines.

For the full year, the Company anticipates net sales and region operating income to be modestly up, driven by specialty ingredients growth, other volume recovery and Cost Smart savings.

-- BERNAMA