WESTCHESTER, ILL. — Executives of Ingredion, Inc. want small-sized and medium-sized consumer packaged goods companies to know Ingredion’s specialty starches and sweeteners may assist them with their innovative foods and beverages.
|James Zallie, executive vice-president of global specialties and president of Americas for Ingredion|
“Our focus is working to find growth in innovation that actually is occurring in the U.S. market coming from what we call emerging customers,” said James P. Zallie, executive vice-president of global specialties and president of Americas, in a Nov. 1 earnings call. “We’ve got a very strong distributor network that actually caters to small- and medium-sized and emerging customers. We’re working on productivity projects that require specialty ingredients with the large C.P.G. companies, and we’re just monitoring all of the consumer shifts that are taking place and are very in tune to that.”
Completing the acquisition of TIC Gums in January allowed Westchester-based Ingredion to target a new set of customers, said Ilene S. Gordon, chairman, chief executive officer and president, in the earnings call.
|Ilene Gordon, chairman, c.e.o. and president of Ingredion|
“What I would say on the small- or medium-sized customers, yes, they are growing faster than the larger ones,” she said. “So you know that the large companies are buying some of the smaller ones, and so we look at our role is really to come up with solutions that delight the consumer who may be served by any one of the size customers now and in the future.”
Ingredion in the third quarter ended Sept. 30 posted net income of $169 million, equal to $2.31 per share on the common stock, which was up 16% from $146 million, or $1.98 per share, in the previous year’s third quarter. Net sales of $1,485 million were flat, compared with $1,489 million in the previous year’s third quarter. Acquisition and specialty volume growth were offset by less favorable price/mix.
In North America, operating income of $179 million in the quarter was up 9%. The TIC Gums acquisition and market expansion driven by operational efficiencies accounted for the increase. Net sales of $903 million were up slightly from $899 million.
Volume growth was more than offset by less favorable price/mix in South America and Asia Pacific. In South America, operating income was down 4% to $26 million and sales were down 7% to $257 million. In Asia Pacific, operating income of $29 million matched operating income in last year’s third quarter, and sales increased 2% to $189 million.
In Europe, Middle East and Africa, operating income of $26 million was up 4% and net sales of $136 million were up 5%. Volume growth and favorable price/mix more than offset higher costs in Europe.For the nine months ended Sept. 30, Ingredion companywide had net income of $429 million, or $5.83 per share, which was up 8% from $399 million, or $5.42 per share, during the same time of the previous year. Nine-month net sales increased 2% to $4,395 million from $4,304 million. Ingredion expects adjusted e.p.s. to be in the range of $7.65 to $7.80 for fiscal 2017, which would compare with $7.13 in 2016.