Continued Focus on Specialty Portfolio; Low Double-digit EPS Growth Expected through 2022
BRIDGEWATER, N.J., November 14, 2017 - Today senior executives of Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, will present a business overview to investment analysts. As previously announced, the presentation will be webcast.
"Over the past eight years we have significantly outpaced the S&P 500 with 25 percent annual total shareholder return. Guided by our Strategic Blueprint for Growth, we have transformed the business, expanding our portfolio and geographic scope, growing organically and continuously improving our operations," says Ilene Gordon, chairman, president and CEO.
Jim Zallie, executive vice president global specialties and president Americas, and CEO elect, outlines Ingredion's path forward and objectives for 2022. "We anticipate strong growth opportunities focused on texture, sweetness and nutrition. And our robust technology capabilities and global innovation network give us a competitive advantage. Our focus will continue to be on higher-value specialty ingredients, with an objective to further grow revenue from these on-trend ingredient solutions. By 2022, we expect the specialty ingredient portfolio to generate 32 - 35 percent of net sales, up from an estimated 28 percent in 2017," he explains.
Reviewing the Company's earnings growth algorithm, CFO James Gray says, "We expect that specialty ingredients will continue to grow at twice the rate of the remaining ingredient portfolio in net sales and gross profit growth. Net-sales growth for APAC, South America and EMEA is expected to exceed North America.
"Our strong balance sheet and consistent cash generation should give us the flexibility to pursue a variety of options to enhance shareholder value, and deliver low double-digit EPS growth over the long term."
As previously announced, the presentation will be delivered at 9:00 a.m. Eastern Standard Time (8:00 a.m. Central Standard Time). Ingredion will provide copies of the slides and a live webcast of the presentation that can be accessed in the "Investor Relations" section of www.ingredion.com, under the heading "Presentations." Participants are encouraged to log onto the webcast link approximately 10 minutes prior to the start of the presentation. A replay of the presentation will also be available on the Company's website, www.ingredion.com for a limited period of time.
ABOUT THE COMPANY
Ingredion Incorporated (NYSE: INGR) is a leading global ingredient solutions provider. We turn grains, fruits, vegetables and other plant materials into value-added ingredients and biomaterial solutions for the food, beverage, paper and corrugating, brewing and other industries. Serving customers in over 100 countries, our ingredients make crackers crunchy, yogurts creamy, candy sweet, paper stronger and add fiber to nutrition bars. Visit www.ingredion.com to learn more.
This news release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends these forward-looking statements to be covered by the safe harbor provisions for such statements.
Forward-looking statements include, among other things, any statements regarding the Company's prospects or future financial condition, earnings, revenues, tax rates, capital expenditures, expenses or other financial items, any statements concerning the Company's prospects or future operations, including management's plans or strategies and objectives therefor and any assumptions, expectations or beliefs underlying the foregoing.
These statements can sometimes be identified by the use of forward looking words such as "may," "will," "should," "anticipate," "assume", "believe," "plan," "project," "estimate," "expect," "intend," "continue," "pro forma," "forecast," "outlook," "propels," "opportunity," "potential" or other similar expressions or the negative thereof. All statements other than statements of historical facts in this release or referred to in this release are "forward-looking statements."
These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and are beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, stockholders are cautioned that no assurance can be given that our expectations will prove correct.
Actual results and developments may differ materially from the expectations expressed in or implied by these statements, based on various factors, including the effects of global economic conditions, including, particularly, continuation or worsening of the current economic, currency and political conditions in South America and economic conditions in Europe, and their impact on our sales volumes and pricing of our products, our ability to collect our receivables from customers and our ability to raise funds at reasonable rates; fluctuations in worldwide markets for corn and other commodities, and the associated risks of hedging against such fluctuations; fluctuations in the markets and prices for our co-products, particularly corn oil; fluctuations in aggregate industry supply and market demand; the behavior of financial markets, including foreign currency fluctuations and fluctuations in interest and exchange rates; volatility and turmoil in the capital markets; the commercial and consumer credit environment; general political, economic, business, market and weather conditions in the various geographic regions and countries in which we buy our raw materials or manufacture or sell our products; future financial performance of major industries which we serve, including, without limitation, the food and beverage, paper, corrugated, and brewing industries; energy costs and availability, freight and shipping costs, and changes in regulatory controls regarding quotas, tariffs, duties, taxes and income tax rates; particularly United States tax reform; operating difficulties; availability of raw materials, including potato starch, tapioca, gum arabic and the specific varieties of corn upon which our products are based; our ability to develop new products and services at a rate or of a quality sufficient to meet
expectations; energy issues in Pakistan; boiler reliability; our ability to effectively integrate and operate acquired businesses; our ability to achieve budgets and to realize expected synergies; our ability to complete planned maintenance and investment projects successfully and on budget; labor disputes; genetic and biotechnology issues; changing consumption preferences including those relating to high fructose corn syrup; increased competitive and/or customer pressure in the corn-refining industry; and the outbreak or continuation of serious communicable disease or hostilities including acts of terrorism. Factors relating to the acquisition of TIC Gums that could cause actual results and developments to differ from expectations include: the anticipated benefits of the acquisition, including synergies, may not be realized; and the integration of TIC Gum's operations with those of Ingredion which may be materially delayed or may be more costly or difficult than expected.
Our forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see "Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2016 and subsequent reports on Forms 10-Q and 8-K.
Investors: Heather Kos, 708-551-2592
Media: Claire Regan, 708-551-2602