Ingredion Incorporated (INGR) has reported a 9.90 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $93.70 million, or $1.26 a share in the quarter, compared with $104 million, or $1.42 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $124.10 million, or $1.67 a share compared with $103.70 million or $1.42 a share, a year ago. Revenue during the quarter went down marginally by 0.39 percent to $1,399.20 million from $1,404.70 million in the previous year period. Gross margin for the quarter expanded 195 basis points over the previous year period to 24.21 percent. Total expenses were 86.51 percent of quarterly revenues, down from 87.66 percent for the same period last year. This has led to an improvement of 116 basis points in operating margin to 13.49 percent.
Operating income for the quarter was $188.80 million, compared with $173.30 million in the previous year period.
However, the adjusted operating income for the quarter stood at $194.20 million compared to $176.60 million in the prior year period. At the same time, adjusted operating margin improved 131 basis points in the quarter to 13.88 percent from 12.57 percent in the last year period.
"We concluded 2016 with record earnings per share and operating income, and significant progress on our strategic blueprint. Sales of our higher-value specialty portfolio grew to 26 percent of net sales for the year and our acquisitions of TIC Gums and Shandong Huanong Specialty Corn were completed in the fourth quarter,” said Ilene Gordon, chairman, president and chief executive officer. "For the year, more favorable price/product mix across the portfolio, as well as our global optimization efforts drove margin expansion. North America, Asia Pacific and EMEA achieved record operating income year-over-year. South America, although down, accelerated regional network optimization and restructuring efforts to offset difficult macroeconomic conditions and foreign-exchange headwinds."
For financial year 2017, Ingredion Incorporated forecasts diluted earnings per share to be in the range of $7.28 to $7.68. The company forecasts diluted earnings per share to be in the range of $7.40 to $7.80 on adjusted basis.
Operating cash flow improves
Ingredion Incorporated has generated cash of $771 million from operating activities during the year, up 12.39 percent or $85 million, when compared with the last year. The company has spent $689 million cash to meet investing activities during the year as against cash outgo of $649 million in the last year. It has incurred net capital expenditure of $281 million on net basis during the year, up 16.12 percent or $39 million from year ago.
Cash and cash equivalents stood at $512 million as on Dec. 31, 2016, up 17.97 percent or $78 million from $434 million on Dec. 31, 2015.
Working capital increases
Ingredion Incorporated has recorded an increase in the working capital over the last year. It stood at $1,274 million as at Dec. 31, 2016, up 5.46 percent or $66 million from $1,208 million on Dec. 31, 2015. Current ratio was at 2.30 as on Dec. 31, 2016, down from 2.63 on Dec. 31, 2015.
Days sales outstanding went up to 30 days for the quarter compared with 25 days for the same period last year.
Days inventory outstanding has increased to 34 days for the quarter compared with 30 days for the previous year period.
Debt moves up
Ingredion Incorporated has witnessed an increase in total debt over the last one year. It stood at $1,956 million as on Dec. 31, 2016, up 6.42 percent or $118 million from $1,838 million on Dec. 31, 2015. Total debt was 33.83 percent of total assets as on Dec. 31, 2016, compared with 36.22 percent on Dec. 31, 2015. Debt to equity ratio was at 0.75 as on Dec. 31, 2016, down from 0.84 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
