Ingredion Incorporated (INGR) has reported a 32.90 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $143.40 million, or $1.93 a share in the quarter, compared with $107.90 million, or $1.48 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $145.30 million, or $1.96 a share compared with $119.50 million or $1.64 a share, a year ago. Revenue during the quarter grew 3.64 percent to $1,489 million from $1,436.70 million in the previous year period. Gross margin for the quarter expanded 183 basis points over the previous year period to 24.80 percent. Total expenses were 85.13 percent of quarterly revenues, down from 87.82 percent for the same period last year. This has led to an improvement of 269 basis points in operating margin to 14.87 percent.
Operating income for the quarter was $221.40 million, compared with $175 million in the previous year period.
However, the adjusted operating income for the quarter stood at $224 million compared to $192.40 million in the prior year period. At the same time, adjusted operating margin improved 165 basis points in the quarter to 15.04 percent from 13.39 percent in the last year period.
"We delivered another robust quarter with solid operating income and earnings per share. More favorable price/product mix across the portfolio, as well as our global optimization efforts contributed to margin expansion," said Ilene Gordon, chairman, president and chief executive officer. "North America had record operating income for the quarter and operating income was up in Asia Pacific and EMEA year-over-year. South America, although down slightly, performed better than expected as regional network optimization and restructuring efforts were accelerated to offset difficult macroeconomic conditions and foreign-exchange headwinds."
For fiscal year 2016, Ingredion Incorporated expects diluted earnings per share to be in the range of $6.95 to $7.10 on adjusted basis.
Operating cash flow improves
Ingredion Incorporated has generated cash of $542 million from operating activities during the nine month period, up 12.68 percent or $61 million, when compared with the last year period. The company has spent $204 million cash to meet investing activities during the nine month period as against cash outgo of $603 million in the last year period.
The company has spent $35 million cash to carry out financing activities during the nine month period as against cash inflow of $329 million in the last year period.
Cash and cash equivalents stood at $751 million as on Sep. 30, 2016, up 4.02 percent or $29 million from $722 million on Sep. 30, 2015.
Working capital decreases marginally
Ingredion Incorporated has witnessed a decline in the working capital over the last year. It stood at $1,585 million as at Sep. 30, 2016, down 2.28 percent or $37 million from $1,622 million on Sep. 30, 2015. Current ratio was at 2.99 as on Sep. 30, 2016, down from 3.42 on Sep. 30, 2015.
Days sales outstanding were almost stable at 51 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 30 days for the quarter compared with 60 days for the previous year period.
Debt comes down
Ingredion Incorporated has recorded a decline in total debt over the last one year. It stood at $1,892 million as on Sep. 30, 2016, down 16.54 percent or $375 million from $2,267 million on Sep. 30, 2015. Total debt was 33.95 percent of total assets as on Sep. 30, 2016, compared with 41.64 percent on Sep. 30, 2015. Debt to equity ratio was at 0.73 as on Sep. 30, 2016, down from 1.06 as on Sep. 30, 2015.
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