Ingredion: Reports Fourth Quarter 2020 Results

Westchester / IL. (gnw) Ingredion Incorporated, a leading global provider of ingredient solutions to the food and beverage manufacturing industry, reported results for the fourth quarter and full-year 2020. The results, reported in accordance with U.S. 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 met the challenges of 2020 head-on and delivered strong performance, while advancing our Driving Growth Roadmap across all five of our Specialty platforms. Our teams demonstrated agility throughout the year, efficiently operated our factories, stayed close to customers, anticipated their needs, and enabled us to continue to be a supplier of choice. Pivoting to new ways of working resulted in over 1,300 virtual engagements with customers to co-create and deliver innovative ideas and solutions from our virtual interactive Idea Labs.»

«We delivered outstanding performance in the fourth quarter, with year-over-year 3 percent net 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 Jim Zallie, Ingredion’s president and chief executive officer.

«In the quarter, we also completed our strategic acquisition of 100 percent ownership in Verdient Foods, Inc., mobilized the integration team, and advanced construction on our Specialty plant-based protein production line. Additionally, we earned recommended food grade certification status for our South Sioux City pea protein isolate facility. Specialty ingredients net sales, excluding foreign exchange impacts, grew in all four regions for the quarter and full year, and now represents 32 percent of our annual net sales,» continued Zallie.

«Operating with an owner’s mindset, our teams made great progress with the redesign and restructuring of our organization across all four regions, resulting in USD 103 million of run-rate savings, in excess of our 2020 Cost Smart target. We are on track to meet our three-year target of USD 170 million by year-end 2021.»

«As we enter 2021 with increasing momentum, we are well-positioned to continue advancing our growth strategy and deliver value at every touchpoint of the customer experience. We remain committed to our mission to be a reliable and trusted supplier, as well as innovation partner to our customers. We believe that our focused approach will serve to create long-term value for all of our stakeholders,» Zallie concluded.

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