Ingredion (INGR) 8 Feb 232022 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Ingredion Incorporated Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Noah Weiss, Vice President of Investor Relations. Please go ahead.

to Quarter welcome XXXX Full and Call. Earnings morning, Ingredion's and Fourth Year Good Vice Investor President Weiss, Noah I'm of Relations. Vice On today's and and Executive CEO President our CFO. President call are Jim Jim Gray, Zallie, and our

and today quarter our fourth year website, issued release in full press the we Investors for and found will be can the presentation results ingredion.com, the reference on The section.

if subject assumptions and comments contain change. operations performance. forward-looking the the statements these assumes in are to Ingredion As circumstances include future may statements. uncertainties no estimated and and and presentation a update them to within reminder, future and risks this the Actual or regarding differ our company's results in expectations various materially obligation statements, These financial forward-looking could from as

actual the in press this filed most during differ could concerning from materially that and XX-Q in discussed morning's annual or reports on Additional XX-K information X-K. found today's company's factors call be and results to subsequent conference Form on recently Form report could cause release those

call, we also per U.S. financial today's earnings measures to adjusted income are X this adjusted Note appendix. information included which press certain non-GAAP our release to in and operating rate, including adjusted share, measures, and GAAP non-GAAP reconciled in presentation's effective refer tax During in

to the pleased Zallie. call turn I'm Now over to Jim

profit adjusted XX%. top year quarter and XX% pleased that the adjusted growth for report strong line fourth I growth XXXX, We to Thank outstanding sales Noah, with am morning, delivered performance good up up a you, with everyone. and growing and with Ingredion net finished profit XX%.

overcame expanding with against driving resilience our and and and growth agility roadmap set they macroeconomic while headwinds executing also demonstrated our opportunity Our transforming solutions while customers. throughout XXXX teams as

respond strength business to and of XXXX challenges another and demonstrated of ability teams of unexpected model anticipate our our effectively. the year the that was yet

will practices and customers despite Europe. a going drive customer and conflict experienced to hedging which inflation. unexpected material constraints, with material to by strong product Our as supply those follow raw team was our both that impacted customer corn The forward. supplied Ukraine last by our in largest we volatility input, raw our drought the energy, terms supply profit provided able we overcome to of the secure demand management, year, an from continue Yet as related the improving approach and corn value and to coupled expanded we shocks, keep mitigate mix well was enabled Also to significantly was chain creation raw material, contracts. opportunity

despite headwinds. exchange our U.S. Furthermore, outside a being and of $XXX dollar, million of we significant of offset strengthening the the successfully of U.S., X/X than more sales foreign

Shandong With I'm from and new for China business challenges. especially is reopens. in proud well work capacity our up production our Lastly, despite team COVID modified for sales specialty as expanded the countrywide accelerated ramping growth of economy did the facility our positioned starches,

addressing As we these once of we to XXXX, even head same as on on begin are again look to focused challenges, diminish. some many

for the objectives. or deliver utilize risk practices, management to invested it's expanded cost efficiencies whether to levers to to continue capacity available our we've reduction, expansions growth, for will We in us, against all inflation, growth operational the offset pricing

or and Turning constant basis. a increasing to quarter, fourth our year sales XX% for performance. line with income We up the adjusted record performance on operating finished XX% strong, XX% delivering the top growing currency

compared both specialty last ingredients. These line year, income same full both the results XX% were also was year. period and performance growth the top to across driven by achieving For performance adjusted operating and robust outstanding, core

logistics as costs raw offset successfully significant Additionally, foreign we material to impacts. higher and exchange well as continue

the X and sales a -- net a regions Asia Notably, year stronger full From Pacific fourth all currency detail. and America. demonstrated a constant considerably and by South sales perspective, on segment for North more the little EMEA led basis, considerable quarter net performance in at generated Looking strong results.

Turning our now strategic to pillars.

During investment, investments headroom of job costs Of executing and with our the growth. pillars. we further the global resiliency improve the across Reduce for completed strategic we local the our supply full specialties X/X agility exceptional by capital did our growth. pleased capacity of to of installations. Last of supply quarter network I'm our chains. have X progress will are chain. provide $XXX strategic the making an with you teams and that texturizer report This delivery service fourth shortening million set quarter, starch-based we enhance to updated expand on Beginning year, to

Turning to excellence. commercial

are Our growth through our more sales for If quarter and mix billion digits, customer continues cost $X.X input ongoing of business net look more we both supported sustained and teams excellence, sales pricing and full at to deliver product of management. and ingredient making ingredients and the pricing centers on-trend toward broadly, our of transform competitively we grew to inflation significant double portfolio investments year. specialty this pass-through solutions. to validate the differentiated unique This momentum

fourth life of sustainable XX% X our from sourcing up we Against all our last sustainability goals. quarter, In priority agricultural year. XX% the reached inputs,

sustainable our by We crops sourcing tracking well our XXXX. to are X against for goal XXX% achieve priority

operational the our competitiveness through potential about third excellence. excited value to from equally drive strategic pillar, creation cost are We

We make customers investments this In and making our and chain buy, supply to we visibility regard, assessing how connectivity at lowest finish and materials move raw cost. to of factory enhance transformation and and are drive are digital effectively we floor. the holistically products the

supplier global model operating build extending an our value-creating more organization. to represents our are we global relationships. scale addition, together In better opportunity global and procurement This leverage to bring our

this also past year, overall instruments volatility. strong contributor once risk performance. a is we to highlight again, reduce also that noteworthy expanded material was This to raw deployed It cost to our

advance people-centric culture. growth and Lastly, continue to we our purpose-driven

validated December, in reduction XXXX We are were And Asia as to top X emissions in early pleased our a targets recognized have SBTi. countries. been employer Pacific by

of are couple platforms discuss a we growing growth invest we and to to Let's these our within in continuing making how are lead markets. the to specialty now turn progress

in We product double-digit growth specialty sales over income sweeteners. net the beginning $XXX PureCircle's positive strong million sugar reduction innovations. quarter. talented by growth delivered net and volume XX% with and breakthrough and First, delivered again in operating sales team go-to-market with

We stake. increased by up business are original pleased XX% the the tremendous excited also PureCircle worldwide. opportunities for ownership see reduction we franchise we sugar of our to mention from XX% I'm that our to our

Turning proteins sales million, now our XXXX were the XXX% plant-based from business. for Net period. up prior year $XX to

as the our did we profitability as improved, sales grow line operating the had expected. much we and losses Although not top slightly nor doubled reduced

fortified alternative City improved we quality dairy, market on segments. nutrition Sioux laser-focused and exciting is opportunities attributes bakery, broader appeal South Our to facility growth see that product believe in beverages. sports will We

growth We annum to current than exciting as foods $XX and an portfolio formulation steadily committed more strategy towards see leading We with billion at concentrates a to is isolates. growing X% flowers, a of approach continue market upon plant-based our to per fortifying the remain plant-based for proteins, opportunity. structuring and which execute protein

new India. and into in our expansion mention in is A wanted to specialties investments pharmaceutical applications highlight we

ingredient pharma Amishi fastest-growing pharma made our the the strategy as in X During existing sales complement ingredient of the our margins adjacencies. diversify in is into the anticipate of acquisition above one add and capabilities we in [indiscernible] and high-value acquisitions acquisitions QX X nonfood our gross and half year, net portfolio purchase our additions to Both X of selectively space we markets. and pharma pharma quarter global are of high-value expand average India, These growth second with ground our the part We on which footprint of specialty these businesses. grow double-digit India

I'll hand remarks before for a few after Q&A. we Jim to over the Now let financial open it me concluding review, Jim? it for make which up

you, to and morning Thank everyone. Jim, good

and quarter dollars margins Moving for versus were statement. of at and sales related year. profit points to XXX Rapids QX our adjusted XX% was up Reported our to income were operating lower operating income Cedar pertaining the basis approximately costs up income $X U.S.-based facility. $XXX billion prior Reported year-over-year million, year. last respectively. and higher million $XXX stoppage work than Gross adjusted from Net primarily to the were

We agreement first union. of related January to stoppage the quarter the to ratified work I'm happy costs in the to extent share not the we but our XX, that XXXX, on some anticipate of with quarters. prior

$X.XX Our earnings were per fourth significantly and for quarter respectively, the from share period, up $X.XX, and reported adjusted prior year. the

net This was sales bridge. Turning the and We volume to offset sales million achieved million of our exchange by pass-through decreased of costs. $XX $XXX input QX $XX impacts higher foreign price/mix million. of including and partially of corn strong

impacts minus countries. volumes the in to some foreign net is the X% for exchange worth quarter, were in the next Pacific most primarily with unique that significant fourth a driven lower headwind EMEA. highlight slide. drivers within and events Turning noting by We sales quarter. It note, Asia Of the was

Korea, within corn Asia example, rapid core second events in the For impacted in to year, volume. of costs led Pacific, which ingredients half in pricing the increase our the

overall Furthermore, demand. have to led softer challenges Pakistan's macroeconomic

pricing in of index war And and our after. able consequently, gross shown has margins. corn result change globally has corn mentioned in into were note, our costs more gross changing the the in upon XX% flatten we of supply. we soon evidence cost Ukraine-Russia impact business expand This based prices to throughout previously, subsequently, compressed. resiliency lagged percentage though been the cycles, the practices the and export year. even As shortage Of and co-product of a values created that increased the rose processes corn, the is cost building the are market our quarter here, to Historically, corn rising margin in we corn

our earnings Turning to bridge.

of reported On earnings to see from you this adjusted reconciliation slide, side the per the can share. left

by saw by $X.XX exchange of the unfavorable share. $X.XX The $X.XX, we operating operationally, and increase driven increase volume minus of an of share side, for foreign quarter. partially was per unfavorable primarily right the offset $X.XX, minus On margin of an per increase

a minus higher our decrease $X.XX. quarter. to had The items. in financing by of of driven costs primarily Moving the was We $X.XX per decrease nonoperational share

and almost income profit XX% restructuring respectively. Net operating of million, basis were costs. was and to was $XXX margin move brief Full other XX.X%, reported operating points. year. up $XXX let's to $X a lower Reported Now due down year incomes prior income million review sales adjusted Gross versus adjusted were year primarily billion than XX operating full results. and of

Our was was reported earnings per share share $X.XX. $X.XX and earnings adjusted full year per

been Turning not by customer mix. growth price our only of full bridge, $X.X sales and improvements to also but net to year pass-through XX% driven our sales billion net has product

America for to of Argentina reported would a have on next and basis. XX% the South full Strong was from the sales minus sales the for of drivers X% offset sales we X% year. positive When by partially slide. volume net volume. highlight a contribution Turning FX minus net price of We mix sales X% JV, for adjust

the would net the volume positive X%. to a company, For contribution sales improve to

specialty prior specialty operating North income favorable was and represent where turn up dynamic me a the in year that and by net net sales risk America, South the on America worth contribution and regional by mix were of strong year, driven to drive sales mix was America recap year. price million, and richer update of performance ingredients It noting period XX% up up specialty XX% XX% net the sales. products have increase performance. North price significantly $XXX were raw from region's versus line management. now top material when mix. compared prior grown In Let XX% expanded a helped comparable same The ingredients full is pricing driven versus XXXX. to you to

operating costs. partially price input mix, by by America increases driven higher offset and $XXX was predominantly income South up XX%, which favorable million, corn

were Asia up full XX% sales Pacific. currency and basis. a up on for to XX% Moving Net year constant the

impacts income Asia by $XX mix with Korea. offset was notably higher that price X% in up prior exchange input was versus costs, and Pacific operating favorable partially year, million, foreign

exchange absent net foreign impacts, EMEA, for compared was adjusted XX%. were impacts, operating net up XX% and due foreign by sales offset the X% $XXX Excluding full macroeconomic year In impacts to up the income was the partially sales operating for income exchange XX% full year. prior EMEA increased across region. favorability the and foreign full exchange for up in in which was Pakistan the to Europe, year challenges year, million

held year. year significant adjusted sales core was specialty in and the note, all increases foreign exchange or X Specialty both constant price full Excluding proportion of for Ingredients The up impacts, products. operating a income across in witnessing net grew XX% Of regions.

earnings our to bridge. Turning

side left of to from the see adjusted. you the the page, On reported can reconciliation

of The full increase share $X.XX offset On volumes $X.XX, side, operationally, margin of the of minus and saw the minus increase $X.XX. was year. by of right $X.XX lower improvement we driven exchange by an per for foreign

costs a by decrease We share. $X.XX $X.XX our higher minus nonoperational primarily higher per and rate share effective driven per minus items. to a of financing of $X.XX tax Moving saw of

cash to from $XXX Moving cash flow. Full was year operations million.

an operations more cash benefited from working in which increase was investments. increase has Our in income, an capital from than by net offset

through invoice accounts inflating As to even our reflected financials prices flowed capital in values. higher our balances higher our inventory corn XXXX, were and QX costs started our as in receivable corn increase further through working costs pass beginning

we up with XXXX's look in as to XXXX, inflation. prices we As higher catch invoice our pricing expect contracted we

our to Net In of quarter, and XXXX our in ownership for million shareholders capital $XXX commitments. taking acquired respect were shares PureCircle expectations to $X additional acquisitions. with expenditures With XX%. capital line minority million, for for the we

to dividends common $XXX $XXX repurchasing paying million $XXX Ingredion the million shareholders, and of year, For outstanding we in full million returned shares.

to outlook. like I'd XXXX our introduce Now

sales and to mid-double driven digits mix volume be price net by expect growth. up strong We

and expect borrowing expected million, million double to to up incremental single We be digits $XXX of costs in costs. to low range to adjusted financing income the reported higher high be to are XXXX operating year. $XXX digits last reflecting compared

approximately rate to adjusted the approximately operations million. full anticipated million, be in $XXX working in effective for reflects annual is to expected be expenditures the of expected XX.X%. which from flow $XXX investment are capital to of and million. to million XX.X% Capital between tax Our anticipated an range year be Cash $XXX $XXX is

integration EPS the of in range to year as full well acquisition-related restructuring the This $X.XX. any charges. We be adjusted expect excludes $X.XX of to reported costs and impairment and XXXX potential as impact our

of the weighted for to XX.X total million range year. We expect diluted average million outstanding in shares be to XX.X the

is favorable terms price up by are America net driven In our mix, input to XX% double be to partially digits customer by offset expected low and of income be XX%, costs. mix. price regional by up expected to outlook. sales favorable higher North Operating driven

For we net South reflecting to to favorable sales expect XX%, mix. America, up be price X%

expected anticipate year. to XX% up Asia to input XX% income up mostly operating favorable higher Pacific, mix low is price costs. net America to prior versus digits sales In South be be with single offsetting we the

We up favorable digits expect growth, be offset mix partially price by input and to operating income PureCircle mid-double driven higher costs. by

and navigate to sales mid-single be digits, income up up uncertainty. operating net we to Corporate costs to in expect economic we low XX% XX%, up impacts expected Pakistan's to expect EMEA, are exchange For we foreign be be as single digits.

comments, and it Jim. hand That concludes I'll my back to

our in breadth call Thanks, XXXX. in Jim. that the and helpful I today has depth achievements conveying Ingredion's hope been of

heard, delivered we you challenges, very despite strong many As results.

pillars year positioned I'm reflect to that on XXXX, to look I continue for growth. to the against well confident forward As past we our strategic are execute and

channels grind to volatility. grow drive mitigating for finishing maximize portfolio, will specialty sales, optimization protein be core priorities profit while value from further also Our our ingredients continued plant-based ingredients and

digital and chain enhance to experience. and to customer the R&D innovation transform And in drive lastly, capabilities supply invest the

to well shareholders. and growth to Ingredion deliver for our create we value closing, is are confident continue positioned In that sustainable

let's Now questions. Operator? call to open the

Instructions]. [Operator

Stephens. Our of the first from question Ben comes with line Bienvenu

are then So get guidance, in start top also I range we the create $X.XX you How with little versus follow-up about the to FX? that the Jim, what bottom? the a elements And of a you respect to want guidance, could assuming to variability do $X.XX. that bit talk on the range? to the will with as guys

Yes.

say the the as some at So balance of opportunities. what relationship watch outs the I we well as would is, as in look to

that a would for. exchange, all and demand. and America perhaps supply If corn versatile products are in periods perhaps of we of and North being factors very was of watch impact some perform of watch clearly, devaluations, be would recession once they growth. the periods obviously out. continued that the out poor and for well again during said, foreign something diversified On there clearly, that the sort macroeconomic out very some could watch or But typically in Europe, That economic we crop that very customer then side, that's

customer than cost economic demand and or opportunity if we downturn, the mild recession be comes upside in would and on optimization initiatives. a either have then no accelerate side, stronger that So an planned,

to We up and there. operating sales some commercialization gained be there. procurement. our have opportunities very stood those of a can If better-than-planned globalize there plant-based then big referenced as And our being we right we now drive lever on That We model, deliver programs sales organization. will accelerated protein sooner. global That to upside. be there's active development really, aggressively I is in lot a see

add So Jim, anything? you to want do

still I we would cost see that Yes. inflation. just year-over-year corn say

of what countries. then typically, -- XXXX over some of like, cost, the in help energy you wage is costs turn kind fixed our maybe we're but and it year going the of a increases have reconciling still some of like in our that cost those And CBOT of corn number we as of we try in increases, also, index with While up an we still our incurred still call you fixed things see looks would hedges. we

And expectation volume get of course, get we'd increases. are of probably around into our favorable if cost so than we we built those absorption. more COGS expect, kind an And

volume more now, in and But of rate and/or is corn of in costs. change our the some how our of increases we guidance to manufacturing kind more in either anticipating changes due I some some seeing just we're we're getting underlying think look right conservative the fixed that at COGS

pricing, XXXX. My growth related like Is question duration really I to the this industry what to capacities it nature? supply/demand question top multiyear tighter is line that that sounds looks what the business is, of you be strong of kind do over it into all of seems that headwinds the in sustain driving what discussing it challenging I'm much are as Okay. particular, the guys or something across level to the ask and be that feels in to because very earnings given stronger business. though is the to are guys Great. path industry? on you we My might we that tight second backdrop as think come the of be for pricing capacities And And this been your like referenced has business curious you you feel of years. last to growth characterization several out visibility relative for last few confidence a guys years, in the of is

long would in the that perhaps also in of lead see. don't we this feedstocks. times provide anyone assets tightness entry are to fundamentals And very renewable What very I And at utilization. is levels, high prevent we remains remember, Yes. historical what operate and utilization elevated industry is market that heavy one primarily what say because almost the which if United And for seeing States demand is And obviously to capacity, increased industry grind conditions, expand is determinants and is want with favorable. levels. big -- fixed the of we've that grind indicated that barriers at we're

downstream And capacity trade creating, for value-added affording and across core like companies so at finishing for again, specialty. processes and to existing offerings the demand up through more look to grind opportunities and thus for both more channels that's ourselves

to think things We're businesses. specialties, leverage opportunities the certainly with about it's for both And the business. amount to to work and good our the adopting get are both haven't that that we're that industry of we a as us work our seeing grind. value driving And leverage one doing of seen us network allow efficiencies from allow do optimal I aspects network creation conditions I integration relates equally we innovation kind focused the think the these both that. others that on of that across ingenuity very at of of it finite and that certainly both kind across to And And those feel across approach. of procurement so that seeing corn and and core from we're you're at

of the from Goldman Our line with next comes Sachs. Samuelson Adam question

price other our the growth, growth growth waterfall if of or in mix net specialties about If kind I sure XXXX factors think keeping you America, of comments protein of price just maybe and guidance be lower the and should on guess the make profit just can of about it's think I trying from if I think about help from? you to and where cost some fairly I especially made you of kind cost losses North kind me and volumes investments? kind Or the plant other any were faster coming break and up expectations pieces can restrained. the dissect or other about was thinking drivers just all between the of think we to just and productivity

do quarter. unit it our a America we're at allowed me to asset sure making called couple -- as very pleased initiatives it Let I'm and points, optimizing limited again, for Obviously, the our capacity a profit take we've margins of excellent a to line velocity that is, customer that make shot across is sure on to there customers, optimizing period both to we're of relates was us growing well going we specialties the work introduced and which as Jim. with product mix as a performance turn and that of to over results, specialties management the on to margins something North being for we And in on just It time. some over and done a core highlight quantified work product how a take are the management, limited relationship base our both make strongly. with. again, reason very And business our

in that capacities industry. we're constrained the the Given seeing

think good of very of work. combination at you're pricing a excellence centers I seeing So

management and also seeing product work and product velocity you're as and profit well. customer think margin I on excellent mix work

they're effort to the Jim, you working X. why add pleased a across it's team anything? want better results and I and in we're sport I with that's quarter than And real do the team So very operations think think go-to-market ever. teams,

for Adam, up Relative low up and in in being North full corn. guidance contracts in What's that hedge were and very entering income digits. where year we XXXX our pretty XX%. we had pricing I operating simply customers, our America, to when is Yes. with is is double XX% to think expansive that up were kind we of

that our where experiencing past relative costs a We're had Ukraine-Russia. the were of because hedged the after corn bit in XXXX. we So less probably corn moved to little start we

Now looking cost as we reflected roll hedges, in with over corn inflation at the conversations our corn elevated the just customers. and strip those been of that's we're and where co-products that's There's are. in, pricing built

And some mix. so op customer that's of see in America, beneath double versus think, we're of, kind increases COGS we're to North going low terms price income sensing what the the in digits and and I up really

the that, into flowing 'XX. corn is higher through capital And it like think, ago, few it point of got ties you and confidence hedging into had months quarter, the a just because that receivables came I on the it guess, working cash better handle just inventory, Is significant flow counted seems going purely the capital higher which on helpful. on sales piece. below working That's it a was probably in and and the and last in as the I big headwind where and not that you dollars then

Yes. obviously, I mean here our step-up -- is we'll I in on see X. a invoice really, think Jan pricing

go that bit stock And driving QX, investment replenishing we're had, throughout XXXX. little some we past in in on supply into good and nice I as going XXXX, to I a really -- more all inventory we're some a that a think But forward. of QX of receivable. we're we the chain finishing able as there spot relative disruptions into into position, our to accounts we've better will think, safety get just be So

the see I inventory. change as much cost our So of the investment value of in don't

I controllable with feel to in like bit spot regard a So little working capital. we're more

pass Super helpful. I'll Thanks. on. it

of Our UBS. comes next from question Ross the Cody with line

the your cost COGS year, hoping for a I'm price your about to then expectation and out I little put discussed contract You season outlook on but that discuss for you your the out follow-up. point And coming to it. have for already or bit a of a broadly gains of it finer year? the compare Can inflation

Yes.

contracting As and pricing. it relates to

reflects we to for believe that net As digits this I again year, the continued price referenced last and did we've the coming up again, build guided of you the what effective inflation, majority as from pass-through mid-double year customer increase our management. mix as year want of with that? mix, will that to well comparison sales be in earlier, product the Jim, and on

of the going be mean terms to hedged raw placing think we're then costs or maybe hedges in I we've X/X Cody, X/X. somewhat now we in materials, and X and as desire our I have more costs corn Yes. purchase our other or by referenced of lapping we inflation, that. in of just effectively or probably kind our year-over-year we change both where to replace is go from year COGS to the driven some It's XXXX against to next, tapioca corn

of are the energy have rollover kind Those costs, also right? You expected. all

also would is what highlight strong with balanced approach is that mix, our volume, I price -- we're just think volume. while towards positive, a taking that I I think

And much so if we're less of probably were of that we in kind a globally. environment anticipate as not of inflationary getting we absorption costs would fixed

our COGS part of so that's change. also And

improvements other gross be XXXX did I we year-over-year to would perhaps And should I an mentioned quarter conditions, have and that X, we have one probably in opportunity was for is thing of which margins. in referenced. that The contributors improving include this the as would supply chain

as be and something allowed expand in to quarter. to the continue, gross that that's us could helped us were degree that if are we year-over-year which so some And of seeing trends to X, quarter It margins developing our in well. for certainly those a favorable us

peers discuss That's do and going helpful. America just segment we the in and weaker year below full And -- drove South trends, in other the expect shortfall? forward? your want then And expected guidance, a it the because to came you to then little what be consumption than top noted slowing bit came I given softer line region the bottom

Jim, do you to? want

I don't look what of America, Well, price think, through then to finished we materials. in and just all sales year also of Cody, were exactly. finishing impacts FX -- terms South nicely on of raw in in seeing, of I the our that But question to terms the volume really just continue the second half overall,

I very Peru. the how and maturing Brazil the in of countries. we're pleased of evident as Colombia there, very as as well looking excellence a pricing kind We're at very Brazil, in think the of is -- well So given South obviously, both overall have other very that as American inflation some a we with businesses center --

very you're So you at corn terms need of how and/or energy at agile that to next through. the pricing be X and cost looking X months of to in

I I mean had I in in So operating income growth. tremendous a think terms look of back year America South

region, very, Another also Brazil previous bottom The on Peru strong an across And even of significant a perform. tremendous X exceptional line year strong years X regions, the Indian year of our very very Colombia and really the And year. a that's business had to had top top continue and growth. quarter.

performance the So pleased South in with we're very actually America.

line from comes question with Securities. Crédit of the Suisse next Robert Moskow Our

color there us where you pricing can I on hoping than more And able higher like customers what to are your do others? involve. your the lags? for means comparisons little mix a then it trade of portfolio? to Are easier the guess, what I quarterly. customer like phasing could Or to, Or give product anything was to margin with get what examples to actually you're some the secondly, your that else products within them management XXXX any

take I'll the one take question. first Sure. on will phasing. second Jim? the Jim

Yes.

of experienced expecting the of then of mid-single-digit growth QX and OI low in to last in half second and growth half. both we the that growth Given stronger QX OI year the I'm year, kind first the in

to kind in U.S. full really outside raw barring the growth of low I of primarily high any our think double-digit we material OI just expect year, the costs, layout changes for the significant single of

we these referenced X believe last as conditions, longer-term allowed work strategic And strategic best relationship opportunities. the supplying and that the years be represented as in and to to mix that us customers that going customers And it had longer us were those be over forced the has to discerning in are partners be relates to term. to with for customer products growth different specifically to we management, product market the I we would more

really intelligent categories through in the which some really So decision-making analysis good very and growth for with customer in analysis, we doing some forecasts customer and decision-making. and are work good profitability

think years of mix mix better excellence. X the and it strategic business aligns The I of the to think invested timed management ago, long-term relationship in, with we for that a customer line in with about centers way we in growth. have our product our same managers we in improved profitability pricing done product that

velocity... volatile product at you time line teams introducing you those given are much make profitability said in managers profit complemented on profit with We looking of is can period how that the of concept an volatility, and a again, which asset

You said velocity...

period our can looking profit Sorry, of further we given at Hopefully, bit performance. the profit how Jim, Thank operation time. gives that's little on a correcting. Rob, velocity. But unit helped you, of a that, improve on of that amount so you particular in a maximize for color

And Yes. profitable? right being as want then fill result them also your follow-up. you from rates terms be where to you supply that a also, were away are certain maybe in demand? able customers walking a of And to not now Are maybe

Yes.

a XX sold our running to do last, relates critical teams products, rates, fill continue -- as our over very constrained some to we to for we in it where had upside see tough As there pleased having make sure, decisions say, months. and be we the From to that. And relationship assets. very are we've with how identified operations our standpoint our we're of to

We We've one at have the them. for every value have and teams programs that place a the in capacity stake, all release quantified of on each as to of year. this go-get and

that in good core operations between teams both specialty our ingredients. again across go-to-market regard and really collaboration So our and

fill So we're forward. the but happy see we opportunities with rates, going

[Operator Instructions].

with from Barclays. question comes next Theurer Our Ben

two quick Just ones.

you and if into how framing and like on the XXXX, for a than this protein little what But a softer should there we also So talked we it about little about headwind ultimate look you've would one, between operating range year. million, XX growth hoped bit was for, it, think both good this plant-based the be in breakeven rates, loss wide the would to, but versus to for get to profit XX it the a million relatively which segment call you what of need still was it XXXX? side, in

to then aspect proteins. getting just some question And over to make comments overall on turn on breakeven. I'll the I'll to the of last Jim of it segment take plant-based your Yes.

becoming as growing So seeing any consumer now quality change. as for the way different customer fast right rapidly business, product at we're taste result, requirements And plant-based and preferences and the more particular applications. looking evolving category, with a we're

that represents against can companies those attributes. deliver an quality Now opportunity that for

regarding also seeing, are it's that customers being prudent we're surprise this and not current new a environment. launches more in And product

this which to have focus a we us absorption to segments sharpened need And the customer the incremental growth, we cost We continue, sales to allow project and and to our be our particular target focus have drive though, that will to for believe robust pipeline profitability. fixed increase the growth. lever is going

sales consumers they're The plants to, on sports relationships as it the whether the we far new alternative specific on to leverage and take Do that well, categories, want you different to cetera. for introduce they dairy, again, that? regards meat, partnership, Jim, particular customer these products specifications against alternative are in are their the or threshold be as looking beverages, have nutrition, in as et what question side. running to very deliver

Yes.

significant while upon had we versus think Ben, XXXX. that improved I loss, pretty operating a So we XXXX, within

that really looking volume as start terms what then to, expectation in facilities. for in we that sort get is of range, our as improvement in to on go million-ish -- we more doubling our loss. sales and X that operating go from XXXX just pivot our really think throughput mid-XX into What we a guidance. is we're of our again, really and into we're I And included that's modest

that that And to start really down. really then get costs. cover beyond starts fixed really to close to help We -- contribution the us our margin enough sales

XXXX 'XX, now, behind the let's and of momentum product success, the sales improvement think sampling to of be breakeven. then think all we're and end and of top getting 'XX, get be quality so build the looking And towards somewhere I the all the the we'll I right maybe momentum more where taking sales and seeing cash into that at at kind would in line we least

that been allocation. now then PureCircle, has very rest of Perfect. success I of a mean, on consider one done obviously growth. seems your you Or stake about the how increase of you left out think obviously, over? the balanced And something just it minor we it on much in allocation, focus might not you capital own and the just the you Okay. little maybe bit a Would capital story buying see understand to because between the should there's like already like adding M&A there? XX%, opportunities

Yes.

So within remaining to X the shareholders, over of PureCircle rights with the the next our the remaining agreement we XX% have purchase years.

happen towards agreements. by ownership XXX% may PureCircle XXXX. So have of we'll sooner, that's more within that our It complete and but

pipeline, strategy overall well M&A relationships as of and nurturing just continue long-term for our M&A, allocation And part capital to to have sure. in a -- very active that's we and relationship

this to showing Jim currently to Zallie at I'd like further time. I'm over And questions the back remarks. no closing call for hand

right. Thank in your you. events, forward at to look our and this for want We many continued thank I'd everyone to interest everyone seeing you morning. Ingredion. to And us All thank like upcoming I for investor of joining

you. for participation. conference you call. This today's Thank your Thank concludes

may now disconnect. You