Ingredion (INGR) 7 Nov 232023 Q3 Earnings call transcript

Thank you for standing by, and welcome to Ingredion's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's call is being recorded. I would now turn the conference over to your host, Mr. Noah Weiss, Vice President of Investor Relations. Please go ahead.

to Quarter welcome Earnings and morning, Ingredion's XXXX Third Call. Good Investor Weiss, Vice Noah Relations. President I'm of

Joining section. me Vice be can call today be and ingredion.com, The on referencing today's website, release found as Jim and our press the third presentation in Gray, on CEO; well President for as our our we was our both Executive that President the CFO. are and Investors issued Jim will Zallie, results quarter

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

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

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

to Jim I over that, the Zallie. call With will turn

and Noah, good you, Thank everyone. morning,

up mitigate pricing impact initiatives. regions. increases price/mix, by multiple I of the able which we growth pleased strong third and including operational quarter, by we the last Adjusted As were as the partially volumes, all productivity XX% report to across profitability levers, enter and operating the offset improvements, cost sales positive through recovering income mix of excellence solid and am are was sequentially part in year, to driven

map continued Our strategic execution today business the of a as road against for profitable is growth. more our result stronger and

Let net Beginning of on progress Year-to-date expansion. with the each me now have against strategic X%, sales margin our along update Ingredients. gross pillars. Specialty grown you with continued

care Additionally, against starch-based experienced strong and Systems texturizers, prior all pharma double-digit and the growth Food performance personal year. in year-to-date

commercial to excellence. Turning

some customers. which teams sizable should larger secured support multiyear These load our expansion of contracts, of global base provide contracts Our with margin a in XXXX. sales volume,

supply the Additionally, capabilities overall has to completed Net logistics rewarded Scores and chain feedback. with been work our and positive systems we enhance Promoter customer higher fulfillment

excellence increasingly times by operations opportunity to costs. freight quarter our An are excited and improve further Looking X, important to have customers. dedicated we our customer reduce customers continue The creation of the generating part the and we value pickup warehouse on chain with and commercial incremental our we with value for initiatives. customers supply farmers, projects from agricultural ourselves is regenerative our sustainability is agenda the collaborate to to across shared

We engaging and the a for agricultural program. as Platform's are also to proud food framework member beverage develop SAI founding regenerative of a industry

good the area against done production competitiveness, cost demand. job changing very of we a In of have customer balancing

commercial organization the operations customer maintaining chain while is closely and demand inventory. both excessive goods not met all team yet year ensure worked Our to supply finished with has our sufficient

efforts. higher It more lower than do Our allocated volumes have costs fixed faced inputs million fixed their have noting allocated largely these to due absorb help offset to teams -- production is fantastic our inflation operations managing job to productivity costs year-to-date, and cost a team continues challenges that costs. through $XX offset of and worth

rates. recordable at Ingredion safety notable the team contractor change has recognize reduction a like our levels given particularly job have they I'd of and historically of year but in step this Additionally, is that to world-class lost operated this performance safety time case done and driving performance, tremendous year. operations employee

purpose-driven our people-centric acknowledging culture. and growth Finally,

South the certifications received and consecutive to a Industrial year, were to the Mexico And the second year Mexican Confederation ninth in in and for of we the Colombia in industry in Chambers. row Place from awarded Brazil, Peru. award For Work Great ethics for America, an values Ingredion pleased be

the to XXXX. Turning XXXX changes our index We quarter. show shipment and our volume excluding adjusting here portfolio trends fructose quarterly in corn syrup upon based volume a averages, high in since for

chain throughout this our During produced our performance also this and QX the a be believe conference experienced demand in of buildup to we strength geographies in Both the operate. to specialties exaggerated of continue model. well rebalancing. XXXX positioned growing of ingredients business appears illustrate decelerated throughout as customer It markets third quarter. sequential XXXX month destocking exposure large on call, supply address demonstrated graph month we diversity that introduced required and inventory has portfolio, markets how our end the the quarter's product and to We we where our and the improvement core

growth our category, specialty experienced in Specialty texture a perspective, From largest we Ingredients solutions.

Reduction, expectations continued as worked with also to margins. strong reformulate in PureCircle has affordability, and experience to label private expanded platform outperformed In growth Systems we to market. Food Our Sugar we recipes European closely primarily drive customers the volume

response growth ingredients with showed as pleased food we growing middle-class and in demand where the third driving also sugar across categories, in resilience, a ran partially is capacity a Mexico, prices. were also record X quarter, for glucose core to In production economy quarter operating driven of facilities markets, profit solid to Our full by our higher beverage see the U.S., range largest our demand. delivering at robust volume of

as pickup industries, across the saw ingredients, our U.S. steady in and broadly industrial Lastly, which papermaking serve recovered the demand shipment volumes corrugating a

business see, diversity even value deliver can challenging us environments. our the to shareholder in allows inherent in continue you As to

to has growth invest as in improved risk we results. have continued we business our As consistency management, deliver record-setting and shown

financial it to over turn me Gray Jim the let Now for review.

you, to good and morning Jim, Thank everyone.

greater and by and costs profit operating income up versus dollars million sales this Gross reaching increases with quarter Net mix, lower were year. driven adjusted our million, than prior volumes. the statement. XX% income to by grew The billion prior and approximately input Reported partially were year, price of for were Moving higher $XXX $X gross margins favorable X% respectively. XX% quarter. again $XXX offset versus

peso Our third earnings up tax dollar. by and $X.XX respectively, $X.XX per and the $X.XX the The a share of driven higher main is the adjustment Mexican value XX%, and adjusted period, year. for prior Mexico adjusted from quarter XX% a U.S. the due the were for to EPS reported provision against in driver lower

net by along of decreased impact $XXX $XX million. of volumes to mix partially price bridge. strong sorry, of -- This We was sales favorable offset foreign our Turning with million, exchange QX achieved $XXX sales XXX million.

We next drivers Turning slide. sales third to the the net for highlight quarter.

and peso, Foreign this of FX-related partially America X% the South tailwind EMEA, as offsetting Colombian exchange in impact was primarily a strengthening Pakistan. Brazilian quarter, real in the a saw

quarter to Sales and growth, the net work of inventory. of through customers to the third was volume XXXX. product compared was price/mix sales continue to mix sequentially up destocking Contributing up down second as from customer optimization quarter X%, but to due X%

volumes increase increases by to to now XX.X%, we higher has led price/mix throughout margins. by basis, quarter, industry but fixed rate moderate. Turning of cost XXXX. basis input margins profit the Inflationary third gross optimization. driven absorption On through have started to XXX the Weaker continued cost year-over-year improved to points a gross

evenly commercial to job X manage expand production operational address Our higher costs enabled for have demand. to us and margins to excellence that done highlight to to great gross quarters. operations more is team has It noteworthy efforts and consecutive a

volumes compared as X% American as Let when sales performance. higher lower well and regional a sales to industrial input ingredients. prior driven recap by costs and partially was across driven price/mix, increase volumes. solid million, was year, North versus by of North me were America $XXX XX% net by operating turn to up last our year. mix, offset up price favorable The sweeteners QX income strong

and sales South versus down basis. XX% a comparable In currency constant year net America, on down X% were last

income South Brazil. America's XX% to renewable in energy our was transition $XX higher and operating to lower million, biomass primarily driven by associated with volumes costs down

will of beneficial. associated and changeover, long-term While be we costs supply incurred upfront strategic energy this cost with predictable savings the

Pacific. Asia were Moving a were on basis. sales X% and down quarter, for constant currency to Net the flat

was by the mix And to net were $XX impacts, price compared year, up for mix, Pacific quarter. partially up net million, higher X%. EMEA raw by foreign operating price XX% favorable quarter, the up income favorable prior was offset X% X% prior with million income material and in exchange sales $XX volumes. increased lower exchange sales foreign EMEA, by year, the Asia volumes, absent In impacts. partially lower costs driven operating offset versus

our to bridge. earnings Turning

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

of The increase share of per EPS. XX% $X.XX, increase in we saw an operationally, unfavorable of is side, by operating operating the margin offset an alone It increase performance right primarily the minus for noteworthy driven a by drove quarter. was $X.XX On that partially $X.XX share. adjusted volume per increase

Moving lower up in our and income to certain by of $X.XX We due prior and equity to up Year-to-date, share was quarter, Year-to-date, than rate a million. Rapids recently first facility primarily from net related our share primarily versus costs had Reported to basis lower items. was income an increase year. investment operating to our points. IRS $X.XX ability driven impairments U.S. issued billion income, $X.X which XXX nonoperational operating in a of margin per stoppage $XXX foreign Gross operating work was Cedar taxes. was per were sales adjusted the was income million, $XXX quarter. which XX.X%, at method the against profit tax notice, of increased tax reported adjusted claim a operating X% credits

$X.XX. was adjusted the the year-to-date $X.XX, the dollar share benefits to Our share peso against EPS of tax higher Mexican was the per from the adjusted due U.S. in was primarily reported EPS, than period. per valuation earnings and earnings Reported

our earnings to Turning year-to-date bridge.

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

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

saw increase $X.XX per higher share offset share to nonoperational partially by to tax We our Moving due per items. costs $X.XX share. per an of financing of a benefit, $X.XX year-to-date

from this cash and was up the flow. cash line in expenditures our for year Year-to-date, end expect the full QX, operations period to net were the last balance capital with capital working to million expectations. year. year. Through flat relatively Net same Moving we investment in $XXX $XXX million, from million, $XXX remain the significantly was our of million, of $XX

X first of $XXX shares. year, million the common we outstanding During quarters shareholders of to million paid dividends repurchased $XXX and the in

allocation cash As continue with our flexible remains be capital strategic priorities. to to respect from we'll and operations strong,

rate tax expect XXXX sales XX%, now effective Next, volumes. mid-single-digits, sales like tax to to but guidance. lowered reflecting to softer outlook. I'd be XX% recovering net to provision recent our up We our We address updated reflecting adjusted

also to guidance We adjusted in be raised of the it $X.XX. to XXXX expect our full have year EPS and $X.XX now range

the XX.X We diluted shares slightly weighted shares and have average XX.X million be to between million outstanding shares. decreased

Lastly, million. XXXX $XXX year in from is of $XXX the the to range operations to cash be for now million full expected

our outlook, to of income full are is cost outpace X% to net to by Operating to mix. expected mix lower increases. volumes terms up regional XX% XX%, price price In expected and year up be America XX%, North with favorable continuing sales driven be to

to we net expect lower flat be due to X% For South volumes. sales down America, to

mid- by be and and South input to volume higher income to expected costs. is down lower driven America high-teens, energy operating

income year, we digits, PureCircle by price/mix costs. anticipate operating high offset Asia input net and and flat In the prior growth, to we be double expect higher by driven Pacific, be versus favorable partially to sales up

to Corporate For due income EMEA, we to operating XX% and be be XX% sales now price/mix. up X% costs up single my and be to expect digits. to I'll it up Jim. back are concludes That net comments, to expected XX% hand favorable to to high

final share we to few thoughts business on remainder how like would see the year. the I Jim. outlook Thanks, a for of the just

us, sequential As we the that improvements continue. quarter, the shipments corrections we related anticipate that weakness anticipate in third is volume and finished behind should we largely to inventory

and resilient, growth to and with While margin evidenced strong uncertain, remains profit expansion. environment year-over-year agility, continues operating operating by our our teams are gross the our be business as

the We are customer year strength diverse to a portfolio and testament record our XXXX, well is which deliver of we in relationships. positioned our to believe a

and opportunistic We value carrying and We to X-year finishing the delivering our shareholders XXXX. strong while increased that on to will continuing dividends outlook remain are exceed growth through repurchases. focused into return share results momentum year

focus better would the on a opening texture also first serve Before our I announcement Q&A, our intention with global of customers call XXXX operations solutions. today to like mention to for business in of and to our reorganize quarter the healthful

first our a reporting expect financial reorganization in better capabilities to for opportunities reflect segments the company's the and will financial and our with into stakeholders provide in product company. our insight We the drivers which value business strategic greater will the market of quarter, result change the

open Now call the for let's questions.

Instructions] Thank you. Our ] [ of question of comes Owen first Kristen Oppenheimer. from [Operator the line

Jim, the if you what the start on I internally organization. for you of of understand there. times us And cycle could about there the implies realignment? last up that help actually wanted comment to made internally follow that effect that here the just in And or segments. are any synergies And terms realignment maybe I'll if of just the innovation

Thank Kristen. you,

so in to offer headroom value having We upon helpful to Reduction. a it's the be PureCircle more with textural the texture for about fiber able propositions problem-solving solutions. offers excited And being that And for our We our basis, more categories. with are and -- lies believe and offer going synergies, protein applications customers that go-to-market see position with and our global pursue excellent opportunities healthful we're to deep an growth. with customers position Sugar the variety with very and in starch specialty to to we of term, that inherent solutions been a fortification align operations of and broad intention be evidenced business to our large able opportunity. think to us And on there and with do reorganize lot to lot we starches that equally, holistically X a where our unique growing operation very long a and synergies operate is fortification, operational and for and the build opportunity solutions opportunity global as of to before already

excited. very we're So

we're to that today, the segments opportunities. going insight with this because is in to about different more and the organization external an timed There the strategic about is will better product give market detail announcement And we the excited. part equally, you that of be excited think internal out into and we're the very opportunity reflect I announcement. all capabilities excited. reorganization was very greater went But for our drivers the of company think it value talk

But trends takes moving just just realize strength for you how discussed momentum in for That's on given understand helpful. a I then on really And us some it's of the next little destocking, mix, help margin early bit think into and we year, that side XXXX. about the XXXX? the puts price should sort of the

I'm -- practice I And call. in prior to contracting as therefore, also on say I'll it What years, typically contracting to let relatively our and Jim QX in cycle. going the early here. say But our supplement is update whatever it's

to highlight However, I think, it is a noteworthy, points. few

expansive represent renewed customers margin mentioned we should in of prepared that have large significant As XXXX. in remarks, be contracts our expansion which baseload volume we several with a multiyear

outlook markets costs a corn have with when these renew, expansion But remind reprice me anticipate dollars with that supportive comes from current margin of America monthly our in And they they our from remain lower some should that North in cost XXXX fee let market -- as XXXX. be customers. the in revenue under of everyone inputs of contracts pass-through if addition also we In contracts today. similar corn conditions, approximately XX%

very we've year, that carefully have last year Pricing so talked this we response and prepared couple volume as are environment in very will contracting, dealing this conditions. years, Excellence, our comparison X years us pricing look, about And have last commercial to and teams with Centers of we the competitive contracting our served into inflation, of go for continue the well which to different trade-offs manage market to team in a a experienced and for

anticipate continue. we we that X, as to quarter visibility as based And QX as that's volumes, much improvements month shipments I really have much say for think volume see I into improved. can as are it indications as about XXXX. is results throughout I in early and on relates head volumes also or But on quarter that we Also, contracting to encouraged what sequential should X would month sequentially, say

One moment, please.

from comes Ben of Barclays. the question line next of Theurer Our

Jim, congrats on the good results.

ones. X Just quick

market is highlighted and South also was be weak, question. customers, America, been quality of What's the but board the volumes? what you've Is sugar in volumes. But volume bit the called specialties? first Mexico. what's the little it that you my category, saw better some it dynamics had help one, across out some would Can So your particularly particularly within a reduction? of to bright understand a those -- of in general, you on better us volume. Just the spots, That just understand you little some driving

Yes.

are in I we the down a down quarter volumes, against the And World Brazil, up September entire levels. just certainly little And for in Brazil demand which but this first of Cup, down we XXXX. And in we were And a take inventory done half, for that work with is as example, of bit have held bulk year rebalancing volume XXXX been customer then typical are a in for throughout of levels well reminder, continues prepping example, can I'll we've monitoring believe do So extensive say to been we Solutions have we Jim our all be I where do that dynamic and supplement And to it, largely what the customers their up us. to voice Texture The have supplement. really would a should sensing reached QX understand X -- know behind we're destocking. volumes in or in and sweetener reasonably nice business volumes volume year. Brazil. pickup well. tracker saw

it an Jim, that the across we're by operating I geographies the we've past think monthly. or pretty seeing all And we monitor on we're trough broad-based, we're of and upswing. So overall, -- segments

Yes. industrial cycle look the been we on we've some that customer to at Ben, much we I think starches, shareholders has look time inventory or mentioned when always before at shorter. syrups their

times, And it of volumes was where that maybe at more so seen a the really up, generally, we've And support chart buildup the of of our around in starches sales highlighted build a was definitely of has we year and of did some in kind see ingredients we because of QX. recipes, texture. chain longer to the And the in in food presentation we experienced nor 'XX decline in that's buildup criticality there or the our that supply food customers that in half these seen the texturizing -- that XXXX. haven't first

And we've really seen has we've supply some chain. the we that to seen that. worked through inventory of When itself out refer excess destocking, food

just with plays more inventory part Ben, the And is so food the is much don't we in out QX think, starches, obviously is And QX, of of brand that we companies. your multinational year working in we that only of thing higher world, texturizer are some then that note, just our believe, December we, the I'd that that just the seeing down. watch is know encouraged into sugar for -- go bit in think I little out a and I say values, to some higher-value how as worldwide we're what here in do you're expensive. are

sugar, the syrups that Some when our gets syrup pull be different constraints between there's going of gap recipes. some to much it extra a the the using the globe. around premium sugar value of our for in to always terms ever versus And in producers for demand larger of just

are in sugar that globally where corn-based demand. of seeing higher U.S. sweetener definitely and We're supportive the higher prices

then capital question sense. makes around just my really allocation. That Perfect. second Okay. And is

about prior year, cash guidance I million operations CapEx, just think, the on higher versus just $XX You've the guidance. upgraded marginally your from for

running, and there's to to you and to still feel you've increased much opportunistic you the dividend. CapEx into more asset So cash clearly How excess up maintenance? just think operations, invest you alluded base need share currently plants buybacks, have But just go have? created how do forward about -- you

And shares how it like buybacks? outstanding. is down much seems for Because left guided for you've

numbers. those in there's So something

here. understand Just do how wanted buyback think to about you opportunity like the

we we have Well, that obviously, at, for Yes. strategic the cash look deployment.

CapEx repurchases. in So did this towards our from that's share less deploy operations cash million dividends. less and And $XXX QX, -- we our in

sure the look towards shareholders. So again, that putting thought as a that wanted at that we're and value nice And trading to make back opportunity. stock to I an dollars we'll was at continue

we growth we're to more where obviously, us look seeing our -- some as we organic that capacity out years. so some think on capital, allows we've bit volume solutions CapEx really in some that into later slowdown, I us growth have anticipating. platforms of are we're investments gives our had healthful still of that little our push forward some But a headroom

expansion For which is facility completing at Kuala coming example, an we're in PureCircle online. our just Lumpur,

and with helps really absolutely we our trends as from in world the us bioconverted obesity, reduction. towards that Stevia pushing so and look around solutions, around are demand really governments And which diabetes concerns sugar

the be terms towards of globally allocate dollars really right we'll capital, out but we in we So an there's capital demand versus our that excess that opportunistic of of allocation. now just organic see opportunities

Our comes question Ben of the line Stephens. from next Bienvenu of

of getting you sequentially, me did? that flat the in you to XQ I is coming morning. on pricing, would to is operating recognize I implied the and the in I profit think range guidance the and XQ. in we with slightly that Good particular, are ask centered it about seasonality America, down, up might of what are see business from But strong profit possible that better inherent XQ outcomes in think the than volume help the So still to there, operating which better North affecting why kind base there guidance core quarter? that for about variables want fourth

take Yes. one. Thanks, Ben. this I'll

into this of sweeteners. terms have demand play North would a the we're through seen of in -- demand kind I we of where in what kind softer volume we've sales, our QX, go quarter of really volumes kind And it's a year and has -- some to for slower a nice impacts that signals normalization sales and think call America. as always been led I particularly texture it's seeing of just

what so I I cut we're to conservative is probably really think volume which our doing maybe mid expectations, on being, guides And center kind QX. just of we're would say,

I as is contract in XXXX, as to decreasing when XXXX. values the and higher we mentioned And so that in expectation a it from to an have of conversation corn And corn be going less customers year value that their values pricing. expensive impacts before, X next, about with you have corn in the corn generally,

might you in an ordering expectation be flat pause them so down have And from of customers weeks to that pricing might those to couple in it on cause last might of XXXX, December.

You ordering close that we the have about back get be I it's to January that in as year. thoughtful February, but or out something

then at capital high. nowadays and short-term manage looking just flow, everybody decrease change, you're working rates you so if CFO lever cash remind your trying with probably can a in to that I'd use inventories that your listening you're year-over-year, operating significant And most and you're is

trying -- I'm might cut just if anticipate what center to I'm so And being that, on surprise cautious to be. December I a

Okay. well? Understood. that true we is move America, be that incur be expect that? second My for Very able you regions And operating any would your good. in to other you're you could expectation you South is navigate to in currency around forward? do across as headwinds to particular, the and How currency question as continue price that that

what's corn customers dollars, of on value if is valued the the part absolutely the some conversation corn. in And on day-to-day with value that's then Yes. really is pricing. of equivalent of because the the an do to the underlying conversation in U.S. Generally, markets, we

say, be rises I more the then and just strengthening, the think if interesting is of will what when the It value corn Brazil exports. in to be real that wouldn't would well, is due less? you

is particular. So much we yes, time. changes we does it have in But Brazil, in market -- to believe it a the through efficient over FX very very pass muscles that in

muscles, that's we've that South demonstrated last developed in America world. and the of specifically, Centers And originated and number been And of carried over those out our years. Excellence Pricing Yes. the around

So we knowing I how very do in that pretty the think is and team that. comfortable feel to confident experienced

question. moment One next our for please

of Our line of next question Josh the comes Spector from UBS.

Josh. This is on for [ ] Lucas filling

back of want to So just get sort the to volume.

So sort third improving mean, of given quite into it's sequentially quarter fourth on how through you've the of bit quarter. I context there a the

where volume maybe if is So between first sort give of just in sales updated the sort difference do sellout? kind you fourth trends? us the in And purchases between see to currently quarter? on and seller gap that could now expect So the what customer the of the Or and you quarter? is that reconnect your wondering view the the of you

ingredient at Lucas, maybe I company terms your can looking implied just I what ask versus of sales. on question? like for some -- think in you that a little of customers to our here bit Is expand your you're timing question there's like branded customer volumes

Exactly.

are sales downstream. going your So where

see visibility been obviously, narrowing you are is over you the sort the volumes closing your how gap it than X there's other improving So just towards where Do into I of the or so. And end. we that months last with that as sort and of that's gap a of get destocking, sort any mean, there presumably, have sequentially?

maybe packaged at that, into goes can add comment, beverage, private I and Jim well. Yes. Maybe packaged into usually we as label. you as branded both of have food here our a well I'll our part -- and food within And have as We large think -- business companies. then look and ingredients

of kind really co-man. co-packers is and label private So

say uptick branded of volume some in we've the more really, of is up catching seen -- kind we're where So companies. there. I'd branded CPG

And so for States example, foodservice, like our about also XX% much and in restaurants, Canada, goes volume generally the towards probably XX% We to seen United kind we've about of there, steady. more been have some and -- et of traffic that a XXXX. ingredients. it's of And and for downs a in stabilizer has recovery I from kind perspective been say ups pretty nice our would in XXXX channel foodservice of cetera.

of only distributors. then I'd say between somewhere is in that And kind

companies. probably customers. more worked they They that medium inventory say to that small out that seeing, the back And think the some that would I obviously and going medium fighting think, get fighting packaged is be really, where probably that's small to their gap be either food And Taking innovation. might foodservice excess and their demand I customers they're on medium the get can we're through distributors in recovery. as small shelf, so of to and up have we're base supply. those distributors within I it's they are that where innovative customer as seeing serve

bit early I X Yes. And what to with as tea pick that volumes that's sequential little in that, continuing. a we we're December the seeing improvement that related be The to see on we're the how indications year-end tied I may in trying is behavior cetera. corn that leaves momentum also only saying Jim realistic is thing relationship costs customer to buying to down, indicated, trying And also read coming about up, with to in et for what would was we're that distributors. say are the of quarter

in for XXXX. of put we're quarter interpolate to trying bodes all that together quarter do for it our as I momentum to But X. volume we into continue so say, -- well And forecast, think

higher the Great. sugar prices. then on And just

to you're So mentioned substitution there. you coming see through starting sort some demand of

Just about side. the thinking pricing

next about capture assist going think of move-up in should to syrups of sort to into there? how value Is the year? heading Stevia, we and So kind within with to your relative sugar that ability price

Go Jim. ahead, Yes.

the little give but just I newer it's example. X Lucas, you to a I'll business, mean, know I bit

HFCS liquefying at beverage sugar look States. business, Most we Mexico and that and high from at imported the using it they the HFCS using sugar syrup. the when bottling price more that blend you of expensive a is use a imported And in there Mexico actually much So fructose is and current of corn value domestic U.S. than look United is sugar from of gap at

the small so a see that you'll a beverage move And the bottlers or XX% demand. it's move quite to actually move that's They'll bit XX% that to while percentage of extent And mix HFCS. in will recipe, that still mix.

demand happening. customers pull the you that for an that can ability, that you that see example HFCS not a there's out that of example the And the where for that's many so industry pretty have can is see clear U.S. benefits where And but

Thank line of Samuelson you. the Goldman comes Our next Sachs. [Operator Adam from Instructions] question of

both of the in Mexico? terms say as on platform? in profit U.S. and America, Mexico the just expanded to that really outsized that, first The that where Mexico was an there strongly? across growth maybe maybe would way you just -- to the local to quickly. Is Is profits shipments the your there continuing well -- whole from just -- as quantify any North production was question, American margins Or is contributor

would with that especially I the was it has Mexico highlighted be for business also Mexican proportional we was standpoint proportional production Yes. a consumption, the export across I categories But some was it they're across would the Mexican supply. fact from contribution America And -- say overall the North say product a would its -- U.S. of a all income Mexico from deliverer. exported Jim, for the to we record North it robust in that again, the And well much quarter? to really but it America. in consistent pretty brewing for remember, in results, producing, of to But been for quarter goes us operating products Mexico for which demand as

demand. Yes, industrial in U.S./Canada, an would proportional. decent And saw saw within pretty uptick still And sweetener starches. I we you say a

the that can been some seen say, those You texture. we of -- soft our texturizers, starch of spot really really has And volumes then really it more, -- speak some industrial has have our for as of destocking for have but on impact been better pull our all the I'd of the more Jim year to solutions. packaging only,

talked and center into which being store, has been the by of about go destocking. softer bit little a impacted which Yes, the

Okay. items helpful. growth That's you on in -- well key are starch-based Those growing gave specialties, care, some And personal some specialties. give And year-to-date just in X your X% well of the the the talking performance then of slide buckets Food about the above the pharma, total texturizers, Systems. year-to-date. you

Is And -- -- clarify it performing at above underneath kind protein specialty help specialty so average? Or your the that what below just is the is side? the of umbrella? what X% me not where

to to continues plant-based for say expectations the proteins same would for compared QX and XX% be what the we talked were definitely is I the The been our market and X that has soft, year Yes. soft. and which that for is data in down again, milk but volumes meat quarter QX, IRI the respectively, plant-based last alternative were now sales about XX%, QX. as categories

to segment, soft. remains compared that So our expectations,

higher a texturizers franchise say, would area X I large, only would of, great there. a not ingredients, other but the And compared starch-based we've other in and that as be got category, clean it's has But points. been overall, would which say the I soft. proportionately have say simple to, is price then say, that little but category

clean that's labeling anticipate that long-term we well bode a natural toward long Yes. to trend term. continue and will formulating So

dynamic? going completely specialties kind list be to next Okay. starch-based effect the finalized reporting core be year. going going And with here? the it's forward? What reorganization how seeing early externally? you to is we some as Is giving tied of Just clarify, to be you going of kind to specialty this and be just it to them are a yet. going What are -- the buckets versus key to that's Or maybe not of go to into going

in I we'll operating of when a a will clarify have ready think how we're But narrative CAGNY core be we'll specialties where Yes. The February call sharply again, Adam, ] not global in February move ideas [ of or those segments specific some not segment is be we a to, finalized and clear the better to change communicate position and/or segments. really we're but to reporting in defining we different all the yet. segments. and headed, standpoint as of from segments. And earnings likely internally yet

helpful. I That's right. All Okay. appreciate it. .

next question BMO Our Markets. Andrew Strelzik from line comes of Capital the of

is factors first you North for to bit other a talked the to about the we But just any the your wanted the keep relative curious, of fourth it swing a mind the implied that assumptions? revisit of assumptions some high wide already should about America. around and quarter low in and range in in I end, XQ just And guidance. guidance my volume one, So

is on couple we're last still also the at have impact there of Yes, this. here what demand be is kind take but year? November a which couple Obviously, around I'll kind And anything the December. as the we in Andrew, months of of conflicts prices October some there's this looking Jim would Largely of energy more is of Gray. happens macroeconomic we and have done, world. factors that outliers, to

our And spike. they think in couple then or there's have just countries front FX, have that maybe an side, kind a of I FX customer than more spoke the I of at would built stronger that forecast, little of lined as we think, to. Jim QX. us that I But a opportunity the either always have some really we we're demand, has That kind really is necessarily decisions say, elections month-by-month of bit economic as up on looking trend, trend how can been

pull something kind demand So for we'll upon in Winter that's see, usually, us. Northern of can it's the is impact us And that October. but Hemisphere.

looking at So QX. we're -- we're just cautious on

Okay.

have about have of Great. contract on about just I mean, this think you talked well. percent you stuff that the outsized to as Okay. a in and have is same I basis comments guess Are the time, and onetime growth to question. dollar-per-ton about XXXX, you year 'XX, margin clarification early that being a year expansion. that -- part a 'XX, then recovering. the in the some of The both? or on are multiyear made going And clarification a about you volume occurred in At you the question an you the I or terms margins dynamic, support relates it renewals then basis talking as And

it level, 'XX What ]. together do do you obviously coming a operating you when level together, that growth year I the achieving trying think and strong to, guidance, know is the off the bring a you're are preparing to give of year? algorithm, all kind very, but that not I'm next in [ very that? relative guess high just to for to at maybe what you it growth yago is risks put of I think So income play

answer multiyear gross it the on question just contract profit the to answer margins dollars question, the it's both. is or So is, is both, about your or it

X thing. And against the we've are operating that's we that So looking model. progress honestly, made our global at, also

on our us chain crisis has having in enabled just third digital investments our our of Now to year that And X reminder, and make through positions, we better our has capabilities years significant that made brought X supply global operations. to us, a about to stronger the customers inventory ago service team globally warehousing. -- challenges and we're work moving believe, to the in

year as like -- we when that's that things other X good exit again, are the we we are -- about they companies majority the think we than volumes feel many the were for year. are been of higher And of inventory very of quantities -- the is on industry, this have across soft sitting

think will And year. next that be as so we into we go helpful

it's because X natural to noteworthy -- million cost going there number years. which, is one-off cost there, a thing moving to earnings it's a very out, performance noteworthy we in again, to the and we're to transition down South million energy for -- gas just And reasons, to that will of doing really comparison just comparison but we other point of to going $X of and believe, The X America's strong has to this year it's in provide biomass, been gas. transition $X that to also which volatility, lower that biomass, -- natural is forward less estimate

us gas Brazil enabled to greenhouse emissions. it's reduce of XX% in our again, And

into we as things, head those XXXX. of think operationally are All helpful we

this again, of why we're point kind at And in we're feeling that's not contracting. through time. So

that's based I thus about XXXX, would on have optimistic all we far, we're see to cautiously have how the that Jim. data But So going. points say, we

on long-term maybe We're Andrew, basis. consistently the a building I'd question capabilities. answer

versus in our does go-to-market chasing Why The seek years, we've 'XX last in excellence, run-up across Normally, of a we've pretty corn versus 'XX, So that. Pricing we're team customer seen built that so costs dramatic worldwide. Excellence. 'XX, really as X matter? XXXX Centers we

might down. at costs So XXXX, we're be corn now looking

some our being and Pricing year, teams our or around that our of cost that but new capabilities gross what for Excellence business. rewarded our navigate using the terms And and next of in run of advantage terms to we're to need in expected pass-through Centers dollars being now advantage so material means raw paid we commercial while of with profit

to, talked global And they're inflation. towards momentum. that building I that that just Jim we're also As controlling works and operations team, building think

the next And yet -- our manufacturing what not woods like inflation expense I year. for on we're looks so think the we're necessarily of out don't of

we're do of need so And But the we time next that that we're see how year and that. as math together that and talking the to setting about customers prices and aware in. team to to clearly pull works my

think strive And we have impacts dollar really been some that building. our going to continually cycle, gross going dollar think we've of so just income profit corn through as growth. that managing I that And capabilities we're I to operating different that be we're and

Thank there. very Great. I much. guess I'll ahead you and leave it go

time. to remarks. this the over Thank you. further to Jim back I'm call turn at showing for no questions like closing any Zallie I'd

to joining many Okay. our I and for you you morning. this want Thank of at wanted you, events, investor to everyone look for us your upcoming thank continued in seeing We interest all And to Ingredion. forward thank of operator. I

you. conference. does Thank Thank and Ladies for participating. gentlemen, this conclude today's all you

Have great disconnect. a now You day. may