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About Ingredion Incorporated

Sweet sodas and diet desserts alike get their taste and feel from Ingredion's ingredients. The company makes food ingredients and industrial products from corn and other starch-based raw materials. Operating in more than 120 countries, it serves markets including food, beverage, brewing, and other industries. Ingredion's largest product line is starches, used in food for stabilization, feel, and texture and in paper, packaging, and other materials for quality, strength, and a host of other attributes. Its other product lines include sweeteners (high-fructose corn syrup, dextrose), specialty ingredients (products focused on health, affordability, and sustainability), and co-products (refined corn oil, corn gluten feed and meal). Ingredion operates worldwide, but generates most of its sales in North America.

Operations

Cornstarch and other starch products account for over 45% of Ingredion's revenue and are used in processed foods, as well as in paper and packaging, adhesives, textiles, pharmaceuticals, make-up, and other products.

Sweeteners used in a wide range of foods -- from condiments to candy -- generate more than 35% of sales, with specialty ingredients designed to capitalize on consumer trends bringing in about a quarter. Sweeteners include glucose syrups, high maltose syrup, high fructose corn syrup, dextrose, polyols, maltrodextrin, glucose syrup solids, and non-GMO syrups.

The company's smallest product segment, co-products, includes refined corn oil sold to a variety of food producers and corn gluten feed and meal used for pet food. It also makes fruit and vegetable products, such as concentrates, purees, and essences. The segment accounts for almost 15% of the revenue.

Geographic Reach

Well-covered geographically, Ingredion serves customers in more than 60 countries worldwide. North America is its largest market, accounting for more than 60% of sales. South America represents 15% of sales, the Asia Pacific region generates about 15%, and EMEA (Europe, Middle East, and Africa) represents 10% of sales. The company's headquarter is in Westchester, Illinois.

Ingredion has some 45 manufacturing plants in over a dozen countries (the US is home to about a third of them).

Sales and Marketing

Ingredion exploits the versatility of corn in supplying customers in over 60 industries. The company sell its products directly to manufacturers and distributors. In addition, It also have staff that provide technical support to its sales personnel on an industry basis. Ingredion generally contract with trucking companies to deliver its bulk products to customer destinations. In North America, it generally uses trucks to ship to nearby customers. For those customers located considerable distances from company plants, it use either rail or a combination of railcars and trucks to deliver the products. The company generally lease railcars for terms of three to ten years.

Financial Performance

Ingredion has maintained a steady, but slow revenue growth over the last five years, except in 2019 when its sales declined. For the same period, profits have increased the first 3 years but declined the last two years.

In 2019, revenue dipped by 1% to $6.2 billion due to changes in foreign currency exchange rates and volume reduction due to the cessation of Stockton wet milling were partially offset by favorable price/product mix.

Net income fell 7% from $443 million to $413 million driven primarily by increase in restructuring costs.

Ingredion's cash on hand fell $63 million during fiscal 2019, ending the year at $264 million. The company's operations generated $680 million, offset by $374 million used in its investing activities and $364 million used in its financing activities. Ingredion's main cash uses in 2019 were capital expenditures and debt payments.

Strategy

 

Ingredion's growth strategy is centered on delivering value-added ingredient solutions for its customers. The foundation of the strategy is operating excellence, which includes focus on safety, quality and continuous improvement of which ultimate goal is to deliver increased shareholder value.

The company also aims to complement this strategy through acquisitions and alliances.

Mergers and Acquisitions

In early 2019, Ingredion Incorporated acquired the operations of Western Polymer, a privately held, U.S.-based company that produces native and modified potato starches for food and industrial applications and also sells modified tapioca starch for industrial applications. The acquisition will expand the Company's potato starch manufacturing capacity, enhance processing capabilities, and broaden its higher-value specialty ingredients business and customer base.

Ingredion Incorporated

5 Westbrook Corporate Ctr
Westchester, IL 60154-5749
Phone: 1 (708) 551-2600

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: INGR
Stock Exchange: , NYSE
Chairman: Ilene S. Gordon
EVP and CFO: James D. Gray
President, CEO, and Director: James P. Zallie
Employees (This Location): 800
Employees (All Locations): 11,000

Major Office Locations

Westchester, IL

Other Locations

Mesa, AZ
Stockton, CA
Cedar Rapids, IA
Idaho Falls, ID
Argo, IL
Bedford Park, IL
Chicago, IL
Mapleton, IL
Summit Argo, IL
Indianapolis, IN
Belcamp, MD
White Marsh, MD
Kansas City, MO
Winston Salem, NC
Bridgewater, NJ
Tulsa, OK
North Charleston, SC
Edmonds, WA
Richland, WA
Plover, WI
Balsa Nova, Brazil
Conchal, Brazil
Sao Goncalo, Brazil
Trombudo Central, Brazil
Cardinal, Canada
London, Canada
Pointe-Claire, Canada
Port Colborne, Canada
Apodaca, Mexico
Sikhiu, Thailand