The food ingredients industry is experiencing growth driven by increasing consumer demand for healthier options. In this favorable environment, Ingredion Inc. (INGR) is strategically positioned to leverage the sector’s expanding demands and capitalize on emerging opportunities.The food ingredients industry is an industry of change. As consumer preferences for what they want to consume keep on changing with the tides of time, the industry needs to keep up with the ever-changing demand patterns to function successfully.With a rise in healthy eating driven by consumer concerns about gluten, dairy, sugar, and genetically modified organisms (GMOs), the industry for organic food is also on the rise. Plant-based proteins and non-GMO ingredients have quickly gained popularity among many consumers, facilitating the growth of the newly improved food ingredients industry.In this rapidly evolving environment, INGR stands out as a premier choice for investors. With an extensive portfolio of offerings derived from wet milling and processing corn, and other starch-based materials, the company’s position seems strong.Its stock has surged 11% over the past nine months and 14.3% over the past year, closing the last trading session at $127.13, signaling the company’s strong market position and potential.Now, let us discuss the factors that could affect the stock’s growth trajectory.Recent DevelopmentsOn February 4, 2025, INGR announced investments of more than $100 million to increase efficiency, modernize equipment, and also install an energy cogeneration system at its Indianapolis facility.The project aims to expand the company’s capabilities to deliver texture innovations to growing end markets, which could enhance its economic viability and sustainability.On November 14, 2024, INGR announced a long-term collaboration with Lantmännen, a Northern European agricultural cooperative, to meet the European market’s needs for competitive, sustainably sourced, and high-quality pea protein isolates and various facets of sales, product innovation, and process enhancement.The partnership could help expand INGR’s footprint in the European market and could solidify its position as a global leader in the plant-based protein industry.Stable Historical GrowthOver the past three years, INGR has demonstrated consistent growth across key financial metrics. Its revenue and EBITDA grew at a CAGR of 3.9% and 6.6%, respectively. Moreover, net income and EPS expanded at a CAGR of 60.6% and 61.5% over the same period.Sound FinancialsFor the fiscal 2024 fourth quarter that ended December 31, INGR’s net sales amounted to $1.80 billion. Its non-GAAP adjusted operating income rose 22.2% from the year-ago value to $248 million.Moreover, non-GAAP adjusted net income and non-GAAP adjusted EPS attributable to INGR increased 34.4% and 33.5% from the prior year’s quarter to $176 million and $2.63, respectively. As of December 31, 2024, INGR’s cash and cash equivalents amounte
Mer. Feb 5th, 2025
