Boston, MA 05/15/2014 (wallstreetpr) – After reporting a tepid 1Q2014, Ingredion Inc (NYSE:INGR) is concerned about its future, and can be seen trying to do everything possible to achieve growth in the balance of 2014. In the latest quarter, the company suffered from the impact of the harsh winter weather and intense competition in the North America market.
The quarter saw the company reporting 14 percent decline in profit and 24 percent decline in sales. As such, the company realized net income of $72.6 million or $0.97 per share, down from $110.8 million or $1.43 per share in the same quarter last year. Revenue came in at $1.4 billion, a decrease from $1.6 billion last year.
As the competition becomes intense in North America, Ingredion Inc (NYSE:INGR) has been looking to Asia-Pacific where it continues to experience growth. The company already has operations in 12 countries, in the Asia-Pacific region, and it recently expanded its operations in Singapore. It intends to continue making investment in the region to support long-term growth.
However, even though North America poses a challenge for the company, it expects to make a difference with its food ingredient products. The company recently launched a potato starch known as PERFECTAGEL MPT that it touts as a better alternative to gelatin. It said the product enables confectionery manufacturers to achieve excellent clarity, longer shelf life and elastic structure without the need for any additional agent.
As such, Ingredion Inc (NYSE:INGR) presents PERFECTAGEL MPT as a replacement for gelatin that also supports costs savings.
Online calculator
Talk about cost-saving with PERFECTAGEL MPT and Ingredion has launched a calculator that helps manufacturers of confectionery to see how they can save on cost through PERFECTAGEL MPT.
For a manufacturer that uses 3 million lbs of gelatin, for instance, on gummy candy, the company estimates that a manufacturer can save up to $0.5 million on the cost per year with 100 percent gelatin replace. A partial replacement of gelatin has the potential of yielding $0.38 million savings per year.
Reaching more consumers
Beyond the cost, Ingredion Inc (NYSE:INGR) believes PERFECTAGEL MPT will have a wide appeal to manufacturers seeking to reach the vegetarian consumers or those who follow Halal or Kosher regimens.
