Ingredion Incorporated (NYSE: INGR) has been making waves in the food and beverage manufacturing industry, and its recent earnings growth is a testament to its strategic approach and operational excellence. The company's consistent earnings growth can be attributed to several key factors, which we will explore in this article.

1. Strong Sales Volume Growth: Ingredion has experienced significant sales volume growth, particularly in its Texture & Healthful Solutions segment. In the third quarter of 2024, this segment saw an 11% increase in sales volume, driven by solid U.S. market performance and double-digit growth in Europe. This growth has contributed to the company's overall earnings growth.
2. Operating Excellence and Contract Management: Ingredion's teams have successfully managed input and wage cost inflation by adjusting multi-year contract pricing with customers. This has helped maintain profit margins and support the company's earnings growth. Additionally, volume recovery has improved fixed cost absorption, and operations and procurement teams have driven structural savings, complementing the savings from the Cost2Compete program.
3. Segment Performance: All of Ingredion's segments, including Food and Industrial Ingredients, have generated significant operating profit growth. The Food & Industrial Ingredients LATAM segment, in particular, has shown exceptional operating profit growth, reflecting recovery from last year's transition to a more sustainable energy source in Brazil and continued strength in Mexico.
4. Cash Flow Management: Ingredion's strong cash flow has supported its earnings growth. The company has effectively managed its capital expenditures, with net capital expenditures of $170 million year-to-date through September 30, 2024.
5. Driving Growth Roadmap: Ingredion's Driving Growth Roadmap has guided long-term value creation for shareholders by deepening customer relationships and driving innovative solutions. This strategic approach has contributed to the company's consistent earnings growth.

Ingredion's earnings growth trajectory has evolved over time, with varying rates of growth across different periods. The company's revenue growth has been volatile over the past decade, with periods of significant growth followed by periods of decline. However, Ingredion has shown consistent revenue growth over the past three years, with an average annual growth rate of 6.8%.

Acquisitions and strategic partnerships have played a significant role in Ingredion's earnings growth. For instance, Ingredion's acquisition of the South Korean business contributed to a volume loss of $530 million in the first nine months of 2024. However, the company has also benefited from strategic partnerships, such as its agreement with Lantmännen to create a strategic partnership to accelerate the development of plant-based proteins. This partnership expands both companies' capabilities in servicing a fast-growing and evolving alternative protein market. Additionally, Ingredion's acquisition of the South Korean business was part of its Cost2Compete program, which aims to drive structural savings and complement the savings coming from the program. These strategic moves have helped Ingredion maintain its earnings growth despite facing input and wage cost inflation.

In conclusion, Ingredion's consistent earnings growth can be attributed to its strong sales volume growth, operating excellence, segment performance, cash flow management, and strategic approach to acquisitions and partnerships. The company's revenue growth trajectory has been volatile over the past decade, but it has shown consistent growth over the past three years. Ingredion's strategic moves and acquisitions have contributed to its earnings growth, and the company is well-positioned to continue its strong performance in the future.