Core Insights - Ingredion Incorporated reported strong performance in Q1 2025, driven by sales growth across global regions, particularly in clean label solutions, with a 34% increase in operating income for the texture and health solutions segment [1][4][10] - The company has raised its full-year earnings expectations due to the excellent performance in the first quarter, emphasizing its commitment to becoming the preferred choice for customers [1][21] - Despite a 4% decline in net sales compared to Q1 2024, the company achieved a 30% increase in reported operating income and a 26% increase in adjusted operating income [4][10][36] Financial Performance - Reported diluted EPS for Q1 2025 was $3.00, down from $3.23 in Q1 2024, while adjusted diluted EPS increased to $2.97 from $2.08 [2][4] - Total net sales for Q1 2025 were $1.813 billion, a decrease of 4% from $1.882 billion in Q1 2024, primarily due to changes in pricing mix and foreign exchange impacts [6][32] - Operating income for Q1 2025 was $276 million, reflecting a 30% increase from $213 million in Q1 2024, with adjusted operating income also showing a significant increase [10][37] Segment Performance - The texture and health solutions segment reported operating income of $99 million, a 34% increase year-over-year, driven by lower raw material costs and increased sales volume [13][37] - The Latin America food and industrial ingredients segment achieved operating income of $127 million, a 26% increase, benefiting from favorable market conditions and cost reductions [15][37] - The U.S./Canada food and industrial ingredients segment saw a slight increase in operating income to $92 million, up 6% year-over-year, attributed to improved product mix and cost management [17][37] Outlook - The company expects full-year 2025 reported EPS to range between $10.93 and $11.63, with adjusted EPS projected between $10.90 and $11.60, reflecting anticipated sales growth despite potential pricing and foreign exchange challenges [21][23] - For 2025, net sales are expected to achieve low single-digit growth, with operating income projected to grow close to 20% due to last year's impairment charge base effect [21][22] - The company anticipates a moderate increase in costs for the year, with capital expenditures expected to be between $400 million and $450 million [22][23]

Financial Data and Key Metrics Changes - In Q1 2025, net sales were $1.8 billion, down 4% year-over-year, while gross profit dollars increased by 12%, with margins up 350 basis points to 25.7% [17][18] - Adjusted operating income rose by 26% year-over-year to $273 million, driven by lower raw material costs and greater sales volume [17][18] - Adjusted EPS increased by $0.89 per share, primarily due to an operating margin increase of $0.60 and other income of $0.17 [22] Business Line Data and Key Metrics Changes - The Texture and Healthful Solutions segment saw net sales up 1% and operating income up 34%, with a margin of 16.4%, reflecting lower input costs and greater volumes [20] - Food and Industrial Ingredients LATAM experienced a 7% decline in net sales, but operating income improved by 26% to $127 million due to lower raw material costs [20] - In the U.S./Canada segment, net sales were down 4%, but operating income increased by 6% to $92 million, driven by lower raw material costs [21] Market Data and Key Metrics Changes - Organic growth was driven by a 3% increase in net sales volume, with Texture and Healthful Solutions growing by 7% across all geographies [8] - LATAM's net sales volumes decreased by 2%, primarily due to soft volumes in brewing, while the U.S./Canada segment saw strong volumes in brewing offset by weaker specialty starch sales [9][10] Company Strategy and Development Direction - The company is focusing on three strategic pillars: business growth, cost competitiveness, and a people-centric culture, with significant investments in expanding specialty industrial starch capacity [12][13][14] - The commitment to sustainability is highlighted by recognitions from Fortune and Ethisphere, reflecting the company's ethical practices and environmental efforts [14][16] - The company is actively monitoring the evolving trade environment and has set up a tariff response hub to navigate complexities [28] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about 2025, citing customer collaborations driving volume growth and a diversified ingredient portfolio [29][30] - Key economic indicators such as low unemployment and moderating food inflation are viewed as positive signs for future performance [30] - The company anticipates minimal impact from current tariffs, with a strong local production and sales model [27][30] Other Important Information - The company repurchased $55 million of outstanding common shares and paid out $52 million in dividends in the first quarter [23] - Full-year cash from operations is expected to be between $825 million and $950 million, reflecting updates to working capital investments [25] Q&A Session Summary Question: Can you provide insights on the updated guidance for Q2? - Management indicated that Q2 guidance is against a record year and expects solid performance in Texture and Healthful Solutions, while LATAM may see seasonal weakness [32][34] Question: What are the implications of recent corn planting data on costs? - Management noted that while some corn costs are unhedged, they have hedged 80-85% of their needs, which helps stabilize pricing [36][37] Question: How does the company view volumes amid consumer uncertainty? - Management remains optimistic about volume growth, particularly in Texture and Healthful Solutions, driven by affordable formulation trends [44][46] Question: What is the outlook for the LATAM segment? - The LATAM segment is expected to perform well, with positive operating income growth despite some volume declines in beverages [64][66] Question: How does the company plan to handle potential trade downs in consumer behavior? - Management stated that their product mix is resilient, with growth in private label products and clean label solutions, which are in demand regardless of economic conditions [58][60]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net sales of $1.8 billion, a decrease of 4% compared to the prior year, while gross profit dollars increased by 12%, leading to a gross margin of 25.7%, up 350 basis points [16][19][20] - Adjusted operating income rose by 26% year over year to $273 million, driven by lower raw material costs and increased sales volume [16][19] - Adjusted earnings per share (EPS) for the quarter increased by $0.89, primarily due to an operating margin increase and lower financing costs [22][26] Business Line Data and Key Metrics Changes - The Texture and Healthful Solutions segment saw net sales increase by 1% and operating income grow by 34%, with a margin of 16.4%, up 400 basis points from the previous year [19][20] - Food and Industrial Ingredients LATAM reported a 7% decrease in net sales, but operating income improved by 26% to $127 million, benefiting from lower raw material costs [19][20] - In the U.S./Canada segment, net sales decreased by 4%, while operating income increased by 6% to $92 million, driven by lower raw material costs [19][20] Market Data and Key Metrics Changes - The company achieved a 3% organic growth in net sales volume, with a 7% increase in the Texture and Healthful Solutions segment [7][19] - The LATAM segment experienced a 2% decline in net sales volumes, primarily due to soft demand in brewing, although there was recovery in confectionery and bakery markets [8][19] - The U.S./Canada segment's strong volumes in brewing were offset by weaker sales of specialty starches for papermaking and packaging [8][19] Company Strategy and Development Direction - The company is focused on three strategic pillars: business growth, cost competitiveness, and a people-centric performance culture [10][12][13] - A $50 million investment was announced for the Cedar Rapids facility to expand specialty industrial starch capacity and support innovation in sustainable food packaging [11] - The company is committed to reducing earnings volatility through expanded hedging practices and operational excellence [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the remainder of 2025, highlighting customer collaborations driving volume growth and the importance of monitoring economic indicators such as unemployment and food inflation [29][30] - The company does not anticipate significant financial impacts from current tariffs, as most products are produced and sold locally [27][30] - Management is actively monitoring the evolving trade environment and has set up a tariff response hub to navigate complexities [28][30] Other Important Information - The company received several recognitions, including being named one of Fortune's World's Most Admired Companies and one of Ethisphere's World's Most Ethical Companies [13][14] - Cash generated from operations was $77 million, with capital expenditures of $92 million planned for organic growth initiatives [22][23] Q&A Session Summary Question: Can you provide insights on the updated guidance for Q2 and segment performance? - Management indicated that Q2 guidance is against a strong prior year, with expectations for the U.S./Canada segment to remain strong despite seasonal weakness in LATAM [34][35] Question: How do you view the impact of recent prospective plantings on corn costs? - Management noted that while some corn costs are unhedged, they have hedged 80-85% of their needs, which helps stabilize pricing [38] Question: What are the expectations for volumes in the context of consumer uncertainty? - Management remains optimistic about mid-single-digit sales volume growth, driven by trends towards affordable formulations [46][49] Question: How does the sales mix look in light of potential consumer trade downs? - Management stated that the ingredients supplied to private label customers are not significantly impacted by trade downs, and clean label solutions are performing well [56][60] Question: Can you elaborate on the performance in LATAM and any portfolio shifts? - Management highlighted improved performance in LATAM due to a stable Argentine peso and strategic shifts in product mix to higher-margin uses [65][66] Question: What is the size of the Pakistan affiliate business and potential sale implications? - Management indicated that the Pakistan business is similar in size to the South Korea business, but details on potential sale proceeds are not yet available [68][70]

Financial Performance - Q1 2025 net sales were $1.813 billion, a decrease of 4% compared to $1.882 billion in Q1 2024[15, 29] - Q1 2025 adjusted operating income increased by 26% to $273 million, compared to $216 million in Q1 2024[17, 29] - Q1 2025 adjusted diluted EPS was $2.97, an increase of $0.89 per share compared to $2.08 in Q1 2024[29] - The gross profit margin for Q1 2025 was 25.7%, a 350 bps increase from 22.2% in Q1 2024[29] Segment Performance - Texture & Healthful Solutions net sales increased by 1% to $602 million in Q1 2025, with a 7% volume increase[19, 34] - Food & Industrial Ingredients—LATAM net sales decreased by 7% to $573 million in Q1 2025[34] - Food & Industrial Ingredients—US/CAN net sales decreased by 4% to $520 million in Q1 2025[36] Outlook - The company expects full-year 2025 net sales to be up low single-digits[43] - The company projects full-year 2025 adjusted EPS to be in the range of $10.90 to $11.60[43] - The company anticipates cash from operations to be between $825 million and $950 million for full-year 2025[43]

Core Viewpoint - Ingredion reported quarterly earnings of $2.97 per share, exceeding the Zacks Consensus Estimate of $2.44 per share, and up from $2.08 per share a year ago, indicating strong performance despite revenue challenges [1][2]. Financial Performance - The company achieved an earnings surprise of 21.72% for the quarter, having surpassed consensus EPS estimates in all of the last four quarters [2]. - Revenues for the quarter were $1.81 billion, which fell short of the Zacks Consensus Estimate by 1.63% and decreased from $1.88 billion year-over-year [3]. Stock Performance and Outlook - Ingredion shares have declined approximately 2.9% year-to-date, compared to a 3.9% decline in the S&P 500 [4]. - The company's earnings outlook is uncertain, with current consensus EPS estimates at $2.82 for the next quarter and $11.07 for the current fiscal year, alongside projected revenues of $1.9 billion and $7.51 billion respectively [8]. Industry Context - The Food - Miscellaneous industry, to which Ingredion belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable industry outlook [9]. - The performance of Ingredion's stock may be influenced by the overall industry outlook, as top-ranked industries tend to outperform lower-ranked ones significantly [9].

Financial Performance - First quarter 2025 reported and adjusted operating income increased by 30% and 26% year-over-year, respectively[3]. - First quarter 2025 reported EPS was $3.00, down from $3.23 in Q1 2024, while adjusted EPS rose to $2.97 from $2.08[4]. - Full-year 2025 reported EPS guidance improved to a range of $10.93 to $11.63, with adjusted EPS expected between $10.90 and $11.60[17]. - Net income attributable to Ingredion decreased by 9% to $197 million in Q1 2025, down from $216 million in Q1 2024[33]. - Earnings per share (EPS) for Q1 2025 were $3.05 (basic) and $3.00 (diluted), representing a decline of 7% from $3.29 and $3.23 in Q1 2024[33]. - Non-GAAP adjusted net income for Q1 2025 was $195 million, resulting in an adjusted diluted EPS of $2.97, while in Q1 2024, it was $139 million with an adjusted diluted EPS of $2.08[48]. - The effective income tax rate for Q1 2025 was reported at 25.5%, while the adjusted non-GAAP effective income tax rate was 25.4%[53]. - For the full-year 2025, Ingredion expects GAAP EPS to range from $10.93 to $11.63, with adjusted EPS guidance between $10.90 and $11.60[55]. - The expected effective income tax rate for the full-year 2025 is projected to be between 26.0% and 27.5%[57]. Sales and Revenue - First quarter net sales decreased by 4% to $1,813 million, impacted by lower raw material costs and the sale of the South Korea business[6][8]. - Net sales for Q1 2025 were $1,813 million, a decrease of 4% compared to $1,882 million in Q1 2024[33]. - The Texture & Healthful Solutions segment reported a 1% increase in net sales to $602 million, while the Food & Industrial Ingredients - LATAM segment saw a 7% decline to $573 million[39]. Operating Income - Operating income for the Texture & Healthful Solutions segment increased by 34% to $99 million, driven by lower input costs and increased volumes[10]. - Food & Industrial Ingredients - LATAM segment reported operating income of $127 million, a 26% increase, benefiting from the stability of the Argentine peso[12]. - Food & Industrial Ingredients - U.S./Canada segment operating income rose to $92 million, a 6% increase, aided by lower raw material costs[14]. - Total operating income increased by 30% to $276 million in Q1 2025, driven by improved performance across several segments[39]. - Operating income rose by 30% to $276 million in Q1 2025, compared to $213 million in Q1 2024[33]. - Operating income for Q1 2025 was $276 million, up from $213 million in Q1 2024, with non-GAAP adjusted operating income at $273 million compared to $216 million in the prior year[50]. Cash Flow and Debt - Total debt as of March 31, 2025, was $1,784 million, with cash and short-term investments totaling $846 million[5]. - Cash from operations for full-year 2025 is projected to be in the range of $825 million to $950 million[21]. - Operating cash flow for Q1 2025 was $77 million, a significant drop from $209 million in Q1 2024[37]. - Cash and cash equivalents decreased to $837 million at the end of Q1 2025 from $997 million at the end of 2024[35]. Capital Expenditures - Full-year 2025 capital expenditures are expected to be approximately $400 to $450 million[21]. Impairments and Restructuring - Restructuring and resegmentation costs for Q1 2025 were $1 million, compared to $3 million in Q1 2024[51]. - Ingredion recorded $6 million in impairment charges in Q1 2025, primarily related to certain equity investments[51]. - The company reported a pre-tax benefit of $10 million in Q1 2025, mainly from insurance recoveries and favorable judgments related to indirect taxes in Brazil[51]. - Ingredion experienced a net gain of $82 million on the sale of a business in South Korea during Q1 2024[51].

Core Insights - Ingredion Incorporated reported strong first-quarter results for 2025, demonstrating growth in sales volume and operating income despite tariff uncertainties [2][19] - The company has improved its full-year earnings forecast based on the successful first-quarter performance, focusing on sustainable growth and disciplined cost management [2][20] Financial Performance - First-quarter 2025 reported diluted EPS was $3.00, down from $3.23 in Q1 2024, while adjusted diluted EPS increased to $2.97 from $2.08 [3][4] - Reported operating income for Q1 2025 was $276 million, a 30% increase compared to $213 million in Q1 2024, with adjusted operating income rising 26% to $273 million [10][41] - Net sales for Q1 2025 decreased by 4% to $1.813 billion, primarily due to lower raw material costs and the impact of the sale of the South Korea business [9][34] Segment Performance - The Texture & Healthful Solutions segment saw a 34% increase in operating income, driven by strong sales volume, particularly in clean label solutions [2][13] - Food & Industrial Ingredients—LATAM reported operating income of $127 million, a 26% increase, benefiting from the stability of the Argentine peso and lower raw material costs [15][21] - Food & Industrial Ingredients—U.S./Canada segment operating income increased by 6% to $92 million, supported by efficient cost management and favorable product mix [16][21] Guidance and Outlook - The company expects full-year 2025 reported EPS to range from $10.93 to $11.63 and adjusted EPS from $10.90 to $11.60, reflecting anticipated growth in net sales and operating income [19][20] - Full-year net sales are projected to increase by low single-digits, with operating income expected to rise in the high teens [20][22] - Segment-specific expectations include mid-single-digit growth for Texture & Healthful Solutions and flat to low single-digit declines for Food & Industrial Ingredients—U.S./Canada [21][22] Capital Management - In Q1 2025, the company paid $52 million in dividends and repurchased $55 million in common stock [18] - Total debt at the end of Q1 2025 was $1.784 billion, with cash and short-term investments totaling $846 million [12][36]

Core Insights - Ingredion Incorporated will release its first quarter 2025 financial results on May 6, 2025, before market opens [1] - A conference call will be hosted by the CEO and CFO on the same day to discuss the financial performance [2] Company Overview - Ingredion is a leading global ingredient solutions provider, serving customers in over 120 countries [3] - The company reported annual net sales of approximately $7.4 billion in 2024, focusing on turning plant-based materials into value-added ingredient solutions [3] - Ingredion operates innovation centers globally and employs more than 11,000 people, emphasizing collaboration with customers [3]

Company Overview - Ingredion Incorporated is a leading global ingredient solutions provider serving customers in over 120 countries [2] - The company reported annual net sales of approximately $7.4 billion for 2024 [2] - Ingredion transforms grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for various markets including food, beverage, animal nutrition, brewing, and industrial [2] - The company operates innovation centers called Idea Labs around the world and employs more than 11,000 people [2] Recent Developments - The board of directors of Ingredion declared a quarterly dividend of $0.80 per share on the Company's common stock [1] - This dividend is payable on April 22, 2025, to stockholders of record at the close of business on April 1, 2025 [1]

WESTCHESTER, Ill., March 11, 2025 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE:INGR), a leading global provider of ingredient solutions for food, beverage and industrial applications, today announced it has been recognized for the 11th time as one of the 2025 World's Most Ethical Companies® by Ethisphere, a global leader in defining and advancing the standards of ethical business practices. "We are proud to be named one of the World's Most Ethical Companies by Ethisphere in 2025. This honor underscores ...