Ingredion Incorporated Reports Strong 2024 Fourth Quarter and Full-Year Results

Core Insights - Ingredion Incorporated reported record financial results for Q4 2024, driven by strong sales volume growth in Texture & Healthful Solutions and exceptional performance in Food & Industrial Ingredients segments [2][5] - The company has reorganized its structure to better target market opportunities, establishing a solid foundation for future growth [2] - Significant investments are being made, including over $100 million into the Indianapolis facility to enhance reliability and efficiency [2] Financial Performance - Q4 2024 reported diluted EPS was$1.43, down from $1.97 in Q4 2023, while adjusted diluted EPS increased to$2.63 from $1.97 [3][5] - Full-year 2024 reported and adjusted EPS were$9.71 and $10.65, respectively, compared to$9.60 and $9.42 in 2023 [5] - Cash from operations for 2024 was$1,436 million, benefiting from a favorable change in working capital due to decreased corn costs [5][12] Sales and Revenue - Q4 2024 net sales were $1,800 million, a decrease of 6$7,430 million, down 9% [11][39] - The decline in sales was attributed to price mix changes, lost sales from the South Korea business sale, and foreign exchange impacts [11][24] - Texture & Healthful Solutions segment reported a slight increase in Q4 sales to $581 million, while full-year sales decreased to$2,366 million [14][49] Operating Income - Q4 2024 reported operating income was $162 million, down 20$248 million [18][49] - Full-year reported operating income decreased to $883 million, while adjusted operating income rose to$1,016 million [18][49] - The increase in adjusted operating income was driven by favorable raw material costs, despite unfavorable price mix and lost sales volume from the South Korea business [18] Segment Performance - Food & Industrial Ingredients - U.S./Canada segment saw Q4 operating income rise to $82 million, a 74$373 million, up 25% [21][49] - Food & Industrial Ingredients - LATAM segment reported Q4 operating income of $121 million, a slight decrease, but full-year income increased to$483 million [19][49] - The Texture & Healthful Solutions segment's Q4 operating income increased to $94 million, while full-year income decreased to$350 million [15][49] Shareholder Returns - In 2024, the company returned $426 million to shareholders, including$210 million in dividends and $216 million in share repurchases [5][25] - A quarterly dividend of$0.80 per share was declared in Q4 2024, payable in Q1 2025 [25] 2025 Outlook - The company anticipates full-year 2025 reported and adjusted EPS to be in the range of $10.75 to$11.55 [26] - Expected net sales growth in low single digits for 2025, with operating income projected to increase in mid-single digits [27][28] - The outlook includes expectations for segment performance, with Texture & Healthful Solutions operating income expected to grow mid-single digits [28]