Ingredion Reports Strong Q4 and Full-Year 2024 Results

• Full-year 2024 reported and adjusted* EPS were $9.71 and $10.65, compared with $9.60 and $9.42 in the full-year 2023, respectively
• Full-year 2024 cash from operations was $1,436 million, which benefited from approximately $400 million favorable change in working capital balances as corn costs decreased
• In 2024, the Company returned $426 million to shareholders, including $216 million of share repurchases
• The Company expects its full-year 2025 outlook for reported and adjusted EPS to be in the range of $10.75 to $11.55

WESTCHESTER, Ill., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food and beverage manufacturing industry, today reported its fourth quarter 2024 and full-year 2024 results.

"We delivered record Q4 financial results driven by continued strong sales volume growth in Texture & Healthful Solutions and exceptional results in our Food & Industrial Ingredients ("F&II") US/CAN and LATAM segments," said Jim Zallie, president and CEO of Ingredion. "Our 2024 reorganization and new segment structure positioned our teams well toward targeted market and customer opportunities establishing a solid foundation for future growth."

"The creation of a global Texture & Healthful Solutions segment has strengthened collaboration with customers in support of their pursuit of innovative volume growth. The T&HS business delivered double digit sales volume growth in the fourth quarter amid a backdrop of continued food inflation and changing consumer buying behavior. Additionally, we are investing more than $100 million into our flagship Indianapolis facility to improve reliability and operating efficiency."

"Our F&II US/CAN business benefited from the renewal of multi-year customer contracts that enabled us to recapture inflationary impacts and recover margins, resulting in significant operating income growth in the fourth quarter. For F&II LATAM, the Mexico and Andean businesses delivered strong results despite softer sweetener demand. The strength and agility of our business model in the region enabled us to manage pricing in the face of changing corn costs and currency fluctuations."

"Our high level of performance in 2024 provides momentum heading into 2025. In addition to strong volume growth in Texture & Healthful Solutions and operational excellence across our entire business, we exceeded our first year Cost2Compete run rate savings target. We anticipate the further strengthening of customer collaborations to drive growth and the benefits of the second year of Cost2Compete initiatives to position us well to navigate the business environment in 2025. We will continue to allocate capital that prioritizes organic investment to drive future profit growth while returning capital through dividends and share repurchases to deliver shareholder value," Zallie concluded.

^{* Reported results are in accordance with U.S. generally accepted accounting principles "GAAP." Adjusted financial measures are non-GAAP financial measures. See section II of the Supplemental Financial Information entitled "Non-GAAP Information" following the Consolidated Financial Statements for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.}

Diluted Earnings Per Share (EPS)

Factors Affecting Changes in Reported and Adjusted EPS

^{** Totals may not sum due to rounding}

Other Financial Items

• At December 31, 2024, total debt and cash, including short-term investments, were $1.8 billion and $1.0 billion, respectively, versus $2.2 billion and $409 million at December 31, 2023.
• Cash from operations was $1,436 million, up from $1,057 million in 2023, reflecting changes in working capital.
• Reported net financing costs for the fourth quarter were $9 million versus $26 million for the year-ago period.
• Reported and adjusted effective tax rates for the quarter were 36.2% and 25.2%, respectively, compared to 24.4% and 24.9% for the year-ago period. The increase in the reported effective tax rate was primarily driven by the change in value of the Mexican peso against the U.S. dollar and the recapture of prior year U.S. tax benefits.
• Net capital expenditures were $295 million, down $19 million from the prior year.

Business Review

Total Ingredion

Net Sales

^{* Represents loss of volume due to the sale of our South Korea business completed on February 1, 2024}

Reported Operating Income

Adjusted Operating Income

Net Sales

• Fourth quarter and full-year net sales were down 6% and 9%, respectively, from the year-ago period. The decreases were driven by price mix, including the pass-through of lower corn costs, lost net sales from the sale of our South Korea business and foreign exchange impacts, partially offset by T&HS favorable volumes. Excluding foreign exchange impacts, fourth quarter and full-year net sales were down 5% and 8%, respectively, from the year-ago period and prior year.

Operating Income

• Fourth quarter reported and adjusted operating income were $162 million and $248 million, respectively, a decrease of 20% and an increase of 22% versus the year-ago period. The difference in reported versus adjusted operating income was primarily attributable to impairment charges for the cessation of operations at our Vanscoy, Canada, and Alcantara, Brazil manufacturing facilities. Excluding the impairment charges, the increase in the fourth quarter operating income was driven by favorable input costs, partially offset by unfavorable price mix. Excluding foreign exchange impacts, reported and adjusted operating income were down 19% and up 23%, respectively, from the same period last year.
• Full-year reported and adjusted operating income were $883 million and $1,016 million, respectively, a decrease of 8% and an increase of 5% versus the prior year. The difference in reported versus adjusted operating income was primarily attributable to impairment charges for the cessation of operations at our Vanscoy, Canada, Goole, UK, and Alcantara, Brazil manufacturing facilities. The increase in adjusted operating income was attributable to favorable raw material and input costs, partially offset by unfavorable price mix and lost sales volume from the sale of our South Korea business.

Texture & Healthful Solutions

Net Sales

Segment Operating Income

• Fourth quarter operating income for Texture & Healthful Solutions was $94 million, an increase of $18 million from the year-ago period, and full-year operating income was $350 million, a decrease of $44 million from the prior year. The increase for the quarter was driven by favorable input costs and improved volumes, partially offset by price mix. The decrease for the full year was driven by unfavorable price mix and the carry-forward of higher-cost inventory, partially offset by favorable raw materials and input costs, as well as improved volumes. Excluding foreign exchange impacts, segment operating income was up 22% and down 11% for the fourth quarter and full year, respectively.

Food & Industrial Ingredients - LATAM

Net Sales

Segment Operating Income

• Fourth quarter operating income for Food & Industrial Ingredients - LATAM was $121 million, a decrease of $4 million from the year-ago period, and full-year operating income was $483 million, an increase of $31 million from the prior year. The decrease in fourth quarter operating income was driven by unfavorable input costs, largely offset by favorable raw material costs. Additionally, the decrease in the fourth quarter included lower Argentina joint venture results from the prior year foreign exchange impact. For the full year, the increase in operating income was driven primarily by lower input costs in Mexico and Brazil. Excluding foreign exchange impacts, segment operating income was flat and up 7%, for the fourth quarter and full year, respectively.

Food & Industrial Ingredients - U.S./Canada

Net Sales

Segment Operating Income

• Fourth quarter operating income for Food & Industrial Ingredient - US/CAN was $82 million, up $35 million from the year-ago period, and full-year operating income was $373 million, an increase of $75 million from the prior year. The increases in both periods benefited from favorable catch-up pricing in multi-year contracts. Additionally, the increases were driven by lower raw material costs, partially offset by price mix attributable to pass-through of lower corn costs. Excluding foreign exchange impacts, segment operating income was up 74% and 26% for the fourth quarter and full year, respectively.

All Other**

Net Sales

^{* Represents loss of volume due to the sale of our South Korea business}

Segment Operating Income (Loss)

• Fourth quarter operating income for All Other was ($4) million, down $8 million from the year-ago period, and full-year operating income was ($22) million, a decrease of $20 million from the prior year. The decreases in the quarter and full year were primarily driven by the sale of our South Korea business, which had contributed approximately $8 million and $30 million to the results for the year-ago period and full year, respectively.

^{** All Other consists of the businesses of multiple operating segments that are not individually or collectively classified as reportable segments. Net sales from All Other are generated primarily by sweetener and starch sales by our Pakistan business, sales of stevia and other ingredients from our PureCircle and Sugar Reduction businesses, and pea protein ingredients from our Protein Fortification business.}

Dividends and Share Repurchases

For full-year 2024, the Company paid $210 million in dividends to shareholders and in the fourth quarter, declared a quarterly dividend of $0.80 per share that was paid in the first quarter of 2025. During 2024, the Company repurchased 1.65 million outstanding shares of common stock at a net cost of $216 million. To support total shareholder return, the Company is dedicated to continuing to return value to shareholders through cash dividends and share repurchases.

2025 Full-Year Outlook

The Company expects its full-year 2025 reported and adjusted EPS to each be in the range of $10.75 to $11.55.

This guidance does not consider extraordinary changes in current tax rates, tariffs or trade, or food regulations.

This expectation excludes any acquisition-related integration and restructuring costs, as well as any potential impairment costs.

The Company expects full-year 2025 net sales to be up low single digits, reflecting greater volume demand, partially offset by price mix and foreign exchange impacts. Reported and adjusted operating income are expected to be up mid-single-digits for full year 2025.

The 2025 full-year outlook assumes the following: Texture & Healthful Solutions operating income is expected to be up mid-single-digits to high single-digits, driven by sales volume growth; Food & Industrial Ingredients LATAM operating income is expected to be up mid-single-digits; Food & Industrial Ingredients US/CAN operating income is expected to be flat to down low single-digits; and All Other operating income is anticipated to approach breakeven profitability.

Corporate costs for full-year 2025 are expected to be up mid-single-digits to high single-digits.

For full-year 2025, the Company expects both a reported and adjusted effective tax rate of 26.0% to 27.5%.

Cash from operations for full-year 2025 is expected to be in the range of $800 million to $950 million, which reflects a reversion to investing in working capital balances as net sales are expected to grow. Capital expenditures for the full year are expected to be approximately $400 to $450 million.

For the first quarter of 2025, the Company expects net sales to be down low single-digits compared to the same quarter last year, with operating income expected to be up high single-digits.

Conference Call and Webcast Details

Ingredion will host a conference call on Tuesday, February 4, 2025, at 8 a.m. CT/9 a.m. ET, hosted by Jim Zallie, president and chief executive officer, and Jim Gray, executive vice president and chief financial officer. The call will be webcast in real-time and can be accessed at https://ir.ingredionincorporated.com/events-and-presentations. A presentation containing additional financial and operating information will be accessible through the Company's website, and available to