Ingredion (INGR) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 profitability, with adjusted operating income up 8% and gross margin improving by 240 basis points to 23.7–24%, driven by volume recovery, cost controls, and operational excellence.

• Net sales declined 9% year-over-year to $1,878–$1.9 billion, mainly due to lower raw material costs and the South Korea business sale.

• Adjusted EPS rose 24% to $2.87, while reported EPS fell to $2.22; net income attributable to Ingredion was $148 million, down from $163 million.

• Strategic investments included increasing PureCircle ownership to 98% and launching the Cost2Compete program, achieving $18 million in run-rate savings.

• Sustainability progress included a 22% reduction in Scope 1 and 2 emissions and 67% sustainable sourcing for Tier one crops.

Financial highlights

• Q2 2024 net sales were $1,878–$1.9 billion (down 9% YoY); gross profit increased 1% to $446 million.

• Adjusted operating income was $270 million (up 8% YoY); reported operating income was $240 million (down 4%).

• Adjusted EPS guidance for 2024 raised to $9.70–$10.20; reported EPS expected at $10.20–$10.70, including South Korea sale gain and restructuring charges.

• Cash from operations in the first half was $521 million; net capital expenditures were $120 million.

• Total debt at June 30, 2024 was $1.9 billion; cash and short-term investments were $510 million.

Outlook and guidance

• Full-year 2024 net sales expected to be down low single digits, reflecting lower price mix and corn values but improved volume demand.

• Adjusted operating income projected to be up mid-single digits for 2024, with strong growth in the second half.

• Q3 2024 net sales anticipated to be flat, with operating income up high double digits year-over-year.

• Cash from operations for 2024 expected at $800–$950 million; capital expenditures planned at $340 million.

• Effective tax rate for 2024 expected at 27–28% (reported) and 26.5–27.5% (adjusted).