Ingredion (INGR) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 profitability with adjusted operating income up 29% and reported operating income up 26%, driven by strong segment performance, operational excellence, and cost savings, despite an 8% decline in net sales due to lower prices and the South Korea business sale.

• All major segments delivered double-digit operating income growth, with Texture & Healthful Solutions and LATAM leading gains.

• Volume growth was strong across all segments, with 4% net sales volume growth year-over-year, adjusted for the South Korea business sale.

• Cost-to-Compete savings program and operational improvements supported margin recovery and efficiency.

• Recognized for safety, innovation, and employee engagement, with high engagement scores and industry awards.

Financial highlights

• Q3 2024 net sales were $1.87B, down 8% year-over-year, mainly due to lower price mix and the South Korea business sale.

• Q3 gross profit grew 14% to $479M, with gross margin up 490 bps to 25.6%–26%.

• Q3 adjusted operating income was $282M (up 29%); reported operating income was $268M (up 26%).

• Q3 net income attributable to Ingredion rose to $188M, with adjusted diluted EPS up 31% to $3.05 and reported EPS up 20% to $2.83.

• Year-to-date net sales were $5.63B (down 10%), with cash from operations at $1B and $87M in share repurchases.

Outlook and guidance

• Full-year 2024 net sales expected to decline mid-single digits, excluding South Korea, due to lower price mix and raw material costs.

• Adjusted operating income projected to be up high single digits; adjusted EPS guidance raised to $10.35–$10.65.

• Cash from operations expected at $1.1–$1.25B; capex between $310–$330M.

• Effective tax rate expected at 28%–29% reported, 26.5%–27.5% adjusted.

• Management expects sufficient liquidity for at least the next twelve months, with $2.5B available as of September 30, 2024.