Ingredion (INGR) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and strong full-year 2024 results, with double-digit adjusted EPS growth and robust performance in Texture & Healthful Solutions and Food & Industrial Ingredients segments, despite a 9% decline in net sales due to the South Korea business sale.

• 2024 reorganization and new segment structure enhanced market focus and operational execution, positioning for targeted growth.

• Returned $426M to shareholders in 2024, including $216M in share repurchases and $210M in dividends.

• Record gross profit and margin for the full year, with operational excellence and cost-saving initiatives exceeding targets.

• Strong cash flow from operations enabled increased organic investment and substantial shareholder returns.

Financial highlights

• FY 2024 net sales: $7.43B, down 9% year-over-year, mainly due to the South Korea divestiture and lower corn costs; Q4 net sales: $1.8B, down 6%.

• FY 2024 adjusted operating income: $1.016B, up 5% year-over-year; Q4 adjusted operating income: $248M, up 22%.

• FY 2024 adjusted diluted EPS: $10.65, up $1.23 per share; Q4 adjusted EPS: $2.63, up $0.66 per share.

• FY 2024 gross profit margin: 24.1%, up 270 bps from FY 2023; Q4 gross margin: 25%, up 420 bps.

• FY 2024 cash from operations: $1.436B, with $295M in capital expenditures and $426M returned to shareholders.

Outlook and guidance

• 2025 net sales expected to be up low single digits, with adjusted operating income up mid-single digits.

• 2025 adjusted EPS guidance: $10.75–$11.55; effective tax rate: 26%–27.5%.

• 2025 capital expenditures projected at $400–$450M, reflecting one-time infrastructure investments.

• 2025 cash from operations expected at $800–$950M; share repurchase target of at least $100M.

• Segment outlook: Texture & Healthful Solutions net sales and operating income up mid- to high single digits; LATAM net sales flat, operating income up mid-single digits; US/CAN net sales down low single digits, operating income flat to down.