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Ingredion
🇺🇸 NYSE:INGR
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Mar 31, 2024

Ingredion Q1 2024 Earnings Report

Ingredion's Q1 2024 earnings were reported, featuring new segments and raised guidance.

Key Takeaways

Ingredion's first quarter results exceeded expectations despite a strong comparison to the previous year and the impact of extreme cold weather. The company's net sales volumes improved sequentially, and gross margins remained above 22%. The sale of the South Korea business was completed, and the company is raising its full-year reported and adjusted EPS guidance.

Reported EPS was $3.23, a 13% increase year-over-year.

Adjusted EPS was $2.08, a 26% decrease year-over-year.

The sale of the South Korea business was completed.

Full-year reported EPS guidance is raised to $10.35 to $11.00, and adjusted EPS guidance is raised to $9.20 to $9.85.

Total Revenue
$1.88B
Previous year: $2.14B
-11.9%
EPS
$2.08
Previous year: $2.8
-25.7%
Gross Profit
$417M
Previous year: $487M
-14.4%
Cash and Equivalents
$438M
Previous year: $216M
+102.8%
Free Cash Flow
$144M
Previous year: -$127M
-213.4%
Total Assets
$7.32B
Previous year: $7.65B
-4.3%

Ingredion

Ingredion

Forward Guidance

For the second quarter of 2024, the Company expects net sales to be flat to down low single-digits and reported and adjusted operating income to be up low to mid-single-digits. The Company now expects its full-year 2024 reported EPS to be in the range of $10.35 to $11.00, which includes the impact of the gain on the divestiture of the South Korea business completed on February 1, 2024, and adjusted EPS to be in the range of $9.20 to $9.85.

Positive Outlook

  • Full-year 2024 net sales to be flat to up low single-digits, excluding the effects of the divestiture of the South Korea business.
  • Reported and adjusted operating income is expected to be up mid-single-digits.
  • Corporate costs are still expected to be up mid-single-digits.
  • The Company now expects a reported and adjusted effective tax rate of 24.5% to 25.5%, and 26.5% to 27.5%, respectively.
  • Cash from operations for full-year 2024 is still expected to be in the range of $750 million to $900 million.

Challenges Ahead

  • Second quarter 2024, the Company expects net sales to be flat to down low single-digits.
  • Full-year 2024 reported EPS to be in the range of $10.35 to $11.00.
  • Full-year 2024 adjusted EPS to be in the range of $9.20 to $9.85.
  • Capital expenditures for the full year are still expected to be approximately $340 million.
  • Reflecting the pass-through of lower corn values.

Company Overview

Full financial data and analysis

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