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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.
Ingredion
Ingredion
Ingredion Revenue by Segment
Revenue by Segment
Texture & Healthful Solutions Revenue
CapyFin.comFood & Industrial Ingredients - LATAM Revenue
CapyFin.comFood & Industrial Ingredients - U.S./Canada Revenue
CapyFin.comAll Other Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income