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Ingredion
🇺🇸 NYSE:INGR
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Jun 30, 2024

Ingredion Q2 2024 Earnings Report

Ingredion reported strong second quarter results and raised full-year outlook.

Key Takeaways

Ingredion Incorporated reported a decrease in second quarter reported operating income by 4% but an increase in adjusted operating income by 8% compared to the prior year. Reported EPS decreased by 8% while adjusted EPS increased by 24%. The company raised its guidance for full-year reported EPS to be in the range of $10.20 to $10.70 and adjusted EPS to be in the range of $9.70 to $10.20.

Second quarter reported operating income declined 4% and adjusted operating income grew 8%, respectively, compared to prior year.

Second quarter reported EPS decreased 8% and adjusted EPS increased 24%.

Texture & Healthful Solutions experienced 8% sales volume growth year over year.

Cost2Compete program initiatives have realized $18 million in run-rate savings.

Total Revenue
$1.88B
Previous year: $2.07B
-9.2%
EPS
$2.87
Previous year: $2.32
+23.7%
Gross Profit
$507M
Previous year: $441M
+15.0%
Cash and Equivalents
$505M
Previous year: $257M
+96.5%
Free Cash Flow
$257M
Previous year: $252M
+2.0%
Total Assets
$7.22B
Previous year: $7.6B
-5.0%

Ingredion

Ingredion

Forward Guidance

For the third quarter of 2024, excluding the effects of the sale of the South Korea business, the Company expects net sales to be flat, and reported and adjusted operating income to be up high-double-digits. The Company now expects its full-year 2024 reported EPS to be in the range of $10.20 to $10.70, which includes the impact of the gain on the sale of the South Korea business completed on February 1, 2024. The Company anticipates adjusted EPS to be in the range of $9.70 to $10.20.

Positive Outlook

  • Net sales to be flat for Q3 2024 (excluding the effects of the sale of the South Korea business)
  • Reported and adjusted operating income to be up high-double-digits for Q3 2024
  • Full-year 2024 reported EPS to be in the range of $10.20 to $10.70
  • Adjusted EPS to be in the range of $9.70 to $10.20 for full-year 2024
  • Reported and adjusted operating income is expected to be up mid-single-digits for full year 2024

Challenges Ahead

  • Excluding the effects of the sale of the South Korea business, the Company expects full-year 2024 net sales to be down low single digits
  • Reflecting the pass-through of lower corn values
  • Corporate costs are expected to be up low single digits
  • The Company now expects a reported and adjusted effective tax rate of 27.0% to 28.0%, and 26.5% to 27.5%, respectively
  • Capital expenditures for the full year are still expected to be approximately $340 million

Company Overview

Full financial data and analysis

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