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Dec 31, 2024
Ingredion Q4 2024 Earnings Report
Ingredion reported strong fourth quarter and full-year results, driven by growth in Texture and Healthful Solutions and exceptional performance in Food and Industrial Ingredients segments.
Key Takeaways
Ingredion Incorporated reported record Q4 financial results, driven by strong sales volume growth in Texture and Healthful Solutions and exceptional results in Food and Industrial Ingredients US/CAN and LATAM segments. The company's 2024 reorganization and new segment structure positioned teams well toward targeted market and customer opportunities, establishing a solid foundation for future growth.
Delivered record Q4 financial results driven by continued strong sales volume growth in Texture and Healthful Solutions and exceptional results in our Food and Industrial Ingredients US/CAN and LATAM segments.
The creation of a global Texture & Healthful Solutions segment has strengthened collaboration with customers in support of their pursuit of innovative volume growth.
F&II US/CAN business benefited from the renewal of multi-year customer contracts that enabled us to recapture inflationary impacts and recover margins, resulting in significant operating income growth in the fourth quarter.
High level of performance in 2024 provides momentum heading into 2025.
Ingredion
Ingredion
Ingredion Revenue by Segment
Revenue by Segment
Texture & Healthful Solutions Revenue
CapyFin.comFood & Industrial Ingredients - LATAM Revenue
CapyFin.com Forward Guidance
The Company expects its full-year 2025 reported and adjusted EPS to each be in the range of $10.75 to $11.55. The Company expects full-year 2025 net sales to be up low single-digits, reflecting greater volume demand, partially offset by price mix and foreign exchange impacts. Reported and adjusted operating income are expected to be up mid-single-digits for full year 2025.
Positive Outlook
- Texture and Healthful Solutions operating income is expected to be up mid-single-digits to high single-digits, driven by sales volume growth.
- Food & Industrial Ingredients LATAM operating income is expected to be up mid-single-digits.
- Food & Industrial Ingredients US/CAN operating income is expected to be flat to down low single-digits.
- All Other operating income is anticipated to approach breakeven profitability.
- Cash from operations for full-year 2025 is expected to be in the range of $800 million to $950 million.
Challenges Ahead
- full-year 2025 net sales to be up low single-digits, reflecting greater volume demand, partially offset by price mix and foreign exchange impacts.
- Corporate costs for full-year 2025 are expected to be up mid-single-digits to high single-digits.
- For full-year 2025, the Company expects both a reported and adjusted effective tax rate of 26.0% to 27.5%.
- Capital expenditures for the full year are expected to be approximately $400 to $450 million.
- For the first quarter of 2025, the Company expects net sales to be down low single-digits compared to the same quarter last year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income