Fourth Quarter and Full Year 2024 Earnings Call Jim Zallie President and CEO James Gray Executive Vice President and CFO Option 1 Non-GAAP Financial Measures This presentation provides information about adjusted diluted earnings per share ("adjusted EPS"), adjusted operating income, adjusted effective income tax rate, and other financial measures (collectively, the "non-GAAP financial measures") which are not measurements of financial performance calculated in accordance with U.S. generally accepted account ...

Core Insights - Ingredion Incorporated announced investments exceeding $100 million to enhance efficiency, modernize equipment, and install an energy cogeneration system at its Indianapolis facility [1][2]. Investment and Expansion - The project aims to expand Ingredion's capabilities in delivering texture innovations to growing end markets while enhancing the economic viability and sustainability of the Indianapolis plant [2]. - The upgrades to energy infrastructure are expected to improve operational efficiency and reliability, as well as reduce greenhouse gas emissions [2]. Leadership Statements - Valdirene Evans, senior vice president and president of global texture solutions, stated that these investments will support future customer growth and expand capacity for texture solutions [3]. - Eric Seip, senior vice president of global operations, emphasized that the investments will modernize operations, improve agility in delivering solutions, and enhance energy efficiency and cost competitiveness [3]. Project Timeline - The completion of the project is anticipated in the second half of 2026 [4]. Company Overview - Ingredion, headquartered in the Chicago suburbs, serves customers in over 120 countries and reported annual net sales of approximately $7.4 billion in 2024 [5]. - The company specializes in turning plant-based materials into value-added ingredient solutions for various markets, including food, beverage, and industrial sectors [5].

Financial Performance - Full-year 2024 reported and adjusted EPS were $9.71 and $10.65, compared to $9.60 and $9.42 in 2023, reflecting a year-over-year increase of 1.1% and 12.9% respectively[4] - The company reported a net income of $654 million for full-year 2024, a slight increase of 1% compared to the previous year[38] - Net income for 2024 was $654 million, slightly up from $651 million in 2023, indicating a growth of 0.5%[42] - For full-year 2024, the company reported net sales of approximately $7.4 billion, a decrease of 9% compared to the previous year[29] - Total net sales for 2024 were $7,430 million, down 9% from $8,160 million in 2023[43] - Operating income decreased by 20% to $162 million in 2024 compared to $202 million in 2023[43] - Non-GAAP adjusted operating income increased by 22% to $248 million in Q4 2024 from $203 million in Q4 2023[43] - The company reported a net gain on the sale of business amounting to $90 million in 2024[42] Cash Flow and Shareholder Returns - Full-year cash from operations reached $1,436 million, benefiting from a favorable change in working capital balances of approximately $400 million due to decreased corn costs[4] - The company returned $426 million to shareholders in 2024, which included $216 million in share repurchases[4] - The company paid $210 million in dividends to shareholders for full-year 2024 and repurchased 1.65 million shares at a net cost of $216 million[22] - Cash provided by operating activities rose to $1,436 million in 2024, up from $1,057 million in 2023, a growth of 35.8%[42] - The company repurchased common stock worth $216 million in 2024, compared to $101 million in 2023[42] Future Outlook - The company expects full-year 2025 reported and adjusted EPS to be in the range of $10.75 to $11.55, indicating positive growth outlook[4] - Full-year 2025 net sales are expected to increase by low single-digits, driven by greater volume demand[24] - Reported and adjusted operating income for full-year 2025 is anticipated to rise by mid-single-digits[24] - Corporate costs for full-year 2025 are projected to increase by mid-single-digits to high single-digits[26] - Cash from operations for full-year 2025 is expected to be between $800 million and $950 million[26] - Capital expenditures for the full year are expected to be approximately $400 to $450 million[26] - For Q1 2025, net sales are expected to decline by low single-digits compared to the same quarter last year, while operating income is expected to rise by high single-digits[27] Segment Performance - Fourth quarter net sales decreased by 6% year-over-year to $1,800 million, while full-year net sales were down 9% to $7,430 million[12] - Fourth quarter reported operating income was $162 million, a decrease of 20%, while adjusted operating income increased by 22% to $248 million[13] - The Texture & Healthful Solutions segment achieved a 1% increase in fourth quarter net sales to $581 million, driven by favorable input costs[14] - The Food & Industrial Ingredients - U.S./Canada segment reported a 74% increase in fourth quarter operating income to $82 million, benefiting from favorable catch-up pricing in multi-year contracts[19] Asset Management - Total assets decreased to $7,444 million in 2024 from $7,642 million in 2023, a decline of 2.6%[40] - Cash and cash equivalents increased significantly to $997 million in 2024 from $401 million in 2023, representing a growth of 148.9%[42] - Retained earnings increased to $5,092 million in 2024 from $4,654 million in 2023, a rise of 9.4%[40] Restructuring and Charges - The company recorded pre-tax restructuring charges of $6 million and $18 million for the three and twelve months ended December 31, 2024, respectively, compared to $1 million for both periods in 2023[50] - Pre-tax impairment charges amounted to $83 million for the three months ended December 31, 2024, and $109 million for the twelve months, significantly higher than the $10 million recorded in 2023[50] - The company recorded a pre-tax net charge of $7 million for tornado damage incurred at a U.S. warehouse during the twelve months ended December 31, 2024[50] Taxation - The effective income tax rate for the three months ended December 31, 2024, was reported at 36.2%, while the adjusted effective tax rate was 25.2%[52] - The expected effective tax rate range for full-year 2025 is between 26.0% and 27.5%[56] - The company recognized a tax provision of $6 million and $18 million for the three and twelve months ended December 31, 2024, respectively, due to the impact of the Mexican peso against the U.S. dollar[50]

Core Insights - Ingredion Incorporated reported record financial results for Q4 2024, driven by strong sales volume growth in Texture & Healthful Solutions and exceptional performance in Food & Industrial Ingredients segments [2][5] - The company has reorganized its structure to better target market opportunities, establishing a solid foundation for future growth [2] - Significant investments are being made, including over $100 million into the Indianapolis facility to enhance reliability and efficiency [2] Financial Performance - Q4 2024 reported diluted EPS was $1.43, down from $1.97 in Q4 2023, while adjusted diluted EPS increased to $2.63 from $1.97 [3][5] - Full-year 2024 reported and adjusted EPS were $9.71 and $10.65, respectively, compared to $9.60 and $9.42 in 2023 [5] - Cash from operations for 2024 was $1,436 million, benefiting from a favorable change in working capital due to decreased corn costs [5][12] Sales and Revenue - Q4 2024 net sales were $1,800 million, a decrease of 6% from Q4 2023, while full-year net sales were $7,430 million, down 9% [11][39] - The decline in sales was attributed to price mix changes, lost sales from the South Korea business sale, and foreign exchange impacts [11][24] - Texture & Healthful Solutions segment reported a slight increase in Q4 sales to $581 million, while full-year sales decreased to $2,366 million [14][49] Operating Income - Q4 2024 reported operating income was $162 million, down 20% from the previous year, while adjusted operating income increased by 22% to $248 million [18][49] - Full-year reported operating income decreased to $883 million, while adjusted operating income rose to $1,016 million [18][49] - The increase in adjusted operating income was driven by favorable raw material costs, despite unfavorable price mix and lost sales volume from the South Korea business [18] Segment Performance - Food & Industrial Ingredients - U.S./Canada segment saw Q4 operating income rise to $82 million, a 74% increase, while full-year operating income was $373 million, up 25% [21][49] - Food & Industrial Ingredients - LATAM segment reported Q4 operating income of $121 million, a slight decrease, but full-year income increased to $483 million [19][49] - The Texture & Healthful Solutions segment's Q4 operating income increased to $94 million, while full-year income decreased to $350 million [15][49] Shareholder Returns - In 2024, the company returned $426 million to shareholders, including $210 million in dividends and $216 million in share repurchases [5][25] - A quarterly dividend of $0.80 per share was declared in Q4 2024, payable in Q1 2025 [25] 2025 Outlook - The company anticipates full-year 2025 reported and adjusted EPS to be in the range of $10.75 to $11.55 [26] - Expected net sales growth in low single digits for 2025, with operating income projected to increase in mid-single digits [27][28] - The outlook includes expectations for segment performance, with Texture & Healthful Solutions operating income expected to grow mid-single digits [28]

WESTCHESTER, Ill., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE:INGR), a leading global provider of ingredient solutions to the food manufacturing industry, has been named to the 2025 Fortune World's Most Admired Companies list. This marks the 15th time Ingredion has received this distinguished recognition, reaffirming the Company's position as a leader in innovation, sustainability, and corporate excellence. "To be recognized for the 15th time by our peers on the World's Most Admired Comp ...

WESTCHESTER, Ill., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to the food manufacturing industry, has been named to the 2025 Fortune World's Most Admired Companies list. This marks the 15th time Ingredion has received this distinguished recognition, reaffirming the Company’s position as a leader in innovation, sustainability, and corporate excellence. “To be recognized for the 15th time by our peers on the World's Most Admired Com ...

Company Overview - Ingredion Incorporated is a leading global provider of ingredient solutions, serving customers in nearly 120 countries [3] - The company reported annual net sales of approximately $8 billion for 2023, transforming grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions [3] - Ingredion operates innovation centers called Ingredion Idea Labs around the world and employs over 12,000 people [3] Financial Results Announcement - Ingredion will release its 2024 fourth quarter and year-end financial results on February 4, 2025, before the market opens [1] - A conference call to discuss the financial performance will be hosted by the CEO and CFO on February 4 at 8 a.m. CT, with a live webcast available [2]

Company Overview - Ingredion Incorporated is a leading global provider of ingredient solutions, serving customers in nearly 120 countries [3] - The company reported annual net sales of approximately $8 billion for 2023, transforming grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions [3] - Ingredion operates innovation centers known as Ingredion Idea Labs® and employs over 12,000 people globally [3] Financial Results Announcement - Ingredion will release its 2024 fourth quarter and year-end financial results on February 4, 2025, before the market opens [1] - A conference call to discuss the financial performance will be hosted by CEO Jim Zallie and CFO Jim Gray on February 4 at 8 a.m. CT [2] - The conference call will be webcast live, and a replay will be available on the company's website [2]

Sector Overview - Investors are considering stocks in the Food - Miscellaneous sector, specifically Ingredion (INGR) and Lamb Weston (LW) [1] Valuation Metrics - Ingredion has a forward P/E ratio of 12.23, while Lamb Weston has a forward P/E of 18.97 [5] - Ingredion's PEG ratio is 1.11, compared to Lamb Weston's PEG ratio of 1.45 [5] - Ingredion's P/B ratio is 2.24, significantly lower than Lamb Weston's P/B ratio of 5.77 [6] Company Rankings - Ingredion holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions [3] - Lamb Weston has a Zacks Rank of 5 (Strong Sell) [3] Value Assessment - Ingredion receives a Value grade of A, while Lamb Weston receives a Value grade of C [6] - Ingredion's improving earnings outlook makes it stand out in the Zacks Rank model [7]

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