Ingredion(US:INGR)2024-11-08 18:46Financial Performance - Net sales decreased 8 percent to $1,870 million for Q3 2024 compared to $2,033 million for Q3 2023, primarily due to lower raw material costs and lost sales volume from the sale of the South Korea business[89]. - Operating income increased due to lower raw material and input costs, while net income attributable to Ingredion rose to $188 million from $158 million year-over-year[97]. - Gross profit margin increased to 26 percent for Q3 2024 compared to 21 percent for Q3 2023, driven by a 14 percent decrease in cost of sales to $1,391 million[90]. - Year-to-date net sales decreased 10 percent to $5,630 million, with a gross profit margin increase to 24 percent compared to 22 percent in the previous year[103][104]. Segment Performance - T&HS segment net sales remained flat at $600 million, with operating income increasing 12 percent to $96 million due to lower input costs[98][99]. - F&II - LATAM segment net sales decreased 6 percent to $620 million, but operating income increased 26 percent to $131 million due to lower input costs[100]. - F&II - U.S./Canada segment net sales decreased 9 percent to $548 million, while operating income increased 25 percent to $99 million[101]. Liquidity and Capital Expenditures - Total available liquidity as of September 30, 2024, was $2.5 billion, consisting of $1.3 billion in domestic liquidity and $1.2 billion in international liquidity[115][116]. - Capital expenditures and mechanical stores purchases amounted to $170 million year-to-date 2024, down from $233 million in the same period of 2023, with anticipated capital investment commitments for the remainder of 2024 between $310 million and $330 million[120]. Financing Activities - Cash used for financing activities was $601 million year-to-date 2024, compared to $301 million in year-to-date 2023, primarily due to a net $327 million reduction in commercial paper borrowings[121]. - Cash dividends paid to common stockholders increased to $156 million year-to-date 2024 from $143 million in year-to-date 2023, reflecting an increase in the quarterly dividend from $0.71 to $0.78 per share[122]. - The company repurchased 762 thousand shares of common stock at a net cost of $87 million year-to-date 2024, compared to 1.0 million shares at a net cost of $101 million in the same period of 2023[123]. - The company acquired shares in its subsidiary PureCircle for $40 million, increasing ownership to 98 percent as of September 30, 2024[123]. Tax and Accounting - Effective income tax rate increased to 30.8 percent for Q3 2024 from 13.5 percent for Q3 2023, influenced by an adverse ruling and changes in foreign tax credits[96]. - There have been no changes to critical accounting policies and estimates during year-to-date 2024[125]. Risk and Forward-Looking Statements - Forward-looking statements indicate expectations regarding future operations and financial conditions, but actual results may differ due to various risks and uncertainties[131]. - The company has not reported material changes in market risk disclosures related to interest rates, raw material and energy costs, and foreign currencies during year-to-date 2024[133]. - The company maintains a quarterly dividend policy, with potential risks affecting its continuation[131].