Ingredion(INGR) - 2024 Q4 - Annual Results

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]