Ingredion(US:INGR)2025-05-09 19:32Financial Performance - Net sales for the first quarter of 2025 decreased by 4% to $1,813 million compared to $1,882 million in the same quarter of 2024, primarily due to lower raw material costs and foreign exchange impacts [77]. - Operating income increased by 30% in the first quarter of 2025, driven by volume growth and lower raw material costs [73]. - Gross profit margin improved to 26% in the first quarter of 2025 from 22% in the first quarter of 2024, reflecting an 8% decrease in cost of sales to $1,347 million [78]. - Net income attributable to Ingredion decreased to $197 million in the first quarter of 2025 from $216 million in the same quarter of 2024, largely due to a prior year gain from the sale of the South Korea business [84]. Segment Performance - Texture & Healthful Solutions segment net sales increased to $602 million in the first quarter of 2025, up from $597 million in the same quarter of 2024, with operating income rising 34% to $99 million [85][86]. - Food & Industrial Ingredients - LATAM segment net sales decreased by 7% to $573 million, while operating income increased by 26% to $127 million [87][88]. - Food & Industrial Ingredients - U.S./Canada segment net sales decreased by 4% to $520 million, but operating income increased by 6% to $92 million [89][90]. Liquidity and Cash Flow - Total available liquidity as of March 31, 2025, was $3.8 billion, with $1.5 billion in domestic liquidity and $2.3 billion in international liquidity [93][94]. - Cash provided by operating activities was $77 million for the first quarter of 2025, down from $209 million in the same quarter of 2024, primarily due to a $223 million change in working capital [97]. - Capital investment commitments for the remainder of 2025 are anticipated to be between $400 million and $450 million [98]. Risks and Challenges - The company faces various risks including changes in consumer preferences and geopolitical conflicts that may impact raw material availability and pricing [108]. - There is increased competitive pressure in the corn-refining industry, affecting market prices for primary products and co-products, particularly corn oil [109]. - Operating difficulties at manufacturing facilities and liabilities related to product safety and quality are ongoing concerns [109]. - The company is exposed to risks from climate change and regulatory measures aimed at addressing it [109]. - The company must manage costs effectively to achieve budgets and realize expected synergies from maintenance and investment projects [109]. - The ability to maintain satisfactory labor relations and attract a skilled workforce is critical for the company's operations [109]. - The company is subject to legal and regulatory proceedings that may impact its business operations [109]. - Changes in government policy and tax rates could affect the company's financial performance and growth prospects [109]. Market Risk Disclosures - There have been no material changes in the company's market risk disclosures regarding interest rates, raw material costs, and foreign currencies during Q1 2025 [111].