Ingredion(US:INGR)2024-05-08 10:16Financial Performance - First quarter 2024 reported EPS was $3.23, a 13% increase from $2.85 in Q1 2023, while adjusted EPS decreased by 26% to $2.08 from $2.80[6][7] - Net sales for Q1 2024 were $1,882 million, a 12% decrease from $2,137 million in Q1 2023, primarily due to price mix and volume declines[13] - Reported and adjusted operating income for Q1 2024 were $213 million and $216 million, respectively, both down 27% compared to the prior year[14] - The company's gross profit for Q1 2024 was $417 million, down 14% from $487 million in the same quarter last year[38] - Operating income decreased by 27% to $213 million in Q1 2024, compared to $291 million in Q1 2023[38] - For Q1 2024, Ingredion reported a net income of $216 million, with diluted EPS of $3.23, compared to a net income of $191 million and diluted EPS of $2.85 in Q1 2023, representing a 13.1% increase in net income and a 13.3% increase in EPS[48] - Non-GAAP adjusted net income for Q1 2024 was $139 million, with adjusted diluted EPS of $2.08, down from $188 million and $2.80 in Q1 2023, indicating a decrease of 26.1% in adjusted net income and 25.7% in adjusted EPS[48] Sales and Income Segments - The sale of the South Korea business resulted in a $51 million decrease in sales volume for Q1 2024[13] - The Texture & Healthful Solutions segment reported a 42% decline in operating income to $74 million in Q1 2024[44] - The Food & Industrial Ingredients - LATAM segment saw an operating income decrease of 17% to $101 million in Q1 2024[44] Guidance and Projections - The company raised its full-year 2024 reported EPS guidance to a range of $10.35 to $11.00 and adjusted EPS to a range of $9.20 to $9.85[6][25] - For Q2 2024, net sales are expected to be flat to down low single-digits, with operating income projected to increase low to mid-single-digits[25] - Ingredion expects full-year 2024 GAAP EPS to range from $10.35 to $11.00, while adjusted EPS is projected to be between $9.20 and $9.85, indicating a focus on maintaining profitability despite challenges[54] Cash Flow and Expenditures - Cash from operations for full-year 2024 is projected to be in the range of $750 million to $900 million[27] - Capital expenditures for the full year 2024 are expected to be approximately $340 million[27] - The company anticipates deploying cash this year toward organic investments, dividends, and share repurchases[3] Tax and Financial Measures - The effective tax rate for full-year 2024 is expected to be between 24.5% to 25.5% for reported and 26.5% to 27.5% for adjusted[27] - The expected effective tax rate for full-year 2024 is projected to be between 24.5% and 25.5%, with an adjusted effective tax rate expected to range from 26.5% to 27.5%[57] - The company aims to provide investors with a more meaningful comparison of operating results through the use of non-GAAP financial measures, which are intended to supplement GAAP results[46] - Ingredion's management emphasizes that non-GAAP measures should not be considered a substitute for GAAP measures, as they provide additional insights into the company's operational performance[47] Asset Management - Total assets decreased to $7,319 million as of March 31, 2024, down from $7,642 million at the end of 2023[40] - Cash and cash equivalents increased to $438 million at the end of Q1 2024, compared to $401 million at the end of 2023[40] Other Financial Events - The company recorded pre-tax resegmentation costs of $3 million in Q1 2024, primarily related to its resegmentation effective January 1, 2024[50] - A net pre-tax gain of $82 million was recorded from the sale of its business in South Korea, completed on February 1, 2024[50] - Tax benefits from the movement of the Mexican peso against the U.S. dollar were recorded as $6 million in Q1 2024 and $7 million in Q1 2023[50]