Ingredion Incorporated Reports Strong First Quarter Results and Improves Full-Year Outlook

Core Insights - Ingredion Incorporated reported strong first-quarter results for 2025, demonstrating growth in sales volume and operating income despite tariff uncertainties [2][19] - The company has improved its full-year earnings forecast based on the successful first-quarter performance, focusing on sustainable growth and disciplined cost management [2][20] Financial Performance - First-quarter 2025 reported diluted EPS was $3.00, down from$3.23 in Q1 2024, while adjusted diluted EPS increased to $2.97 from$2.08 [3][4] - Reported operating income for Q1 2025 was $276 million, a 30$213 million in Q1 2024, with adjusted operating income rising 26% to $273 million [10][41] - Net sales for Q1 2025 decreased by 4$1.813 billion, primarily due to lower raw material costs and the impact of the sale of the South Korea business [9][34] Segment Performance - The Texture & Healthful Solutions segment saw a 34% increase in operating income, driven by strong sales volume, particularly in clean label solutions [2][13] - Food & Industrial Ingredients—LATAM reported operating income of $127 million, a 26$92 million, supported by efficient cost management and favorable product mix [16][21] Guidance and Outlook - The company expects full-year 2025 reported EPS to range from $10.93 to$11.63 and adjusted EPS from $10.90 to$11.60, reflecting anticipated growth in net sales and operating income [19][20] - Full-year net sales are projected to increase by low single-digits, with operating income expected to rise in the high teens [20][22] - Segment-specific expectations include mid-single-digit growth for Texture & Healthful Solutions and flat to low single-digit declines for Food & Industrial Ingredients—U.S./Canada [21][22] Capital Management - In Q1 2025, the company paid $52 million in dividends and repurchased$55 million in common stock [18] - Total debt at the end of Q1 2025 was $1.784 billion, with cash and short-term investments totaling$846 million [12][36]