Company Overview - Ingredion Incorporated (NYSE: INGR) is a leading ingredient solutions company with global operations, providing sweeteners and starches, as well as higher-potential ingredients such as prebiotic fibers and plant-based proteins to the food and beverage market [1] Research Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities like oil, natural gas, gold, and copper, as well as technology companies like Google and Nokia, and many emerging market stocks [1] Content Creation - The analyst transitioned from writing a blog for about 3 years to a value investing-focused YouTube channel, where extensive research on hundreds of different companies has been conducted [1] - The analyst expresses a particular interest in covering metals and mining stocks, while also being comfortable with other industries such as consumer discretionary/staples, REITs, and utilities [1]

Core Insights - All three major U.S. stock indices rose on July 17, 2025, driven by positive retail sales data and a decline in unemployment claims [1][2][11] - Better-than-expected earnings from major tech companies like Netflix contributed to investor confidence [2] - The current market environment suggests a favorable outlook for investing in U.S. stocks, particularly in low-leverage companies [3] Economic Indicators - U.S. retail sales increased by 0.6% in June 2025, following a 0.9% decline in May, exceeding market expectations [1][11] - Labor data indicated a decline in unemployment claims, further supporting market optimism [1] Investment Recommendations - Recommended stocks include Novartis (NVS), ResMed Inc. (RMD), Wabtec (WAB), Elbit Systems (ESLT), and Ingredion Inc. (INGR), all of which are characterized by low leverage and strong earnings growth [3][11] - Each of these stocks holds a Zacks Rank 2, indicating a favorable investment outlook [11] Stock Analysis - Novartis reported a 12% year-over-year increase in net sales and a 29% improvement in earnings per share for Q2 2025 [15][16] - ResMed anticipates an 8.1% year-over-year increase in fiscal fourth-quarter sales, with a long-term earnings growth rate of 15.3% [17][18] - Wabtec's sales are expected to grow by 5.3% year-over-year, supported by a long-term earnings growth rate of 16% [19][20] - Elbit Systems forecasts a 13.8% increase in 2025 sales, with a four-quarter average earnings surprise of 21.12% [21] - Ingredion expects a 1% improvement in 2025 sales, with a long-term earnings growth rate of 11% [22][23]

Economic Overview - Consumer confidence index declined to 93 in June, a 5.4-point drop from May's 98.4, and significantly lower than the expected rise to 100 [4][10] - Concerns over job availability and uncertainty regarding President Trump's tariffs contributed to the decline in consumer confidence [5][10] - The labor market differential fell to 11.1 in June from 12.7 in May, marking its lowest point in four years [5] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility and consumer staples sectors, including Atmos Energy Corporation (ATO), NiSource Inc. (NI), Fortis, Inc. (FTS), Ingredion Incorporated (INGR), and Altria Group, Inc. (MO) [2][10] - These stocks are categorized as low-beta (beta greater than 0 but less than 1) and are expected to provide high dividend yields along with favorable Zacks Ranks [3][10] Company Profiles Atmos Energy Corporation (ATO) - Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states [9] - Expected earnings growth rate of 6% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.22% [11] NiSource Inc. (NI) - Provides natural gas and electricity to around 3.7 million customers in six states, with one of the largest natural gas distribution networks in the U.S. [12] - Expected earnings growth rate of 7.4% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.76% [13] Fortis, Inc. (FTS) - Operates in the electric and gas utility business, primarily in Canada, the U.S., and the Caribbean [14] - Expected earnings growth rate of 3.4% for the current year, with a Zacks Rank 2 and a current dividend yield of 3.76% [15] Ingredion Incorporated (INGR) - Specializes in nature-based sweeteners, starches, and nutrition ingredients, serving various sectors [16] - Expected earnings growth rate of 6.1% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.33% [17] Altria Group, Inc. (MO) - Evolving beyond traditional cigarettes into the smokeless category due to rising health consciousness and regulatory pressures [18] - Expected earnings growth rate of 4.9% for the current year, with a Zacks Rank 2 and a current dividend yield of 6.81% [19]

Effective Oct. 1, 2025, the distribution expansion will bring a wide range of plant-based and clean label products, including the innovative Novation® range of functional native starches, plant-based proteins, and a comprehensive portfolio of stevia sweeteners developed by PureCircle by Ingredion, to meet growing consumer demand for clean label ingredients and sugar reduction. "Together with Ingredion, we stand at the forefront of ingredient innovation, committed to shaping the future of food with high-qual ...

Core Insights - Wall Street has rebounded from early April lows and is near record highs, driven by optimism in U.S.-China trade negotiations, easing inflation, and strong corporate earnings, although uncertainty regarding Trump's policies remains [2]. Dividend Investing - Investors are increasingly turning to dividend investing for stable returns, as dividends provide consistent income and can mitigate portfolio volatility during uncertain market conditions [3]. - Stocks with a history of dividend growth are preferred, as they belong to mature companies that are less volatile and offer downside protection through consistent payout increases [5]. Selected Dividend Growth Stocks - Five dividend growth stocks identified as compelling investment options are Intuit Inc. (INTU), Fox Corporation (FOX), Qifu Technology Inc. (QFIN), UGI Corporation (UGI), and Ingredion Incorporated (INGR) [4][10]. - These stocks exhibit consistent dividend growth and strong long-term earnings potential, with positive earnings estimate revisions and solid expected earnings growth for the current fiscal year [10]. Stock Selection Criteria - Criteria for selecting dividend growth stocks include: - 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [7]. - 5-Year Historical Sales Growth greater than zero, reflecting strong revenue growth [8]. - 5-Year Historical EPS Growth greater than zero, showing solid earnings growth history [8]. - Next 3-5 Year EPS Growth Rate greater than zero, indicating expected earnings growth [8]. - Price/Cash Flow less than M-Industry, suggesting undervaluation [9]. - 52-Week Price Change greater than S&P 500, ensuring better performance than the broader market [9]. Company Profiles - **Intuit Inc. (INTU)**: A business and financial software company with an expected earnings growth rate of 18.4% and a Zacks Rank 1 [11]. - **Fox Corporation (FOX)**: A media company with an expected earnings growth rate of 32.4% and a Zacks Rank 2 [13]. - **Qifu Technology Inc. (QFIN)**: A Credit-Tech platform in China with an expected earnings growth rate of 25.3% and a Zacks Rank 2 [14]. - **UGI Corporation (UGI)**: An energy products distributor with an estimated growth rate of 2.29% and a Zacks Rank 2 [16]. - **Ingredion Incorporated (INGR)**: An ingredients solutions provider with an estimated earnings growth rate of 5.2% and a Zacks Rank 2 [17].

Core Viewpoint - Chanson International Holding has introduced an optimized blend of natural sweeteners aimed at reducing sugar content in its bakery and beverage products, aligning with the global trend towards healthier, lower-sugar options without sacrificing taste or texture [1][4]. Product Innovation - The new formulation combines Brazzein, a sweet-tasting protein, with Mogroside V from monk fruit, resulting in a better sweetness profile, improved aftertaste control, and enhanced heat stability, while containing zero calories [2]. - This improved formula has been applied to Chanson's products under its flagship coffee brand, Soul ● Song, which has received positive consumer feedback since its launch in July 2024 [3]. Market Expansion Plans - Chanson plans to expand the reformulated products to three stores in New York and over 50 stores in Xinjiang by late 2025, reflecting strong consumer interest in the new sweetener blend [3]. - The company aims to extend its natural sweetener blends into dairy and functional foods and explore partnerships to reach broader markets in North America and Europe [4]. Financial Outlook - Chanson anticipates that these health-focused offerings will contribute significantly to its annual revenue, with a long-term target of potentially exceeding a 30% contribution [4]. Company Overview - Founded in 2009, Chanson International Holding operates bakery and beverage stores in China and the United States, managing 63 stores in China and 3 in New York City, while also selling through digital platforms [5].

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.70 and total segment operating profit of $747 million for the quarter [5] - Trailing fourth quarter adjusted return on invested capital (ROIC) was 7% and cash flow from operations before working capital changes was $439 million [5][24] - Overall cash flow from operations decreased compared to the prior quarter due to lower total segment operating profit [24] Business Line Data and Key Metrics Changes - The Carbohydrate Solutions segment operating profit was $240 million, down 3% year-over-year [20] - The Nutrition segment revenues were $1.8 billion, down 1% year-over-year, while operating profit increased by 13% to $95 million [22][23] - The Ag Services and Oilseeds segment operating profit was $412 million, down 52% compared to the prior year quarter [16] Market Data and Key Metrics Changes - The Ag Services sub-segment operating profit was $159 million, down 31% due to lower North American origination export volumes [17] - Global trade results were lower compared to the same quarter last year, largely due to negative timing impacts [17] - Equity earnings from the company's investment in Wilmar were $72 million, down 52% compared to the prior year quarter [20] Company Strategy and Development Direction - The company is focused on cost savings of $500 million to $750 million over the next three to five years, including workforce reductions and a review of third-party consulting spend [9] - Strategic decisions include the closure of the Cursea, South Carolina crush facility and the exit from domestic trading operations in China and Dubai [10] - The company is advancing automation and digitization across its global manufacturing network to improve reliability and efficiency [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to navigate an uncertain external landscape while focusing on execution and cost management [12][31] - The company remains cautious about the second half outlook for crush margin improvement due to current domestic crush replacement margins being below expectations [26] - Management highlighted the importance of clarity on Renewable Volume Obligations (RVOs) to support strong U.S. demand for crop-based vegetable oils [34] Other Important Information - The company returned $247 million to shareholders in the form of dividends during the quarter [25] - The Decatur East facility is expected to be fully operational by the end of the second quarter, with an anticipated impact of $25 million per quarter for Nutrition once fully operational [99] Q&A Session Summary Question: Expectations for RVO and its impact on 2025 outlook - Management indicated that strong RVOs are crucial for the biofuel outlook and expect margins to improve in the second half of the year [40][41] Question: Specific RVO numbers and positive outcomes for ADM - Management mentioned that the industry requires approximately €25 billion in biomass-based biodiesel and conventional biodiesel to support internal consumption and export markets [51][52] Question: Strength in RPO despite a weak environment - Management acknowledged that while RPO was better in the short run, overall expectations remain lower due to biodiesel margin pressures and increased refining capacity [58][59] Question: Trade flow shifts and impact of tariffs - Management noted that the impact of tariffs has not been significant in Q1, with most products exempt from export tariffs to Mexico and Canada [64][66] Question: Signs of rationalization in the soy crush industry - Management speculated that the industry may see plant shutdowns when demand is low, but emphasized the importance of clarity on RPO mandates for future capacity [73][74] Question: Commercialization of Argentine crops - Management expects Argentine farmers to become more regular in commercializing crops as they take advantage of government tax benefits before they expire [79] Question: Volume growth expectations for Starches and Sweeteners - Management reiterated guidance for slightly lower volumes than last year, with some weakness noted in specific markets [82][84] Question: Ethanol margins and performance - Management highlighted good risk management in ethanol operations, with expectations for margins to improve over the year [90] Question: Contribution from Decatur once fully operational - Management confirmed that the Decatur plant's impact will be felt in the second half of the year, with an expected contribution of $25 million per quarter [99]

First Quarter 2025 Earnings Conference Call May 6, 2025 Proprietary business information of ADM. Proprietary business information of ADM. Proprietary business information of ADM. 2 Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this presentation, are forwa ...