Ingredion (INGR) Barclays 19th Annual Global Consumer Conference summary

Portfolio strategy and operating model

• Global ingredient solutions reach 15,000 customers in 120 countries; revenue was $7.2B, with 75% of sales to food and beverage and ~20% to non-food applications.

• Global Texture & Healthful Solutions represents about one-third of revenue; food and industrial ingredients in LATAM also about one-third, and U.S./Canada about 30%.

• Cash generation exceeded $1B in each of the prior three years; this year’s cash flow was projected at $700M-$800M.

• Texture & Healthful Solutions posted nine consecutive quarters of net sales volume growth and its second-highest operating income; its latest-quarter operating margin was 18.7%.

• Strategy centers on solution selling for consumer-preferred innovation, including texture, protein fortification, sugar reduction and front-of-pack claims.

Tate & Lyle acquisition

• The announced acquisition adds $2.7B in revenue to the $2.4B Texture & Healthful Solutions business; combined revenue exceeds $5B and the segment would exceed 50% of total revenue.

• Combined revenue was estimated at approximately $10B and EBITDA at $1.8B, with complementary portfolios and supply networks intended to expand customer solutions and supply resilience.

• The transaction is expected to close in H2 next year, subject to regulatory and antitrust review; planned cost synergies are $130M, excluding cross-selling and revenue synergies.

• Adjusted EPS accretion is expected to exceed 15% in the first full calendar year after close; leverage is expected at 3x at close, with a target below 2.5x 18 months post-close.

• Texture & Healthful Solutions targets 1%-2% volume growth, 2%-4% growth from mix upgrades and a 4%-6% CAGR.

Consumer trends and demand

• Second-half volume outlooks had not been reduced; demand was being monitored amid consumer uncertainty and a K-shaped economy, with offerings across premium and affordable products.

• Private label accounts for 15%-20% of U.S. sales and 40%-45% in Europe; sales also span food service, quick-service restaurants and insurgent brands.

• Protein fortification grew 40% in the latest quarter, supported by demand for fortified products and tight whey supply.

• Reformulation demand is supporting clean-label, protein-fortified, lower-sugar and textural innovation products; texture was identified as a growth driver across food categories.

• Branded manufacturers lowered prices after losing share to private label; both channels are pursuing innovation to support sustainable volume growth.