Ingredion (INGR) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 performance with adjusted operating income up 29% and reported operating income up 26%, marking the best Q3 and second highest quarter in company history, driven by volume growth, operational excellence, and cost savings.

• All segments delivered double-digit operating income growth, with Texture & Healthful Solutions and LATAM segments leading, supported by innovation, contract management, and margin recovery.

• Net sales declined 8% year-over-year to $1.87B, mainly due to lower price mix and the South Korea business sale, partially offset by volume gains.

• Gross profit increased 14% year-over-year, with gross margin rising to 25.6%–26% due to lower input costs and operational improvements.

• Cash from operations year-to-date reached $1B, supporting robust shareholder returns and ongoing investments.

Financial highlights

• Q3 2024 net sales were $1.87B (down 8% year-over-year); gross profit was $479M (up 14%); operating income was $268M (reported) and $282M (adjusted), up 26% and 29% respectively.

• Q3 net income attributable to Ingredion rose 18%–19% to $188M–$189M; diluted EPS was $2.83 (reported) and $3.05 (adjusted), up 20%–31%.

• Year-to-date net sales were $5.63B (down 10%); net income increased to $552M–$557M, aided by a $90M gain on the South Korea sale and lower financing costs.

• Cash from operations for the first nine months was $1B, up from $647M in the prior year.

• Total debt at September 30, 2024, was $1.8B, with cash and short-term investments at $884M.

Outlook and guidance

• Full-year 2024 net sales expected to decline mid-single digits, excluding the South Korea business sale, with continued sales volume growth and operating income improvement.

• Adjusted operating income projected to be up high single digits; adjusted EPS guidance raised to $10.35–$10.65; reported EPS guidance raised to $10.60–$10.90.

• Cash from operations forecasted at $1.1B–$1.25B; capital expenditures at $310M–$330M.

• Effective tax rate expected at 26.5%–27.5% (adjusted); reported effective tax rate at 28.0%–30.8%.