Ingredion (INGR) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and strong full-year 2024 profit growth, driven by sales volume in Texture and Healthful Solutions and robust Food and Industrial Ingredients performance, despite a 9% decline in net sales due to the South Korea business sale.

• 2024 reorganization and new segment structure enhanced market alignment and operational execution, positioning for targeted market opportunities and future growth.

• Returned $426M to shareholders in 2024, including $216M in share repurchases, and made significant progress on cost savings and network optimization.

• Record cash flow from operations enabled increased organic investment and substantial shareholder returns.

Financial highlights

• FY 2024 net sales: $7.43B, down 9% year-over-year, mainly due to the South Korea divestiture and lower corn costs; gross profit up 2%, margin up 270 bps to 24.1%.

• FY 2024 adjusted operating income: $1.016B, up 5%; adjusted EPS: $10.65, up $1.23 per share; Q4 adjusted operating income: $248M, up 22%; Q4 adjusted EPS: $2.63, up $0.66 per share.

• Cash from operations reached $1.436B, with $400M contribution from working capital; net capital expenditures were $295M.

• Returned $426M to shareholders in 2024, including over $200M in share repurchases.

Outlook and guidance

• 2025 net sales expected up low single digits; adjusted operating income up mid-single digits; adjusted EPS guidance: $10.75–$11.55; cash from operations: $800–$950M.

• Capex to rise to $400–$450M in 2025, driven by Indianapolis plant investment and IRA incentives.

• Share repurchase objective of at least $100M for 2025.

• Segment outlook: Texture and Healthful Solutions net sales and operating income up mid- to high single digits; LATAM net sales flat, operating income up mid-single digits; U.S./Canada net sales down low single digits, operating income flat to down.