Ingredion Incorporated (NYSE: INGR), a leading global provider of
ingredient solutions to the food and beverage manufacturing
industry, today reported results for the second quarter of 2024.
The results, reported in accordance with U.S. generally accepted
accounting principles (“GAAP”) for the second quarter of 2024 and
2023, include items that are excluded from the non-GAAP financial
measures that the Company presents.
“In the second quarter, Ingredion achieved significant growth,
led by Texture & Healthful Solutions, which experienced 8%
sales volume growth year over year," stated Jim Zallie, president
and CEO of Ingredion. “Additionally, our Food & Industrial
segments were well positioned to respond to robust customer demand
and delivered exceptionally strong profit growth.”
“In the quarter, we also deployed strategic capital to support
future organic growth in texture solutions, and in line with our
sugar reduction strategy, we further increased our ownership in
PureCircle to 98%. Our organization is benefiting from our new
segments as we increasingly leverage our global operating model and
drive innovative ways to strengthen customer engagements for future
growth. Our Driving Growth Roadmap continues to guide our strategic
actions to create long-term shareholder value.”
“Last quarter marked the launch of our Cost2Compete program,
aimed at achieving $50 million in run-rate savings by the end of
2025. Our initiatives to date have realized $18 million in run-rate
savings, which will provide additional leverage for the remainder
of the year,” Zallie concluded.
*Adjusted financial measures are non-GAAP financial measures.
See section II of the Supplemental Financial Information entitled
“Non-GAAP Information” following the Condensed Consolidated
Financial Statements included in this news release for a
reconciliation of these non-GAAP financial measures to the most
directly comparable GAAP measures.
Diluted Earnings Per Share (EPS)
| |
2Q23 |
|
2Q24 |
|
Reported Diluted EPS |
$ |
2.42 |
|
|
$ |
2.22 |
| Impairment charge |
|
— |
|
|
|
0.33 |
| Restructuring and
resegmentation costs |
|
— |
|
|
|
0.03 |
| Net gain on sale of
business |
|
— |
|
|
|
0.01 |
| Tax items and other
matters |
|
(0.10 |
) |
|
|
0.28 |
| Adjusted Diluted
EPS** |
$ |
2.32 |
|
|
$ |
2.87 |
Estimated factors affecting changes in Reported and
Adjusted EPS
|
|
2Q24 |
|
Total items affecting EPS** |
0.55 |
|
Total operating items |
0.20 |
|
Margin |
0.06 |
|
Volume |
0.03 |
|
Foreign exchange |
0.00 |
|
Other income |
0.11 |
|
Total non-operating items |
0.35 |
|
Other non-operating income |
0.01 |
|
Financing costs |
0.22 |
|
Tax rate |
0.10 |
|
Shares outstanding |
0.02 |
|
Non-controlling interests |
0.00 |
** Totals may not sum due to rounding
Other Financial items
- At June 30,
2024, total debt and cash, including short-term investments, were
$1.9 billion and $510 million, respectively, versus
$2.2 billion and $409 million, respectively, at
December 31, 2023.
- Reported net
financing costs for the second quarter were $10 million, compared
to $30 million for the year-ago period of which $10 million of the
improvement is attributable to foreign exchange impacts.
- Reported and
adjusted effective tax rates for the quarter were 34.8% and 25.4%,
respectively, compared to 25.1% and 28.3%, respectively, in the
year-ago period. The increase in the reported effective tax rate
was primarily due to a change in the value of the Mexican peso
against the U.S. dollar and the impairment of an equity method
investment.
- Capital
expenditures, net were $120 million year-to-date.
Business Review
Total Ingredion
Net Sales
| $ in
millions |
|
2023 |
|
FX Impact |
|
Volume |
|
S. Korea Volume* |
|
Price mix |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
2,069 |
|
(11 |
) |
|
104 |
|
(80 |
) |
|
(204 |
) |
|
1,878 |
|
(9 |
%) |
|
(9 |
%) |
|
Year-to-Date |
|
4,206 |
|
1 |
|
|
64 |
|
(131 |
) |
|
(380 |
) |
|
3,760 |
|
(11 |
%) |
|
(11 |
%) |
* Represents loss of volume due to the sale of the South Korea
business completed on February 1, 2024
Reported Operating Income
| $ in
millions |
|
2023 |
|
FX Impact |
|
BusinessDrivers |
|
Restructuring/ Impairment |
|
Other |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
251 |
|
0 |
|
19 |
|
|
(21 |
) |
|
(9 |
) |
|
240 |
|
(4 |
%) |
|
(4 |
%) |
|
Year-to-Date |
|
542 |
|
3 |
|
(64 |
) |
|
(24 |
) |
|
(4 |
) |
|
453 |
|
(16 |
%) |
|
(17 |
%) |
Adjusted Operating Income
| $ in
millions |
|
2023 |
|
FX Impact |
|
Business Drivers |
|
2024 |
|
Change |
|
Changeexcl. FX |
|
Second Quarter |
|
251 |
|
0 |
|
19 |
|
|
270 |
|
8 |
% |
|
8 |
% |
|
Year-to-Date |
|
547 |
|
3 |
|
(64 |
) |
|
486 |
|
(11 |
%) |
|
(12 |
%) |
Net Sales
- Second quarter and
year-to-date net sales were down from the year-ago period 9% and
11%, respectively. The decreases were driven by price mix primarily
from lower raw material costs and lost sales volume from the sale
of South Korea, partially offset by volume increases.
Operating Income
- Second quarter
reported and adjusted operating income were $240 million and $270
million. The difference in reported operating income versus
adjusted in the period was primarily attributable to the impairment
of an equity method investment and the impact of tornado damage to
a U.S. warehouse. Adjusted operating income increased 8% versus the
prior year driven by lower raw material and input costs and higher
volume, partially offset by price mix. Excluding foreign exchange
impacts, reported and adjusted operating income were down 4% and up
8%, respectively, from the same periods last year.
- Year-to-date
reported and adjusted operating income were $453 million and $486
million, a decrease of 16% and 11%, respectively, versus the
year-ago period. The decreases were due to price mix partially
offset by lower raw material and input costs. Excluding foreign
exchange impacts, reported and adjusted operating income were down
17% and 12%, respectively, from the same periods last year.
Texture & Healthful Solutions
Net Sales
| $ in
millions |
|
2023 |
|
FX Impact |
|
Volume |
|
Price mix |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
618 |
|
(9 |
) |
|
51 |
|
(72 |
) |
|
588 |
|
(5 |
%) |
|
(3 |
%) |
|
Year-to-Date |
|
1,283 |
|
(15 |
) |
|
50 |
|
(133 |
) |
|
1,185 |
|
(8 |
%) |
|
(6 |
%) |
Segment Operating Income
| $ in
millions |
|
2023 |
|
FX Impact |
|
Business Drivers |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
105 |
|
(1 |
) |
|
(18 |
) |
|
86 |
|
(18 |
%) |
|
(17 |
%) |
|
Year-to-Date |
|
232 |
|
(2 |
) |
|
(70 |
) |
|
160 |
|
(31 |
%) |
|
(30 |
%) |
- Second quarter
operating income for Texture & Healthful Solutions was $86
million, a decrease of $19 million from the year-ago period, driven
by unfavorable price mix, partially offset by recovering volumes
and lower input costs. Year-to-date operating income was $160
million, a decrease of $72 million driven by unfavorable price mix
and higher input costs, partially offset by improved volume.
Excluding foreign exchange impacts, segment operating income was
down 17% and 30%, respectively, for the second quarter and
year-to-date.
Food & Industrial Ingredients – LATAM
Net Sales
| $ in
millions |
|
2023 |
|
FX Impact |
|
Volume |
|
Price mix |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
666 |
|
2 |
|
28 |
|
(66 |
) |
|
630 |
|
(5 |
%) |
|
(6 |
%) |
|
Year-to-Date |
|
1,333 |
|
28 |
|
12 |
|
(127 |
) |
|
1,246 |
|
(7 |
%) |
|
(9 |
%) |
Segment Operating Income
| $ in
millions |
|
2023 |
|
FX Impact |
|
Business Drivers |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
101 |
|
1 |
|
28 |
|
130 |
|
29 |
% |
|
28 |
% |
|
Year-to-Date |
|
223 |
|
6 |
|
2 |
|
231 |
|
4 |
% |
|
1 |
% |
- Second quarter
operating income for Food & Industrial Ingredients - LATAM was
$130 million, an increase of $29 million from the year-ago period,
and year-to-date operating income was $231 million, an increase of
$8 million from the year-ago period. The increase in both periods
was primarily attributable to lower input costs and improved
volume, partially offset by price mix. Excluding foreign exchange
impacts, segment operating income was up 28% and 1%, respectively,
for the second quarter and year-to-date.
Food & Industrial Ingredients -
U.S./Canada
Net Sales
| $ in
millions |
|
2023 |
|
FX Impact |
|
Volume |
|
Price mix |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
604 |
|
(2 |
) |
|
11 |
|
|
(58 |
) |
|
555 |
|
(8 |
%) |
|
(8 |
%) |
|
Year-to-Date |
|
1,212 |
|
(2 |
) |
|
(13 |
) |
|
(101 |
) |
|
1,096 |
|
(10 |
%) |
|
(9 |
%) |
Segment Operating Income
| $ in
millions |
|
2023 |
|
FX Impact |
|
Business Drivers |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
80 |
|
(1 |
) |
|
26 |
|
105 |
|
31 |
% |
|
33 |
% |
|
Year-to-Date |
|
172 |
|
(1 |
) |
|
21 |
|
192 |
|
12 |
% |
|
12 |
% |
- Second quarter
operating income for Food & Industrial Ingredients -
U.S./Canada was $105 million, up $25 million from the year-ago
period, and year-to-date operating income was $192 million, an
increase of $20 million from the year-ago period. The change in
both periods was driven by lower raw material and input costs
partially offset by price mix. Excluding foreign exchange impacts,
segment operating income was up 33% and 12%, respectively, for the
second quarter and year-to-date.
All Other**
Net Sales
| $ in
millions |
|
2023 |
|
FX Impact |
|
Volume |
|
S. Korea Volume* |
|
Price mix |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
181 |
|
(2 |
) |
|
14 |
|
(80 |
) |
|
(8 |
) |
|
105 |
|
(42 |
%) |
|
(41 |
%) |
|
Year-to-Date |
|
378 |
|
(10 |
) |
|
15 |
|
(131 |
) |
|
(19 |
) |
|
233 |
|
(38 |
%) |
|
(36 |
%) |
* Represents loss of volume due to the sale of the South Korea
business
Segment Operating Income (Loss)
| $ in
millions |
|
2023 |
|
FX Impact |
|
Business Drivers |
|
2024 |
|
Change |
|
Change excl. FX |
|
Second Quarter |
|
3 |
|
|
1 |
|
(14 |
) |
|
(10 |
) |
|
(433 |
%) |
|
(467 |
%) |
|
Year-to-Date |
|
(5 |
) |
|
0 |
|
(9 |
) |
|
(14 |
) |
|
(180 |
%) |
|
(180 |
%) |
- Second quarter
operating loss for All Other was $10 million, down $13 million from
the prior year, and year-to-date operating loss was $14 million,
down $9 million from the prior year, primarily driven by the sale
of the South Korea business.
**All Other consists of the businesses of multiple operating
segments that are not individually or collectively classified as
reportable segments. Net sales from All Other are generated
primarily by sweetener and starch sales by our Pakistan business,
sales of stevia and other ingredients from our PureCircle and Sugar
Reduction businesses, and pea protein ingredients from our Protein
Fortification business.
Dividends and Share Repurchases
In the first half of 2024, the Company paid $104 million in
dividends to shareholders and announced a quarterly dividend of
$0.78 per share that was paid on July 23, 2024. During the quarter,
the Company repurchased $65 million of outstanding shares of common
stock.
Updated Third Quarter and Full-Year 2024
Outlook
For the third quarter of 2024, excluding the effects of the sale
of the South Korea business, the Company expects net sales to be
flat, and reported and adjusted operating income to be up high
double-digits.
The Company now expects its full-year 2024 reported EPS to be in
the range of $10.20 to $10.70, which includes the impact of the
gain on the sale of the South Korea business completed on February
1, 2024.
The Company anticipates adjusted EPS to be in the range of $9.70
to $10.20. Excluding the effects of the sale of the South Korea
business, the Company expects full-year 2024 net sales to be down
low single-digits, reflecting the pass-through of lower corn
values. Reported and adjusted operating income is expected to be up
mid-single-digits.
Corporate costs are expected to be up low single-digits.
For full-year 2024, the Company now expects a reported and
adjusted effective tax rate of 27.0% to 28.0%, and 26.5% to 27.5%,
respectively.
Cash from operations for full-year 2024 is now expected to be in
the range of $800 million to $950 million. Capital expenditures for
the full year are still expected to be approximately $340
million.
Conference Call and Webcast Details
Ingredion will host a conference call on Tuesday, August 6,
2024, at 8 a.m. CT/ 9 a.m. ET, hosted by Jim Zallie, president and
chief executive officer, and Jim Gray, executive vice president and
chief financial officer. The call will be webcast in real-time and
can be accessed at
https://ir.ingredionincorporated.com/events-and-presentations. A
presentation containing additional financial and operating
information will be accessible through the Company’s website and
available to download a few hours prior to the start of the call. A
replay will be available for a limited time at
https://ir.ingredionincorporated.com/financial-information/quarterly-results.
About the Company
Ingredion Incorporated (NYSE: INGR), headquartered in the
suburbs of Chicago, is a leading global ingredient solutions
provider serving customers in more than 120 countries. With 2023
annual net sales of nearly $8 billion, the Company turns grains,
fruits, vegetables and other plant-based materials into value-added
ingredient solutions for the food, beverage, animal nutrition,
brewing and industrial markets. With Ingredion’s Idea Labs®
innovation centers around the world and approximately 12,000
employees, the Company co-creates with customers and fulfills its
purpose of bringing the potential of people, nature and technology
together to make life better. Visit ingredion.com for more
information and the latest Company news.
Forward-Looking Statements
This news release contains or may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Ingredion intends these forward-looking
statements to be covered by the safe harbor provisions for such
statements.
Forward-looking statements include, among others, any statements
regarding our expectations for full-year 2024 reported and adjusted
earnings per share, net sales, reported and adjusted operating
income, corporate costs, reported and adjusted effective tax rate,
cash from operations, and capital expenditures, our expectations
for third quarter 2024 net sales and reported and adjusted
operating income, and any other statements regarding our prospects
and our future operations, financial condition, volumes, cash
flows, expenses or other financial items, including management’s
plans or strategies and objectives for any of the foregoing and any
assumptions, expectations, or beliefs underlying any of the
foregoing.
These statements can sometimes be identified by the use of
forward-looking words such as “may,” “will,” “should,”
“anticipate,” “assume,” “believe,” “plan,” “project,” “estimate,”
“expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,”
“propels,” “opportunities,” “potential,” “provisional,” or other
similar expressions or the negative thereof. All statements other
than statements of historical facts therein are “forward-looking
statements.”
These statements are based on current circumstances or
expectations, but are subject to certain inherent risks and
uncertainties, many of which are difficult to predict and beyond
our control. Although we believe our expectations reflected in
these forward-looking statements are based on reasonable
assumptions, investors are cautioned that no assurance can be given
that our expectations will prove correct.
Actual results and developments may differ materially from the
expectations expressed in or implied by these statements, based on
various risks and uncertainties, including geopolitical conflicts
and actions arising from them, including the impacts on the
availability and prices of raw materials and energy supplies,
supply chain interruptions, and volatility in foreign exchange and
interest rates; changing consumer consumption preferences that may
lessen demand for products we make; the effects of global economic
conditions and the general political, economic, business, and
market conditions that affect customers and consumers in the
various geographic regions and countries in which we buy our raw
materials or manufacture or sell our products, and the impact these
factors may have on our sales volumes, the pricing of our products
and our ability to collect our receivables from customers; future
purchases of our products by major industries which we serve and
from which we derive a significant portion of our sales, including,
without limitation, the food, animal nutrition, beverage and
brewing industries; the risks associated with pandemics; the
uncertainty of acceptance of products developed through genetic
modification and biotechnology; our ability to develop or acquire
new products and services at rates or of qualities sufficient to
gain market acceptance; increased competitive and/or customer
pressure in the corn-refining industry and related industries,
including with respect to the markets and prices for our primary
products and our co-products, particularly corn oil; price
fluctuations, supply chain disruptions, and shortages affecting
inputs to our production processes and delivery channels, including
raw materials, energy costs and availability and cost of freight
and logistics; our ability to contain costs, achieve budgets and
realize expected synergies, including with respect to our ability
to complete planned maintenance and investment projects on time and
on budget as well as with respect to freight and shipping costs and
hedging activities; operating difficulties at our manufacturing
facilities and liabilities relating to product safety and quality;
the effects of climate change and legal, regulatory, and market
measures to address climate change; our ability to successfully
identify and complete acquisitions, divestitures, or strategic
alliances on favorable terms as well as our ability to successfully
conduct due diligence, integrate acquired businesses or implement
and maintain strategic alliances and achieve anticipated synergies
with respect to all of the foregoing; economic, political and other
risks inherent in conducting operations in foreign countries and in
foreign currencies; the failure to maintain satisfactory labor
relations; our ability to attract, develop, motivate, and maintain
good relationships with our workforce; the impact on our business
of natural disasters, war, threats or acts of terrorism, or the
occurrence of other significant events beyond our control; the
impact of impairment charges on our goodwill or long-lived assets;
changes in government policy, law, or regulation and costs of legal
compliance, including compliance with environmental regulation;
changes in our tax rates or exposure to additional income tax
liability; increases in our borrowing costs that could result from
increased interest rates; our ability to raise funds at reasonable
rates and other factors affecting our access to sufficient funds
for future growth and expansion; interruptions, security incidents,
or failures with respect to information technology systems,
processes, and sites; volatility in the stock market and other
factors that could adversely affect our stock price; risks
affecting the continuation of our dividend policy; and our ability
to maintain effective internal control over financial
reporting.
Our forward-looking statements speak only as of the date on
which they are made, and we do not undertake any obligation to
update any forward-looking statement to reflect events or
circumstances after the date of the statement as a result of new
information or future events or developments. If we do update or
correct one or more of these statements, investors and others
should not conclude that we will make additional updates or
corrections. For a further description of these and other risks,
see “Risk Factors” and other information included in our Annual
Report on Form 10-K for the year ended December 31, 2023, and our
subsequent reports on Form 10-Q and Form 8-K filed with the
Securities and Exchange Commission.
|
Ingredion IncorporatedCondensed
Consolidated Statements of
Income(Unaudited)(in millions, except per
share amounts) |
| |
|
Three Months EndedJune 30, |
|
Change |
|
Six Months EndedJune 30, |
|
Change |
| |
|
2024 |
|
|
|
2023 |
|
% |
|
|
2024 |
|
|
|
2023 |
|
% |
|
Net sales |
|
$ |
1,878 |
|
|
$ |
2,069 |
|
(9%) |
|
$ |
3,760 |
|
|
$ |
4,206 |
|
(11%) |
| Cost of sales |
|
|
1,432 |
|
|
|
1,628 |
|
|
|
|
2,897 |
|
|
|
3,278 |
|
|
|
Gross profit |
|
|
446 |
|
|
|
441 |
|
1% |
|
|
863 |
|
|
|
928 |
|
(7%) |
| Operating expenses |
|
|
191 |
|
|
|
188 |
|
2% |
|
|
380 |
|
|
|
375 |
|
1% |
| Other operating (income)
expense |
|
|
(8 |
) |
|
|
2 |
|
|
|
|
4 |
|
|
|
11 |
|
|
| Restructuring/impairment
charges |
|
|
23 |
|
|
|
— |
|
|
|
|
26 |
|
|
|
— |
|
|
|
Operating income |
|
|
240 |
|
|
|
251 |
|
(4%) |
|
|
453 |
|
|
|
542 |
|
(16%) |
| Financing costs |
|
|
10 |
|
|
|
30 |
|
|
|
|
29 |
|
|
|
62 |
|
|
| Net gain on sale of
business |
|
|
— |
|
|
|
— |
|
|
|
|
(82 |
) |
|
|
— |
|
|
| Other non-operating
expense |
|
|
— |
|
|
|
2 |
|
|
|
|
— |
|
|
|
2 |
|
|
|
Income before income taxes |
|
|
230 |
|
|
|
219 |
|
5% |
|
|
506 |
|
|
|
478 |
|
6% |
| Provision for income
taxes |
|
|
80 |
|
|
|
55 |
|
|
|
|
138 |
|
|
|
120 |
|
|
|
Net income |
|
|
150 |
|
|
|
164 |
|
(9%) |
|
|
368 |
|
|
|
358 |
|
3% |
| Less: Net income attributable
to non-controlling interests |
|
|
2 |
|
|
|
1 |
|
|
|
|
4 |
|
|
|
4 |
|
|
|
Net income attributable to Ingredion |
|
$ |
148 |
|
|
$ |
163 |
|
(9%) |
|
$ |
364 |
|
|
$ |
354 |
|
3% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share
attributable to Ingredion common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
65.7 |
|
|
|
66.3 |
|
|
|
|
65.7 |
|
|
|
66.2 |
|
|
| Diluted |
|
|
66.8 |
|
|
|
67.3 |
|
|
|
|
66.7 |
|
|
|
67.2 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share of
Ingredion: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
2.25 |
|
|
$ |
2.46 |
|
(9%) |
|
$ |
5.54 |
|
|
$ |
5.35 |
|
4% |
| Diluted |
|
$ |
2.22 |
|
|
$ |
2.42 |
|
(8%) |
|
$ |
5.46 |
|
|
$ |
5.27 |
|
4% |
|
Ingredion IncorporatedCondensed
Consolidated Balance Sheets(in millions, except share and
per share amounts) |
| |
|
June 30, 2024 |
|
December 31, 2023 |
| |
|
(Unaudited) |
|
| Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
505 |
|
|
$ |
401 |
|
|
Short-term investments |
|
|
5 |
|
|
|
8 |
|
|
Accounts receivable, net |
|
|
1,286 |
|
|
|
1,279 |
|
|
Inventories |
|
|
1,244 |
|
|
|
1,450 |
|
|
Prepaid expenses and assets held for sale |
|
|
59 |
|
|
|
261 |
|
|
Total current assets |
|
|
3,099 |
|
|
|
3,399 |
|
|
Property, plant and equipment, net |
|
|
2,291 |
|
|
|
2,370 |
|
|
Intangible assets, net |
|
|
1,275 |
|
|
|
1,303 |
|
|
Other non-current assets |
|
|
556 |
|
|
|
570 |
|
| Total
assets |
|
$ |
7,221 |
|
|
$ |
7,642 |
|
| |
|
|
|
|
| Liabilities and
equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term borrowings |
|
$ |
109 |
|
|
$ |
448 |
|
|
Accounts payable, accrued liabilities and liabilities held for
sale |
|
|
1,121 |
|
|
|
1,324 |
|
|
Total current liabilities |
|
|
1,230 |
|
|
|
1,772 |
|
|
Long-term debt |
|
|
1,741 |
|
|
|
1,740 |
|
|
Other non-current liabilities |
|
|
471 |
|
|
|
480 |
|
|
Total liabilities |
|
|
3,442 |
|
|
|
3,992 |
|
| |
|
|
|
|
|
Share-based payments subject to redemption |
|
|
50 |
|
|
|
55 |
|
|
Redeemable non-controlling interests |
|
|
7 |
|
|
|
43 |
|
| |
|
|
|
|
|
Ingredion stockholders' equity: |
|
|
|
|
|
Preferred stock — authorized 25.0 shares — $0.01 par value, none
issued |
|
|
— |
|
|
|
— |
|
|
Common stock — authorized 200.0 shares — $0.01 par value, 77.8
shares issued at June 30, 2024 and December 31, 2023 |
|
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
|
1,141 |
|
|
|
1,146 |
|
|
Less: Treasury stock (common stock: 12.6 shares at June 30,
2024 and December 31, 2023) at cost |
|
|
(1,233 |
) |
|
|
(1,207 |
) |
|
Accumulated other comprehensive loss |
|
|
(1,118 |
) |
|
|
(1,056 |
) |
|
Retained earnings |
|
|
4,914 |
|
|
|
4,654 |
|
|
Total Ingredion stockholders' equity |
|
|
3,705 |
|
|
|
3,538 |
|
|
Non-redeemable non-controlling interests |
|
|
17 |
|
|
|
14 |
|
|
Total stockholders’ equity |
|
|
3,722 |
|
|
|
3,552 |
|
| Total liabilities and
stockholders’ equity |
|
$ |
7,221 |
|
|
$ |
7,642 |
|
|
Ingredion IncorporatedCondensed
Consolidated Statements of Cash
Flows(Unaudited)(in
millions) |
| |
|
Six Months Ended June 30, |
| |
|
2024 |
|
|
|
2023 |
|
| Cash from operating
activities: |
|
|
|
|
|
Net income |
|
$ |
368 |
|
|
$ |
358 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
107 |
|
|
|
109 |
|
|
Mechanical stores expense |
|
|
29 |
|
|
|
33 |
|
|
Net gain on sale of business |
|
|
(82 |
) |
|
|
— |
|
|
Margin accounts |
|
|
(13 |
) |
|
|
(10 |
) |
|
Changes in other trade working capital |
|
|
65 |
|
|
|
(218 |
) |
|
Other |
|
|
47 |
|
|
|
7 |
|
|
Cash provided by operating activities |
|
|
521 |
|
|
|
279 |
|
| Cash from investing
activities: |
|
|
|
|
|
Capital expenditures and mechanical stores purchases |
|
|
(120 |
) |
|
|
(154 |
) |
|
Proceeds from disposal of manufacturing facilities and
properties |
|
|
— |
|
|
|
1 |
|
|
Proceeds from sale of business |
|
|
247 |
|
|
|
— |
|
|
Other |
|
|
(2 |
) |
|
|
(7 |
) |
|
Cash provided by (used for) investing activities |
|
|
125 |
|
|
|
(160 |
) |
| Cash from financing
activities: |
|
|
|
|
|
Proceeds from borrowings, net |
|
|
— |
|
|
|
(17 |
) |
|
Commercial paper borrowings, net |
|
|
(327 |
) |
|
|
— |
|
|
Repurchases of common stock, net |
|
|
(66 |
) |
|
|
— |
|
|
Issuances of common stock for share-based compensation, net |
|
|
11 |
|
|
|
15 |
|
|
Purchases of non-controlling interests |
|
|
(40 |
) |
|
|
— |
|
|
Dividends paid, including to non-controlling interests |
|
|
(104 |
) |
|
|
(95 |
) |
|
Cash (used for) financing activities |
|
|
(526 |
) |
|
|
(97 |
) |
|
Effect of foreign exchange rate changes on cash and cash
equivalents |
|
|
(16 |
) |
|
|
(1 |
) |
|
Increase in cash and cash equivalents |
|
|
104 |
|
|
|
21 |
|
|
Cash and cash equivalents, beginning of period |
|
|
401 |
|
|
|
236 |
|
|
Cash and cash equivalents, end of period |
|
$ |
505 |
|
|
$ |
257 |
|
|
Ingredion IncorporatedSupplemental
Financial Information(Unaudited)(in
millions, except for percentages) |
| I.
Segment Information of Net Sales and Operating Income |
| |
Three Months EndedJune 30, |
|
|
|
Change |
|
Six Months EndedJune 30, |
|
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
Excl. FX |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
Excl. FX |
| Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texture & Healthful Solutions (a) |
$ |
588 |
|
|
$ |
618 |
|
|
(5%) |
|
(3%) |
|
$ |
1,185 |
|
|
$ |
1,283 |
|
|
(8%) |
|
(6%) |
|
Food & Industrial Ingredients - LATAM (b) |
|
630 |
|
|
|
666 |
|
|
(5%) |
|
(6%) |
|
|
1,246 |
|
|
|
1,333 |
|
|
(7%) |
|
(9%) |
|
Food & Industrial Ingredients - U.S./Canada (c) |
|
555 |
|
|
|
604 |
|
|
(8%) |
|
(8%) |
|
|
1,096 |
|
|
|
1,212 |
|
|
(10%) |
|
(9%) |
|
All Other (d) |
|
105 |
|
|
|
181 |
|
|
(42%) |
|
(41%) |
|
|
233 |
|
|
|
378 |
|
|
(38%) |
|
(36%) |
| Total Net Sales |
$ |
1,878 |
|
|
$ |
2,069 |
|
|
(9%) |
|
(9%) |
|
$ |
3,760 |
|
|
$ |
4,206 |
|
|
(11%) |
|
(11%) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texture & Healthful Solutions |
$ |
86 |
|
|
$ |
105 |
|
|
(18%) |
|
(17%) |
|
$ |
160 |
|
|
$ |
232 |
|
|
(31%) |
|
(30%) |
|
Food & Industrial Ingredients - LATAM |
|
130 |
|
|
|
101 |
|
|
29% |
|
28% |
|
|
231 |
|
|
|
223 |
|
|
4% |
|
1% |
|
Food & Industrial Ingredients - U.S./Canada |
|
105 |
|
|
|
80 |
|
|
31% |
|
33% |
|
|
192 |
|
|
|
172 |
|
|
12% |
|
12% |
|
All Other |
|
(10 |
) |
|
|
3 |
|
|
(433%) |
|
(467%) |
|
|
(14 |
) |
|
|
(5 |
) |
|
(180%) |
|
(180%) |
|
Corporate |
|
(41 |
) |
|
|
(38 |
) |
|
(8%) |
|
(8%) |
|
|
(83 |
) |
|
|
(75 |
) |
|
(11%) |
|
(11%) |
| Sub-total |
|
270 |
|
|
|
251 |
|
|
8% |
|
8% |
|
|
486 |
|
|
|
547 |
|
|
(11%) |
|
(12%) |
|
Restructuring and resegmentation costs |
|
(3 |
) |
|
|
— |
|
|
|
|
|
|
|
(6 |
) |
|
|
— |
|
|
|
|
|
|
Other matters |
|
(9 |
) |
|
|
— |
|
|
|
|
|
|
|
(9 |
) |
|
|
(5 |
) |
|
|
|
|
|
Impairment charge |
|
(18 |
) |
|
|
— |
|
|
|
|
|
|
|
(18 |
) |
|
|
— |
|
|
|
|
|
| Total Operating Income |
$ |
240 |
|
|
$ |
251 |
|
|
(4%) |
|
(4%) |
|
$ |
453 |
|
|
$ |
542 |
|
|
(16%) |
|
(17%) |
(a) Includes intersegment sales of $16 million and $25 million
for the second quarter of 2024 and 2023, and $31 million and $58
million year-to-date through June 30, 2024 and 2023
(b) Includes intersegment sales of $10 million and $9 million
for the second quarter of 2024 and 2023, and $20 million and $19
million year-to-date through June 30, 2024 and 2023
(c) Includes intersegment sales of $25 million and $23 million
for the second quarter of 2024 and 2023, and $51 million and $50
million year-to-date through June 30, 2024 and 2023
(d) Includes intersegment sales of $4 million and $3 million for
the second quarter of 2024 and 2023, and $7 million and $7 million
year-to-date through June 30, 2024 and 2023
II. Non-GAAP Information
To supplement the consolidated financial results prepared in
accordance with U.S. generally accepted accounting principles
(“GAAP”), non-GAAP historical financial measures are used, which
exclude certain GAAP items such as restructuring and resegmentation
costs, net gain on sale of business, impairment charge, Mexico tax
item, and other specified items. The term “adjusted” is generally
used when referring to these non-GAAP financial measures.
Management uses non-GAAP financial measures internally for
strategic decision making, forecasting future results and
evaluating current performance. By disclosing non-GAAP financial
measures, management intends to provide investors with a more
meaningful, consistent comparison of the Company’s operating
results and trends for the periods presented. These non-GAAP
financial measures are used in addition to and in conjunction with
results presented in accordance with GAAP and reflect an additional
way of viewing aspects of the Company’s operations that, when
viewed with its GAAP results, provide a more complete understanding
of factors and trends affecting its business. Expected financial
measures may not reflect certain future charges, costs and/or gains
that are inherently difficult to predict and estimate due to their
unknown timing, effect and/or significance. Non-GAAP adjustments
are generally made to adjusted financial measures, which increases
management’s confidence in its ability to forecast adjusted
financial measures than in its ability to forecast GAAP financial
measures. These non-GAAP measures, including non-GAAP expected
measures, should be considered as a supplement to, and not as a
substitute for, or superior to, the corresponding measures
calculated in accordance with GAAP.
Non-GAAP financial measures are not prepared in accordance with
GAAP; therefore, the Company’s non-GAAP information is not
necessarily comparable to similarly titled measures presented by
other companies. A reconciliation of each non-GAAP financial
measure to the most comparable GAAP measure is provided in the
tables below.
|
Ingredion
IncorporatedReconciliation of GAAP Net Income
attributable to Ingredion and Diluted Earnings Per Share
(“EPS”)
toNon-GAAP Adjusted Net Income attributable to
Ingredion and Adjusted Diluted
EPS(Unaudited) |
| |
Three Months EndedJune 30,
2024 |
|
Three Months EndedJune 30,
2023 |
|
Six Months EndedJune 30,
2024 |
|
Six Months EndedJune 30,
2023 |
| |
(in millions) |
|
Diluted EPS |
|
(in millions) |
|
Diluted EPS |
|
(in millions) |
|
Diluted EPS |
|
(in millions) |
|
Diluted EPS |
|
Net income attributable to Ingredion |
$ |
148 |
|
$ |
2.22 |
|
$ |
163 |
|
|
$ |
2.42 |
|
|
$ |
364 |
|
|
$ |
5.46 |
|
|
$ |
354 |
|
|
$ |
5.27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and resegmentation costs (i) |
|
2 |
|
|
0.03 |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on sale of business (ii) |
|
1 |
|
|
0.01 |
|
|
— |
|
|
|
— |
|
|
|
(72 |
) |
|
|
(1.08 |
) |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other matters (iii) |
|
7 |
|
|
0.10 |
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
0.10 |
|
|
|
4 |
|
|
|
0.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charge (iv) |
|
22 |
|
|
0.33 |
|
|
— |
|
|
|
— |
|
|
|
22 |
|
|
|
0.33 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax item - Mexico (v) |
|
10 |
|
|
0.15 |
|
|
(7 |
) |
|
|
(0.10 |
) |
|
|
4 |
|
|
|
0.06 |
|
|
|
(14 |
) |
|
|
(0.21 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other tax matters (vi) |
|
2 |
|
|
0.03 |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP adjusted net income
attributable to Ingredion |
$ |
192 |
|
$ |
2.87 |
|
$ |
156 |
|
|
$ |
2.32 |
|
|
$ |
331 |
|
|
$ |
4.96 |
|
|
$ |
344 |
|
|
$ |
5.12 |
|
Net income and EPS may not sum or recalculate due to
rounding.
Notes(i) During the three and six months ended
June 30, 2024, there were pre-tax restructuring charges of $3
million and $6 million, respectively, primarily related to
restructuring activities and the resegmentation of the business
effective January 1, 2024.
(ii) During the six months ended June 30,
2024, there was a pre-tax gain of $82 million on the sale of
the business in South Korea that was completed in February 1,
2024.
(iii) During the three and six months ended
June 30, 2024, there was a pre-tax charge of $9 million for
tornado damage incurred at a U.S. warehouse. During the six months
ended June 30, 2023, there were pre-tax charges of $5 million
primarily related to the impacts of a U.S.-based work stoppage.
(iv) During the three and six months ended
June 30, 2024, there was a pre-tax other-than-temporary charge
of $18 million on our equity method investments.
(v) Tax provisions of $10 million and $4
million for the three and six months ended June 30, 2024,
respectively, and tax benefits of $7 million and $14 million for
the three and six months ended June 30, 2023, respectively,
were recorded as a result of the movement of the Mexican peso
against the U.S. dollar and its impact on the remeasurement of the
Mexico financial statements during the periods.
(vi) During the three months ended
June 30, 2024, forecasted dividends were changed from Brazil
for the year, which are temporarily taxable for U.S. income taxes
under U.S. recapture rules. Non-GAAP adjustments for Other tax
matters includes the impact from the U.S. tax recapture, prior year
tax contingencies and tax results of the above non-GAAP
adjustments, partially offset by interest on previously recognized
tax benefits for certain Brazilian local incentives that were
previously taxable.
|
Ingredion
IncorporatedReconciliation of GAAP Operating
Income to Non-GAAP Adjusted Operating
Income(Unaudited)(in millions,
pre-tax) |
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Operating income |
$ |
240 |
|
$ |
251 |
|
$ |
453 |
|
$ |
542 |
| |
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Restructuring and resegmentation costs (i) |
|
3 |
|
|
— |
|
|
6 |
|
|
— |
| |
|
|
|
|
|
|
|
|
Other matters (iii) |
|
9 |
|
|
— |
|
|
9 |
|
|
5 |
| |
|
|
|
|
|
|
|
|
Impairment charge (iv) |
|
18 |
|
|
— |
|
|
18 |
|
|
— |
| |
|
|
|
|
|
|
|
| Non-GAAP adjusted operating
income |
$ |
270 |
|
$ |
251 |
|
$ |
486 |
|
$ |
547 |
For notes (i) through (iv), see notes (i) through (iv) included
in the Reconciliation of GAAP Net Income attributable to Ingredion
and Diluted EPS to Non-GAAP Adjusted Net Income attributable to
Ingredion and Adjusted Diluted EPS.
|
Ingredion
IncorporatedReconciliation of GAAP Effective
Income Tax Rate to Non-GAAP Adjusted Effective Income Tax
Rate(Unaudited)(dollars in
millions, except for percentages) |
| |
|
Three Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2024 |
| |
Income before Income Taxes
(a) |
|
Provision for Income Taxes
(b) |
|
Effective Income Tax Rate
(b/a) |
|
Income before Income Taxes
(a) |
|
Provision for Income Taxes
(b) |
|
Effective Income Tax Rate
(b/a) |
|
As Reported |
|
$ |
230 |
|
$ |
80 |
|
|
34.8% |
|
$ |
506 |
|
|
$ |
138 |
|
|
27.3% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and resegmentation costs (i) |
|
|
3 |
|
|
1 |
|
|
|
|
|
6 |
|
|
|
2 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on sale of business (ii) |
|
|
— |
|
|
(1 |
) |
|
|
|
|
(82 |
) |
|
|
(10 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other matters (iii) |
|
|
9 |
|
|
2 |
|
|
|
|
|
9 |
|
|
|
2 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charge (iv) |
|
|
18 |
|
|
(4 |
) |
|
|
|
|
18 |
|
|
|
(4 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax item - Mexico (v) |
|
|
— |
|
|
(10 |
) |
|
|
|
|
— |
|
|
|
(4 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other tax matters (vi) |
|
|
— |
|
|
(2 |
) |
|
|
|
|
— |
|
|
|
(2 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Non-GAAP |
|
$ |
260 |
|
$ |
66 |
|
|
25.4% |
|
$ |
457 |
|
|
$ |
122 |
|
|
26.7% |
| |
|
Three Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2023 |
| |
Income before Income Taxes
(a) |
|
Provision for Income Taxes
(b) |
|
Effective Income Tax Rate
(b/a) |
|
Income before Income Taxes
(a) |
|
Provision for Income Taxes
(b) |
|
Effective Income Tax Rate
(b/a) |
|
As Reported |
|
$ |
219 |
|
$ |
55 |
|
25.1% |
|
$ |
478 |
|
$ |
120 |
|
25.1% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other matters (iii) |
|
|
— |
|
|
— |
|
|
|
|
5 |
|
|
1 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax item - Mexico (v) |
|
|
— |
|
|
7 |
|
|
|
|
— |
|
|
14 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Non-GAAP |
|
$ |
219 |
|
$ |
62 |
|
28.3% |
|
$ |
483 |
|
$ |
135 |
|
28.0% |
For notes (i) through (vi), see notes (i) through (vi) included
in the Reconciliation of GAAP Net Income attributable to Ingredion
and Diluted EPS to Non-GAAP Adjusted Net Income attributable to
Ingredion and Adjusted Diluted EPS.
|
Ingredion
IncorporatedReconciliation of Expected GAAP
Diluted Earnings per Share (“GAAP
EPS”)to Expected Adjusted Diluted
Earnings per Share (“Adjusted
EPS”)(Unaudited) |
| |
Expected EPS Range for Full-Year
2024 |
|
Low End ofGuidance |
|
High End ofGuidance |
|
GAAP EPS |
$ |
10.20 |
|
|
$ |
10.70 |
|
| |
|
|
|
| Adjustments: |
|
|
|
| |
|
|
|
|
Restructuring and resegmentation costs (i) |
|
0.06 |
|
|
|
0.06 |
|
| |
|
|
|
|
Net gain on sale of business (ii) |
|
(1.08 |
) |
|
|
(1.08 |
) |
| |
|
|
|
|
Other matters (iii) |
|
0.10 |
|
|
|
0.10 |
|
| |
|
|
|
|
Impairment charge (iv) |
|
0.33 |
|
|
|
0.33 |
|
| |
|
|
|
|
Tax item - Mexico (v) |
|
0.06 |
|
|
|
0.06 |
|
| |
|
|
|
|
Other tax matters (vi) |
|
0.03 |
|
|
|
0.03 |
|
| |
|
|
|
| Adjusted EPS |
$ |
9.70 |
|
|
$ |
10.20 |
|
For notes (i) through (vi), see notes (i) through (vi) included
in the Reconciliation of GAAP Net Income attributable to Ingredion
and Diluted EPS to Non-GAAP Adjusted Net Income attributable to
Ingredion and Adjusted Diluted EPS.
|
Ingredion
IncorporatedReconciliation of Expected GAAP
Effective Income Tax Rate (“GAAP
ETR”)to Expected Adjusted
Effective Income Tax Rate (“Adjusted
ETR”)(Unaudited) |
| |
Expected Effective Income Tax Rate Range
for Full-Year 2024 |
|
Low End of Guidance |
|
High End of Guidance |
|
GAAP ETR |
27.0 |
% |
|
28.0 |
% |
| |
|
|
|
| Adjustments: |
|
|
|
| |
|
|
|
|
Restructuring and resegmentation costs (i) |
— |
% |
|
— |
% |
| |
|
|
|
|
Net gain on sale of business (ii) |
1.3 |
% |
|
1.3 |
% |
| |
|
|
|
|
Other matters (iii) |
(0.1 |
%) |
|
(0.1 |
%) |
| |
|
|
|
|
Impairment charge (iv) |
(1.0 |
%) |
|
(1.0 |
%) |
| |
|
|
|
|
Tax item - Mexico (v) |
(0.5 |
%) |
|
(0.5 |
%) |
| |
|
|
|
|
Other tax matters (vi) |
(0.2 |
%) |
|
(0.2 |
%) |
| |
|
|
|
| Adjusted ETR |
26.5 |
% |
|
27.5 |
% |
For notes (i) through (vi), see notes (i) through (vi) included
in the Reconciliation of GAAP Net Income attributable to Ingredion
and Diluted EPS to Non-GAAP Adjusted Net Income attributable to
Ingredion and Adjusted Diluted EPS.
CONTACTS:Investors: Noah Weiss,
773-896-5242Media: Rick Wion,
708-209-6323
Ingredion (NYSE:INGR)
過去 株価チャート
から 7 2024 まで 8 2024
Ingredion (NYSE:INGR)
過去 株価チャート
から 8 2023 まで 8 2024
