Ingredion Incorporated · NYSE:INGR
Ingredion — Q1 2025 Earnings Presentation
31 slides from Ingredion's earnings presentation, May 6, 2025
Slide 1: First Quarter 2025 Earnings Call
TBU Option 1 First Quarter 2025 Earnings Call Jim Zallie President and CEO James Gray Executive Vice President and CFO
Slide 2: Non-GAAP Financial Measures and Forward-Looking Statements
Non-GAAP Financial Measures This presentation provides information about adjusted diluted earnings per share (“adjusted EPS”), adjusted operating income, adjusted effective income tax rate, and other financial measures (collectively, the “non- GAAP financial measures”) which are not measurements of
Slide 3: Agenda
Agenda CEO Perspective CFO Financial Update Closing Remarks Q&A 3
Slide 4: CEO Perspective
Jim Zallie President and CEO CEO Perspective 4
Slide 5: Improved mix and operational excellence driving profitable growth
Improved mix and operational excellence driving profitable growth Q1 Net Sales Q1 Adjusted Operating Income* $ in millions $ in millions -4% $1,882 $1,813 +26% $273 $216 Q1 2024 Q1 2025 Q1 2024 Q1 2025 *See appendix for a reconciliation of this non-GAAP financial measure to the comparable GAAP finan
Slide 6: First quarter net sales volume growth highlights
First quarter net sales volume growth highlights Net Sales Highlights Volume • Volume growth across all geographies • Highly differentiated products continue to grow Texture & Healthful Solutions +7% • Clean label and affordable formulating volumes up double digits Food & Industrial Ingredients— • S
Slide 7: Maintaining a new level of higher profitability
Maintaining a new level of higher profitability Gross Margins 25.6% 25.7% 25.0% 23.7% 22.8% 22.2% 21.3% 20.7% 20.8% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Total Gross Profit ($M) $487 $441 $421 $400 $417 $446 $479 $449 $466 7
Slide 8: Q1 progress against our strategic pillars
Q1 progress against our strategic pillars People-Centric Business Growth Cost Competitiveness through Operational Excellence Performance- Based Growth Culture • Texture & Healthful Solutions • Confident to meet or exceed our • Named to 2025 FORTUNE • Strong sales volume growth 2025 run-rate savings
Slide 9: Monitoring the impact of tariffs
Monitoring the impact of tariffs • Minimal impact to our business in the first quarter • Vast majority of our products are made locally and sold locally • Direct impact of tariff levels in effect as of April 30, 2025 reflected in full year outlook • Actively monitoring impacts of tariffs, both posit
Slide 10: Financial Update
James Gray Executive Vice President and CFO Financial Update 10
Slide 11: Q1: Income statement highlights
Q1: Income statement highlights $ in millions, unless noted Q1 2024 Q1 2025 Change Net Sales $1,882 $1,813 -4% Gross Profit $417 $466 12% Gross Profit Margin 22.2% 25.7% 350 bps Reported Operating Income $213 $276 30% Reported Diluted EPS $3.23 $3.00 - $0.23/share Adjusted Operating Income* $216 $27
Slide 12: Q1: Net sales bridge
Q1: Net sales bridge $ in millions -4% $1,882 $43 $1,813 $(40) $(24) $(48) Q1 2024 FX Volume South Korea Price/Mix Q1 2025 Volume Totals may not sum due to rounding 12
Slide 13: Q1: Net sales variance by segment
Q1: Net sales variance by segment Foreign Net Sales Volume Price Mix Exchange Change Texture & Healthful Solutions 0% 7% -6% 1% Food & Industrial Ingredients— -5% -2% 0% -7% LATAM Food & Industrial Ingredients— -1% 0% -3% -4% US/CAN Ingredion -2% 1% -3% -4% Excluding South Korea -2% 3% -3% -2% Total
Slide 14: Texture & Healthful Solutions and LATAM
Texture & Healthful Food & Industrial Solutions Ingredients—LATAM Absent FX Absent FX Q1 Net Sales impacts Q1 Net Sales impacts $ in millions 1% $ in millions -2% -7% +1% $616 $597 $602 $573 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 Op Income $ $74 $99 Q1 Op Income $ $101 $127 Q1 Op Inc Margin 12.4% 16.4%
Slide 15: US/CAN and All Other
Food & Industrial Ingredients—US/CAN All Other Q1 Net Sales Absent FX impacts Q1 Net Sales* Absent S. Korea and FX impacts $ in millions -3% $ in millions +16% -4% $541 $520 -8% $128 $104 +13% $118 Q1 2024 Q1 2025 Q1 2024 Q1 2024 Q1 2025 ex. South Korea Q1 Op Income $ $87 $92 Q1 Op Income $ $(4) $(6
Slide 16: Q1: EPS bridge
Q1: EPS bridge Amounts are dollars/share Q1 2024 Q1 2025 Reported Diluted EPS $ 3.23 $3.00 Impairment charges --- 0.08 Restructuring/resegmentation costs 0.03 0.02 Net gain on sale of business (1.09) --- Tax items and other matters (0.09) (0.13) Adjusted Diluted EPS* $2.08 $2.97 Total change in adju
Slide 17: First quarter cash from operations and capital allocation
First quarter cash from operations and capital allocation $ millions Q1 2025 Year End March YTD Cash Net income $199 2024 2025 Impact A/R 1,093 1,284 (191) Depreciation and amortization $55 Inventory 1,187 1,172 15 Working capital $(220) AP (1,237) (1,140) (97) Other $43 Other Items 53 Total change
Slide 18: Full year 2025 outlook
Full year 2025 outlook This guidance reflects tariff levels in effect as of April 30, 2025 and does not consider future changes in tariffs or trade restrictions. Net sales Up low single-digits Adjusted operating income* Up mid-single-digits Financing costs $40 – $60 million Corporate costs Up mid-si
Slide 19: 2025 full year outlook by segment
2025 Full year outlook by segment • Expect net sales to be up mid-single-digits 2025 Texture & Healthful vs. • Expect operating income to be up mid-single-digits Solutions 2024 to high single-digits • Expect net sales to be flat Food & Industrial—LATAM • Expect operating income to be up mid-single-d
Slide 20: Monitoring tariff changes and mitigating impacts
Monitoring tariff changes and mitigating impacts Vast majority of products made locally, sold locally Monitoring Initial Cost Customer Flexibly Managing & Assessing Impact & Response Supply Chains Pass-through Immaterial Customer Tariff impact from engagement Response Hub current regarding mitigatin
Slide 21: Strong start to 2025
Strong start to 2025 • Strong volume growth in Texture & Healthful Solutions • Monitoring changing tariffs and activating mitigation plans • Continued gross margin strength across segments • Cost2Compete savings progressing as planned • Repurchased $55M of shares toward $100M objective 21
Slide 22: Upcoming investor activities
Upcoming investor activities TBU The BMO Global Farm to Market Conference New York | May 15 Annual Meeting of Stockholders Virtual | May 21 22
Slide 23: Appendix
Appendix NN Ingredion Be what's next.
Slide 24: Non-GAAP Information
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
Slide 25: GAAP net income and EPS to adjusted EPS
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 (in millions) Diluted EPS (in millions) Diluted EPS Net income attributable to Ingredion $ 197 $ 3.00 $
Slide 26: GAAP net income and EPS notes
Reconciliation of GAAP net income and diluted earnings per share (EPS) to non-GAAP adjusted net income and adjusted diluted EPS (continued) Notes i. During the three months ended March 31, 2025 and 2024, there were pre-tax restructuring charges of $1 million and $3 million primarily related to the r
Slide 27: GAAP operating income to adjusted operating income
Reconciliation of GAAP operating income to non-GAAP adjusted operating income Three Months Ended March 31, ($ in millions, pre-tax) 2025 2024 Operating income $ 276 $ 213 Adjustments: Restructuring and resegmentation costs (i) 1 3 Other matters (iii) (10) — Impairment charges (iv) 6 — Non-GAAP adjus
Slide 28: GAAP effective income tax rate to adjusted rate
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate Three Months Ended March 31, 2025 Income before Provision for Effective Income Taxes Income Taxes Income ($ in millions, except for percentages) (a) (b) Tax Rate (b/a) As Reported $ 267 $ 68 25.5% Adjustm
Slide 29: GAAP effective income tax rate to adjusted rate (continued)
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate (continued) Three Months Ended March 31, 2024 Income before Provision for Effective Income Taxes Income Taxes Income ($ in millions, except for percentages) (a) (b) Tax Rate (b/a) As Reported $ 276 $ 58 2
Slide 30: Expected GAAP diluted EPS to adjusted EPS
Reconciliation of expected GAAP diluted earnings per share to expected non-GAAP adjusted diluted earnings per share Expected EPS Range for Full-Year 2025 Low End of High End of Guidance Guidance GAAP EPS $ 10.93 $ 11.63 Adjustments: Restructuring and resegmentation costs (i) 0.02 0.02 Other matters
Slide 31: Expected GAAP effective tax rate to adjusted rate
Reconciliation of expected reported GAAP effective tax rate to expected non-GAAP adjusted effective income tax rate Expected Effective Income Tax Rate Range for Full-Year 2025 Low End of High End of Guidance Guidance GAAP ETR 26.0 % 27.5 % Adjustments: Restructuring and resegmentation costs (i) —% —