Ingredion Incorporated · NYSE:INGR
Ingredion — Q4 2024 Earnings Presentation
36 slides from Ingredion's earnings presentation, Feb 4, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Call
Option 1 Fourth Quarter and Full Year 2024 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 f
Slide 3: Agenda
Agenda CEO comments Financial performance Closing remarks Q&A 3
Slide 4: CEO Perspective
Jim Zallie President and CEO CEO Perspective 4
Slide 5: Sales volume and operational excellence drives strong full-year profit growth
Sales volume and operational excellence drives strong full-year profit growth FY Net Sales FY Adjusted Operating Income* $ in millions Absent S. Korea $ in millions Absent S. Korea -6% +8% -9% +5% $8,160 $7,430 $969 $1,016 FY 2023 FY 2024 FY 2023 FY 2024 Q4 Net $1,921 $1,800 Q4 Adj $203 $248 Sales -
Slide 6: Fourth quarter net sales volume growth highlights
Fourth quarter net sales volume growth highlights Net Sales Highlights Volume • Volume growth across all regions • Strength in systems and hydrocolloids Texture & Healthful Solutions +10% • Strong growth in highly differentiated products • Texturizing solutions for Beauty & Home Food & Industrial In
Slide 7: Continued gross profit dollar growth and margin expansion
Continued gross profit dollar growth and margin expansion +270 bps Gross margin 24.1% 21.2% 21.4% 19.3% 18.8% FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 GP$ $1,272 $1,331 $1,494 $1,749 $1,791 7
Slide 8: Q4 progress against our strategic pillars
Q4 progress against our strategic pillars People-Centric Business Growth Cost Competitiveness Performance Growth through Operational Excellence Culture • Texture & Healthful Solutions • Exceeded our first year • WSJ Best-Managed Companies • Strong sales volume growth Cost2Compete run-rate savings 20
Slide 9: First year progress – global reorganization, resegmentation and Cost2Compete
First year progress – global reorganization, resegmentation and Cost2Compete A customer-centric approach to Selected investments and restructurings to optimizing and derisking supply chain enhance service reliability and improve perfect order delivery Increased business performance visibility Pr
Slide 10: Financial Update
James Gray Executive Vice President and CFO Financial Update 10
Slide 11: Q4: Income statement highlights
Q4: Income statement highlights $ in millions, unless noted Q4 2023 Q4 2024 Change Net Sales $1,921 $1,800 -6% Gross Profit $400 $449 12% Gross Profit Margin 20.8% 25.0% 420 bps Reported Operating Income $202 $162 (20%) Reported Diluted EPS $1.97 $1.43 - $0.54/share Adjusted Operating Income* $203 $
Slide 12: Q4: Net sales bridge
Q4: Net sales bridge $ in millions -6% $77 $1,921 $(33) $(73) $1,800 $(92) Q4 2023 FX Volume South Korea Price/Mix Q4 2024 Volume Totals may not sum due to rounding 12
Slide 13: Q4: Net sales variance by segment
Q4: Net sales variance by segment Foreign Net Sales Volume Price Mix Exchange Change Texture & Healthful Solutions 1% 10% -10% 1% Food & Industrial Ingredients - -5% -4% 0% -9% LATAM Food & Industrial Ingredients - 0% 1% -3% -2% US/CAN Ingredion -1% 0% -5% -6% Excluding South Korea -1% 4% -5% -2% To
Slide 14: Texture & Healthful Solutions momentum going into 2025
Texture & Healthful Solutions momentum going into 2025 Operating income $ in millions 127 105 Back to 96 94 normalized 86 86 74 76 run rate levels as we exit 2024 Q1 Q2 Q3 Q4 2023 Operating Income 2024 Operating Income See appendix for a reconciliation of these non-GAAP financial measures to the com
Slide 15: Q4: EPS bridge
Q4: EPS bridge Amounts are dollars/share 2023 2024 Reported Diluted EPS $ 1.97 $1.43 Restructuring/impairment costs 0.02 1.26 Net gain on sale of business --- --- Tax items and other matters (0.02) (0.06) Adjusted Diluted EPS* 1.97 $2.63 Total change in adjusted diluted EPS $0.66 Total operating ite
Slide 16: FY 2024: Income statement highlights
FY 2024: Income statement highlights $ in millions, unless noted FY 2023 FY 2024 Change Net Sales $8,160 $7,430 (9%) Gross Profit $1,749 $1,791 2% Gross Profit Margin 21.4% 24.1% 270 bps Reported Operating Income $957 $883 (8%) Reported Diluted EPS $9.60 $9.71 $0.11/share Adjusted Operating Income*
Slide 17: FY: Net sales bridge
FY: Net sales bridge $ in millions -9% $8,160 $227 $(52) $(283) $7,430 $(622) FY 2023 FX Volume South Korea Price/Mix FY 2024 Volume Totals may not sum due to rounding 17
Slide 18: FY: Net sales variance by segment
FY: Net sales variance by segment Foreign Net Sales Volume Price Mix Exchange Change Texture & Healthful Solutions -1% 7% -10% -4% Food & Industrial Ingredients - -1% 0% -6% -7% LATAM Food & Industrial Ingredients - -1% 0% -7% -8% US/CAN Ingredion -1% 0% -8% -9% Excluding South Korea -1% 3% -8% -6%
Slide 19: Texture & Healthful Solutions; Food & Industrial Ingredients - LATAM
Texture & Healthful Food & Industrial Solutions Ingredients - LATAM Absent FX Absent FX FY Net Sales impacts FY Net Sales impacts $ in millions -3% $ in millions -6% -7% -4% $2,633 $2,450 $2,460 $2,366 FY 2023 FY 2024 FY 2023 FY 2024 FY Op Income $ $394 $350 FY Op Income $ $452 $483 FY Op Inc Margin
Slide 20: Food & Industrial Ingredients - US/CAN; All Other
Food & Industrial Ingredients - US/CAN All Other FY Net Sales Absent FX impacts FY Net Sales* Absent S. Korea and FX impacts $ in millions -7% $ in millions +6% -8% -37% $2,335 $2,155 $732 $459 FY 2023 FY 2024 FY 2023 FY 2024 FY Op Income $ $298 $373 FY Op Income $ $(2) $(22) FY Op Inc Margin 12.8%
Slide 21: FY: EPS bridge
FY: EPS bridge Amounts are dollars/share 2023 2024 Reported Diluted EPS $ 9.60 $9.71 Restructuring/impairment costs 0.12 1.83 Net gain on sale of business --- (1.29) Tax items and other matters (0.30) 0.40 Adjusted Diluted EPS* $9.42 $10.65 Total change in adjusted diluted EPS $1.23 Total operating
Slide 22: Full year cash from operations and capital allocation
Full year cash from operations and capital allocation $ millions FY 2024 Year End Year End FY Cash 2023 2024 Impact Net income $654 A/R 1,279 1,093 186 Depreciation and amortization $214 Inventory 1,450 1,187 263 Working capital $396 AP (1,324) (1,237) (87) Other Items 34 Other $172 Total change in
Slide 23: 2025 Full year CAPEX guidance step-up
2025 Full year CAPEX guidance step-up $ in millions $400-450 Cost Savings and Infrastructure $327 Growth Growth Mechanical Mechanical Stores Stores Maintenance Maintenance Reliability Reliability 2024 2025E Note: 2024 Full year CAPEX of $327M includes cash paid during the year and other accrued comm
Slide 24: Full year 2025 outlook
Full year 2025 outlook 2025 outlook does not consider extraordinary changes in current tax rates, tariffs or trade, or food regulations Net sales Up low single-digits Adjusted operating income* Up mid-single-digits Financing costs $50 – $70 million Corporate costs Up mid-single-digits to high single
Slide 25: 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 26: Record performance with momentum into 2025
Record performance with momentum into 2025 • Strong progress toward our Winning Aspiration • Demonstrated by high sales volume growth in Texture & Healthful Solutions • Cost2Compete savings • Asset footprint reduction and network optimization • Exceptionally strong cash flow from operations • Short-
Slide 27: Upcoming investor activities
Upcoming investor activities CAGNY 2025 Orlando | February 18 BofA Global AG and Materials Conference Ft. Lauderdale | February 26 JP Morgan Consumer Ingredients Forum London | March 11 BNP Paribas Exane 13th Consumer Ingredients Conference London | March 12 London non-deal roadshow London | March 1
Slide 28: Appendix
Appendix NN Ingredion Be what's next
Slide 29: Non-GAAP Information
Non-GAAP Information To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we use non-GAAP historical financial measures, which exclude certain GAAP items such as restructuring and resegmentation costs, net gain on sale o
Slide 30: Reconciliation of GAAP net income and diluted EPS to non-GAAP adjusted
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 Twelve Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (in millions) Diluted
Slide 31: Reconciliation of GAAP net income and diluted EPS (continued)
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 and twelve months ended December 31, 2024, we recorded pre-tax restructuring charges of $6 million and $18 million, respectively, prim
Slide 32: Reconciliation of GAAP operating income to non-GAAP adjusted operating income
Reconciliation of GAAP operating income to non-GAAP adjusted operating income Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Operating income $ 162 $ 202 $ 883 $ 957 Adjustments: Restructuring and resegmentation costs (i) 6 1 18 1 Impairment charges (iii) 83 — 1
Slide 33: Reconciliation of GAAP effective income tax rate to non-GAAP adjusted
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate Three Months Ended December 31, 2024 Twelve Months Ended December 31, 2024 Income before Provision for Effective Income before Provision for Effective Income Taxes Income Taxes Income Income Taxes Income
Slide 34: Reconciliation of GAAP effective income tax rate (continued)
Reconciliation of GAAP effective income tax rate to non-GAAP adjusted effective income tax rate (continued) Three Months Ended December 31, 2023 Twelve months ended December 31, 2023 Income before Provision for Effective Income before Provision for Effective Income Taxes Income Taxes Income Income T
Slide 35: Reconciliation of expected GAAP diluted EPS to expected 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 $ 10.75 $ 11.55 Adjustments: Adjusted EPS $ 10.75 $ 11.55 Above is a reconciliation of our expec
Slide 36: Reconciliation of expected GAAP effective tax rate to adjusted
Reconciliation of expected reported GAAP effective tax rate to expected non-GAAP adjusted effective income tax rate Expected Effective Tax Rate Range for Full-Year 2025 Low End of High End of Guidance Guidance GAAP ETR 26.0 % 27.5 % Adjustments: Adjusted ETR 26.0 % 27.5 % Above is a reconciliation o