* First quarter 2024 reported and adjusted EPS(*) were $3.23 and $2.08, an
increase of 13% and decrease of 26%, respectively
* Completed sale of South Korea business, another step in reshaping the
portfolio and redeploying assets
* Raising guidance for full-year reported EPS to be in the range of $10.35 to
$11.00 and adjusted EPS to be in the range of $9.20 to $9.85
* For the second quarter 2024, the Company expects operating income to be up
low to mid-single-digits
WESTCHESTER, Ill., May 08, 2024 (GLOBE NEWSWIRE) -- Ingredion Incorporated
(NYSE: INGR), a leading global provider of ingredient solutions to the food and
beverage manufacturing industry, today reported results for the first quarter of
2024. The results, reported in accordance with U.S. generally accepted
accounting principles ("GAAP") for the first quarter of 2024 and 2023, include
items that are excluded from the non-GAAP financial measures that the Company
presents.
"Against a strong comparison with last year's record first quarter performance,
this quarter's results exceeded expectations. As anticipated, our net sales
volumes in the quarter improved sequentially, despite the impact of extreme cold
weather on shipments in the U.S. and taking into account the sale of our South
Korea business," said Jim Zallie (https://www.ingredion.com/na/en-
us/company/meet-ingredion/executive-leadership-team/zallie.html), Ingredion's
president and chief executive officer. "Furthermore, we maintained our gross
margins above 22% as the strength of our business model effectively managed the
impact of variable rate contracts which require the pass through of lower corn
costs."
"Looking forward, our Driving Growth Roadmap continues to guide our long-term
value creation. Also, in support of our new Winning Aspiration, the
reorganization is enabling clearer focus on the opportunities presented by our
global customers to drive growth. We are encouraged by the levels of customer
engagement, particularly in our texture solutions business. Additionally, we
anticipate deploying cash this year toward organic investments, dividends, and a
step-up in share repurchases," Zallie concluded.
(As previously disclosed, effective January 1, 2024, Ingredion will report
financial and operational results under its new reporting structure. For
comparison purposes, results for the first quarter of 2023 throughout this news
release are unaudited and have been revised to reflect the new reporting
structure in which there are three new reportable segments as described below. )
((*)Adjusted diluted earnings per share ("adjusted EPS"), adjusted operating
income and adjusted effective income tax rate 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)
1Q23 1Q24
----------------- ----------------
Reported EPS $ 2.85 $ 3.23
Net gain on sale of business - (1.09 )
Resegmentation cost - 0.03
Tax items and other matters (0.05 ) (0.09 )
Adjusted EPS(**) $ 2.80 $ 2.08
Estimated factors affecting changes in Reported and Adjusted EPS
1Q24
------------
Total items affecting EPS(**) (0.72 )
------------
Total operating items (0.86 )
------------
Margin (0.47 )
Volume (0.34 )
Foreign exchange 0.04
Other income (0.09 )
------------
Total non-operating items 0.14
------------
Other non-operating income 0.00
Financing costs 0.13
Tax rate (0.02 )
Shares outstanding 0.01
Non-controlling interests 0.02
(**) Totals may not foot due to rounding
Other Financial Items
* At March 31, 2024, total debt and cash, including short-term investments,
were $1.9 billion and $445 million, respectively, versus $2.2 billion and
$409 million, respectively, at December 31, 2023.
* Reported net financing costs for the first quarter were $19 million versus
$32 million for the year-ago period.
* Reported and adjusted effective tax rates for the first quarter were 21.0%
and 28.4%, respectively, compared to 25.1% and 27.7%, respectively, for the
year-ago period. The decrease in the reported effective tax rate was
primarily driven by the low effective tax rate on the sale of our South
Korea business during the first quarter of 2024.
* Capital expenditures, net were $65 million, down $10 million from the year-
ago period.
Business Review
Total Ingredion
Net Sales
Change
$ in FX S. Korea Price excl.
millions 2023 Impact Volume Volume(*) mix 2024 Change FX
---------- ------- -------- -------- ----------- ------- ------- -------- -------
First
Quarter 2,137 12 (40) (51) (176) 1,882 (12%) (13%)
* Represents loss of volume due to the sale of South Korea business
Reported Operating Income
Change
$ in FX Business Acquisition Restructuring excl.
millions 2023 Impact Drivers /Integration /Impairment Other 2024 Change FX
---------- ------ -------- ---------- -------------- --------------- ------- ------ -------- -------
First
Quarter 291 3 (83) - (3) 5 213 (27%) (28%)
---------- ------ -------- ---------- -------------- --------------- ------- ------ -------- -------
Adjusted Operating Income
Business Change
$ in millions 2023 FX Impact Drivers 2024 Change excl. FX
--------------- ------ ----------- ---------- ------ -------- ---------
First Quarter 296 3 (83) 216 (27%) (28%)
--------------- ------ ----------- ---------- ------ -------- ---------
Net Sales
* First quarter net sales were $1,882 million, a decrease of 12% from the
year-ago period, driven by both price mix and volume declines, partially
offset by foreign exchange impacts. The impact of the South Korea
divestiture resulted in a $51 million decrease in sales volume for the
period. Excluding foreign exchange impacts, net sales were down 13%.
Operating Income
* First quarter reported and adjusted operating income were $213 million and
$216 million, respectively, a decrease of 27% for both, versus the prior
year. The decrease in reported and adjusted operating income was driven by
downtime associated with cold weather, hyperinflation in Argentina, and the
carry-forward of higher cost inventory. Excluding foreign exchange impacts,
reported and adjusted operating income were down 28% from the same period
last year.
Texture & Healthful Solutions
Net Sales
Price Change
$ in millions 2023 FX Impact Volume mix 2024 Change excl. FX
--------------- ------ ----------- -------- ------- ------ -------- ---------
First Quarter 665 (6) (1) (61) 597 (10%) (9%)
--------------- ------ ----------- -------- ------- ------ -------- ---------
Segment Operating Income
Business Change
$ in millions 2023 FX Impact Drivers 2024 Change excl. FX
--------------- ------ ----------- ---------- ------ -------- ---------
First Quarter 127 (1) (52) 74 (42%) (41%)
* First quarter operating income for Texture & Healthful Solutions was $74
million, a decrease of $53 million from the year-ago period, driven by less
favorable price mix and the carry-forward of higher cost inventory.
Excluding foreign exchange impacts, segment operating income was down 41%
for the first quarter.
Food & Industrial Ingredients - LATAM
Net Sales
FX Price Change
$ in millions 2023 Impact Volume mix 2024 Change excl. FX
--------------- ------ -------- -------- ------- ------ -------- ---------
First Quarter 667 26 (16) (61) 616 (8%) (12%)
--------------- ------ -------- -------- ------- ------ -------- ---------
Segment Operating Income
Change
$ in FX Business Argentina excl.
millions 2023 Impact Drivers JV 2024 Change FX
------------ ------ -------- ------------ ------------ ------ -------- --------
First
Quarter 122 5 (15) (11) 101 (17%) (21%)
* First quarter operating income for Food & Industrial Ingredients - LATAM was
$101 million, a decrease of $21 million from the year-ago period, driven
primarily by the devaluation of the Argentina peso on results of our
Argentina joint venture as well as higher fixed costs and utilities.
Excluding foreign exchange impacts, segment operating income was down 21%
for the first quarter.
Food & Industrial Ingredients - U.S./Canada
Net Sales
FX Price Change
$ in millions 2023 Impact Volume mix 2024 Change excl. FX
--------------- ------ -------- -------- ------- ------ -------- ---------
First Quarter 608 - (24) (43) 541 (11%) (11%)
--------------- ------ -------- -------- ------- ------ -------- ---------
Segment Operating Income
Business Change
$ in millions 2023 FX Impact Drivers 2024 Change excl. FX
--------------- ------ ----------- ---------- ------ -------- ---------
First Quarter 92 - (5) 87 (5%) (5%)
* First quarter operating income for Food & Industrial Ingredients -
U.S./Canada was $87 million, a decrease of $5 million from the year-ago
period, driven by downtime due to the impacts of cold weather, partially
offset by strong industrial demand during the quarter.
All Other(*)(*)
Net Sales
Change
$ in FX S. Korea Price excl.
millions 2023 Impact Volume Volume(*) mix 2024 Change FX
---------- ------ -------- -------- ----------- ------- ------ -------- -------
First
Quarter 197 (8) 1 (51) (11) 128 (35%) (31%)
* Represents loss of volume due to the sale of South Korea business
Operating Income (Loss)
Business Change
$ in millions 2023 FX Impact Drivers 2024 Change excl. FX
--------------- ------ ----------- ---------- ------ -------- ---------
First Quarter (8) (1) 5 (4) 50% 63%
* First quarter operating loss for All Other was ($4) million, up $4 million
from the year-ago period. The change was driven by lower operating loss for
protein fortification and other factors.
(**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 quarter of 2024, the Company paid $51 million in dividends to
shareholders and declared a quarterly dividend
(https://ir.ingredionincorporated.com/news-releases/news-release-
details/ingredion-incorporated-declares-quarterly-dividend-078-share-0) of $0.78
per share that was paid on April 23, 2024. During the quarter, the Company
repurchased $1 million of outstanding shares of common stock.
Updated Second Quarter and Full-Year 2024 Outlook
For the second quarter of 2024, the Company expects net sales to be flat to down
low single-digits and reported and adjusted operating income to be up low to
mid-single-digits.
The Company now expects its full-year 2024 reported EPS to be in the range of
$10.35 to $11.00, which includes the impact of the gain on the divestiture of
the South Korea business completed on February 1, 2024, and adjusted EPS to be
in the range of $9.20 to $9.85.
Excluding the effects of the divestiture of the South Korea business, the
Company expects full-year 2024 net sales to be flat to up 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 still expected to be up mid-single-digits.
For full-year 2024, the Company now expects a reported and adjusted effective
tax rate of 24.5% to 25.5%, and 26.5% to 27.5%, respectively.
Cash from operations for full-year 2024 is still expected to be in the range of
$750 million to $900 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 Wednesday, May 8, 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 at https://ir.ingredionincorporated.com/events-
and-presentations 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 approximately $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
(https://www.ingredion.com/na/en-us.html) 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, working capital, and capital
expenditures, our expectations for second 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 Incorporated
Condensed Consolidated Statements of Income
(Unaudited)
(in millions, except per share amounts)
Three Months Ended
March 31,
--------------------- Change
2024 2023 %
----------- --------- -------
Net sales $ 1,882 $ 2,137 (12 %)
Cost of sales 1,465 1,650
----------- ---------
Gross profit 417 487 (14 %)
Operating expenses 189 187 1 %
Other operating expense 12 9 33 %
Restructuring/impairment charges 3 -
----------- ---------
Operating income 213 291 (27 %)
Financing costs 19 32
Net gain on sale of business (82 ) -
----------- ---------
Income before income taxes 276 259 7 %
Provision for income taxes 58 65
----------- ---------
Net income 218 194 12 %
Less: Net income attributable to non-controlling
interests 2 3
----------- ---------
Net income attributable to Ingredion $ 216 $ 191 13 %
----------- ---------
Earnings per common share attributable to
Ingredion common shareholders:
Weighted average common shares outstanding:
Basic 65.7 66.1
Diluted 66.8 67.1
Earnings per common share of Ingredion:
Basic $ 3.29 $ 2.89 14 %
Diluted $ 3.23 $ 2.85 13 %
Ingredion Incorporated
Condensed Consolidated Balance Sheets
(in millions, except share and per share amounts)
March December
31, 2024 31, 2023
(Unaudited)
------------- --------------
Assets
Current assets
Cash and cash equivalents $ 438 $ 401
Short-term investments 7 8
Accounts receivable, net 1,284 1,279
Inventories 1,344 1,450
Prepaid expenses and assets held for sale 52 261
------------- --------------
Total current assets 3,125 3,399
------------- --------------
Property, plant and equipment, net 2,334 2,370
Intangible assets, net 1,286 1,303
Other non-current assets 574 570
------------- --------------
Total assets $ 7,319 $ 7,642
------------- --------------
Liabilities and equity
Current liabilities
Short-term borrowings $ 141 $ 448
Accounts payable, accrued liabilities and
liabilities held for sale 1,142 1,324
------------- --------------
Total current liabilities 1,283 1,772
------------- --------------
Long-term debt 1,740 1,740
Other non-current liabilities 471 480
------------- --------------
Total liabilities 3,494 3,992
------------- --------------
Share-based payments subject to redemption 43 55
Redeemable non-controlling interests 42 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 March 31, 2024 and
December 31, 2023 1 1
Additional paid-in capital 1,146 1,146
Less: Treasury stock (common stock: 12.2 and 12.6
shares at March 31, 2024 and December 31, 2023) at
cost (1,179 ) (1,207 )
Accumulated other comprehensive loss (1,062 ) (1,056 )
Retained earnings 4,818 4,654
------------- --------------
Total Ingredion stockholders' equity 3,724 3,538
Non-redeemable non-controlling interests 16 14
------------- --------------
Total stockholders' equity 3,740 3,552
------------- --------------
Total liabilities and equity $ 7,319 $ 7,642
------------- --------------
Ingredion Incorporated
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in millions)
Three Months Ended
March 31,
--------------------
2024 2023
---------- ---------
Cash from operating activities:
Net income $ 218 $ 194
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 53 54
Mechanical stores expense 14 18
Net gain on sale of business (82 ) -
Margin accounts (11 ) (19 )
Changes in other trade working capital (25 ) (302 )
Other 42 4
---------- ---------
Cash provided by (used for) operating activities 209 (51 )
---------- ---------
Cash from investing activities:
Capital expenditures and mechanical stores purchases (65 ) (76 )
Proceeds from disposal of manufacturing facilities and
properties - 1
Proceeds from sale of business 247 -
Other(1 ) (6 )
---------- ---------
Cash provided by (used for) investing activities 181 (81 )
---------- ---------
Cash from financing activities:
Proceeds from borrowings, net 15 51
Commercial paper borrowings (repayments), net (312 ) 107
Repurchases of common stock, net (1 ) -
Issuances of common stock for share-based compensation,
net 2 2
Dividends paid, including to non-controlling interests (51 ) (47 )
---------- ---------
Cash (used for) provided by financing activities (347 ) 113
---------- ---------
Effect of foreign exchange rate changes on cash (6 ) (1 )
---------- ---------
Increase (decrease) in cash and cash equivalents 37 (20 )
Cash and cash equivalents, beginning of period 401 236
---------- ---------
Cash and cash equivalents, end of period $ 438 $ 216
---------- ---------
Ingredion Incorporated
Supplemental Financial Information
(Unaudited)
I. Segment Information of Net Sales and Operating Income
Three Months Ended
March 31,
(in millions, except for -----------------------
percentages) 2024 2023 Change Change Excl. FX
----------------------------- ----------- ----------- -------- ----------------
Net Sales*
Texture & Healthful
Solutions $ 597 $ 665 (10%) (9%)
Food & Industrial
Ingredients - LATAM 616 667 (8%) (12%)
Food & Industrial
Ingredients - U.S./Canada 541 608 (11%) (11%)
All Other 128 197 (35%) (31%)
----------- ----------- -------- ----------------
Total Net Sales $ 1,882 $ 2,137 (12%) (13%)
----------- ----------- -------- ----------------
Operating Income
Texture & Healthful
Solutions $ 74 $ 127 (42%) (41%)
Food & Industrial
Ingredients - LATAM 101 122 (17%) (21%)
Food & Industrial
Ingredients - U.S./Canada 87 92 (5%) (5%)
All Other (4 ) (8 ) 50% 63%
Corporate (42 ) (37 ) (14%) (14%)
----------- ----------- -------- ----------------
Sub-total 216 296 (27%) (28%)
Resegmentation costs (3 ) -
Other matters - (5 )
----------- ----------- -------- ----------------
Total Operating Income $ 213 $ 291 (27%) (28%)
----------- ----------- -------- ----------------
*For the quarter ended March 31, 2024, net sales are net of intersegment sales
of $15 million for Texture & Healthful Solutions, $10 million for Food &
Industrial Ingredients - LATAM, $26 million for Food & Industrial Ingredients -
U.S./Canada, and $3 million for All Other. For the quarter ended March 31,
2023, net sales are net of intersegment sales of $33 million for Texture &
Healthful Solutions, $10 million for Food & Industrial Ingredients - LATAM, $27
million for Food & Industrial Ingredients - U.S./Canada, and $4 million for All
Other.
II. Non-GAAP Information
To supplement the consolidated financial results prepared in accordance with
U.S. generally accepted accounting principles ("GAAP"), the company uses non-
GAAP historical financial measures, which exclude certain GAAP items such as
resegmentation costs, net gain on sale of business, Mexico tax items, and other
specified items. The company generally uses the term "adjusted" when referring
to these non-GAAP amounts.
Company 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. These non-
GAAP 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; so the
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 Incorporated
Reconciliation of GAAP Net Income attributable to Ingredion and Diluted
Earnings Per Share ("EPS") to Non-GAAP Adjusted Net Income attributable to
Ingredion and Adjusted Diluted EPS
(Unaudited)
Three Months Ended Three Months Ended
March 31, 2024 March 31, 2023
----------------------- -------------------------------
(in Diluted (in
millions) EPS millions) Diluted EPS
----------- ----------- ----------- -------------------
Net income attributable
to Ingredion $ 216 $ 3.23 $ 191 $ 2.85
Add back:
Resegmentation costs
(i) 2 0.03 - -
Net gain on sale of
business (ii) (73 ) (1.09 ) - -
Other matters (iii) - - 4 0.06
Tax item - Mexico (iv) (6 ) (0.09 ) (7 ) (0.11 )
----------- ----------- ----------- -------------------
Non-GAAP adjusted net
income attributable to
Ingredion $ 139 $ 2.08 $ 188 $ 2.80
----------- ----------- ----------- -------------------
Notes
i. During the first quarter of 2024, the company recorded pre-tax
resegmentation costs of $3 million primarily related to the company's
resegmentation effective January 1, 2024.
ii. During the first quarter of 2024, the company recorded a net, pre-tax gain
of $82 million as a result of the sale of its business in South Korea
completed on February 1, 2024.
iii. During the first quarter of 2023, the company recorded pre-tax charges of
$5 million primarily related to the impacts of a U.S.-based work stoppage.
iv. During the first quarter of 2024 and 2023, the company recorded tax
benefits of $6 million and $7 million as a result of the movement of the
Mexican peso against the U.S. dollar and its impact on the remeasurement
of its Mexico financial statements during the periods.
Ingredion Incorporated
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted
Operating Income
(Unaudited)
Three Months Ended March 31,
-----------------------------
(in millions, pre-tax) 2024 2023
------------------------------------ ------- ---------------------
Operating income $ 213 $ 291
Add back:
Resegmentation costs (i) 3 -
Other matters (iii) - 5
------- ---------------------
Non-GAAP adjusted operating income $ 216 $ 296
------- ---------------------
For notes (i) through (iii), see Notes 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 Incorporated
Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted
Effective Income Tax Rate
(Unaudited)
Three Months Ended March 31, 2024
---------------------------------------------
Income Provision
before for Effective
Income Taxes Income Taxes Income
(in millions) (a) (b) Tax Rate (b/a)
--------------------------------- -------------- -------------- ---------------
As Reported $ 276 $ 58 21.0 %
Add back:
Resegmentation costs (i) 3 1
Net gain on sale of business
(ii) (82 ) (9 )
Tax item - Mexico (iv) - 6
-------------- --------------
Adjusted Non-GAAP $ 197 $ 56 28.4 %
-------------- --------------
Three Months Ended March 31, 2023
-------------------------------------------------
Income before Provision for Effective
Income Taxes Income Taxes Income
(in millions) (a) (b) Tax Rate (b/a)
------------------------ ---------------- ---------------- ---------------
As Reported $ 259 $ 65 25.1 %
Add back:
Other matters (iii) 5 1
Tax item - Mexico (iv) - 7
---------------- ----------------
Adjusted Non-GAAP $ 264 $ 73 27.7 %
---------------- ----------------
For notes (i) through (iv), see Notes 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 Incorporated
Reconciliation 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
of High End of
Guidance Guidance
----------- ---------------------------------
GAAP EPS $ 10.35 $ 11.00
Add:
Resegmentation costs (i) 0.03 0.03
Net gain on sale of business (ii) (1.09 ) (1.09 )
Tax item - Mexico (iii) (0.09 ) (0.09 )
----------- ---------------------------------
Adjusted EPS $ 9.20 $ 9.85
----------- ---------------------------------
Above is a reconciliation of the company's expected full-year 2024 diluted EPS
to its expected full-year 2024 adjusted diluted EPS. The amounts above 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.
The company generally excludes these adjustments from its adjusted EPS guidance,
which makes it more confident in its ability to forecast adjusted EPS than it is
in its ability to forecast GAAP EPS. These amounts include, but are not limited
to, adjustments to GAAP EPS for resegmentation costs, net gain on sale of
business and certain Mexico tax items.
These adjustments to GAAP EPS for 2024 include the following:
i. Resegmentation costs related to the company's resegmentation effective
January 1, 2024
ii. Net gain as a result of the sale of company's business in South Korea
completed on February 1, 2024
iii. Tax benefit from the movement of the Mexican peso against the U.S. dollar
and its impact on the remeasurement of the company's Mexico financial
statements during the period
Ingredion Incorporated
Reconciliation of Expected GAAP Effective Tax Rate ("GAAP ETR")
to Expected Adjusted Effective Tax Rate ("Adjusted ETR")
(Unaudited)
Expected Effective Tax Rate Range
for Full-Year 2024
------------------------------------
Low End of High End of
Guidance Guidance
-------------- -------------------
GAAP ETR 24.5 % 25.5 %
Add:
Resegmentation costs (i) - % - %
Net gain on sale of business (ii) 1.3 % 1.3 %
Tax item - Mexico (iii) 0.7 % 0.7 %
-------------- -------------------
Adjusted ETR 26.5 % 27.5 %
-------------- -------------------
Above is a reconciliation of the company's expected full-year 2024 GAAP ETR to
its expected full-year 2024 adjusted ETR. The amounts above 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.
The company generally excludes these adjustments from its adjusted ETR guidance,
which makes the company more confident in its ability to forecast adjusted ETR
than it is in its ability to forecast GAAP ETR. These amounts include, but are
not limited to, adjustments to GAAP ETR for resegmentation costs, net gain on
sale of business and certain Mexico tax items.
These adjustments to GAAP ETR for 2024 include the following:
i. Tax impact from resegmentation costs related to the company's
resegmentation effective January 1, 2024
ii. Tax impact as a result of the sale of the company's business in South
Korea completed February 1, 2024
iii. Tax benefit as a result of the movement of the Mexican peso against the
U.S. dollar and its impact to the remeasurement of the company's Mexico
financial statements during the period
CONTACT:
Investors: Noah Weiss, 773-896-5242
Media: corpcomm@ingredion.com (mailto:corpcomm@ingredion.com)
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