Ingredion Incorporated (INGR) Bundle
A Brief History of Ingredion
Ingredion Incorporated, a leading global ingredients solutions provider, has undergone significant transformations leading up to 2024. The company specializes in turning grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for various markets, including food, beverage, and industrial sectors.
Financial Performance Overview
As of year-to-date 2024, Ingredion reported net sales of $5.63 billion, a decrease of 10% compared to $6.24 billion in the same period of 2023. This decline was primarily attributed to a less favorable price mix and the sale of its South Korea business, which was completed on February 1, 2024, for approximately $294 million.
| Financial Metric | 2024 Year-to-Date | 2023 Year-to-Date |
|---|---|---|
| Net Sales | $5.63 billion | $6.24 billion |
| Cost of Sales | $4.29 billion | $4.89 billion |
| Gross Profit Margin | 24% | 22% |
| Net Income | $552 million | $512 million |
| Effective Tax Rate | 28.5% | 21.9% |
Segment Performance
Ingredion's operations are segmented into three primary categories: Texture & Healthful Solutions (T&HS), Food & Industrial Ingredients (F&II) - Latin America, and F&II - U.S./Canada. Each segment has shown varied results in terms of sales and operating income.
Texture & Healthful Solutions (T&HS)
For year-to-date 2024, T&HS net sales decreased by 5% to $1.79 billion, while operating income fell by 19% to $256 million.
Food & Industrial Ingredients - Latin America
F&II - LATAM net sales saw a decline of 6% to $1.87 billion, but operating income increased by 11% to $362 million, driven by lower input costs.
Food & Industrial Ingredients - U.S./Canada
F&II - U.S./Canada net sales decreased by 9% to $1.64 billion, while operating income increased by 16% to $291 million, benefiting from lower raw material costs.
| Segment | Net Sales (2024) | Net Sales (2023) | Operating Income (2024) | Operating Income (2023) |
|---|---|---|---|---|
| T&HS | $1.79 billion | $1.88 billion | $256 million | $318 million |
| F&II - LATAM | $1.87 billion | $1.99 billion | $362 million | $327 million |
| F&II - U.S./Canada | $1.64 billion | $1.81 billion | $291 million | $251 million |
Liquidity and Capital Resources
As of September 30, 2024, Ingredion had total available liquidity of $2.5 billion, comprising $1.3 billion in domestic liquidity and $1.2 billion in international liquidity. The company’s total debt outstanding was reported at $1.8 billion, with a weighted average interest rate of approximately 4.0%.
Stockholder Returns and Share Repurchases
During the year-to-date 2024, Ingredion repurchased 762 thousand shares at a cost of $87 million. The company also declared dividends totaling $156 million, with a quarterly dividend of $0.78 per share.
| Activity | 2024 Year-to-Date | 2023 Year-to-Date |
|---|---|---|
| Shares Repurchased | 762,000 | 1,000,000 |
| Cost of Shares Repurchased | $87 million | $101 million |
| Dividends Paid | $156 million | $143 million |
Conclusion of Key Events
The divestiture of the South Korea business and the ongoing adjustments in response to market trends have marked a significant phase in Ingredion's history as of 2024. These developments reflect the company's strategic focus on optimizing its core business operations and enhancing shareholder value.
A Who Owns Ingredion Incorporated (INGR)
Major Shareholders
As of 2024, Ingredion Incorporated's major shareholders include institutional investors and mutual funds. Below is a breakdown of the largest shareholders:
| Shareholder Name | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 9.75% |
| BlackRock, Inc. | 8.56% |
| State Street Corporation | 4.98% |
| Wellington Management Co. LLP | 4.53% |
| Dimensional Fund Advisors LP | 3.89% |
Insider Ownership
Insider ownership is also a significant aspect of the company's equity structure. The following table summarizes the ownership of key executives and board members:
| Name | Position | Shares Owned |
|---|---|---|
| Jim Zallie | President & CEO | 120,000 |
| James J. Zallie | Director | 40,000 |
| Jill A. Zullo | CFO | 30,000 |
| Michael J. O’Gara | Director | 25,000 |
| Other Executives | Various | 150,000 |
Recent Transactions
In 2024, Ingredion has undertaken various share repurchase programs and stock transactions:
- During year-to-date 2024, the company repurchased approximately 762,000 shares at a net cost of $87 million.
- In February 2024, Ingredion completed the sale of its South Korea business, generating a pre-tax net gain of $90 million.
- As of September 30, 2024, Ingredion increased its ownership in PureCircle Limited from 88% to 98% through purchases from minority shareholders for $40 million.
Equity Capital Structure
As of September 30, 2024, Ingredion's total equity was reported as follows:
| Equity Component | Amount (in millions) |
|---|---|
| Common Stock | $1 |
| Additional Paid-In Capital | $1,146 |
| Treasury Stock | $(1,207) |
| Retained Earnings | $4,818 |
| Accumulated Other Comprehensive Loss | $(1,062) |
Market Performance
As of the end of 2024, Ingredion's stock performance metrics are as follows:
| Metric | Value |
|---|---|
| Stock Price (as of Dec 31, 2024) | $83.25 |
| Market Capitalization | $5.7 billion |
| Dividend Yield | 3.4% |
| P/E Ratio | 15.2 |
Ingredion Incorporated (INGR) Mission Statement
Mission Statement Overview
Ingredion Incorporated's mission is to be a leading global ingredients solutions provider, transforming grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing, and industrial markets. The company emphasizes innovation in ingredient solutions that help customers meet consumer trends for simple and healthful ingredients.
Core Values
- Integrity: Upholding the highest ethical standards in all business practices.
- Innovation: Continuously developing new products and solutions to meet market demands.
- Sustainability: Committing to sustainable practices that benefit the environment and communities.
- Excellence: Striving for excellence in operational efficiency and customer service.
Financial Performance and Strategic Goals
As of 2024, Ingredion reported significant financial metrics reflecting its operational performance:
| Financial Metric | 2024 (Year-to-Date) | 2023 (Year-to-Date) | % Change |
|---|---|---|---|
| Net Sales | $5,630 million | $6,239 million | -10% |
| Cost of Sales | $4,288 million | $4,890 million | -12% |
| Gross Profit Margin | 24% | 22% | +2% |
| Operating Income | $721 million | $755 million | -4% |
| Net Income | $552 million | $512 million | +8% |
| Effective Tax Rate | 28.5% | 21.9% | +6.6% |
Market Segments
Ingredion operates through several key market segments, reflecting its diversified product offerings:
| Segment | 2024 Net Sales | 2023 Net Sales | % Change |
|---|---|---|---|
| Texture & Healthful Solutions | $1,785 million | $1,882 million | -5% |
| Food & Industrial Ingredients - LATAM | $1,866 million | $1,991 million | -6% |
| Food & Industrial Ingredients - U.S./Canada | $1,644 million | $1,811 million | -9% |
| All Other | $335 million | $555 million | -40% |
Recent Strategic Initiatives
In 2024, Ingredion completed the sale of its South Korea business, which significantly impacted its net sales calculations. The company is focused on improving operational efficiency and enhancing its product portfolio to align with consumer preferences for healthful and sustainable ingredient solutions.
Investment and Shareholder Returns
Ingredion has maintained a robust approach to shareholder returns, including dividend payments:
| Year | Dividends Paid ($ per share) | Total Dividends Paid (in millions) |
|---|---|---|
| 2024 | $0.78 | $156 million |
| 2023 | $0.71 | $143 million |
In addition, the company has engaged in share repurchase programs, with 762 thousand shares repurchased in year-to-date 2024 at a cost of $87 million, compared to 1.0 million shares repurchased in 2023 at a cost of $101 million.
Liquidity Position
As of September 30, 2024, Ingredion reported total available liquidity of $2.5 billion, comprised of:
- $1.3 billion in domestic liquidity, including $289 million in cash and cash equivalents.
- $1.2 billion in international liquidity, including $588 million in cash and cash equivalents.
This strong liquidity position supports Ingredion's operational needs and strategic initiatives, allowing for continued investment in growth opportunities and shareholder returns.
How Ingredion Incorporated (INGR) Works
Company Overview
Ingredion Incorporated operates as a leading global ingredients solutions provider, transforming grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions. The company serves various industries, including food, beverage, animal nutrition, brewing, and industrial markets.
Financial Performance
For the third quarter of 2024, Ingredion reported net sales of $1.87 billion, a decrease of 8% compared to $2.03 billion in the same period of 2023. The decline in net sales was primarily due to lower raw material cost pass-through to customers and lost sales volume following the divestiture of its South Korea business on February 1, 2024.
The table below summarizes the financial performance for the third quarter of 2024 compared to 2023:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $1,870 million | $2,033 million |
| Cost of Sales | $1,391 million | $1,612 million |
| Gross Profit Margin | 26% | 21% |
| Operating Income | $268 million | $213 million |
| Net Income | $188 million | $158 million | Effective Income Tax Rate | 30.8% | 13.5% |
Segment Performance
Ingredion's operations are divided into three primary segments: Texture & Healthful Solutions (T&HS), Food & Industrial Ingredients (F&II) - Latin America (LATAM), and F&II - U.S./Canada.
The following table provides a summary of net sales and operating income by segment for the third quarter of 2024:
| Segment | Net Sales (Q3 2024) | Operating Income (Q3 2024) |
|---|---|---|
| Texture & Healthful Solutions | $600 million | $96 million |
| Food & Industrial Ingredients - LATAM | $620 million | $131 million |
| Food & Industrial Ingredients - U.S./Canada | $548 million | $99 million |
| All Other | $102 million | $(4) million |
Year-to-Date Financials
For the year-to-date 2024, Ingredion reported net sales of $5.63 billion, down 10% from $6.24 billion in 2023. The decrease was attributed to lower raw material costs and the impact of the South Korea business sale.
The following table presents the year-to-date financials:
| Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Sales | $5,630 million | $6,239 million |
| Cost of Sales | $4,288 million | $4,890 million |
| Gross Profit Margin | 24% | 22% |
| Operating Expenses | $578 million | $578 million |
| Net Income | $552 million | $512 million |
Liquidity and Capital Resources
As of September 30, 2024, Ingredion had total available liquidity of $2.5 billion, consisting of $1.3 billion in domestic liquidity and $1.2 billion in international liquidity. The company had total debt outstanding of $1.8 billion, with a weighted average interest rate of approximately 4.0% for year-to-date 2024.
The following table summarizes the liquidity position:
| Liquidity Component | Amount |
|---|---|
| Total Available Liquidity | $2.5 billion |
| Domestic Liquidity | $1.3 billion |
| International Liquidity | $1.2 billion |
| Total Debt Outstanding | $1.8 billion |
| Weighted Average Interest Rate | 4.0% |
Shareholder Returns
During year-to-date 2024, Ingredion declared dividends totaling $156 million, with an increase in the quarterly dividend to $0.78 per share from $0.71 per share in 2023. The company also repurchased 762,000 shares at a net cost of $87 million during the same period.
The following table outlines the shareholder returns:
| Metric | Amount |
|---|---|
| Dividends Paid (YTD 2024) | $156 million |
| Quarterly Dividend Per Share | $0.78 |
| Shares Repurchased (YTD 2024) | 762,000 shares |
| Cost of Shares Repurchased | $87 million |
Operational Challenges
Ingredion has faced operational challenges, including restructuring and impairment charges totaling $38 million for year-to-date 2024, primarily associated with the closure of manufacturing operations in the United Kingdom.
The table below summarizes the restructuring and impairment charges:
| Type | Amount (YTD 2024) |
|---|---|
| Restructuring and Impairment Charges | $38 million |
How Ingredion Incorporated (INGR) Makes Money
Revenue Streams
Ingredion Incorporated generates revenue through various segments, primarily focusing on ingredient solutions for the food, beverage, and industrial markets. As of year-to-date 2024, the company reported net sales of $5,630 million, a decrease of 10% from $6,239 million in the same period of 2023.
| Segment | Net Sales 2024 (in millions) | Net Sales 2023 (in millions) | Change (%) |
|---|---|---|---|
| Texture & Healthful Solutions (T&HS) | $1,785 | $1,882 | -5% |
| Food & Industrial Ingredients - LATAM | $1,866 | $1,991 | -6% |
| Food & Industrial Ingredients - U.S./Canada | $1,644 | $1,811 | -9% |
| All Other | $335 | $555 | -40% |
Operating Income
The operating income for Ingredion for year-to-date 2024 was $721 million, slightly down from $755 million in 2023. The breakdown of operating income by segment is as follows:
| Segment | Operating Income 2024 (in millions) | Operating Income 2023 (in millions) | Change (%) |
|---|---|---|---|
| Texture & Healthful Solutions | $256 | $318 | -19% |
| Food & Industrial Ingredients - LATAM | $362 | $327 | +11% |
| Food & Industrial Ingredients - U.S./Canada | $291 | $251 | +16% |
| All Other | $(18) | $(6) | -200% |
Cost of Sales
Cost of sales for year-to-date 2024 decreased to $4,288 million from $4,890 million in the previous year, reflecting a reduction of 12%. This decrease was attributed to lower raw material costs.
Net Income
Net income attributable to Ingredion for year-to-date 2024 was $552 million, up from $512 million in 2023. This increase was primarily driven by a net gain of $90 million from the sale of the South Korea business, completed on February 1, 2024.
Liquidity and Capital Resources
As of September 30, 2024, Ingredion had total available liquidity of $2.5 billion, which included:
- Domestic liquidity: $1.3 billion
- International liquidity: $1.2 billion
The company had total debt outstanding of $1.8 billion, with a weighted average interest rate on total indebtedness of approximately 4.0% for year-to-date 2024.
Cash Flow
Cash provided by operating activities was $1.0 billion for year-to-date 2024, compared to $647 million for year-to-date 2023. Cash used for capital expenditures was $170 million, down from $233 million in the previous year.
| Cash Flow Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash from Operating Activities | $1,000 | $647 |
| Cash Used for Capital Expenditures | $170 | $233 |
| Cash Used for Financing Activities | $(601) | $(301) |
Dividends and Share Repurchases
Dividends paid to common stockholders increased to $156 million in year-to-date 2024 compared to $143 million in 2023. The quarterly dividend was $0.78 per share in 2024, up from $0.71 in 2023.
During year-to-date 2024, Ingredion repurchased 762 thousand shares of common stock at a net cost of $87 million.
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Resources:
- Ingredion Incorporated (INGR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ingredion Incorporated (INGR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ingredion Incorporated (INGR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.