Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

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| Name                  | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| James P. Zallie       | President and Chief Executive Officer                                    | January 1, 2018    | James P. Zallie has been the President and CEO since January 1, 2018. He previously held various executive roles within the company and was CEO of National Starch LLC before its acquisition by Ingredion.  **[0001193125-24-085414_d688565ddef14a.htm:12]** **[0001193125-24-075267_d688565dpre14a.htm:12]** **[0001046257-24-000005_ingr-20231231.htm:16]**                              |
| Valdirene Evans       | Senior Vice President and President, Global Texture Solutions            | January 2024       | Valdirene Evans is the Senior Vice President and President, Global Texture Solutions as of January 2024. She previously served in leadership roles in Asia-Pacific and Global Head of Pharma, Home and Beauty.  **[0001046257-24-000005_ingr-20231231.htm:16]**                                |
| Larry Fernandes       | Senior Vice President and Chief Commercial and Sustainability Officer    | July 17, 2018      | Larry Fernandes has been in his current role since July 17, 2018. He joined Ingredion in May 1990 and has held various roles, including Senior Vice President and Chief Commercial Officer.  **[0001046257-24-000005_ingr-20231231.htm:16]** **[0001558370-22-001549_ingr-20211231x10k.htm:11]**                                                |
| Davida M. Gable       | Vice President, Corporate Controller                                     | October 2021       | Davida M. Gable has been Vice President, Corporate Controller since October 2021. She previously worked at Wayfair Inc. and AK Steel Holdings Corporation.  **[0001046257-24-000005_ingr-20231231.htm:16]** **[0001046257-23-000006_ingr-20221231.htm:15]** **[0001558370-22-001549_ingr-20211231x10k.htm:11]**                                                                              |
| James D. Gray         | Executive Vice President and Chief Financial Officer                     | March 2017         | James D. Gray has served as Executive Vice President and CFO since March 2017.  **[0001046257-24-000005_ingr-20231231.htm:16]**                                                                                                                        |
| Tanya Jaeger de Foras | Senior Vice President, Chief Legal Officer, Corporate Secretary, and Chief Compliance Officer | November 2021      | Tanya Jaeger de Foras has been in her current role since November 2021. She was previously Deputy General Counsel and Chief Compliance Officer at Whirlpool Corporation.  **[0001046257-24-000005_ingr-20231231.htm:16]**                                                                     |
| Michael O'Riordan     | Senior Vice President, Texture & Healthful Solutions, EMEA and Asia-Pacific | January 2024       | Michael O'Riordan has been serving in his current role since January 2024. He previously held roles such as Regional President, EMEA, and Global Vice President, Marketing and Springboards.  **[0001046257-24-000005_ingr-20231231.htm:16]**                                                 |
| Rob Ritchie           | Senior Vice President, Food & Industrial Ingredients, LATAM and U.S./Canada | January 2024       | Rob Ritchie has been in his current role since January 2024. He previously held roles including Senior Vice President, Food & Industrial Ingredients, Americas, and Regional President, Mexico, U.S./Canada Sweetener Solutions.  **[0001046257-24-000005_ingr-20231231.htm:16]**             |
| Eric Seip             | Senior Vice President, Global Operations and Chief Supply Chain Officer  | January 2021       | Eric Seip has served as Senior Vice President, Global Operations and Chief Supply Chain Officer since January 2021. He was previously Senior Vice President, Global Supply Chain at ChampionX Holding Inc..  **[0001046257-24-000005_ingr-20231231.htm:16]** **[0001046257-23-000006_ingr-20221231.htm:15]**                                |
| Nancy Wolfe           | Senior Vice President and Chief Human Resources Officer                  | January 2022       | Nancy Wolfe has been Senior Vice President and Chief Human Resources Officer since January 2022. She previously worked at Bayer Crop Science in various HR leadership roles.  **[0001046257-24-000005_ingr-20231231.htm:16]** **[0001046257-23-000006_ingr-20221231.htm:15]**                                                              |
| Jeremy Xu             | Senior Vice President, Chief Innovation Officer and President, Global Healthful Solutions | October 2020       | Jeremy Xu has been serving in his current role since October 2020. He was previously President of Human Nutrition and Health at Royal DSM. He announced his resignation effective April 8, 2024.  **[0001046257-23-000006_ingr-20221231xex1028.htm:0]** **[0001046257-23-000006_ingr-20221231.htm:15]** **[0001046257-24-000009_ingr-20240222.htm:1]**                                        |

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a8467aa076fb6826001b688fea9d4709a7dea7b2024066449dab651df5c65a08

1. The protein fortification business remains loss-making despite anticipated improvements; can you provide specific details on your turnaround plan over the next 1 to 3 years and the key milestones you expect to achieve to reach profitability?
2. In the Texture and Healthful Solutions segment, while volume growth is strong, there's a notable decline in price/mix; are you lowering prices to drive volume, and how sustainable is this strategy for your margins in the long term?
3. With 2025 sweetener contracting moving slower and corn prices fluctuating, how confident are you in maintaining or improving pricing, and what risks do you foresee that could impact your margins in this area?
4. You've attributed earnings improvement to structural changes from your global operating model; can you quantify the savings realized so far and elaborate on how much additional improvement you expect in the coming years?
5. Given your strong cash flow and balance sheet, are you considering larger, transformative acquisitions to accelerate growth in Texture and Healthful Solutions, and how do you reconcile this with your commitment to return cash to shareholders?

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1. **Capital Allocation and Excess Cash**  
   **Q:** What will you do with excess cash?  
   **A:** The company plans to allocate excess cash by investing in organic growth opportunities, maintaining disciplined dividends—**increasing it for the 10th year in a row**—and committing to or exceeding its share repurchase goal. They are also considering timing for both organic investments and potential M&A opportunities, emphasizing a disciplined approach to enhance shareholder value.  **[INGR_3405750_8]** 

2. **M&A Prospects and Transformative Acquisitions**  
   **Q:** Will you consider larger acquisitions?  
   **A:** With a healthy cash balance, the company is open to acquisitions that accelerate capabilities and market position, including both bolt-on and larger opportunities. They are actively managing a pipeline of M&A prospects, focusing on buying **revenue**, **profit**, and **talent** that align with their strategy to be the go-to provider for Texture and Healthful Solutions, aiming to enhance growth and shareholder returns.  **[INGR_3405750_13]** 

3. **Structural Nature of Earnings Improvement**  
   **Q:** Are earnings improvements structural?  
   **A:** Management attributes the earnings improvement to structural factors such as the new segment structure and benefits from their global operating model. They highlight the focus and clarity from resegmentation, improved fixed-cost absorption, and ongoing structural cost savings, suggesting these improvements are sustainable and the company is in the **early innings** of realizing full benefits.  **[INGR_3405750_14]** 

4. **2025 Sweetener Contracting Outlook**  
   **Q:** Could pricing be up modestly in 2025?  
   **A:** Contracting for 2025 is moving slower than last year. About **50%** of U.S./Canada revenue comes from fee contracts that reprice monthly with corn costs. They anticipate some pass-through of lower corn costs if markets remain similar, but note that industry capacity utilization has increased, potentially tightening supply and affecting pricing positively.  **[INGR_3405750_12]** 

5. **Financing Costs and Outlook for 2025**  
   **Q:** How to think about net financing costs for '25?  
   **A:** Due to FX gains of about **$9 to $10 million** and lower working capital needs—turning working capital into a source of cash—the company has **paid down short-term debt** and is earning interest income on cash balances. This has lowered financing costs in 2024, and if conditions remain similar, this favorable impact might persist into 2025.  **[INGR_3405750_16]** 

6. **Gross Margin Improvement Drivers**  
   **Q:** What's driving gross margin improvement?  
   **A:** Gross margin improvements are driven by renegotiated contracts that recovered margins, reduction in raw material input costs shared with customers, and better fixed-cost absorption due to increased volumes, especially in Texture and Healthful Solutions. These factors collectively enhance the profit pool and support sustainable growth.  **[INGR_3405750_11]** 

7. **Protein Fortification Business Improvement**  
   **Q:** Will losses reduce further in '25?  
   **A:** The company expects to reduce losses in the protein fortification business by a similar amount as in 2024, projecting significant year-over-year improvement. The **higher-value pea protein isolate** segment is driving these improvements, and they have contracted business heading into next year to support this positive trajectory.  **[INGR_3405750_17]** **[INGR_3405750_18]** 

8. **European Consumer Demand and Inventories**  
   **Q:** What's driving volume growth in Europe?  
   **A:** Volume growth in Europe is attributed to increased consumer mobility and spending on convenience offerings, rather than restocking. The company is lapping a softer prior-year quarter and observes **steady demand pickup** without significant inventory rebuilds, suggesting real improvement in the region's consumer behavior.  **[INGR_3405750_9]** **[INGR_3405750_10]** 

9. **Volume Growth and Price/Mix in Texture and Healthful Solutions**  
   **Q:** What's affecting price/mix in Texture and Healthful Solutions?  
   **A:** Strong volume growth is accompanied by negative price/mix due to passing through lower corn prices to customers. While selling more **high-functionality, clean-label ingredients** at higher value per ton, the reduction in corn costs leads to lower pricing, affecting the price/mix figures despite healthy profit growth.  **[INGR_3405750_7]** 

10. **Balance of Pricing with Volume Growth for Next Year**  
    **Q:** How do you see pricing vs. volume growth playing out?  
    **A:** Management feels positive about their momentum but notes it's early to make firm predictions. They expect demand to remain **steady**, with improving GDPs in key countries and increasing industry utilization, which could impact the balance of pricing and volume growth in the coming year. Factors like fluctuating corn prices and global economic conditions will play a role.  **[INGR_3405750_15]** 

1b9f54cff997de94122fec24e21e22af8bb863762765949a8296b5330c141e5a

| Program Details          | Program 1          |
|--------------------------|--------------------|
| **Approval Date**        | September 26, 2022  **[0001046257-24-000056_ingr-20240930.htm:35]** **[0001046257-24-000056_ingr-20240930.htm:11]**  |
| **End Date/Duration**    | December 31, 2025  **[0001046257-24-000056_ingr-20240930.htm:35]** **[0001046257-24-000056_ingr-20240930.htm:11]**  |
| **Total Additional Amount** | Up to 6.0 million shares  **[0001046257-24-000056_ingr-20240930.htm:35]** **[0001046257-24-000056_ingr-20240930.htm:11]**  |
| **Remaining Authorization** | 4.2 million shares (as of September 30, 2024)  **[0001046257-24-000056_ingr-20240930.htm:35]** **[0001046257-24-000056_ingr-20240930.htm:11]**  |
| **Details**              | Intended to offset the dilutive impact of shares issued under the stock incentive plan over time  **[0001046257-24-000005_ingr-20231231.htm:101]** **[0001046257-24-000018_ingr-20240331.htm:11]** **[0001046257-23-000059_ingr-20230630.htm:12]** **[0001046257-23-000026_ingr-20230331.htm:11]** **[0001046257-24-000046_ingr-20240630.htm:11]** **[0001046257-23-000070_ingr-20230930.htm:14]** **[0001558370-22-016605_ingr-20220930x10q.htm:15]**  |

8d93fba85245080ea035823dac0b61bae7fa78d5fda9b404e9143f23a122a20f

Ingredion Incorporated is a global ingredient solutions provider that transforms grains, fruits, vegetables, and other plant-based materials into value-added ingredients and biomaterials. The company serves diverse industries, including food, beverage, animal nutrition, brewing, pharmaceutical, and industrial markets. Ingredion's product portfolio includes starches, sweeteners, co-products, and specialty ingredients designed to meet customer demands for healthful, sustainable, and innovative solutions.  **[0001628280-24-003422_ingr-20231231xexx99.htm:4]** **[0001046257-24-000005_ingr-20231231.htm:6]** **[0001046257-23-000070_ingr-20230930.htm:24]** 

1. **Starch Products** - Produces food-grade and industrial starches, modified and specialty starches, biomaterials, and starch-based pharmaceutical excipients.  **[0001046257-24-000005_ingr-20231231.htm:6]** **[0001046257-24-000005_ingr-20231231.htm:7]** **[0001046257-23-000070_ingr-20230930.htm:24]**   
2. **Sweetener Products** - Offers glucose syrups, high maltose syrups, high fructose corn syrup, dextrose, polyols, maltodextrins, and syrup solids.  **[0001046257-24-000005_ingr-20231231.htm:6]** **[0001046257-24-000005_ingr-20231231.htm:7]** **[0001046257-23-000070_ingr-20230930.htm:24]**   
3. **Co-products and Others** - Includes animal feed products, edible corn oil, stevia sweeteners, caramel color, protein fortification ingredients, gum acacia, pea protein, and fruit and vegetable concentrates.  **[0001046257-24-000005_ingr-20231231.htm:6]** **[0001046257-24-000005_ingr-20231231.htm:7]** **[0001046257-23-000070_ingr-20230930.htm:24]**

d2cd5db41044f9199bd2f8210558f5866e86ada2c33402f333f00046a2f4399d

---

### **Q3 2024 Earnings Call**
- **Issued Period**: Q3 2024  
- **Guided Period**: FY 2024  

#### **Guidance**:
1. **Net Sales**: Expected to be **down mid-single digits**, reflecting lower raw material costs partially offset by improving volume demand.  **[INGR_3405750_5]**   
2. **Adjusted Operating Income**: Anticipated to be **up high single digits**, driven by lower input costs and better operational efficiencies.  **[INGR_3405750_5]**   
3. **Financing Costs**: Expected to be **$40 million to $50 million**.  **[INGR_3405750_5]**   
4. **Effective Tax Rates**:  
   - Reported: **28% to 29%**  
   - Adjusted: **26.5% to 27.5%**.  **[INGR_3405750_5]**   
5. **Earnings Per Share (EPS)**:  
   - Reported: **$10.60 to $10.90**  
   - Adjusted: **$10.35 to $10.65**.  **[INGR_3405750_5]**   
6. **Diluted Weighted Average Shares Outstanding**: **66 million to 67 million shares**.  **[INGR_3405750_5]**   
7. **Cash from Operations**: **$1.1 billion to $1.25 billion**.  **[INGR_3405750_5]**   
8. **Capital Expenditures**: **$310 million to $330 million**.  **[INGR_3405750_5]**   
9. **Corporate Costs**: Expected to be **flat year-over-year**.  **[INGR_3405750_5]**   
10. **Segment Operating Income Margins**:  
    - **Texture & Healthful Solutions**: **13% to 15%**  
    - **Food and Industrial Ingredients LatAm**: **18% to 20%**  
    - **Food and Industrial Ingredients U.S./Canada**: **16% to 18%**.  **[INGR_3405750_4]**   

---

### **Q2 2024 Earnings Call**
- **Issued Period**: Q2 2024  
- **Guided Period**: FY 2024 and Q3 2024  

#### **Guidance**:
1. **Net Sales**:  
   - FY 2024: Expected to be **down low single digits**.  **[INGR_3396553_6]**   
   - Q3 2024: Expected to be **flat**.  **[INGR_3396553_6]**   
2. **Adjusted Operating Income**:  
   - FY 2024: Expected to be **up mid-single digits**.  **[INGR_3396553_6]**   
   - Q3 2024: Expected to be **up high double digits** year-over-year.  **[INGR_3396553_6]**   
3. **Financing Costs**: **$65 million to $85 million** for FY 2024.  **[INGR_3396553_6]**   
4. **Effective Tax Rates**:  
   - Reported: **27% to 28%**  
   - Adjusted: **26.5% to 27.5%**.  **[INGR_3396553_6]**   
5. **Earnings Per Share (EPS)**:  
   - Reported: **$10.20 to $10.70**  
   - Adjusted: **$9.70 to $10.20**.  **[INGR_3396553_6]**   
6. **Diluted Weighted Average Shares Outstanding**: **66 million to 67 million shares**.  **[INGR_3396553_6]**   
7. **Cash from Operations**: **$800 million to $950 million**.  **[INGR_3396553_6]**   
8. **Capital Expenditures**: **$340 million**.  **[INGR_3396553_6]**   
9. **Corporate Costs**: Expected to be **up low single digits**.  **[INGR_3396553_6]**   
10. **Segment Operating Income Margins**:  
    - **Food and Industrial Ingredients U.S./Canada**: **16% to 18%**.  **[INGR_3396553_5]**   
    - **All Other Segment**: Operating losses expected to be **$20 million to $30 million**.  **[INGR_3396553_5]**   
    - **Texture & Healthful Solutions**: **13% to 15%**  
    - **Food and Industrial Ingredients LatAm**: **17% to 19%**.  **[INGR_3396553_4]**   
11. **Cost Savings Program (Cost2Compete)**: Targeting **$50 million** in run-rate savings by the end of 2025.  **[INGR_3396553_7]**   

---

### **Q1 2024 Earnings Call**
- **Issued Period**: Q1 2024  
- **Guided Period**: FY 2024  

#### **Guidance**:
1. **Net Sales**:  
   - FY 2024: Expected to be **flat to up low single digits**, excluding the South Korea divestiture.  **[INGR_3387281_4]**   
   - Q2 2024: Expected to be **flat to down low single digits**.  **[INGR_3387281_4]**   
2. **Adjusted Operating Income**: Expected to be **up mid-single digits** for FY 2024.  **[INGR_3387281_4]**   
3. **Financing Costs**: **$85 million to $105 million**.  **[INGR_3387281_4]**   
4. **Effective Tax Rates**:  
   - Reported: **24.5% to 25.5%**  
   - Adjusted: **26.5% to 27.5%**.  **[INGR_3387281_4]**   
5. **Earnings Per Share (EPS)**:  
   - Reported: **$10.35 to $11.00**  
   - Adjusted: **$9.20 to $9.85**.  **[INGR_3387281_4]**   
6. **Diluted Weighted Average Shares Outstanding**: **66 million to 67 million shares**.  **[INGR_3387281_4]**   
7. **Cash from Operations**: **$750 million to $900 million**.  **[INGR_3387281_4]**   
8. **Capital Expenditures**: **$340 million**.  **[INGR_3387281_4]**   
9. **Corporate Costs**: Expected to be **up mid-single digits**.  **[INGR_3387281_4]**   
10. **Segment Operating Income Margins**:  
    - **Texture & Healthful Solutions**: **13% to 16%**  
    - **Food and Industrial Ingredients LATAM**: **16% to 19%**  
    - **Food and Industrial Ingredients U.S./Canada**: **15% to 18%**  
    - **All Other Segment**: Operating loss reduction by **1/3**.  **[INGR_3387281_3]**   
11. **Cost Savings Program (Cost2Compete)**: Targeting **$50 million** in savings by the end of 2025.  **[INGR_3387281_2]**   

---

### **Q4 2023 Earnings Call**
- **Issued Period**: Q4 2023  
- **Guided Period**: FY 2024  

#### **Guidance**:
1. **Adjusted Operating Income**: Expected to grow **mid-single digits**, excluding the South Korea divestiture.  **[INGR_3371971_18]**   
2. **Volume Trends**: Gradual improvement expected throughout FY 2024.  **[INGR_3371971_4]**   
3. **Cost and Margin Drivers**: Lower raw material costs, including corn, expected to improve gross profit.  **[INGR_3371971_19]**   
4. **South Korea Divestiture Impact**:  
   - South Korea contributed **$325 million in net sales** and **low $30 million range in adjusted operating income** in 2023.  **[INGR_3371971_15]**   
5. **Plant-Based Proteins**: Expected improvement in the segment, which had a **$40 million operating loss** in 2023.  **[INGR_3371971_17]**   
6. **Sugar Reduction**: Growth expected with additional capacity in Kuala Lumpur.  **[INGR_3371971_17]**   
7. **Foreign Exchange**: Devaluation of the Argentine peso expected to impact Q1 2024 results.  **[INGR_3371971_4]**   

163645ee905c85d001c4a046f940974e42d589503c5048df8092d1700b9a500f

- The plant-based proteins segment incurred an operating loss of over **$40 million** in 2023, along with a **$15 million** inventory write-down due to market slowdown, which has been a drag on profitability and may continue to impact future results.  **[INGR_3371971_17]**
- The divestiture of the South Korea business, which contributed approximately **$325 million** in net sales and adjusted operating income in the low **$30 million** range in 2023, may negatively affect future revenue and earnings growth.  **[INGR_3371971_15]**
- The company faces risks to its 2024 outlook, including potential tax impacts in an election year, concerns about inflation affecting consumer demand, and the need for customers to use promotions to stimulate sales, potentially impacting volumes and margins.  **[INGR_3371971_17]**

c8eb1b7b7996a86207d7acca20c3281e3595a08476b114ae08d96663152d0f68

- **Recovery and Growth in Volume Demand**: Ingredion is experiencing a gradual improvement in volumes, particularly in the **modified starch and specialty starch categories**, with **solid growth in April**. The company anticipates a **mid-single-digit uptick in sales volumes demand for 2024** across its segments. Additionally, there was **double-digit volume growth in China** for the quarter, supported by lower corn prices, which should further boost volume growth going forward.  **[INGR_3387281_7]**
- **Cost Savings Initiatives to Enhance Profitability**: Ingredion has launched the **Cost2Compete program**, aiming to deliver **$50 million of run-rate savings by 2025**. The company has a strong track record of delivering cost takeouts, previously exceeding targets in its **Cost Smart program**, achieving over **$170 million in savings**. These savings are expected to improve margins and support strategic investments without significantly increasing operating expenses.  **[INGR_3387281_9]**
- **Strength in Texture and Healthful Solutions Segment**: The company remains **bullish on the prospects** of its Texture and Healthful Solutions segment, having **doubled specialty starch capacity in China** and expanded capacity in **Thailand and Mexico**. Despite some margin compression due to higher inventory costs, the segment is seeing a **volume uptick** and is expected to benefit from normalizing costs and increased customer demand.  **[INGR_3387281_15]**

ed683bf77c4c1beafce4e4d0e300793bf0ccd7f2dac71d6e0255d3ba21d91e04

- **Margins in the Texture and Healthful Solutions segment were compressed due to higher-cost inventory carryover, which may continue to impact profitability into Q2.**  **[INGR_3387281_20]** **[INGR_3387281_15]**
- **Caution regarding customer pricing behavior and its impact on unit volume demand, particularly in the U.S., may affect revenue growth.**  **[INGR_3387281_8]**
- **Cost savings from the Cost2Compete program will accrue more in 2025, delaying the expected benefits to margins and profitability.**  **[INGR_3387281_9]**

bdf595ca10e462385a8ca287c2125b87602b5f421e0ba9c109291f9eaaa4ffc7

- **Ingredion expects to improve operating income by reducing losses in plant-based proteins, which totaled **$55 million** in 2023, and anticipates growth opportunities in sugar reduction and their expanded Kuala Lumpur facility.**  **[INGR_3371971_17]**
- **The company is reorganizing its business to focus globally on texture and healthful solutions, investing in consumer insights and advancing capabilities in sugar reduction, protein, and fiber fortification to drive volume and profitability.**  **[INGR_3371971_14]**
- **Ingredion is capitalizing on trends towards natural ingredients and affordability, with a strong focus on high-intensity natural sweeteners like stevia, aligning with consumer demand for healthier options and recipe reformulation.**  **[INGR_3371971_20]**

9a24d9e0bbab1eabd6b0a8279984e2f79a45399712a1cd9fbf57f7a85fda41e4

- **Reliance on Uncertain Volume Growth in Second Half**: The company is depending on strong volume growth in the second half to meet its guidance, but executives acknowledge that this may be uncertain due to mixed consumer demand and potential weakness in foodservice sectors.  **[INGR_3396553_19]** **[INGR_3396553_11]** **[INGR_3396553_8]**
- **Margin Compression in Texture and Healthful Solutions Segment**: The Texture and Healthful Solutions segment experienced margin compression due to necessary price reductions to maintain market share and inventory downgrades, indicating competitive pressures and potential impacts on profitability.  **[INGR_3396553_16]**
- **Sustainability of Strong Latin American Performance**: The strong results in Latin America were driven by temporary factors such as higher sugar prices in Mexico and favorable currency conditions in Argentina, which may not be sustainable. Additionally, there is potential for pricing pressure as customers may seek lower prices due to declining corn costs and signs of consumer slowdown in Mexico and Brazil.  **[INGR_3396553_13]** **[INGR_3396553_17]**

8441cdd28a1cabc04c092ff79899681ca83e96034424ec84027473f092a3c199

- **Ingredion's Texture and Healthful Solutions segment experienced strong volume growth, with an 11% increase this quarter following 8% last quarter, driven by demand in categories like savory, prepared meals, bakery, snacks, and dairy.** The company anticipates this strength to continue through the end of the year.  **[INGR_3405750_7]**
- **Structural improvements in the operating model and resegmentation have led to higher operating income margins and better performance across multiple levels.** The focus on dedicated leadership and clarified segments is contributing to sustained earnings power.  **[INGR_3405750_14]**
- **The protein fortification business is showing significant year-over-year improvement in operating income, with expectations of similar proportional improvement next year.** The company is actively working on a turnaround plan for this previously loss-making segment.  **[INGR_3405750_17]**

4b70f98b69f0ed3c7dab8194446aa8ddf7eedc56eebf953b5a90145d3721ad91

- **The protein fortification business remains loss-making** and is expected to take **1 to 3 years to turn around**, which could continue to weigh on overall profitability.  **[INGR_3405750_17]**
- **Contracting for 2025 is moving slower than last year**, indicating potential challenges in securing favorable pricing, which may impact future margins.  **[INGR_3405750_12]**
- Despite strong volume growth in the Texture and Healthful Solutions segment, **lower corn prices are leading to unfavorable price/mix adjustments**, potentially pressuring revenues despite higher volumes.  **[INGR_3405750_7]**

673f33bef52c96df285d3fb030585aa9979ac30e001779b8e5261052807a43f2

- **Strong Volume Growth and Demand Recovery Leading to Margin Expansion**: Ingredion is experiencing an upward trend in volume growth, particularly in the **Texture and Healthful Solutions** segment, with distributors replenishing inventories and increased consumer demand in grocery categories like frozen meals, soups, sauces, and dressings.  **[INGR_3396553_19]** **[INGR_3396553_11]** **[INGR_3396553_8]** **[INGR_3396553_9]**  This growth is leading to significant **gross margin expansion**, with margins improving by **240 basis points to 23.7%**.  **[INGR_3396553_9]**
- **Successful Cost-Saving Initiatives Enhancing Profitability**: The company has robust momentum behind its **Cost2Compete** program, aiming for **$50 million in run-rate savings by the end of 2025**.  **[INGR_3396553_10]** **[INGR_3396553_9]**  These initiatives, along with internal productivity enhancements, are driving **operating income growth**, with expectations of high operating income growth in **Q3 and Q4**.  **[INGR_3396553_10]** **[INGR_3396553_9]**
- **Strong Performance in Latin America and Emerging Markets**: Ingredion's **Latin American business is generating record results**, driven by increased sweetener demand and higher sugar prices in Mexico, and unexpectedly strong results from the Argentina joint venture.  **[INGR_3396553_13]**  Additionally, the **Pakistan and sugar reduction businesses are generating positive operating income and growing**, with improvements in the protein fortification business reducing operating losses.  **[INGR_3396553_18]**

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Ingredion Inc (INGR)

Financials