Ingredion has reported exceedingly positive financial results for the fourth quarter and entire year of 2024. Adjusted Earnings Per Share (EPS) grew to $10.65 over $9.42 in 2023, illustrating the company’s skill in managing pricing and cost efficiencies. Reported EPS grew as well, hitting $9.71 alongside the $9.60 recorded the prior year. The company’s bolstered earnings stems from shifting pricing strategies, operational efficiencies, and managing costs effectively. This will help them continue performing strongly and profitably in 2025 with respect to the economy and market shocks even with challenges economically and in the market.
As of 2024, Ingredion’s Net Sales reached 8.16 billion, which is a 3% increase from 7.95 billion in 2023. The growth was aided significantly by a Price Mix Contribution that helped offset volume erosion as well as forex negative impacts. The ability to implement strategic pricing changes has provided the stability in revenues that Ingredion has been able to navigate volatility in demand in global markets. The sales performance affirms the position of the firm in the market and the ability to manage adverse changes economically while ensuring revenue increases.
The company achieved Adjusted Operating Income of $969 million, which is 23% higher than the 787 million in 2023.
By effective pricing and operational processes together with improved cost control, the company was able to expand. Reported Operating Income has also increased, now sitting at $957 million compared to $762 from last year. The increases further indicate that Ingredion is capable of amplifying profit margins through strategic decision making, efficient business operations, and investment coverage. Ingredion gained reliable income growth due to their focus on value added offerings and customer approach initiatives.
North America saw 27% growth in operating income with the number standing at $718 million due to favorable cost control and pricing. Other regions also saw growth, EMEA (Europe, Middle East and Africa) a 42% increase with income reaching __156 million __due to strong price mix, __Asia Pacific __also saw __35% __rise boosting operating income up to 126million with the increase in demand and decreased raw material costs. South America faced the most challenges with __16% __ decline in operating income bringing it down to 142 million dollars as a result of stable sales volume but unfavorable energy costs.
In 2023, using cash from operations was greatly improved reaching 1.06 billion up from 152 million reflecting the company’s stronger financial discipline and increased operational efficiency.
Dividends issued to shareholders demonstrated Ingredion’s ability to return value to shareholders. This amount came to $194 million, further solidifying the company’s positive financial standing in a constantly changing international market. The company’s capability to produce significant cash inflow enables reinvestment into growth opportunities while providing steady returns to shareholders.
Moving forward, Ingredion projects a range for their Reported EPS for 2025 to be between $10.20 and $11.15, indicative of operational improvements and efficient pricing. They also expect Adjusted EPS to be between $9.15 and $9.85 due to the exit from the South Korean market. Ingredion seeks to reposition to put resources towards solving customer problems, reorder strategy to better meet customer expectations, and increase investment into new products or services to ensure long-term business expansion. The company is committed to utilizing its strengths to mitigate market volatility and achieve outstanding financial performance for the next year, despite global economic headwinds.