Ingredion Reports Q1 2025 Financial Results with Decrease in Net Sales and Income

Ingredion Incorporated reported its financial results for the first quarter of 2025, revealing a decrease in net sales and net income compared to the same period in 2024. Net sales fell by 4% to $1.813 billion, down from $1.882 billion, while net income attributable to Ingredion decreased by 9% to $197 million, compared to $216 million in the prior year. The decline in sales was attributed to lower raw material costs and foreign exchange impacts, as well as the absence of contributions from the divested South Korea business, which was sold on February 1, 2024. However, operating income increased by 30% to $276 million, driven by volume growth and reduced raw material costs.

In terms of operational metrics, Ingredion's gross profit margin improved to 26% from 22% year-over-year, reflecting a decrease in cost of sales, which fell by 8% to $1.347 billion. Operating expenses rose slightly by 2% to $193 million, resulting in operating expenses as a percentage of net sales increasing to 11% from 10%. The company also reported a significant reduction in financing costs, which decreased by 53% to $9 million, primarily due to lower average outstanding debt balances.

Strategically, Ingredion has focused on enhancing its product offerings and expanding its market presence. The company reported increased sales in its Texture & Healthful Solutions segment, which rose to $602 million, up from $597 million, largely due to volume increases. Conversely, the Food & Industrial Ingredients - LATAM segment saw a 7% decline in sales to $573 million, impacted by unfavorable foreign exchange rates and lower volumes. The U.S./Canada segment also experienced a 4% decrease in sales to $520 million, primarily due to a negative price mix.

Looking ahead, Ingredion maintains a positive outlook, with total available liquidity of $3.8 billion as of March 31, 2025, which includes $837 million in cash and cash equivalents. The company anticipates that its cash flow from operations, combined with access to debt markets and borrowing capacity, will provide sufficient liquidity to support its capital expenditures, dividends, and other operational needs for the foreseeable future. Ingredion plans to invest between $400 million and $450 million in capital expenditures throughout 2025, focusing on updating and expanding its facilities.