INGREDION BOOSTS FORECAST AS PROFIT CLIMBS, SALES SLIP

KUALA LUMPUR, May 7 (Bernama) -- Ingredion Incorporated reported a four per cent drop in first-quarter net sales from US$1.882 billion in 2024 to US$1.813 billion in 2025, weighed down by lower pricing, currency headwinds, and a prior divestiture. (US$1=RM4.21)

The company cited lower raw material costs and foreign exchange impacts as the primary reasons for the decline. The sale of its South Korea business in the first quarter of 2024 also contributed to the drop, while strong demand in its Texture & Healthful Solutions (T&HS) segment helped partially offset the losses.

Despite the top-line pressure, the global ingredient solutions provider to the food and beverage manufacturing industry posted a double-digit increase in operating income and raised its full-year earnings guidance.

Operating income jumped to US$276 million, an increase of 30 per cent from the previous year, with adjusted operating income reaching US$273 million, up 26 per cent from US$216 million in 2024. Results were primarily attributable to insurance recoveries and a favourable Brazilian tax judgement, partially offset by investment impairments.

Ingredion president and chief executive officer, Jim Zallie said the company’s strong results demonstrated its continued ability to deliver sales volume and operating income growth.

“While tariff changes are creating uncertainty, we are reassured by the fact that the vast majority of our products are made locally and sold locally,” he said in a statement.

Ingredion’s T&HS segment delivered a 34 per cent increase in operating income, driven by robust volume growth across all geographies and reduced input costs.

The company paid US$52 million in dividends to shareholders in the first quarter and declared a quarterly dividend of US$0.80 per share on March 12, which was paid on April 22. It also repurchased US$55 million shares of common stock.

Looking ahead, Ingredion now expects full-year 2025 adjusted earnings per share (EPS) between US$10.90 and US$11.60, with net sales projected to rise modestly on improved volume. Reported operating income is expected to increase in the high teens, while adjusted operating income is projected to grow mid-single digits.

Capital expenditures are forecast at US$400 million to US$450 million, and cash from operations is expected to range from US$825 million to US$950 million. For the second quarter, the company anticipates net sales will be flat to up slightly, with operating income flat to slightly lower than the prior year.

-- BERNAMA