Q2 2024 Ingredion Inc Earnings Call Transcript
Key Points
- Ingredion Inc (INGR) reported a record second quarter for operating income, with adjusted operating income up 8% and gross margins up 240 basis points.
- The company experienced strong volume growth across all segments, particularly in texture and healthful solutions, which saw an 8% increase in net sales volumes.
- Ingredion Inc (INGR) benefited from lower input costs and greater fixed cost absorption, contributing to profit growth.
- The company has initiated a multiyear cost savings program called 'cost to compete,' targeting $50 million in run-rate savings by the end of 2025, with $18 million already identified.
- Ingredion Inc (INGR) increased its investment and ownership of PureCircle by $40 million, taking its equity stake to 98%, reflecting strong growth in its sugar reduction business.
- Net sales were down 9% year-over-year, impacted by the pass-through of lower raw material costs and the exit from the South Korea business.
- The texture and healthful solutions segment experienced pricing adjustments and inventory downgrades, which negatively impacted profitability.
- The protein fortification business remains loss-making, although efforts are underway to improve its financial health.
- The company faces mixed results in the foodservice sector, with some quick-service restaurants experiencing month-over-month declines in traffic.
- Ingredion Inc (INGR) has seen a decline in net sales for its Food & Industrial Ingredients segments in LATAM and US/Canada, driven by lower price mix due to the pass-through of lower corn costs.
Good day and thank you for standing by. Welcome to the second quarter 2024 Ingredion Incorporated earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Noah Weiss, Vice President, Investor Relations. Please go ahead.
Good morning, and welcome to Ingredion's second quarter 2024 earnings call. I'm Noah Weiss, Vice President of Investor Relations. Joining me on today's call are Jim Zallie, our President and CEO; and Jim Gray, our Executive Vice President and CFO.
The press release we issued today as well as a presentation we will reference for our second quarter results can be found on our website ingredion.com in the investors section. As a reminder, our comments within this presentation may contain forward-looking statements. These statements are subject to various risks and uncertainties and include expectations and assumptions regarding the company's
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