INGREDION INCORPORATED FORM 10-Q

Summary and Analysis of Key Financial Report Points

Overview of the Company’s Financial Performance

Ingredion Incorporated, a leading global ingredient solutions provider, has reported its financial results for the first quarter of 2025. The company’s performance during this period showcases a mix of successes and challenges across its business segments.

Revenue and Profit Trends

• All Other net sales decreased 8% to $118 million in the first quarter of 2025, primarily due to the sale of the company’s South Korea business. Excluding this divestment, net sales increased 13%.
• All Other operating income was $0 million in the first quarter of 2025, compared to a loss of $4 million in the same period of 2024. This improvement was mainly driven by enhancements in the company’s plant-based protein business.

Liquidity and Cash Requirements

• As of March 31, 2025, Ingredion had total available liquidity of $3.8 billion, consisting of $1.5 billion in domestic liquidity and $2.3 billion in international liquidity.
• The company had total debt outstanding of $1.8 billion, with a weighted average interest rate of approximately 4.0% for the first quarter of 2025.
• Ingredion expects its available cash, future cash flow from operations, access to debt markets, and borrowing capacity to provide sufficient liquidity to fund its anticipated capital expenditures, dividends, and other operating, investing, and financing activities for the next twelve months and the foreseeable future.

Net Cash Flows

• Cash provided by operating activities was $77 million in the first quarter of 2025, compared to $209 million in the same period of 2024. The decrease was primarily due to a $223 million change in working capital resulting from increased trade accounts receivables and reduced utilization of customer financing programs.
• Capital expenditures and mechanical stores purchases were $92 million in the first quarter of 2025, up from $65 million in the first quarter of 2024, as the company continued to update, expand, and improve its facilities.
• Cash used for financing activities was $154 million in the first quarter of 2025, compared to $347 million in the same period of 2024, primarily due to the absence of commercial paper borrowings and an increase in repurchases of common stock.

Strengths and Weaknesses

Strengths:

• Strong liquidity position with $3.8 billion in total available liquidity
• Ability to generate cash flow from operations to fund capital expenditures and other activities
• Successful divestment of the South Korea business, allowing the company to focus on its core operations

Weaknesses:

• Decrease in net sales in the All Other segment, partially offset by the exclusion of the South Korea business
• Increase in working capital requirements, leading to a decline in cash provided by operating activities

Outlook for the Future

Ingredion’s management remains cautiously optimistic about the company’s future prospects. While the company faces some near-term challenges, such as increased working capital requirements, it is well-positioned to navigate the current economic environment with its strong liquidity, access to debt markets, and focus on operational improvements. The company’s continued investment in its facilities and strategic initiatives, such as the plant-based protein business, suggest a commitment to long-term growth and diversification.