Ingredion (INGR, Financial) is set to broaden its distribution in the Benelux region through an expanded partnership with Univar Solutions Belgium. Commencing on October 1, 2025, this collaboration aims to meet the rising consumer demand for clean label products and sugar reduction. The deal will introduce a broader selection of plant-based and clean label offerings, such as the Novation range of functional native starches, plant-based proteins, and a variety of stevia sweeteners developed by PureCircle by Ingredion.
Univar Solutions and Ingredion have a longstanding partnership of over 30 years in manufacturing and distributing high-demand functional ingredients. This enhancement of their partnership will now extend Ingredion's reach to 20 countries across the EMEA region, focusing on delivering innovative ingredient solutions tailored to current market trends.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Ingredion Inc (INGR, Financial) is $150.39 with a high estimate of $168.00 and a low estimate of $135.34. The average target implies an upside of 9.36% from the current price of $137.52. More detailed estimate data can be found on the Ingredion Inc (INGR) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Ingredion Inc's (INGR, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ingredion Inc (INGR, Financial) in one year is $103.31, suggesting a downside of 24.88% from the current price of $137.52. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ingredion Inc (INGR) Summary page.
INGR Key Business Developments
Release Date: May 06, 2025
- Net Sales: $1.8 billion, down 4% versus prior year.
- Gross Profit: Increased 12%, with margins up 350 basis points to 25.7%.
- Adjusted Operating Income: $273 million, up 26% year-over-year.
- Texture and Healthful Solutions Operating Income: Up 34%, with a margin of 16.4%, up 400 basis points.
- Food and Industrial Ingredients LATAM Operating Income: $127 million, up 26% year-over-year.
- Food and Industrial Ingredients US, Canada Operating Income: $92 million, up 6%, with a margin of 17.7%.
- Cash Flow from Operations: $77 million.
- Capital Expenditures: $92 million net of disposals.
- Share Repurchase: $55 million of outstanding common shares repurchased.
- Dividends Paid: $52 million.
- Adjusted EPS Guidance for 2025: $10.90 to $11.60.
- Cash from Operations Guidance for 2025: $825 million to $950 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ingredion Inc (INGR, Financial) achieved significant double-digit adjusted EPS and operating income growth in the first quarter of 2025.
- The Texture and Healthful Solutions segment delivered a robust 34% increase in operating income, driven by strong sales volume across all geographies.
- The Food and Industrial Ingredients LATAM segment experienced double-digit operating income growth, supported by the stability of the Argentine peso and favorable market mix.
- The Food and Industrial Ingredients US, Canada segment exceeded expectations with a 26% year-over-year increase in operating income.
- Ingredion Inc (INGR) was recognized on Fortune's World's Most Admired Companies list and Ethisphere's list of the world's most ethical companies, highlighting its commitment to excellence and ethics.
Negative Points
- Net sales for the first quarter were down 4% compared to the prior year, impacted by lower price mix and foreign exchange effects.
- The Food and Industrial Ingredients LATAM segment saw a 2% decline in net sales volumes due to soft volumes in brewing.
- Ingredion Inc (INGR) faces potential challenges from tariffs, although they are expected to have minimal impact for the balance of the year.
- The company is cautious about macroeconomic uncertainties, including potential supply chain disruptions and trade dislocations.
- Ingredion Inc (INGR) anticipates potential incremental costs related to trade dislocations and supply chain adjustments.
