Ingredion Inc (NYSE:INGR)
$ 98.75 +1.26 (+1.29%) Market Cap: 6.23 Bil Enterprise Value: 7.16 Bil PE Ratio: 9.51 PB Ratio: 1.41 GF Score: 79/100

Q2 2025 Ingredion Inc Earnings Call Transcript

Aug 01, 2025 / 01:00PM GMT
Release Date Price: $126.37 (-3.93%)

Key Points

Positve
  • Ingredion Inc (INGR) achieved its highest second-quarter adjusted operating income in company history at $273 million.
  • The Texture and Healthful Solutions segment saw a 2% net sales increase and a remarkable 29% rise in operating income.
  • Ingredion Inc (INGR) reported a 3% increase in net sales volume for the Texture and Healthful Solutions segment, with significant growth in clean label solutions.
  • Gross margins expanded by 230 basis points to 26%, demonstrating effective management of customer and price mix, cost input volatility, and operational excellence.
  • Ingredion Inc (INGR) exceeded procurement savings targets through integrated sourcing strategies and cross-functional collaboration, contributing to cost competitiveness.
Negative
  • Net sales declined by 2% due to the pass-through of lower corn costs.
  • The Food and Industrial Ingredients US/Canada segment was negatively impacted by a mechanical fire at the Chicago plant, resulting in a $10 million loss.
  • Food and Industrial Ingredients LATAM faced a 4% decline in net sales volumes due to reduced brewing volumes in Brazil and Mexico and macroeconomic impacts.
  • The company experienced lower sales volumes in the Food and Industrial Ingredients US/Canada segment, particularly in industrial starch sales due to weakened corrugated box demand.
  • Ingredion Inc (INGR) lowered its outlook for the Food and Industrial Ingredients LATAM segment due to a weaker macroeconomic environment and foreign exchange impacts.
Operator

Good day and thank you for standing by. Welcome to the second-quarter 2025 Ingredion earnings conference call. (Operator Instructions) Please be advised that today's call is being recorded.

I would like to hand it over to your speaker, Noah Weiss, Vice President of investor relations. Please go ahead.

Noah Weiss
Ingredion Inc - Investor Relations

Thank you. Good morning, and welcome to Ingredion's second quarter 2025 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 the 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 the presentation may contain forward-looking statements. These statements are subject to various risks and uncertainties and include expectations and assumptions regarding the company's future operations and financial

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