WESTCHESTER, Ill. - Ingredion (NYSE:INGR) Incorporated (NYSE: INGR), a global provider of ingredient solutions, reported mixed financial results for the first quarter of 2024. The company's adjusted earnings per share (EPS) came in at $2.08, slightly surpassing analyst expectations of $2.06.
However, this figure represents a 26% decrease from the adjusted EPS of $2.80 reported in the same quarter of the previous year. Reported EPS for the quarter was $3.23, marking a 13% increase from the first quarter of 2023.
Revenue for the quarter was $1.88 billion, down 12% from the prior year's first quarter and falling short of the consensus estimate of $2.02 billion. The decrease in revenue was attributed to a combination of factors, including price mix and volume declines, partially offset by foreign exchange impacts. The divestiture of the company's South Korea business also contributed to a $51 million decrease in sales volume.
Despite the challenges, Ingredion's management remains optimistic about the company's strategic direction. "Our net sales volumes in the quarter improved sequentially, despite the impact of extreme cold weather on shipments in the U.S. and taking into account the sale of our South Korea business," said Jim Zallie, Ingredion's president and CEO. He added that the company maintained gross margins above 22% and that the reorganization is enabling clearer focus on global customer opportunities to drive growth.
Looking ahead, Ingredion raised its full-year reported EPS guidance to a range of $10.35 to $11.00 and adjusted EPS guidance to a range of $9.20 to $9.85. This updated guidance compares to the analyst consensus of $9.66 for FY2024 adjusted EPS. For the second quarter of 2024, the company expects operating income to increase by low to mid-single digits.
The company's financial position remains solid, with total debt at $1.9 billion and cash, including short-term investments, at $445 million as of March 31, 2024. Reported net financing costs for the first quarter were $19 million, down from $32 million in the year-ago period.
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