Ingredion records US$197M net income for Q1 2025

USA – Ingredion’s net income for the first quarter, ending March 31, was US$197M, or US$3.05 per share, reflecting a 9% decrease from US$216M, or US$3.29 per share, during the same quarter in 2024.

The previous year’s results included an US$82M gain from the sale of a business. Despite this, adjusted net earnings increased by 43%. Net sales reached US$602M, a 1% increase from US$597M in the first quarter of the previous year.

Updating its forecast for 2025, the company revised its adjusted earnings estimate to a range of US$10.90 to US$11.60 per share, an improvement from the initial guidance of US$10.75 to US$11.55 and higher than 2024’s adjusted earnings of US$10.65. The company continues to anticipate low single-digit sales growth for the year.

“Our strong results demonstrate the company’s continued ability to achieve growth in sales volume and operating income. While tariff changes create some uncertainty, we are reassured by the fact that the vast majority of our products are produced and sold locally,” stated James P. Zallie, president and CEO of Ingredion.

Operating income for the Texture and Healthful Solutions division was US$99M in the quarter, up 34% from US$74M the previous year.

Sales in this segment were US$602M, also a 1% increase. The improved profitability was attributed to lower raw material and input costs as well as increased sales volume, although an unfavorable price mix partially offset these gains.

“Food and beverage categories that saw growth during the quarter included savory products, dairy, and beverages, with soups and yogurts specifically contributing to the increases in volume,” said Zallie.

He also mentioned that batters and breadings remain significant contributors to sales in the U.S. quick-service restaurant market.

Furthermore, demand for clean label and affordable formulation solutions increased significantly during the quarter, achieving double-digit growth.

Zallie emphasized that their most differentiated products and solutions are experiencing greater adoption, resulting in higher prices per ton and improved margins.

In the Food and Industrial Ingredients segment serving the United States and Canada, operating income was US$92M, a 6% increase from US$87M a year earlier.

However, sales in this segment declined by 4% to US$520M. Lower costs also contributed to the profitability of this division.

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