Ingredion Incorporated reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the same periods in 2023.

Net sales for Q3 2024 were $1,870 million, an 8% decrease from $2,033 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $5,630 million, down 10% from $6,239 million in the prior year. The decline in sales was attributed to lower raw material costs and lost sales volume from the divestiture of the South Korea business, which was sold for approximately $294 million in February 2024.

Despite the drop in sales, Ingredion's gross profit for Q3 2024 increased to $479 million from $421 million in Q3 2023, resulting in a gross profit margin improvement to 26% from 21%. Operating income also rose to $268 million in Q3 2024, up from $213 million in the same quarter last year. For the nine-month period, operating income was $721 million, slightly down from $755 million in 2023.

Net income attributable to Ingredion for Q3 2024 was $188 million, compared to $158 million in Q3 2023, while year-to-date net income increased to $552 million from $512 million. The increase in net income was driven by lower input costs and reduced financing costs, despite a higher effective tax rate of 30.8% in Q3 2024, up from 13.5% in Q3 2023.

The company’s strategic developments included the acquisition of additional shares in PureCircle Limited for $40 million, raising its ownership from 88% to 98%. Additionally, Ingredion recognized a pre-tax net gain of $90 million from the sale of its South Korea business, which included $82 million in Q1 2024 and an $8 million working capital adjustment in Q3 2024.

On the balance sheet, cash and cash equivalents increased significantly to $877 million as of September 30, 2024, compared to $401 million at the end of 2023. Total liabilities decreased to $3,495 million from $3,992 million, while total stockholders’ equity rose to $3,969 million from $3,552 million.

Operating performance varied by segment, with Texture & Healthful Solutions reporting flat net sales of $600 million, while Food & Industrial Ingredients - LATAM and U.S./Canada saw declines of 6% and 9%, respectively. Operating income for LATAM increased by 26%, while U.S./Canada's operating income rose by 25%, reflecting improved cost management.

Overall, Ingredion's financial results for Q3 2024 and the year-to-date period reflect a combination of strategic divestitures, acquisitions, and operational efficiencies, despite challenges in sales volume and pricing pressures.