Ingredion (INGR) 5 Nov 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q3 2024 Ingredion Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Noah Weiss, Vice President of Investor Relations. Please go ahead.

to Quarter welcome Earnings and morning, Ingredion's XXXX Third Call. Good Investor Weiss, Vice Noah Relations. President I'm of

Joining me Vice our found call as for and Investors The on our today's the release website, well Jim and our press results we section. Gray, ingredion.com, CEO; as President third the in our will issued quarter on Executive we President presentation CFO. are and today Jim reference Zallie, be can

forward-looking comments future include could within and statements this obligation regarding As statements. a in update contain risks and These Actual differ in subject may uncertainties change. the or reminder, estimated no those expectations to them the various to results as our circumstances from financial performance. operations are if statements. presentation forward-looking assumes assumptions the materially company's and future and Ingredion

that found report results discussed this information cause XX-K most be can during Additional annual morning's in XX-Q recently be the filed and conference company's Form found differ those morning's call and today's could factors on or in Forms press release reports in materially X-K. release from subsequent can on concerning actual this press to

in financial call, effective non-GAAP operating information also to this measures measures, presentation X Note are in GAAP share, today's in rate, refer appendix. During reconciled per included including press which income certain will earnings tax non-GAAP adjusted adjusted and release we adjusted and to our U.S.

to Zallie. With will that, call I the Jim turn over

adjusted our quarter in second but marking only quarter you, the the significant increase quarter achieved a milestone income a and highest history in not everyone. in third morning, third with also performance of Ingredion best Thank the company. XX% our ever, Noah, good operating

across which of X teams to a testament work world. quarter dedication is fact, operating In the of our and segments our hard the growth the double-digit in income delivered all

growth. exceptional Despite supported contract absorption, structural cost volume wage which which coming facing operations drivers successfully recovery. our were cost inflation, customers, Furthermore, drove savings across of complemented of teams teams from input our and the pricing improved program. recovery profit CostXCompete segments each key fixed savings, Operating margin our contract with excellence and our sales and management and procurement the multiyear adjusted

a volume segments our adjusted to of year-over-year Turning volume compared X% our All to resulting sales last X net summary in for reported of growth. Korea the growth business. when South year sale increases, sales

category was Solutions. Healthful increase in as areas result & U.S. frozen sales The growth in prepared experienced meals we packaged of that Texture with and such savory, food Starting the volume the beverage double-digit notable meals. and

uptick commuting are volumes as meal Additionally, snacking double-digit consumer growth, to more also by behavior an our options. sales seeking and experienced in and work in driven more and Europe buying convenient people

demand. and the opportunities with global second experiencing volume greatest strong We identify and to commercial Texture products are teams new differentiated is our our our growth global which volume half organic generally most operations capture profitability. solutions, & offer higher Solutions, growth and enabling and anticipated growing Healthful better segment for We

growth showed Colombia In our that Industrial to despite and for brewing the and Brazil's continued from unevenness meal sales some Am year-end. growth Lat nutritional the through pleased significantly report I'm category continued Food supplements Ingredients also quarter. anticipate volume we improved, in segment, in recovery, have

and offset We food partially service. which U.S./Canada. had packaging strong paper by was primarily Lastly, continued for Food making customers, sweetener to shipments, softer demand from and Industrial

deeper quarter. pillars. business stage strategic expanding leveraging Now against the progress long-term capabilities. our These by update with greater Customer for let innovation future on set our projects Beginning solutions current growth. engagement rose active on and this me partnerships, and X pipeline you collaborations opportunities XX%

material raw net sales sequential by lower Healthful and mix. strong improved and Solutions volumes Texture profit driven costs, saw better and growth

For to The several us X cost renewed profitability. customers, inflationary long-term each and these to renegotiated with increases, enabling input contracts of benefits segment food of led key had past over ingredients offset years. the we increased contracts industrial XXXX, which in our we absorbed

and for We packaging demand also making industrial starches observed in consistent the the to Canada U.S. sectors. paper and

with we production very this up expenditures after quarter, Lastly, returns. debottlenecking ramped our Cali, and both yielding facilities throughput successfully Mexico attractive higher Colombia at City capital operations minimal

provide We headroom these modest organic future to growth. network our investment type are of out capacity seeking constantly opportunities optimize for and

target million the program end second a cost our competitiveness the rate through of to year, CostXCompete deliver cost excellence. strategic we in called run pillar, $XX XXXX. of Earlier X-year operational savings Turning to with a by launched savings

year, I savings to the am pleased of captured our expectations, ahead SG&A the our resegmentation. slightly global we months first of through business X target from driven are report by that

XX investing as We also as cost execute over next network our also of part and elsewhere. -- on months, capabilities we also optimization parallel, CostXCompete to in expand in sold we capacity savings are the initiatives projects tied to goods opportunities of

investing For and innovation are example, we capabilities. formulating our texture solutions to expand

been up in increasing inventory, ramping Promoter operations and have has improved flow. in in of volumes, and commercial, With lower higher our as also service sales operations strong higher levels working which result This planning leading driven efficiency, Net improvements schedule of improved adherence production resulted teams levels, capital Scores. which has to improved reflected a and and procurement cash have forecasting,

we manage volume excellence pricing focus growth year-on-year a focused leveraging growth. contracting, and XXXX centers margins to to our As through on balance deliver on of pricing with we're

for were safety health, on people-centric that foundational growth incidents Now let's the celebrates Building This exhibit Green first. purpose-driven in our prestigious XXXX, for last exceptional to and to our named our Safety care Safety reduction move our a National finalist pillar, dedication of safety a value recognition we reinforced companies in supporting exemplary Awards. notable Cross record with and Council's which culture.

for the U.S. time. third WayUp has Our internship by top one in the named XXX been program of the

labor place career and it a We Ingredion a a of positions are especially ranking great in well develop sought after market. us highly and graduates this minds of tight as proud is the to interns in recognizes college that

predict recognized this as investing we Inovacao. to the food, digital Also sectors most equipment of reductions the that Valor biomass beverage local intelligence award of by the consumer developing leveraged of in Idea artificial the and innovative COX failures. use transformations our customer Furthermore, companies was proprietary ingredient products our energy. and in were of This in in quarter, through Brazil emission using Labs one recognition insights from markets and in

impacted significant segments, it above highest Lastly, is highlighting engagement remain change, organizational by reorganization of the at their and employee worth benchmarks. a year scores into of new industry levels the after our that company

the contract is As discussed improvements margin previous raw a in to approach and gross toward improvement slide, hedging in this increased attributable procurement benefiting material well-executed pricing, volumes fixed our absorption. quarter significant cost largely

the Texture week to regarding Now in the strength segment -- Healthful make on Innovation volume our strength November Texture some comments ahead Solutions up and our coming XX. next of I'd like Day

large or with to a are of solutions. meet These our our that coming label a We us challenge a cost our that multifaceted from created problems come is volume more to opportunities solutions require when customers growth complex approach proportion pleased are particular target. highly differentiated

needs, looking suppliers targets. and geographies, and customers Driven while Ingredion cost many and are on their sustainability partner use to changes like meeting deliver across by to labeling front-of-pack and label recipe

investing in solutions, reduction are our in and fiber and solutions sugar protein texture specifically We capabilities, fortification. solutions

recipe these volume investments offering expect affordable sustainable going for with to drive customer faster opportunity growth the forward, sourcing. We along innovation, and development, simplified

for the Jim pleased Gray to to it financial over hand I'm Now review.

Thank you, Jim, good morning, and everyone.

fixed $X.X approximately adjusted XX.X%. dollars to XXX operating Net quarter and down prior grew Moving million, by sales versus Gross XX% million sales cost versus points to $XXX corresponding income $XXX operating our prior respectively, were the costs, were the adjusted driven year. statement. and up with material by margins billion, absorption, and up partially offset third volume higher lower X% with XX% Reported price/mix. income year, for raw income profit better basis

driven The growth by net million impact, our on $XX volume from in positive sales $XX $XXX million bridge. lower South of price/mix offset a sales million X% volume. partially the QX of exit Furthermore, had $XX decrease exchange sales was Korea by to million. foreign Turning impact and

similar sales purposes, modeling this net fourth the quarter year's quarterly to rate. Korea run were For last for

third the net highlight drivers We Turning slide. sales the next quarter. for to

Korea, For impact of sales net costs sales company, sales corn costs. net X%, pricing down experienced Ingredients X%. Solutions, pass-through the inflation were sales South Industrial as down Healthful X%. lower due pass-through Ingredients well the as both of in and net lower total XX% was net and corn primarily down of Am were Texture And U.S./Can and Food energy flat. of Food to higher down last our the were down net quarter, X%, Price/mix excluding Industrial reflecting from double-digit resulting the the for were were year's impact and and Lat specialty corn the costs. sales

turn me last XX%, income were year. net and was by a Lat and a In driven down improved and year, full by from on to operating to & down constant currency by to volumes the Texture net lower QX X% sales anticipate a $XX XX% higher compared recap of costs million, up X% unfavorable & the OI Healthful and performance We for sales segment. down prior price/mix. Food partially offset XX% flat X% currency our Solutions year Texture versus be Solutions input prior sales were constant margin Healthful and Ingredients the between Op Let to still margins XX% on basis. income Am, year. basis. Industrial

Brazil. year-over-year transition of was and million, to lower XX% resulting year's driven more to a costs in Operating energy by lapping growth. biomass income margin input source $XXX sustainable improved Op in costs income XX.X% last

peso In Mexico. addition, transactional as are impacts the in the weakness in to FX dollar-denominated Mexican we favorable led

quarter movement and full $X the impacts OI contributed performance transactional Lat FX in by expect peso The margins the well the stronger driven Am's for the to as in income. be Mexican XX%, XX% in now with as between range, million to We of year weakening upside increase Mexico. approximately the op

input X% sales material previous inflation. Ingredients income down renewal Moving to and $XX approximately and margin year's was U.S./Can. costs Food The were which for XX%. year-over-year of of price the with driven customer reduced Industrial quarter, been million and operating by contracts, OI the long-term raw have was for adjusted an improvement Net

to full for segment We this OI expect year XX% and be between XX%. margins

Other, decreased, in net net all quarter. of South driven year's the sales prior overlap by Korea's sales the For

driven operating Although primarily was by minus loss our million, their fortification business. protein $X

Turning to our earnings bridge.

Korea includes quarter. earnings On an of increase of share the to XXXX. for was share, margin $X.XX, per of share. volume adjusted for we per by $X.XX increase increase see can you minus the operating Operationally, reported the by per partially reconciliation driven which top from $X.XX The saw half, an primarily offset

moving had Moving to items, a -- of of our by minus an $X.XX decrease tax change Mostly a $X.XX per costs, we nonoperational by change the share. driven share in to offset $X.XX. lower contributing rate financing unfavorable primarily the positive per share,

highlights. versus the X approximately to statement year-to-date the for Shifting Net in prior year, corn period. to our the XX% $X.X lower months costs income were down current mainly first billion, sales due

While income first dollars operating a adjusted X%, quarter million reflecting increased gross to XXXX. million, strong gross and $XXX XXX has margin of basis year, profit flat lap slightly from and decreased were to points last down $XXX respectively, in XX.X%. the Reported

share bridge. our Korea per note, contribution last Turning South approximate Operationally, of year-to-date is results include an earnings share. $X.XX To business. increase the from the year's per $X.XX result an to

our we rate $X.XX offset $X.XX. share, an per For financing by share, of an increase of lower of by nonoperational costs driven tax partially per change minus primarily unfavorable $X.XX items, had

to cash flow. Moving

material through $X as Cash X first The cash improved billion. are was from result as as working balances consistent capital benefits. well capital management. benefits inventory strength working well months the passing benefited lower working operations of raw net The from capital of from income operations year-to-date as generated short-term costs

shares, million have Year-to-date, million outstanding $XX meet or goal. $XXX of we our we expect will common and repurchased exceed that we

and/or deployment of be: to through to dividend; second, investment; into and a M&A repurchases. third, Our capital share cash first, continue strategic our return priorities allocation organic shareholders

outlook Now for me our XXXX. to turn let

XXXX, full year the continued and growth sales improvement. For op we anticipate volume income

raw net Excluding costs, the volume sales impact expect the demand. pass through down now lower of be South offset reflecting of sale Korea as improving mid-single digits, we our by the from in to price/mix reduction material partially outlook, we

costs anticipate and will now single due efficiencies. We up input to high be income adjusted operational operating lower that digits better

of to with $XX our overall impacts. are $XX costs We reduction of some the now to million. million positive levels the see decreasing range financing debt cost align in foreign and total estimate financing We exchange

year which rate full the The we of charges. South reported year in business XX.X% expect to XX%, of of well impairment full the and expects $XX.XX, to company gain to EPS reported be the XXXX, as adjusted of includes rates and tax XX% For its XX.X%. Korea to an range our effective our effective $XX.XX sale the as from restructuring tax

For adjusted in the for year, EPS estimate full we to increasing $XX.XX. of the $XX.XX are our range to be

We between estimate XXXX anticipate million to $X.XX our XX to the expect be from diluted shares. billion. average outstanding and We operations weighted shares billion be range of $X.X to XX cash in million

and we and expenditure the to be have a included our estimated now $XXX We investment million flat expect million. are Corporate appendix, between expected year capital comparable XXXX XXXX costs outlook segment to range. In be $XXX year-over-year. full

it turn Jim. I'll That back to concludes comments, my and

Thanks, Jim.

to Solutions, target CostXCompete are months. coupled margins been operational ahead XX optimization be X have of excellence, year us of in focus sales of Our enabled line savings Healthful with of the with sight next from inflationary despite cost sold volume projects and goods over pressures. has scoped of the the that program strong to will increase and Texture growth network savings

to cash We our continue to consecutive a year growth buyback and evidenced as goal. by return million XXth profitable $XXX cash to and flow shareholders share commitment increase our full deliver with dividend annual strong

shareholders to creation leverage anticipate quarter to capture map opportunities. segment as new finally, value third our We income carry market benefits XXXX. for long-term and driving and through our we building momentum year-end highest into our new of on performance operating us customer our and the growth continues And road structure enabling guide ever

are XX that to leadership for will would go we Before like an planning everyone the to Q&A, our we event about texture I we remind November that capabilities. highlight exciting innovation

culinologists how delicious participants event, and through it of leading texture scientists and taste. a the will our During lead journey impacts

drive and vision differentiated solutions strategic segment. the the that explain business profitability will growth We this and will incremental for

that intend to vast to ingredients and to We solutions library are excited we healthy better. we expertise taste make demonstrate building the are along with how use texture our capabilities provide

questions. Now let's open call to the

[Operator Instructions] Barclays. Our from Theurer comes question from first Ben

Jim, Jim and congrats.

quick just actually ones on side. So X my

price/mix. wanted just of -- the if the higher customers right? growth, little Texture the I X% wanted very segment, impressive in down on first Healthful to obviously have you XX% seems doing volume got price/mix. again, and last all, your But something volume We there bit to now. So you're quarter, a Solutions understand the And with push be I to on

it So is more time, That Texture it you but volume, understanding driving a my have very Solutions, piece then what's within been more the it? quick price? question. And Or little Healthful same at is on follow-up. first it price/mix more get just I mix? a then the be and What's that driving strong would the negative

thank Ben, Yes. you.

well the think becoming up that until us consumer us inflation. about so in led minded and I back wanted invested good the excellence That if served clear X the in. through to we to that customer relationship go consumer the years what feel ago also customer of insights we centers where categories a we we've to the we marketing is and together relationship to in to probably lot And X, pricing going put that to puck very ramp-up buying ourselves is behavior. that position anticipate in base

out of pockets sought we've And inflation, with growth.

positioned generating So to that and end we fortunate are that that grow I categories uses feel those we would say growth. those well in are

as Circana categories our categories growth was bakery in reflected in meals, in data dairy. in as for the and well these volume savory, past of snacks sales across our growth if And quarter, volume quarter. low So same this by seen single-digit the we've example, the prepared

through to year. anticipate demand it's mobility in inventory the And sentiment return as we're more we right strength last believe their the though And the consumer economic and for noting convenience Europe, you items comments? takeaway lapping levels. additional that to also year's we into end were that will have there's professionals In year's demand And are pick products worth workplace soft worker continue more customers has seeing for want that the the that of any this versus demand last we positive do as optimizing up. Jim, selling challenges. we're turned now, and evidence

growth clean I some that might more very ingredients started that's is dollar the were Healthful be show functional a would that our selling -- those just in more their note of we up per that more of might use. and label we're Jim show our differentiated products kind some be of to profit bit terms that highlight, I ton. high value too, Solutions gross helping to at in month-to-month in up sell they week-to-week, And Texture volume, functionality, in of would say to a the way do that have drive that upon that P&L that solutions. the that higher kind

it get price/mix. that's in price corn think As of and down, passed terms what I seeing you're comes the through does

profit in And confident Texture growth so the and and the pool in we're very Healthful. that generating

Okay. the a in are a bit million, roughly from lower. allocation a you free same it, come or point excess of -- call to just time, take. CapEx significantly going you little Got then cash? upped seems What give flow view, At cash quick the it. on to $XXX-ish guidance, follow-up do And with capital your

Yes. Well, enough. fair

and I position. our think financial to overall those our both, that beneficial balance are I sheet think,

are opportunities. disciplined most past to that dividend. look I we've capital very said that first, going importantly, really at, the be we in those the investment what We're on think our understand allocation, this organic

are balance our for sheet. the share increased generate it committed cash We're year row. looking in XXth the for year. a have goal our and on to at We very excess does repurchase It

to meet or we So exceed plan that.

involved. both a timing results have as think can't of in as a has we team I to at M&A. I of deliver shareholders. And necessarily there just we to us, investments be for also always There done we're looking quarter. And organic have then as what to are opportunities well bit be every look It that at front that think yes,

And just investment we TSR. then, was and note against a quarters up, in X over when delivered in, going you capital. working that the corn XXXX, cash say, if back and X look like Since had last XX% significant flow was we've years, us,

have bit a that capital of a So just temporary. because that's a favorable, I think little surplus a that now bit of cash is working we flow

in invests invest so capital, business very working we'll Our cash and that wisely.

just projects investment a investment address capital the our question, we most to X on and the suppliers Ben, I a the phasing of a close, And teams just getting of significant year And growth complete delays underway, reminder historically that full have of capital year of into quarters spent anticipate the it's invest anticipate capital think million timing for quarter. to can some equipment think and capital I X the guess, And in projects to spend many and through impact reliability skilled being the natural to from our next. do $XXX your our manufacturing time. first projects on I availability our of from But we to aspects standpoint phasing target the at labor the will incur local the of our spend. fourth that it's have we and amount assets we despite

from question Kristen comes from Our Oppenheimer. Owen next

the Congratulations on question. demand we Hoping start with the could nice results.

behavior, consumer sort European of a performer year-to-date. lackluster entire improved sector the been the that's for noted You

lack some driving region? you understand are volume destock? shoots Is on seeing growth? that what's of green Or it we if Help the wondering real double-click I'm that. us So can in

Yes.

year first the against a that lapping we softer prior highlight that is quarter. thing think are quarter, I to the

highlighted how the that to that appear to all relationship we European as important and put customer that's think that's to situation deciphered one That basically it. where perspective, base, consumer And to of well. mobile in summarize I and the more spending the it as well. back is just that, convenience-type think offerings. I we've is said, we're being That's would in doing So U.S. in relationship outlets I does the more

you're The growth there the follow-up. at there. Okay. Maybe a we on are comment level just you're bit a of easy? this inventory, you inventories Or little if how because comps any is seeing channel? could channel really in seeing restocking still that stage of the Are quick where

don't driving restocking not is -- growth. the I seeing sales Yes. the I'm -- volume necessarily necessarily

of was XXXX. had as and they some that foods I there our They customers get used inventories think of a -- well private That's rid just some they what label in the inventories. both those packaged of of within as to surplus our during U.K. Europe.

think to they down were really flows. ever their like that I cash to they a level don't manage trying inventories pressed really where

a of need in convenience, pickup demand what we're a we've steady bit driving kind consumer think seeing I well as alluded as nice there's breakfast that more just little demand just for lunch is seen as to, Jim as both, and I our the really of overall customers. of mobility, takeaway activity, is some the greater kind think,

to rebuild Yes. think that any level a are of If year, I you new how taking go year we're between of in at it be anything the outlook there safety that in as end case approach stock into be would to of inventories the to cautious typical. a globally customers and a the with contracting. now don't excess even will inventories anything, always macro would manage relates relationship the concerns as

we So refilling any see kind of pipeline a it's anything don't robust where or restocking.

Utilizations up. Demand Yes. is are steady. Yes. very

just side. question COGS on the I follow-up did have one

continuing Some the of nice much versus you're just roll unpack the I'm that that high corn? here. can off margin help is improvement volume to us improved in you if gross wondering cost how backdrop

Yes.

enabled to and the and And that that segments. helped we've Ingredients contracts, think absorbed over Food to, has the the the margins couple renegotiated that in us years. we had recover last costs multiyear I of that we us referred obviously, Industrial and which the

shared as Texture cost Solutions, with production from we That's managing the headwind -- benefit the that volume particularly also absorption I cost from benefit that fixed better a was customers. the And noted we're was in some costs, say, assets. last that look, is Healthful mean year a we've it's really those we well. that seen which volumes down, of come back But volume performance, our on would driving and there raw and and Clearly, -- reduction absorption creating in really better material is right? I input fixed

those things. It's It's Healthful the volume three the the absorption. and fixed It's pricing. it's and and Solutions Texture on cost cost the and mix

next Our Ben BMO Capital Mayhew Markets. from question comes from

sweetener than So contracting industry that maybe sources suggest buyers is tracking XXXX better initially expected.

So what could is your visibility And And foresee a pricing on contracting up modestly. do be have so you question. far? I another chance that

clarify tracking can And you buyers said Ben, I just your question? than better expected?

Yes.

sellers than Sorry, expected.

Better than sellers expected.

what year. of the to last I value we slower that modest contracting that's that, to probably Well, change corn be moving say in is attributable that think than is Okay. the appears And year-over-year. would

contracts XX% in in to of that revenue just that relationship for reminder, our approximately from I from contracts America the inputs point monthly fee should say, year XXXX with year, dollars this really, contracting from for But and primarily in reprice at any North fee cost a that we're or corn customers. matter, for U.S./Canada when our comes

supply/demand. similar has couple as lifted some anticipate as with up which costs of kind XXXX markets We Jim in also few mentioned lower the capacity overall a earlier up industry fact outlook remain utilization tightened well, of But points pass-through the percentage -- if a corn today. a that has

the and return. well volume response guess, industry commercial industry pricing and believe a wet earn in to and high excellence conditions. manage competitive pricing to that input milling raw our is thoughtfully trade-offs prepared fair centers market and cost experienced to our customer a material has although of I And needs inflation the And moderated, capital-intensive teams demand we are and

yet all itself that's to fully So play out.

that's summarize would is of So we're Ben. It where early, how now with is I contracting. early. kind still at It right

a that say utilization so always and grind backdrop. that is year-over-year, up But nice we would I see that's industry

question very M&A. That's helpful. around Yes. my And second is

$XXX to that, it, type your the fully you of bolt-on transformative balance, consider outside -- or that acquisitions, cash you under are previously consider have talked like So be more more acquisitions would to call probably more given of understanding focusing would million. you of to But type kind -- U.S. starting healthy on

Ben, going Solutions. we front center look what's in to We're And market tuck-in, I... and first So guides may And I Healthful we've acquisitions going that, disciplined I Ingredion always our we're think that. of a opportunities, as always right? accelerate at the approach as the in consider landscape well particularly capabilities we and on to broadly, TheStreet our M&A while stated, texture market to Jim, characterize that I as to take be return think, really foremost. maybe think terms and the shareholder position, us,

I the winning of which healthy that to and for think the is better. very feel that the things clear-minded of a taste strategy be of that aspiration, and provider strategic with refresh we the Solutions our go-to of activation because Well, the direction enterprise-wide work then one Healthful all strategy company is about we did Texture make year of last

propositions shape always we that inherent of is That going And of actively we're forward. will in company is value I across at. take. the looking that what do we're enhance the can that that And say strategy And anything is what the we managing that spectrum the approach uniting a to size. pipeline M&A M&A would opportunities

culture, as buy We buy that But obviously, we going revenue. is cultural to say fit want we that winning are would and profit. to and aspiration capabilities to buy we what want well. want I talent to complement want to that And buy

out but is some to what to opportunities there. fertile We're we're encouraged So growth. looking with expand -- do And the landscape that's to. honestly, think I

working actively we're those. So

Our from from next question comes Josh UBS. Spector

maybe the earnings is ask quarters, of couple thing power to want you're different is ways, when rates. today, look So specifically structural? first you at you utilization recovered how of say you've at on I is much the better earnings guess Ingredion I you the last hit this of improvement corn, this the would but running

and Let me get your thoughts stop first. there

of at a -- Jim let it kind take think let me I complement. shot and

in support the is feeling relationship number to segment in the structure. I operating result think what over that what our we're our of quarters new model we're last of seeing, the of performance

to decision business which segments XXXX, the to refresh the base, new and followed of within customer their segments. need those to clarity to brought So the segment done volatility earnings move that in focus within was one work company-wide enterprise-wide to strategy additional each to structure, the material those would their base, you raw reduce expect, has as

we appreciated absolutely And years clarified leadership we been together think to a from has that the model overlaying put global to began benefit is focus from operating and dedicated that fully getting is foundation work what did. recognizing about the that we're also with we're segment But X the of and I ago. X don't all what

a And And awful that's an leads of internally of But standpoint from progress. It tough are part the responsibilities roles of work lot we're example through and lie. that, tension the to productive in of a where and chain and that. benefits team. of all always accountabilities operations supply

Net in perfect customers Promoter of which now over Scores on to internal time delivered and we're perfect XX% order and standard moved have We metrics our is with a delivery, full that showing well that. to used order, from be are higher at

we conceived scheduled X, continuously been We're never to first have X or have ago. thought back optimize. teams procurement our to supplier something finding years X, year, procurement day Our next hold would of opportunities of

on work evolved can and is services there and aspect, how certainly that there's So a Jim and shared comment that. going on maturity the we've

global And on global savings are what coming that across all business so -- Jim structural from that. services, model we operating about comment there's and can cost global the call I aspects of think

highlighted the or think are multiregional in that. innings customer that But focus, resegmentation. to these of global laser-like kind from sight now some the feeling the their accountabilities more we're from of coming that's of that I We and And the with the that benefits of coming the think line bringing, management is early base. segments I

about winded, it. a soul trying sure multiple quite be pleased, we're ourselves, make nonetheless, question. but be a frank, pleasantly to are to because we And it's to pleasantly of little we clearly long levels we, Sorry But searching good surprised, and some but understand performance. bit doing good feel reflecting

a cost Ingredients and Josh, assets and how just at hedging, that I our it's is good a the we our would right? add the we've that Food that against business running So raw of reflect changing? tightened, types there's in Industrial implement around we when and cadence businesses, our contracting? the utilization. material do pricing does reasonably How then expanded at How look

So that seeing we're F&I that F&I well both Lat our business as our in Am op U.S./Can business. margins the support as is helping income higher in

assets, bit our on early we improvements solutions for downstream alluded really which the that provide innings there, our better do can that and enhances and products is Healthful a in more utilization of which are we which customers I the recognizing gross to think it's still kind think there's growth. around I little even the Solutions, is structural job Texture of really profit Jim our

yet So I think to there. come

growth volume balance Really pricing of to helpful. talked I guess up appreciate follow did to I a next want that growth year. comments. call, in with year-on-year about I all earlier the deliver you those

think seem I optimistic on comments contracting earlier somewhat your there.

don't competition know balance if concerns for looks what I if see or you that But on like increased elsewhere. demand geared there's comment is you? growth that out how just with playing So do

bit yet as about it's the be finish we I think still not perhaps on and... sense the just good December in management year goes don't momentum Yes, normal and process. a early month. than that corn we feel capital working customers in anything is And other evasive, And that at we the to have fluctuating the

of I generally, that's seeing, could is type the in the some somewhat demand, generalize, generally utilization think, and Reasonably for are I affordable. Yes. as GDPs industry our if good we're rate the that's global increasing interest of kind globe of that And seeing environment -- softens, countries you're improving key across year-over-year.

Yes, rates remaining and are interest elevated.

So I think that...

as growth. down, they might But GDP see come some management we towards

comes question Heather from next Jones Our Research. Jones from Heather

down and $XXX this almost Congratulations have going I your very million normally -- wouldn't not been this quarter. but currency given on $XX what's almost guidance. the original on -- with year, from because financing million with been costs start million, $XXX volatile

big currencies for out, were which were, thinking a costs be if, this -- if stable about here 'XX? net just but but how financing should So from is is if I they on unlikely,

Yes.

$X that's to that. had with is million But our which the I year-to-date about some happened I or on financing lowered favorable. offset think $XX think in gain say FX want generally, we've we're if to follow about you costs. up can I quarters. million what's I

Heather, the really I that unanticipated our capital in other through the was working capital, piece, think invest to year. lower cost this passing didn't we just have working

to It's have down obviously, or pay of X%. X% the it's It's credit. not allowed of been a carrying rates any source We're And kind fact, in cash. the lines short-term a CP. In been short-term off pay any been to us reverse. of of bit

have So some and now we income. interest earning instead balances, cash some we're

been the financing of for the So I year. for full the drivers that's that's X think costs -- big really expectation

Okay. then on the fortification Perfect. protein business. And

So could 'XX? correctly, to thinking year. you reduce by amount X/X similar about Is that by guys a Or I how this it your fair there I that? are it losses going think, remember reducing into think all if you were roughly you

have but sugar will steadily XX% to protein that we stake. income to of X years. a internal But on-trend about reduction, Yes. for those protein that loss-making is group does it. operating That's contribute the fortification again, are reminder, improve to reduction obviously, or And they're continue they year. category. protein and together Pakistan is business and turnaround generating positive actively our X we're over plan discussions, thinking we putting exactly and operating Pakistan of fortification within unit We've our growing, the And a had consist a Other and health as how budgets next working the of our And been All sugar positively. have next which just fortification we're

relatively we of be, operating this proportionately, there improvement we should improvement have a year-over-year And order year, estimate significant of same income. And sight to will magnitude that of in line that see we so question but loss-making, you. based worth thank the on we I year next appreciate for it's that year into actually contracted And segment business because highlighting. it's small heading that have next

Yes.

about So magnitude, the know U.S. Chinese but the is similar when is Because duties that I antidumping was of Or it one Canadian 'XX, there improvement I benefiting thinking imports. remember can't and -- on you're those more? for in put assets?

of more should seeing you think improvement in about the the U.S. how are that? I assets? So Or

comments improvements operating we the and were proportional. project were was based Yes. right segment, year being I entire is that for pea the my relationship business fortification income, would now. predominantly my on higher protein protein business and based off or say in of improvement isolate the carrying value And that business is then the year's in this what next comments to operating what that

no showing questions remarks. will for further turn I'm to I back at it Zallie time. closing now this Jim

Texture us you thank Well, interest joining continued We forward at And I upcoming Jersey of seeing you Bridgewater, your thank Ingredion. in to for Day right. this many look all for in want you New next Thursday. All Innovation morning. the to

your today's Thank you program. This in does for conclude participation conference. the

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