Ingredion Inc (INGR) 2024 Q3 法說會逐字稿

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.

美好的一天，感謝您的支持。歡迎參加安瑞安 2024 年第三季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Noah Weiss, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給今天的第一位發言人，投資者關係副總裁 Noah Weiss。請繼續。

Good morning, and welcome to Ingredion's third-quarter 2024 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 third quarter results can be found on our website, ingredion.com, in the Investors section.

早安，歡迎參加 Ingredion 2024 年第三季財報電話會議。我是諾亞‧韋斯 (Noah Weiss)，投資人關係副總裁。加入我今天的電話會議的是我們的總裁兼執行長吉姆·扎利 (Jim Zallie) 和我們的執行副總裁兼財務長吉姆·格雷 (Jim Gray)。我們今天發布的新聞稿以及我們將參考第三季業績的簡報可以在我們的網站 ingredion.com 的投資者部分找到。

As a reminder, our comments within this 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 performance. Actual results could differ materially from those estimated in the forward-looking statements and Ingredion assumes no obligation to update them in the future as, or if, circumstances change. Additional information concerning factors could cause actual results to differ materially from those discussed during today's conference call or in this morning's press release can be found in the company's most recently filed annual report on Form 10-K and subsequent reports on Forms 10-Q.

提醒一下，我們在本簡報中的評論可能包含前瞻性陳述。這些陳述受到各種風險和不確定性的影響，包括有關公司未來營運和財務表現的預期和假設。實際結果可能與前瞻性聲明中估計的結果有重大差異，且 Ingredion 不承擔在未來情況發生變化時或如果情況發生變化時更新這些結果的義務。有關可能導致實際結果與今天電話會議或今天上午新聞稿中討論的因素存在重大差異的其他信息，可以在公司最近提交的 10-K 表格年度報告和 10-Q 表格後續報告中找到。

During this call, we will also refer to certain non-GAAP financial measures, including adjusted earnings per share, adjusted operating income and adjusted effective tax rate which are reconciled to US GAAP measures in Note 2 non-GAAP information included in our press release and in today's presentation appendix.

在本次電話會議中，我們還將提及某些非公認會計原則財務指標，包括調整後每股收益、調整後營業收入和調整後有效稅率，這些指標與我們新聞稿中包含的註2 非公認會計原則資訊中的美國公認會計原則指標一致在今天的演示附錄中。

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

這樣，我會將電話轉給吉姆·扎利。

Thank you, Noah, and good morning, everyone. Ingredion achieved a significant milestone in the third quarter with a 29% increase in adjusted operating income marking not only our best third quarter performance ever, but also the second highest quarter in the history of our company. In fact, all three of our segments delivered double-digit operating income growth in the quarter which is a testament to the dedication and hard work of our teams across the world.

謝謝諾亞，大家早安。Ingredion 在第三季實現了一個重要的里程碑，調整後營業收入成長了 29%，這不僅標誌著我們有史以來最好的第三季業績，也是我們公司史上第二高的季度。事實上，我們所有三個部門在本季度都實現了兩位數的營業收入成長，這證明了我們全球團隊的奉獻和辛勤工作。

Operating excellence and contract management across each of our segments were key drivers of the exceptional profit growth. Despite facing input and wage cost inflation, our sales teams successfully adjusted multi-year contract pricing with customers, which supported margin recovery. Furthermore, volume recovery, improved fixed cost absorption, and our operations and procurement teams drove structural savings, which complemented the savings coming from our Cost2Compete program.

我們每個部門的卓越營運和合約管理是利潤異常成長的關鍵驅動力。儘管面臨投入和工資成本上漲，我們的銷售團隊成功調整了與客戶的多年合約定價，這支持了利潤率的恢復。此外，銷售恢復、固定成本吸收的改善以及我們的營運和採購團隊推動了結構性節省，這補充了我們的 Cost2Compete 計劃帶來的節省。

Turning to a summary of our sales volume growth. All three segments reported year-over-year increases, resulting in 4% net sales volume growth compared to last year when adjusted for the sale of our South Korea business.

轉向我們銷量成長的總結。所有三個部門均實現同比增長，根據韓國業務的出售進行調整後，淨銷量較去年增長 4%。

Starting with Texture and Healthful Solutions. The double-digit sales volume increase that we experienced was the result of notable food and beverage category growth in the US in areas such as savory, packaged meals, and frozen prepared meals. Additionally, our sales volumes in Europe also experienced double-digit growth, driven by an uptick in consumer buying behavior as more and more people are commuting to work and seeking convenient meal and snacking options.

從質地和健康的解決方案開始。我們經歷的兩位數銷售成長是美國食品和飲料類別顯著成長的結果，例如鹹味食品、包裝食品和冷凍預製食品。此外，隨著越來越多的人通勤上班並尋求方便的膳食和零食選擇，消費者購買行為的增加推動了我們在歐洲的銷售也經歷了兩位數的增長。

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

我們最具差異化的產品和解決方案正在經歷最大的銷售成長，這些產品和解決方案通常提供更高的獲利能力。我們預計下半年紋理和健康解決方案的有機銷售將強勁增長，我們新的全球部門將更好地使我們的商業和營運團隊能夠發現機會並抓住不斷增長的全球需求。

In the Food & Industrial Ingredients-LATAM segment, volume growth from Brazil's brewing category showed continued recovery, despite some unevenness in the quarter. I'm also pleased to report that our sales for nutritional meal supplements in Colombia have significantly improved, and we anticipate continued growth through year-end. Lastly, for Food & Industrial US/Canada, we had continued strong demand from paper making and packaging customers, which was partially offset by softer sweetener shipments primarily to foodservice.

在拉丁美洲食品和工業配料領域，儘管本季存在一些不平衡，但巴西釀造類別的銷售成長顯示出持續復甦。我還很高興地報告，我們在哥倫比亞的營養膳食補充劑的銷售已顯著改善，我們預計到年底將繼續增長。最後，對於美國/加拿大食品和工業，造紙和包裝客戶的需求持續強勁，但主要被主要面向餐飲服務的軟甜味劑出貨量部分抵消。

Now, let me update you on progress against our three strategic pillars. Beginning with Business Growth, Customer engagement on current and active future innovation pipeline projects, rose by 27% this quarter. These opportunities set the stage for deeper collaborations and greater long-term partnerships, leveraging our expanding solutions capabilities.

現在，讓我向您介紹我們三大策略支柱的最新進展。從業務成長開始，本季客戶對當前和活躍的未來創新管道專案的參與度成長了 27%。這些機會為利用我們不斷擴大的解決方案能力進行更深入的合作和更廣泛的長期合作夥伴關係奠定了基礎。

Texture and Healthful Solutions saw strong sequential net sales and profit growth driven by lower raw material costs, better volumes, and improved mix. For each of our Food & Industrial Ingredients segments in 2024, we had renewed several long-term contracts with key customers, enabling us to offset inflationary input cost increases, which we absorbed over the past two years. The benefits of these renegotiated contracts, led to increased profitability. We also observed consistent demand for industrial starches in the US and Canada to the paper making and packaging sectors.

在原材料成本降低、銷售增加和產品組合改善的推動下，質地和健康解決方案實現了強勁的連續淨銷售額和利潤成長。到 2024 年，我們的每個食品和工業原料細分市場都與主要客戶續簽了幾份長期合同，使我們能夠抵消過去兩年吸收的通貨膨脹投入成本的增加。這些重新談判的合約的好處是提高了獲利能力。我們也觀察到美國和加拿大造紙和包裝產業對工業澱粉的持續需求。

Lastly, this quarter, we ramped up higher throughput production at our Cali Colombia, and Mexico City facilities after successfully debottlenecking both operations with minimal capital expenditures yielding very attractive returns. We are constantly seeking out these type of modest organic investment opportunities to optimize our network and provide headroom capacity for future growth.

最後，本季度，我們以最少的資本支出成功消除了哥倫比亞卡利和墨西哥城工廠的產能瓶頸，並產生了非常有吸引力的回報，從而提高了哥倫比亞卡利和墨西哥城工廠的產量。我們不斷尋找此類適度的有機投資機會，以優化我們的網絡並為未來的成長提供空間。

Turning to our second strategic pillar, Cost Competitiveness through Operational Excellence, earlier in the year, we launched a two-year cost savings program called “Cost2Compete” with a target to deliver $50 million of run rate savings by the end of 2025.

談到我們的第二個策略支柱，即透過卓越營運實現成本競爭力，今年早些時候，我們啟動了一項名為「Cost2Compete」的為期兩年的成本節約計劃，目標是到2025 年底實現5000萬美元的運轉率節約。

I am pleased to report that through the first nine months of the year, we are slightly ahead of our savings target expectations, driven by captured SG&A from our global business re-segmentation. As we also execute on network optimization projects as part of our cost of goods sold savings initiatives tied to cost to compete over the next 15 months. In parallel, we are also investing in opportunities to expand capacity and capabilities elsewhere. For example, we are investing to expand our texture solutions, formulating, and innovation capabilities.

我很高興地向大家報告，在今年前 9 個月，在全球業務重新細分中捕獲的銷售、管理及行政費用 (SG&A) 的推動下，我們略超前於我們的儲蓄目標預期。我們還執行網路優化項目，作為我們銷售成本節省計劃的一部分，與未來 15 個月的競爭成本相關。同時，我們也在其他地方投資擴大產能和能力的機會。例如，我們正在投資擴大我們的紋理解決方案、配方和創新能力。

With production ramping up as a result of increasing volumes, our commercial, operations, and procurement teams have improved sales and operations planning efficiency, leading to improved forecasting, higher schedule adherence, and improved service levels, which have been reflected higher net promoter scores. This has also resulted in lower levels of inventory, which has driven improvements in working capital and strong cash flow. As we manage through 2025 contracting, we're focused on leveraging our pricing centers of excellence to balance volume growth with pricing and a focus on margins to deliver year-on-year growth.

隨著產量因產量增加而增加，我們的商業、營運和採購團隊提高了銷售和營運規劃效率，從而改善了預測、提高了時間表遵守率並提高了服務水平，這反映在更高的淨推薦值上。這也導致庫存水準降低，從而推動了營運資本的改善和強勁的現金流。在管理 2025 年合約時，我們專注於利用我們的卓越定價中心來平衡銷售成長與定價，並專注於利潤率，以實現同比增長。

Now, let's move to our last pillar, supporting our purpose-driven and people-centric growth culture. Building on our exemplary safety record with a notable reduction in incidents in 2023, were named a finalist for the National Safety Council's Green Cross for Safety Awards. This prestigious recognition celebrates companies that exhibit exceptional dedication to safety and health, which reinforced our foundational value of “Care First”.

現在，讓我們轉向最後一個支柱，支持我們以目標為導向、以人為本的成長文化。我們以堪稱典範的安全記錄為基礎，2023 年事故數量顯著減少，因此入圍國家安全委員會綠十字安全獎決賽。這項享有盛譽的認可旨在表彰那些對安全和健康表現出非凡奉獻精神的公司，這強化了我們「關懷第一」的基本價值。

Our internship program has been named one of the top 100 in the US by WayUp for the third time. We are especially proud of this ranking as it recognizes that Ingredion is a great place to develop a career and positions us well in the minds of highly sought after college interns and graduates in a tight labor market.

我們的實習計畫第三次被 WayUp 評為美國百大實習計畫之一。我們對這一排名感到特別自豪，因為它承認 Ingredion 是一個發展職業的好地方，並使我們在緊張的勞動力市場中備受追捧的大學實習生和畢業生心目中佔據有利地位。

Furthermore, this quarter, we were recognized as one of the most innovative companies in the food, beverage, and ingredient sectors in Brazil by Valor Inovacao. This award was in recognition of our Digital Transformations that leveraged artificial intelligence to predict equipment failures. Also the developing of products in local markets from our Idea Labs using proprietary consumer and customer insights and investing in CO2 emission reductions through the use of biomass energy.

此外，本季度，我們被 Valor Inovacao 評為巴西食品、飲料和配料行業最具創新性的公司之一。該獎項是對我們利用人工智慧預測設備故障的數位轉型的認可。此外，我們的創意實驗室也利用專有的消費者和客戶見解在當地市場開發產品，並透過使用生物質能源投資於二氧化碳減排。

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

最後，值得強調的是，經過一年的重大組織變革，受公司重組為新部門的影響，我們的員工敬業度得分仍保持在最高水平並高於行業基準。

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

如上一張投影片中所討論的，我們本季毛利率的顯著改善主要歸因於合約定價、原物料採購、對沖改進以及有利於固定成本吸收的銷售增加的良好執行方法。

Now, I'd like to make some comments regarding the volume strength in our Texture and Healthful Solutions segment ahead of our Texture Innovation Day coming up next week on November 14th. We are pleased that a large proportion of our volume growth is coming from our more highly differentiated solutions. These opportunities are created when our customers come to us with complex problems that require a multi-faceted solutions approach to meet a particular label challenge or cost target.

現在，我想在下週 11 月 14 日舉行的質感創新日之前就我們的質感和健康解決方案部分的銷售強度發表一些評論。我們很高興我們的銷售成長很大一部分來自於我們更加高度差異化的解決方案。當我們的客戶向我們提出複雜的問題，需要多方面的解決方案來應對特定的標籤挑戰或成本目標時，就會創造這些機會。

Driven by front of pack label changes across many geographies, customers are looking to suppliers like Ingredion to partner and deliver on their recipe and labeling needs, while meeting cost-and-use and sustainability targets. We are investing in our Solutions capabilities, specifically in Texture Solutions, Sugar Reduction Solutions, and Protein and Fiber Fortification. We expect these investments to drive volume growth going forward, offering faster customer innovation, affordable recipe development, along with the opportunity for simplified and sustainable sourcing.

在許多地區的包裝標籤變化的推動下，客戶正在尋求像 Ingredion 這樣的供應商合作並滿足他們的配方和標籤需求，同時滿足成本和使用以及永續發展目標。我們正在投資我們的解決方案能力，特別是在質地解決方案、減糖解決方案以及蛋白質和纖維強化方面。我們預計這些投資將推動未來銷售成長，提供更快的客戶創新、負擔得起的配方開發以及簡化和永續採購的機會。

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

現在，我很高興將其交給吉姆·格雷進行財務審查。

Thank you, Jim, and good morning, everyone. Moving to our income statement. Net sales for the third quarter were approximately $1.9 billion, down 8% versus prior year. Gross profit dollars grew 14% with corresponding margins up 490 basis points to 25.6%. Reported and adjusted operating income were $268 million and $282 million, respectively, with adjusted operating income up 29% versus the prior year, driven by lower raw material costs, higher sales volume, and better fixed cost absorption, partially offset by price mix.

謝謝吉姆，大家早安。轉到我們的損益表。第三季淨銷售額約 19 億美元，比去年同期下降 8%。毛利成長 14%，相應利潤率成長 490 個基點，達到 25.6%。報告和調整後的營業收入分別為2.68 億美元和2.82 億美元，調整後的營業收入較上年增長29%，這得益於原材料成本下降、銷量增加和固定成本吸收改善（部分被價格組合抵消）。

Turning to our Q3 net sales bridge. The 8% decrease was driven by $150 million in lower price/mix and $20 million of foreign exchange impact, partially offset by positive sales volume growth of $86 million. Furthermore, the exit from South Korea had a $79 million impact on sales volume. For modeling purposes, last year's Korea net sales for the fourth quarter were similar to this quarterly run rate.

轉向我們第三季的淨銷售橋樑。8% 的下降是由 1.5 億美元的價格/組合下降和 2000 萬美元的外匯影響推動的，但部分被 8600 萬美元的銷量正增長所抵消。此外，退出韓國對銷量造成了 7,900 萬美元的影響。出於建模目的，去年第四季韓國的淨銷售額與本季運行率相似。

Turning to the next slide. We highlight net sales drivers for the third quarter. For the total company, net sales were down 8% and excluding the impact of South Korea, net sales were down 4%. Texture and Healthful Solutions, net sales were flat. Price mix was down 12%, and for the quarter, primarily reflecting the pass-through of lower corn costs as well as last year's higher pricing due to double-digit inflation experienced in our specialty corn and energy costs. Food & Industrial Ingredients LATAM net sales were down 6% and Food and Industrial Ingredients US/CAN net sales were down 9%, both resulting from the impact of the pass-through of lower corn costs.

轉到下一張投影片。我們重點介紹第三季的淨銷售驅動因素。就整個公司而言，淨銷售額下降了 8%，排除韓國的影響，淨銷售額下降了 4%。質地和健康解決方案，淨銷售額持平。本季價格組合下降了 12%，主要反映了玉米成本下降以及去年由於我們的特種玉米和能源成本出現兩位數通膨而導致的較高定價。食品和工業配料拉丁美洲淨銷售額下降了 6%，食品和工業配料美國/加拿大淨銷售額下降了 9%，這都是由於玉米成本下降的影響。

Let me turn to a recap of our Q3 performance by Segment. Texture and Healthful Solutions net sales were flat compared to the prior year and down 1% on a constant currency basis. Texture and Healthful Solutions operating income was $96 million, up 12% from the prior year. Op Income margin improved to 16%, driven by lower input costs and higher sales volumes partially offset by unfavorable price mix. We still anticipate OI margins to be between 13% and 15% for the full year.

讓我按部門回顧一下我們第三季的業績。質地和健康解決方案的淨銷售額與去年持平，以固定匯率計算下降 1%。質地和健康解決方案營業收入為 9,600 萬美元，比上年增長 12%。由於投入成本降低和銷售增加，營運收入利潤率提高至 16%，但部分被不利的價格組合所抵銷。我們仍然預計全年 OI 利潤率將在 13% 至 15% 之間。

In Food & Industrial Ingredients LATAM, net sales were down 6% versus last year and down 2% on a constant currency basis. Operating income improved to $131 million, resulting in 26% year-over-year growth. Op Income margin of 21.1% was driven by lower input costs and lapping last year's transition costs to a more sustainable biomass energy source in Brazil.

在拉丁美洲食品和工業原料領域，淨銷售額比去年下降 6%，以固定匯率計算下降 2%。營業收入增至 1.31 億美元，年增 26%。營運收入利潤率達到 21.1%，這是由於投入成本降低以及巴西去年向更永續的生物質能源的轉型成本下降所致。

In addition, the weakness in the Mexican peso led to favorable transactional FX impacts as we are dollar-denominated in Mexico. The movement of the Mexican peso weakening contributed approximately $3 million upside in the quarter to LATAM's Op Income. We now expect OI margins for the full year to be between 18% and 20%, with the increase in the range, driven by stronger performance as well as transactional FX impacts in Mexico.

此外，墨西哥比索的疲軟導致了有利的交易外匯影響，因為我們在墨西哥以美元計價。墨西哥比索疲軟的走勢為本季為拉丁美洲的營運收入帶來了約 300 萬美元的成長。我們現在預計全年 OI 利潤率將在 18% 至 20% 之間，這一範圍的擴大是由墨西哥強勁的業績以及交易性外匯影響推動的。

Moving to Food & Industrial Ingredients US/CAN, net sales were down 9% for the quarter and operating income was $99 million, with an OI margin of approximately 18%. The improvement year-over-year was driven by reduced raw material costs and the renewal of long-term customer contracts, which have been price adjusted for previous year's input inflation. We expect full year OI margins for this segment to be between 16% and 18%.

轉向美國/加拿大食品和工業原料業務，本季淨銷售額下降 9%，營業收入為 9,900 萬美元，OI 利潤率約為 18%。同比改善是由於原材料成本降低和長期客戶合約續約推動的，這些合約已根據上一年的投入通膨進行了價格調整。我們預計該細分市場的全年 OI 利潤率將在 16% 至 18% 之間。

For all other, net sales decreased, driven by the overlap of South Korea's net sales in the prior year's quarter. Although the operating loss was minus $4 million, primarily driven by our protein fortification business.

對於所有其他方面，淨銷售額均下降，這是由於韓國淨銷售額與去年同期重疊所致。儘管營業虧損為負 400 萬美元，但主要是由我們的蛋白質強化業務推動的。

Turning to our earnings bridge on the top half, you can see the reconciliation form reported to adjusted earnings per share. Operationally, we saw an increase of $0.77 per share for the quarter. The increase was driven primarily by an operating margin increase of $0.93, partially offset by volume of minus $0.12 per share, which includes Korea for 2023.

轉向我們上半部的收益橋樑，您可以看到報告調整後每股盈餘的調整表。從營運角度來看，本季每股收益成長了 0.77 美元。這一增長主要是由於營業利潤增加了 0.93 美元，但部分被每股負 0.12 美元的銷量所抵消，其中包括 2023 年的韓國。

Moving to the change in our non-operational items, we had a decrease of $0.05 per share, primarily driven by an unfavorable tax rate change of minus $0.37. Mostly offset by lower financing costs, contributing a positive $0.30 per share.

至於非經營項目的變化，每股減少了 0.05 美元，主要是由於負 0.37 美元的不利稅率變化所致。大部分被較低的融資成本所抵消，每股收益為 0.30 美元。

Shifting to our year-to-date income statement highlights net sales for the first nine months were approximately $5.6 billion, down 10% versus the prior year, due mainly to lower corn costs in the current period. While gross profit dollars decreased 1%, gross margin has increased 220 basis points to 23.8%. Reported and adjusted operating income were $721 million and $768 million, respectively, flat to down slightly from last year, reflecting the lap of a strong first quarter in 2023.

從今年至今的損益表來看，前 9 個月的淨銷售額約為 56 億美元，比前一年下降 10%，主要是由於本期玉米成本下降。雖然毛利下降了 1%，但毛利率卻增加了 220 個基點，達到 23.8%。報告和調整後營業收入分別為 7.21 億美元和 7.68 億美元，與去年持平或略有下降，反映出 2023 年第一季的強勁表現。

Turning to our year-to-date earnings bridge operationally, the result is an increase of $0.03 per share. To note, last year's results include an approximate $0.35 per share contribution from the South Korea business. For our non-operational items, we had an increase of $0.54 per share, primarily driven by lower financing costs of $0.64 per share, partially offset by an unfavorable tax rate change of minus $0.19.

轉向我們今年迄今的營運獲利橋，結果是每股成長 0.03 美元。值得注意的是，去年的業績包括來自韓國業務的每股約 0.35 美元的貢獻。對於我們的非營運項目，每股成長 0.54 美元，主要是由於每股 0.64 美元的融資成本降低，部分被負 0.19 美元的不利稅率變化所抵銷。

Moving to cash flow. The first nine months of cash generated from operations was $1 billion. Cash from operations benefited from consistent net income strength as well as short-term working capital benefits. The year-to-date working capital benefits are the result of lower raw material costs passing through working capital balances as well as improved inventory management. Year-to-date, we have repurchased $87 million of outstanding common shares, and we expect that we will meet or exceed our $100 million goal. Our capital allocation priorities continue to be: first, organic investment; second, a return to shareholders through our dividend; and third, strategic deployment of cash into M&A and/or share repurchases.

轉向現金流。前 9 個月的營運現金為 10 億美元。營運現金受益於持續的淨利實力以及短期營運資本效益。今年迄今的營運資金效益是由於營運資金餘額降低了原料成本以及改善庫存管理的結果。今年迄今為止，我們已經回購了 8,700 萬美元的已發行普通股，我們預計將達到或超過 1 億美元的目標。我們的資本配置重點仍是：第一，有機投資；第二，透過股息回報股東；第三，將現金策略部署到併購和/或股票回購。

Now, let me turn to our outlook for 2024. For the full year 2024, we anticipate continued sales volume growth and op income improvement. Excluding the impact of the sale of South Korea from our outlook, we expect net sales to be down mid-single digits, reflecting the reduction in price mix as we pass through lower raw material costs, partially offset by improving volume demand. We anticipate that adjusted operating income will now be up high single digits due to lower input costs and better operational efficiencies. We are decreasing our financing cost estimate to align with the reduction of overall debt levels and some positive foreign exchange impacts. We now see total financing costs in the range of $40 million to $50 million.

現在，讓我談談我們對 2024 年的展望。對於 2024 年全年，我們預計銷售量將持續成長，營運收入將持續改善。從我們的前景中排除韓國銷售的影響，我們預期淨銷售額將下降中個位數，反映出隨著原材料成本下降，價格組合的減少，部分被銷售需求的改善所抵消。我們預計，由於投入成本降低和營運效率提高，調整後的營業收入現在將成長高個位數。我們正在降低融資成本估計，以適應整體債務水準的降低和一些積極的外匯影響。我們現在預計總融資成本在 4,000 萬至 5,000 萬美元之間。

For the full year 2024, we expect reported effective tax rate of 28% to 29% and an adjusted effective tax rate of 26.5% to 27.5%. The company expects its full year reported EPS to be in the range of $10.60 and to $10.90, which includes the gain from the sale of our South Korea business as well as our restructuring and impairment charges. For the full year, we are increasing our estimate for adjusted EPS to be in the range of $10.35 to $10.65.

對於 2024 年全年，我們預計報告的有效稅率為 28% 至 29%，調整後的有效稅率為 26.5% 至 27.5%。該公司預計全年報告每股收益將在 10.60 美元至 10.90 美元之間，其中包括出售韓國業務的收益以及重組和減損費用。對於全年，我們將調整後每股收益的預期上調至 10.35 美元至 10.65 美元。

We expect diluted weighted average shares outstanding to be between 66 million and 67 million shares. We anticipate our 2024 cash from operations estimate to be in the range of $1.1 billion to $1.25 billion. We expect capital expenditure investment to be between $310 million and $330 million. Corporate costs are now expected to be flat year-over-year. In the appendix, we have included a 2024 full year segment outlook and our estimated 2023 comparable range.

我們預計稀釋後加權平均已發行股數將在 6,600 萬股至 6,700 萬股之間。我們預計 2024 年營運現金預計在 11 億美元至 12.5 億美元之間。我們預計資本支出投資將在 3.1 億美元至 3.3 億美元之間。目前預計企業成本將與去年同期持平。在附錄中，我們包括了 2024 年全年細分市場展望和我們估計的 2023 年可比範圍。

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

我的評論到此結束，我會將其轉回給吉姆。

Thanks, Jim. Our strong sales volume growth from Texture and Healthful Solutions, coupled with operational excellence, has enabled us to increase margins despite inflationary pressures. Cost2Compete savings are ahead of target in year one of the program with line of sight to network optimization projects that have been scoped and will be the focus of cost of goods sold savings over the next 15 months.

謝謝，吉姆。我們的紋理和健康解決方案銷售強勁成長，加上卓越的運營，使我們能夠在通膨壓力下提高利潤。Cost2Compete 節省金額超過了該計劃第一年的目標，重點關注已確定範圍的網路優化項目，並將成為未來 15 個月內銷售商品成本節省的重點。

We continue to deliver profitable growth and strong cash flow with a commitment to return cash to shareholders as evidenced by our 10th consecutive annual dividend increase and our full year $100 million share buyback goal. We anticipate building on our highest ever third quarter operating income performance enabling us to carry momentum through year-end and into 2025.

我們繼續實現獲利成長和強勁的現金流，並承諾向股東返還現金，連續第十年增加年度股息和全年 1 億美元的股票回購目標證明了這一點。我們預計，第三季營業收入將創下歷史新高，使我們能夠在年底和 2025 年保持強勁勢頭。

And finally, our driving growth road map continues to guide long-term value creation for our shareholders as we leverage the benefits of our new segment structure and capture new market and customer opportunities.

最後，我們的驅動成長路線圖繼續指導為我們的股東創造長期價值，因為我們利用新的細分結構的優勢並抓住新的市場和客戶機會。

Before we go to the Q&A, I would like to remind everyone about an exciting event that we are planning for November 14th that we will highlight our texture, innovation leadership capabilities. During the event, our leading scientists and culinologists will lead participants through a delicious journey of texture and how it impacts taste. We will explain the strategic vision and the differentiated solutions that will drive incremental profitability and growth for this business segment. We are excited to demonstrate how we intend to use our vast ingredient library and expertise along with the capabilities we are building to provide texture solutions that make healthy taste better.

在我們進行問答之前，我想提醒大家，我們計劃在 11 月 14 日舉辦一場激動人心的活動，我們將突出我們的質感和創新領導能力。活動期間，我們的頂尖科學家和烹飪學家將帶領參與者體驗質地的美味之旅以及它如何影響口味。我們將解釋將推動該業務部門增量獲利和成長的策略願景和差異化解決方案。我們很高興能夠展示我們打算如何利用我們龐大的成分庫和專業知識以及我們正在建立的能力來提供質地解決方案，使健康口味變得更好。

Now, let's open the call to questions.

現在，讓我們開始提問。

(Operator Instructions) Ben Theurer, Barclays.

（操作員說明）Ben Theurer，巴克萊銀行。

Hey. Good morning. Jim and Jim, congrats. So just two quick ones actually on my side. So first of all, you obviously have very impressive volume growth, again, in the Texture and Healthful Solutions segment, right? We got 8% last quarter, 11% now but there seems to be a little bit higher down on the price mix. And I wanted -- I was just to understand if you're doing something with your customers to push the volume on the price mix. So is it more price? Or is it more mix? What's driving it? Did you get the very strong volume, but then at the same time, a little more negative on the price mix piece within Texture and Healthful Solutions, just understanding what's been driving it? That would be my first question. And then I have a quick follow-up.

嘿。早安.吉姆和吉姆，恭喜。所以我這邊只有兩個快速的。首先，在質地和健康解決方案領域，您顯然再次取得了非常令人印象深刻的銷售成長，對嗎？上個季度我們獲得了 8%，現在為 11%，但價格組合似乎有所下降。我想——我只是想了解您是否正在與客戶一起做一些事情來提高價格組合的銷售。那麼價格更高嗎？還是更加混合？是什麼在驅動它？您是否獲得了非常強勁的銷量，但與此同時，對紋理和健康解決方案中的價格組合部分更加負面，只是了解是什麼推動了它？這是我的第一個問題。然後我會進行快速跟進。

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

是的。本，謝謝你。我認為我們感覺良好的是，如果我們回到三、四年前我們組成的卓越定價中心，這些中心在通貨膨脹加劇期間為我們提供了很好的服務。這也使我們對與客戶群的關係以及我們想要定位的行銷類別變得非常清晰。我們在消費者和客戶洞察方面投入了大量資金，以預測冰球與消費者購買行為的關係。在通貨膨脹的情況下，我們尋找成長點。

So I would say that we feel fortunate that we are well positioned to grow in those categories and those the end uses that are generating growth. So for example, in this past quarter, we've seen low single-digit volume growth in the Sircanadata across the categories of savory, prepared meals, bakery, and snacks as well as dairy. And our volume growth in these same categories was reflected by our sales in the quarter.

所以我想說，我們感到幸運的是，我們處於有利位置，可以在這些類別和那些正在產生成長的最終用途中實現成長。例如，在過去的這個季度，我們發現 Sircanadata 的鹹味食品、預製食品、烘焙食品、零食以及乳製品類別的銷量增長幅度僅為個位數。我們在這些相同類別中的銷售成長反映在我們本季的銷售額中。

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

但值得注意的是，隨著客戶優化庫存水平，我們正在消化去年的疲軟需求。在歐洲，有證據表明，與去年的經濟挑戰相比，消費者信心變得更加積極。我們相信，隨著專業人士重返工作場所，我們將看到更多的員工流動性，以及對我們銷售的便利產品和外帶產品的需求增加。目前，我們預計這種需求強勁勢頭將持續到今年年底。

Jim, do you want to have any additional comments?

吉姆，您還有什麼意見嗎？

Yeah. I would just highlight, too, that Jim started to kind of know upon more of our differentiated solutions. I would say that the way that those show up in our P&L is that we do sell some ingredients that might be very clean label that have high functionality. They show up at a higher value per ton. And we're selling that volume, that's helping to drive the gross profit dollar growth to some of the products that were in Texture and Healthful Solutions that might be a bit more kind of functional in terms of their week-to-week, month-to-month use. As corn price comes down, it does get passed through and that's what I think you're seeing in terms of the price mix. And so very confident in the profit pool and the growth that we're generating in texture and healthful.

是的。我還要強調的是，吉姆開始了解更多我們的差異化解決方案。我想說的是，這些在我們的損益表中顯示的方式是，我們確實銷售一些可能是具有高功能性的非常清潔標籤的成分。它們每噸的價值更高。我們正在銷售這樣的數量，這有助於推動紋理和健康解決方案中的一些產品的毛利成長，這些產品在每週、每月方面可能更具功能性——按月使用。隨著玉米價格的下跌，它確實會被傳遞，這就是我認為你在價格組合方面看到的情況。因此，我們對利潤池以及我們在結構和健康方面所產生的成長非常有信心。

Okay. Got it. And then just a quick follow-up from a capital allocation point of view, you significantly upped your free cash flow guidance, call it, roughly $300 million-ish, give or take. At the same time, CapEx seems to come in a little bit lower. What's it going to do with the excess cash?

好的。知道了。然後從資本配置的角度進行快速跟進，您顯著提高了自由現金流指導，稱之為大約 3 億美元左右，給予或接受。與此同時，資本支出似乎有所下降。多餘的現金有什麼用呢？

Yeah. Well, fair enough. I think that those are both, I think, beneficial to our overall balance sheet and our financial position. I think most importantly, I understand that we've said this in the past that our capital allocation, we really look at, first, what are those organic investment opportunities. We're going to be very disciplined on the dividend. We have increased it for the 10th year in a row. It does generate excess cash on our balance sheet. We're looking at and are very committed to our share repurchase goal for the year. So we plan to meet or exceed that.

是的。好吧，很公平。我認為這些都有利於我們的整體資產負債表和財務狀況。我認為最重要的是，我知道我們過去曾說過，我們的資本配置，我們首先真正關注的是那些有機投資機會是什麼。我們將在股息方面非常嚴格。我們已連續第十年增加這一數字。它確實在我們的資產負債表上產生了多餘的現金。我們正在考慮並非常致力於實現今年的股票回購目標。所以我們計劃要達到或超過這個目標。

And then yeah, I think also that there has to be a bit of timing involved. It can't necessarily just be every quarter. There are opportunities in front of us, both organic investments as well as we're always looking at M&A. And I think that we have to look at what we have done as a team to deliver results for shareholders. And just note that when cash flow was against us, like in, say, 2022, corn was going up, and we had a significant investment in working capital. Since then, if you look back over the last two and three quarters years, we've delivered 50% TSR. So, I think that now that we just have a bit of a surplus of cash flow because working capital is a little bit favorable that's a temporary. Our business invests in working capital, and so we'll invest that cash very wisely.

是的，我認為還必須涉及一些時間安排。不一定每季都如此。我們面前有機會，包括有機投資以及我們一直在考慮的併購。我認為我們必須審視我們作為一個團隊所做的工作，為股東帶來成果。請注意，當現金流對我們不利時，例如 2022 年，玉米價格上漲，而我們在營運資本方面進行了大量投資。從那時起，如果你回顧過去兩個和三個季度，我們已經實現了 50% 的股東總回報率。所以，我認為現在我們只是有一點現金流過剩，因為營運資金有點有利，這是暫時的。我們的業務投資於營運資金，因此我們將非常明智地投資這些現金。

And Ben, I just think to address the capital investment phasing aspects of your question, I think it's just a reminder that we have spent the most historically of our capital investment for projects in the fourth quarter. And our teams have many projects underway, and we anticipate we will invest a significant amount of capital into our growth and the reliability of our manufacturing assets and it's natural from a phasing standpoint to incur some delays from equipment suppliers and the availability of local skilled labor to complete projects on time. And that can impact the timing of the spend one year to the next. But we do anticipate getting close, I guess, to our full year target despite being at 170 through the first three quarters on capital spend.

本，我只是想解決你問題的資本投資分階段問題，我認為這只是提醒我們，我們在第四季度的項目上花費了歷史上最多的資本投資。我們的團隊有許多專案正在進行中，我們預計我們將投入大量資金用於我們的成長和製造資產的可靠性，從分階段的角度來看，設備供應商和當地熟練勞動力的可用性造成一些延誤是很自然的按時完成項目。這可能會影響下一年的支出時間。但我認為，儘管前三個季度的資本支出為 170，但我們確實預計會接近全年目標。

Okay. Perfect. Thanks again and congrats.

好的。完美的。再次感謝並恭喜。

Thank you.

謝謝。

Kristen Owen, Oppenheimer.

克里斯汀歐文，奧本海默。

Hi. Good morning. Thank you for taking my question, and congratulations on the nice results.

你好。早安.感謝您提出我的問題，並祝賀您取得了良好的結果。

Thank you, Kristen.

謝謝你，克里斯汀。

Good morning, Kristen.

早安，克里斯汀。

Good morning. Hoping we could start with the demand question. You noted the improved European consumer behavior that's been sort of a lackluster performer for the entire sector year-to-date. So I'm wondering if you can double-click on that. Help us understand what's driving the volume growth? Is it lack of destock? Or are we seeing some real green shoots in that region?

早安.希望我們能從需求問題開始。您注意到歐洲消費者行為有所改善，但今年迄今整個產業的表現卻乏善可陳。所以我想知道你是否可以雙擊它。幫助我們了解是什麼推動了銷售成長？是不是去庫存不足？或者我們在該地區看到了一些真正的萌芽嗎？

Yeah. I think that the first thing to highlight is that against the prior year quarter, we are lapping a softer quarter. So I think that that's important to put in perspective, just as I highlighted in relationship to the US situation as well. That all being said, it does appear that the European consumer is more mobile and is spending more in relationship to convenience type offerings. And that's one of the outlets that we've deciphered back to the customer base and where we think we're doing well. That's basically how I would summarize it.

是的。我認為首先要強調的是，與去年同期相比，我們正在經歷一個疲軟的季度。因此，我認為正確看待這一點很重要，正如我在與美國局勢的關係中所強調的那樣。綜上所述，歐洲消費者的移動性似乎更強，在便利型產品方面的支出也更多。這是我們向客戶群解讀的管道之一，我們認為我們做得很好。我基本上就是這樣總結的。

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

好的。謝謝你。也許只是快速跟進。庫存水平，如果您可以評論一下您如何看待那裡的渠道庫存。我們真的還處於這個階段，因為比較容易而有一點成長嗎？或是您在頻道中看到有補貨嗎？

Yeah. I don't -- I'm not necessarily seeing necessarily the restocking is driving the sales volume growth. I think that there was a surplus of inventories in some of our packaged foods and some of our private label customers within both the UK as well as Europe they just -- they had to get rid of those inventories. That's what they used during 2023.

是的。我不認為－我不一定認為補貨一定會推動銷售成長。我認為我們的一些包裝食品和我們在英國和歐洲的一些自有品牌客戶的庫存過剩，他們必須擺脫這些庫存。這就是他們在 2023 年使用的。

I don't think that they ever really pressed their inventories down to a level where like they were really trying to manage cash flows. I think what we're seeing is just a nice steady demand pickup as both, as Jim alluded to, there's greater consumer mobility, a little bit more takeaway kind of lunch and breakfast activity, as well as just the kind of that overall need for convenience, I think, is really driving some of the demand we've seen in our customers.

我認為他們從未真正將庫存壓低到他們真正試圖管理現金流的水平。我認為我們看到的是需求的穩定回升，正如吉姆所提到的那樣，消費者的流動性更大，外帶午餐和早餐活動更多，以及整體需求的增加。的一些需求。

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

是的。我認為，從宏觀層面來看，全球範圍內不會有人擔心以超出任何典型水平的安全庫存來重建庫存。如果有什麼不同的話，那就是我們對前景採取了謹慎的態度，因為這關係到客戶從現在到年底如何管理庫存，當你進入新的一年的合約時，情況總是如此。因此，我們沒有看到任何強大的管道再填充或補貨的情況。

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

是的。需求非常穩定。利用率上升。是的。

Thank you for that clarification. I did have one follow-up question just on the COGS side, some nice improvement in the gross margin here. I'm just wondering if you can help us unpack -- how much of that is the improved volume backdrop versus you're continuing to roll off that high cost for?

謝謝你的澄清。我確實有一個關於銷貨成本的後續問題，這裡的毛利率有了一些不錯的改善。我只是想知道你是否可以幫助我們解開——與你繼續降低高成本相比，其中有多少是改進的銷售背景？

Yeah. I think that obviously, we've re-negotiated the multiyear contracts, which we referred to, and that enabled us to recover the margins and the costs that we had absorbed over the last couple of years. And that has helped us in the Food and Industrial Ingredients segments. Clearly, there is a benefit from the reduction in raw material input costs.

是的。我認為顯然，我們已經重新談判了我們提到的多年期合同，這使我們能夠收回過去幾年吸收的利潤和成本。這對我們在食品和工業原料領域的發展很有幫助。顯然，原料投入成本的降低是有好處的。

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

這是與客戶分享的。但我想說，看，這也是——我的意思是我們去年註意到產量——產量下降了，這造成了固定成本吸收的逆風，因為我們特別看到紋理和產量的回升。 ，我們受益於這些資產更好的固定成本吸收，這確實推動了我們更好的業績，對嗎？我們確實管理得很好。

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

就是這三件事。這是定價。這是成本，是質地和健康解決方案的組合和數量以及固定成本吸收。

Thank you.

謝謝。

Ben Mayhew, BMO Capital Markets.

Ben Mayhew，BMO 資本市場。

Hey, guys. Good morning and thank you for taking the question. So industry sources suggest that 2025 sweetener contracting is tracking better than buyers maybe initially expected. So what is your visibility on contracting so far? And do you foresee a chance that pricing could be up modestly? And I have another question.

嘿，夥計們。早上好，感謝您提出問題。因此，產業消息人士表示，2025 年甜味劑合約的進展可能比買家最初預期的要好。那麼到目前為止，您對簽約的了解程度如何？您預計價格有可能小幅上漲嗎？我還有另一個問題。

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

本，我可以澄清一下你的問題嗎？你說追蹤情況比買家預期的好？

Yeah. Sorry, then sellers expect it.

是的。抱歉，那麼賣家就期待它。

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

比賣家預期的還要好。好的。嗯，我們想說的是，收縮的速度似乎比去年慢。我認為，這可能是由於玉米價值同比變化不大。

But just a reminder, in relationship to contracting for 2025 and really, for that matter, for any year when we're at this point of the year, that approximately 50% of our revenue dollars in North America comes from fee contracts or should I say, US, Canada primarily from fee contracts that reprice monthly with corn cost inputs from our customers. We anticipate some pass-through of lower corn costs in 2025 if the markets remain with a similar outlook as today.

但只是提醒一下，就2025 年的合約而言，實際上，就這一點而言，對於任何一年，當我們處於一年中的這個時候，我們在北美的收入中大約50% 來自費用合同，或者我應該例如，美國、加拿大主要來自費用合同，這些合約每月根據客戶的玉米成本投入重新定價。如果市場前景保持與目前類似的前景，我們預計 2025 年玉米成本下降將會有所傳導。

But Jim mentioned earlier the fact industry capacity utilization has also lifted up a couple -- a few percentage points as well, which has kind of tightened up overall supply-demand. And we believe that our experienced commercial teams and our pricing centers of excellence are well prepared to manage pricing and volume trade-offs thoughtfully in response to customer demand and the competitive market conditions.

但吉姆早些時候提到，產業產能利用率也提高了幾個百分點，這在一定程度上收緊了整體供需。我們相信，我們經驗豐富的商業團隊和卓越的定價中心已做好充分準備，可以根據客戶需求和競爭激烈的市場條件，周到地管理定價和銷售權衡。

And I guess, although raw material and input cost inflation has moderated, the wet milling industry is a high capital-intensive industry and needs to earn a fair return. So that's all yet to play itself fully out. So that's kind of how I would summarize where we're at right now with contracting. It is still early, Ben. It is early.

我認為，儘管原料和投入成本通膨已經放緩，但濕磨產業是一個資本密集產業，需要獲得公平的回報。所以這一切還沒有完全發揮出來。這就是我對我們目前合約狀況的總結。現在還早，本。現在還早。

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

但我想說的是，我們看到行業研磨利用率逐年上升，因此這始終是一個很好的背景。

Yeah. Thank you. That's very helpful. And my second question is around M&A. So you previously talked to kind of focusing more on more like bolt-on type acquisitions, call it, under $400 million. But given your healthy cash balance, would you consider -- or are you starting to consider more transformative type acquisitions. Fully understanding that, that would have to probably be outside of the US. Thanks.

是的。謝謝。這非常有幫助。我的第二個問題是關於併購的。因此，您之前談到更多關注類似補強型收購的情況，稱之為 4 億美元以下的收購。但考慮到您健康的現金餘額，您是否會考慮——或者您是否開始考慮更具變革性的收購。要完全理解這一點，那可能必須在美國境外。謝謝。

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

嘿，本。我認為正如我們一直所說的那樣，我們廣泛地考慮併購前景，對吧。因此，雖然華爾街的特點可能是“塞進去”，但我們會關注能夠提高我們的能力和市場地位的收購，特別是在紋理和健康解決方案方面。我們始終會採取嚴格的方法來解決這個問題。我們將首先關注 Ingredion 股東的回報是什麼。

And that, I think, guides us. I think in terms of maybe market opportunities, Jim, I --

我認為這可以指導我們。我認為就市場機會而言，吉姆，我--

Well, I think that one of the things we feel very clear-minded about is the strategic direction of a company because of the enterprise-wide strategy refresh work we did all of last year and then the activation of that strategy with our winning aspiration, which is to be the go-to provider for Texture and Healthful Solutions that make healthy taste better. That is what is uniting the company going forward. And that will shape the M&A approach that we take. And anything that we can do to enhance the value propositions inherent in that strategy is what we're looking at. And I would say that we're always actively managing a pipeline of M&A opportunities across the spectrum of size.

嗯，我認為我們感到非常清晰的一件事是公司的戰略方向，因為我們去年全年都做了全企業的戰略更新工作，然後以我們獲勝的願望激活了該戰略，我們將成為質感和健康解決方案的首選提供者，讓健康的味道變得更好。這就是公司團結一致前進的動力。這將塑造我們採取的併購方法。我們正在考慮採取任何措施來增強該策略固有的價值主張。我想說的是，我們一直在積極管理各種規模的併購機會。

But I would say that what we want to buy is we want to buy revenue. We want to buy profit, and we want to buy talent and capabilities that are going to complement that winning aspiration culture and obviously, cultural fit as well. So -- but that's what we're looking to do to. We're encouraged to expand growth. And honestly, I think the landscape is fertile with some opportunities out there. So we're actively working those.

但我想說的是，我們想買的是我們想要買收入。我們想要購買利潤，我們想要購買人才和能力，這些人才和能力將補充獲勝的渴望文化，顯然還有文化契合度。所以——但這就是我們想要做的。我們受到鼓勵擴大成長。老實說，我認為這個領域充滿了機會。所以我們正在積極地進行這些工作。

Thanks a lot, guys. That makes total sense. And congratulations on strong results. I'll hop back in the queue.

非常感謝，夥計們。這完全有道理。恭喜您取得了優異的成績。我會跳回到隊列中。

Thank you.

謝謝。

Thank you, Ben.

謝謝你，本。

Josh Spector, UBS.

喬許‧斯佩克特，瑞銀集團。

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

你好。早安.我想我想問的第一件事是，您可能會以不同的方式提出這個問題，但具體而言，當您查看過去幾個季度時，您會說盈利改善有多少是結構性的？這就是 Ingredion 今天的獲利能力，你已經回收了玉米，你的利用率更高。讓我先到此為止並了解您的想法。

I think -- let me take a shot at it and let Jim kind of complement. I think that what we're seeing, what we're feeling in relationship to our performance over the last number of quarters is the result of our operating model in support of the new segment structure. So the decision to move to the new business segment structure, which followed the enterprise-wide strategy refresh work that was done company-wide in 2023, as you would expect, has brought additional clarity and focus within those segments to their customer base, to their raw material base, to the need to reduce earnings volatility within each one of those segments. And we're absolutely getting benefit from the dedicated focus and leadership from the clarify segment work that we did.

我想——讓我嘗試一下，讓吉姆補充一下。我認為我們所看到的、我們所感受到的與過去幾季的業績相關的結果是我們支持新的細分市場結構的營運模式的結果。因此，正如您所期望的那樣，在2023 年在全公司範圍內完成的企業範圍策略更新工作之後，決定轉向新的業務部門結構，這為這些部門的客戶群帶來了更多的清晰度和重點，他們的原料基礎，需要減少每個細分市場的收益波動。我們絕對從我們所做的澄清細分工作中的專注和領導中受益。

But what I don't think has been fully appreciated and what we're also recognizing is overlaying all of that is a global operating model that we began to put the foundation together with about three to four years ago. And the benefits of that, that's always a work in progress. It leads to an awful lot of productive tension internally from a standpoint of where roles and responsibilities accountabilities lie. But we're through the tough part of all of that.

但我認為還沒有得到充分的重視，我們也認識到涵蓋所有這些的是我們大約三、四年前開始奠定基礎的全球營運模式。這樣做的好處是，這始終是一項正在進行的工作。從角色和責任的角度來看，這會導致內部產生巨大的生產性緊張。但我們已經度過了這一切的艱難部分。

And example are operations and supply chain team, we have moved from internal metrics with customers that used to be delivered in full on time to now perfect order, which is a higher standard of delivery, and we're at well over 90% perfect order and our Net Promoter Scores are showing that. Our procurement teams have been continuously finding opportunities to optimize. We're scheduled to hold our first Procurement Supplier Day next year, something we never would have thought of or conceived of back two, three, four years ago.

以營運和供應鏈團隊為例，我們已經從過去按時完全交付客戶的內部指標轉變為現在的完美訂單，這是更高的交付標準，我們的完美訂單率遠遠超過 90%我們的淨推薦值表明了這一點。我們的採購團隊一直在不斷尋找優化機會。我們計劃明年舉辦第一個採購供應商日，這是我們在兩、三、四年前從未想到或構思的。

So there's a maturity aspect and Jim certainly can comment on shared services. And the work that is going on there and how we've evolved that. And so I think there's structural cost savings that are coming about from the global operating model across all aspects of global -- what we call global business services, and Jim can comment on that. But I think we're in the early innings of the benefits coming from the resegmentation. We kind of highlighted some of that. And that's coming from that laser-like focus, I think that these now more global or multi-regional segments are bringing and the accountabilities that the management is feeling with the line of sight to their customer base.

所以這是一個成熟度方面，吉姆當然可以對共享服務發表評論。以及那裡正在進行的工作以及我們如何發展它。因此，我認為全球營運模式在全球各個方面都帶來了結構性成本節約——我們稱之為全球商業服務，吉姆可以對此發表評論。但我認為我們正處於重新細分帶來的好處的早期階段。我們強調了其中的一些。這來自於雷射般的關注，我認為現在這些更全球化或多區域的細分市場正在帶來管理階層在客戶群的視線中所感受到的責任。

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

抱歉有點囉嗦，但這是一個很好的問題。坦白說，我們自己正在做一些單獨的搜尋和反思，因為我們感到驚訝、高興，但儘管如此，還是試圖確保我們清楚地理解它。但我們對多個級別的性能感到滿意。

Josh, I would add that when we look at our food and industrial ingredient types of businesses, there's a cadence in the business that we've tightened, right? So it's around how is the raw material cost changing? How do we implement our pricing and our contracting, how does that reflect against expanded hedging and then just running the assets at a reasonably good utilization. So that is helping support the higher op income margins that we're seeing both in our US/CAN F&I business as well as in our LATAM F&I business.

喬什，我想補充一點，當我們審視我們的食品和工業原料類型的業務時，我們已經收緊了業務節奏，對嗎？那麼原材料成本是如何變動的呢？我們如何實施我們的定價和合同，這如何反映擴大的對沖，然後以合理的良好利用率運行資產。因此，這有助於支持我們在美國/加拿大 F&I 業務以及拉丁美洲 F&I 業務中看到的更高的營運收入利潤率。

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

我認為，關於我們的質地和健康解決方案，我認為吉姆提到的結構改進仍然處於早期階段，這實際上是圍繞著我們可以為客戶提供哪些產品和哪些解決方案，並認識到我們的工作做得更好。所以我想還沒到那裡。

Really helpful. I appreciate all those comments. I guess I did want to follow up that. Earlier in the call, you talked about a balance of pricing with volume growth to deliver year-on-year growth next year. I think your comments earlier on contracting seem somewhat optimistic there. So I don't know if that comment is geared just with concerns on what demand growth looks like or if there's increased competition elsewhere but how do you see that balance playing out for you?

真的很有幫助。我感謝所有這些評論。我想我確實想跟進。在電話會議的早些時候，您談到了定價與銷售成長的平衡，以實現明年的同比增長。我認為您之前關於合約的評論似乎有些樂觀。因此，我不知道該評論是否只是出於對需求成長的擔憂，或者其他地方的競爭是否加劇，但您如何看待這種平衡？

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

是的，並不是要迴避，我只是認為現在還為時過早，但仍處於過程中。我們對今年結束時的勢頭感到滿意，除了 12 月客戶進行的正常營運資金管理之外，沒有其他感覺。玉米有一點波動--

Reasonably affordable.

價格合理。

Yeah.

是的。

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

總的來說，我認為，全球一些主要國家的 GDP 有所改善，如果我可以概括為全球利率環境軟化，這通常有利於需求，這就是我們看到的行業利用率逐年增加。

Yeah, then interest rates are remaining elevated. So I think that --

是的，那麼利率仍然很高。所以我認為--

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

但當它們下降時，我們可能會看到一些針對 GDP 成長的管理措施。

Okay. I'll leave it there. Thank you.

好的。我會把它留在那裡。謝謝。

Heather Jones, Heather Jones Research.

希瑟瓊斯，希瑟瓊斯研究。

Good morning. Congratulations on the quarter.

早安.恭喜本季。

Thank you, Heather.

謝謝你，希瑟。

Hey, Heather.

嘿，希瑟。

Hi. I wouldn’t normally start with this because -- but this year, your financing costs have been very volatile given what's been going on with currency and down almost $100 million -- not $100 million, almost $50 million from original guidance. So just -- this is a big if, but if currencies were stable from here on out, which is unlikely, but if they were, how should I be thinking about net financing costs for '25?

你好。我通常不會以此開始，因為- 但今年，考慮到貨幣的變化，你的融資成本非常不穩定，下降了近1 億美元- 不是1 億美元，而是比最初的指導值低了5000 萬美元。所以，這是一個很大的假設，但如果貨幣從現在開始保持穩定，這是不太可能的，但如果是這樣，我應該如何考慮 25 年的淨融資成本？

Yeah. I think we've had some FX gain which is offset or lowered our financing costs. I want to say we're about $9 million to $10 million year-to-date, favorable. I can follow up with you on that. But that's generally, if I think about what's happened in the quarters.

是的。我認為我們獲得了一些外匯收益，這抵消或降低了我們的融資成本。我想說的是，今年迄今為止我們的收入約為 900 萬至 1000 萬美元，這是有利的。我可以跟進此事。但如果我考慮一下各季度發生的事情，這就是一般情況。

I think the other really unanticipated piece, Heather, was that the lower cost passing through our working capital, we just didn't have to invest in working capital this year. In fact, it's been a bit of the reverse. It's been a source of cash. It's allowed us to pay off or pay down any kind of short-term lines of credit. We're not carrying any CP and obviously, short-term rates have been in the 4% to 5%. So instead now we have some cash balances, and we're earning some interest income. So that's -- I think that's really been the two big drivers of the expectation for financing costs for the full year.

我認為另一個真正意想不到的部分，希瑟，是透過我們的營運資金的成本較低，我們今年不必投資營運資金。事實上，情況有點相反。它一直是現金來源。它使我們能夠償還或償還任何類型的短期信用額度。我們沒有任何 CP，顯然，短期利率一直在 4% 到 5% 之間。所以現在我們有一些現金餘額，我們正在賺取一些利息收入。所以我認為這確實是全年融資成本預期的兩大驅動因素。

Okay. Perfect. Thank you for that. And then on the protein fortification business. So I think, if I remember correctly, you guys were reducing your losses there by roughly a third this year. Is it fair to think that you could reduce it by a similar amount going into '25? Or how are you all thinking about that?

好的。完美的。謝謝你。然後是蛋白質強化業務。所以我想，如果我沒記錯的話，今年你們的損失減少了大約三分之一。進入 25 年後，您可以將其減少類似的數量，這公平嗎？或者說大家對此有何看法？

Yeah. That's exactly how we're thinking about it. We've had those internal discussions, obviously, as we're putting our budgets together for next year. And again, just a reminder, protein fortification is within the -- all other category. And that group does consist of our protein fortification or sugar reduction and our Pakistan business of which we have a 71% stake and Pakistan, and sugar reduction are generating positive operating income and they're growing, and they will continue to contribute positively. But protein fortification is loss-making, but we have been actively working a turnaround plan to steadily improve the health of that trend operating unit over the next one to three years.

是的。這正是我們的想法。顯然，在我們制定明年的預算時，我們已經進行了這些內部討論。再次提醒一下，蛋白質強化屬於所有其他類別。該集團確實包括我們的蛋白質強化或減糖業務以及我們擁有 71% 股份的巴基斯坦業務，而巴基斯坦和減糖業務正在產生積極的營業收入，而且它們正在成長，它們將繼續做出積極貢獻。但蛋白質強化是虧損的，但我們一直在積極制定週轉計劃，以在未來一到三年內穩步改善該趨勢營運部門的健康狀況。

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

今年，我們預計營業收入將較去年同期顯著改善。按比例來說，我們估計明年我們應該會看到同樣數量級的改善，這是基於我們實際上已經在明年為這個相對較小的細分市場簽訂的業務合同，但因為它是虧損的，所以值得強調，我很欣賞這個問題。所以謝謝你。

Yes. So when you're thinking about that improvement in '25, is it similar for the Canadian and US assets? Or is one of those benefiting more? Because I know I can't remember the magnitude, but there was antidumping duties put on Chinese imports. So are you seeing more of the improvement in the US assets? Or how should I think about that?

是的。那麼，當您考慮 25 年的改善時，加拿大和美國資產的情況是否相似？還是其中之一受益更多？因為我知道我不記得具體的幅度，但對中國進口產品徵收了反傾銷稅。那麼您是否看到美國資產有更多改善？或者說我該如何思考這個問題？

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

是的。我想說的是，我的評論是基於整個蛋白質強化業務運營部門，而更高價值或豌豆分離蛋白業務是目前正在進行改進的業務，這就是我的評論主要基於與此相關的內容今年營業收入的改善與我們明年的預期成正比。

Okay. All right. Thank you so much.

好的。好的。太感謝了。

Thank you.

謝謝。

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

謝謝。我目前沒有提出任何進一步的問題。現在我將把它轉回給吉姆·扎利（Jim Zallie）作結束語。

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

好的。好的，謝謝大家今天早上加入我們。我們期待下週四在新澤西州布里奇沃特即將舉行的紋理創新日見到你們。我要感謝您對 Ingredion 的持續關注。

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

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。