Ingredion Incorporated ( INGR ) reported first-quarter adjusted earnings per share of $2.08, beating the Wall Street view of $2.06. The company reported quarterly sales of $1.882 billion, missing the analyst consensus of $2.011 billion.

Revenues slumped 12% from the year-ago period, driven by both price mix and volume declines, partially offset by foreign exchange impacts. 

In a bid to reshape the portfolio and redeploy assets, the company said it completed the sale of South Korean business. The impact of the South Korea divestiture resulted in a $51 million decrease in sales volume for the period.

“We maintained our gross margins above 22% as the strength of our business model effectively managed the impact of variable rate contracts which require the pass through of lower corn costs,” said Jim Zallie, Ingredion’s president and chief executive officer.

First quarter adjusted operating income was $216 million, down 27% year over year, driven by downtime associated with cold weather, hyperinflation in Argentina, and the carry-forward of higher cost inventory.

“We anticipate deploying cash this year toward organic investments, dividends, and a step-up in share repurchases,” Zallie concluded.

On March 31, total debt and cash, including short-term investments, were $1.9 billion and $445 million, respectively.

Outlook: The company expects FY24 adjusted EPS of $9.20-$9.85 versus the $9.66 estimate (prior view: $9.15-$9.85). Excluding the effects of the divestiture of the South Korean business, the company expects full-year 2024 net sales to be flat to up low single-digits, reflecting the pass-through of lower corn values.

For the second quarter of 2024, the company expects net sales to be flat to down low single-digits and reported and adjusted operating income to be up low to mid-single-digits.

Price Action: INGR shares are trading higher by 0.97% to $117.70 at last check Wednesday.