Company: NGVT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001653477-25-000091
Chunk: 98

Company: Ingevity Corp
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 number of assumptions and risks, and actual results may differ materially. We may also incur other material charges not currently contemplated due to events that may occur as a result of, or in connection with, these actions.

30

Results of Operations

Three Months Ended March 31,In millions20252024Net sales$284.0 $340.1 Cost of sales170.6 240.4 Gross profit113.4 99.7 Selling, general, and administrative expenses43.1 47.2 Research and technical expenses7.7 6.8 Restructuring and other (income) charges, net12.3 62.8 Acquisition-related costs— 0.3 Other (income) expense, net4.1 32.2 Interest expense, net19.4 22.3 Income (loss) before income taxes26.8 (71.9)Provision (benefit) for income taxes6.3 (15.9)Net income (loss)$20.5 $(56.0)

Q1 2025 Performance Summary

The Net sales decrease was driven primarily by the Performance Chemicals industrial specialties product line due to repositioning actions which included the focus on reducing exposure to lower margin end-use markets and therefore reduced sales during the quarter by approximately $37 million. Also contributing to the lower sales was continued weakness in certain industrial end markets that negatively impacted sales in our industrial specialties product line and our Advanced Polymer Technologies reportable segment, slightly offset by an increase in our Performance Materials reportable segment.

Net sales

The table below shows the 2025 Net sales and variances from 2024:Change vs. prior yearIn millionsPrior year Net salesVolumePrice/MixCurrency effectCurrent year Net SalesThree months ended March 31, 2025 vs. 2024$340.1 (55.4)— (0.7)$284.0 

Three Months Ended March 31, 2025 vs. 2024

The Net sales decrease of $56.1 million in 2025 was driven by volume decline of $55.4 million (16 percent), and unfavorable foreign currency exchange of $0.7 million (zero percent).

Gross Profit 

Three Months Ended March 31, 2025 vs. 2024

Gross profit increase of $13.7 million was driven primarily by decreased manufacturing costs of $18.1 million, LIFO