Company: NGVT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001653477-25-000015
Chunk: 810

Company: Ingevity Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 4
Chunk 810
---
 November 2023, was focused on reducing exposure to lower margin end-use markets of our industrial specialties product line, such as adhesives, publication inks, and oilfield. Sales into these end-use markets represented approximately 45 percent of our industrial specialties product line historical annualized net sales. As a result of this initiative, we expect to realize savings of approximately $95 million to $110 million. These cash savings are derived from headcount reductions, plant operating efficiencies, and reduced supply chain costs. During the year ended December 31, 2024, we realized cash savings of approximately $84.0 million, including $68.0 million in Cost of sales, $12.0 million in Selling, general, and administrative expenses, and $4.0 million in Research and technical expenses, respectively. Collectively, these savings are realized in the following financial statement captions: 70-80 percent in Cost of sales, 15-25 percent in Selling, general, and administrative expenses, and ~5 percent in Research and technical expenses, all presented on our consolidated statements of operations. We expect to realize the remaining savings in 2025.

In addition to the cash savings, we expect to realize approximately $15 million to $17 million in depreciation and intangible amortization expenses, respectively. During the year ended December 31, 2024, we realized savings of approximately $10 million. We expect to realize the remaining savings in 2025. 

The charges we currently expect to incur and the savings we expect to obtain in connection with these actions are subject to a 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 OperationsYears Ended December 31,In millions202420232022Net sales$1,406.4 $1,692.1 $1,668.3 Cost of sales951.7 1,220.2 1,098.2 Gross profit454.7 471.9 570.1 Selling, general, and administrative expenses166.7 183.7 198.8 Research and technical expenses28.1 31.8 30.3 Restructuring and other (income) charges, net186.2 170.2 13.8 Goodwill impairment charge349.1 — — Acquisition-related costs