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Sensient Technologies Corporation Reports Results for the Quarter Ended September 30, 2024

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Sensient Technologies (NYSE: SXT) reported strong Q3 2024 financial results with revenue increasing 7.9% to $392.6 million. Operating income rose 13.4% to $50.5 million, while diluted earnings per share grew 2.7% to 77 cents. The company saw growth across all segments: Flavors & Extracts revenue increased 6.4% to $203.3 million, Color Group revenue grew 11.8% to $162.1 million, and Asia Pacific revenue rose 13.6% to $41.8 million. The company maintains its 2024 outlook, expecting high single-digit revenue growth and mid-single-digit adjusted diluted EPS growth.

Sensient Technologies (NYSE: SXT) ha riportato risultati finanziari forti per il terzo trimestre del 2024, con un aumento del fatturato del 7,9% a 392,6 milioni di dollari. L’utile operativo è cresciuto del 13,4% a 50,5 milioni di dollari, mentre l'utile per azione diluito è aumentato del 2,7% a 77 centesimi. L’azienda ha registrato crescita in tutti i segmenti: il fatturato di Flavors & Extracts è aumentato del 6,4% a 203,3 milioni di dollari, il fatturato del Color Group è cresciuto dell'11,8% a 162,1 milioni di dollari e il fatturato della regione Asia-Pacifico è aumentato del 13,6% a 41,8 milioni di dollari. L’azienda mantiene le previsioni per il 2024, anticipando una crescita del fatturato in cifre alte a una sola cifra e una crescita dell'utile per azione diluito rettificato in cifre medie a una sola cifra.

Sensient Technologies (NYSE: SXT) reportó sólidos resultados financieros en el tercer trimestre de 2024, con un aumento de los ingresos del 7,9% a 392,6 millones de dólares. El ingreso operativo creció un 13,4% a 50,5 millones de dólares, mientras que las ganancias por acción diluidas aumentaron un 2,7% a 77 centavos. La compañía experimentó crecimiento en todos los segmentos: los ingresos de Flavors & Extracts aumentaron un 6,4% a 203,3 millones de dólares, los ingresos del Color Group crecieron un 11,8% a 162,1 millones de dólares, y los ingresos de Asia-Pacífico aumentaron un 13,6% a 41,8 millones de dólares. La empresa mantiene sus perspectivas para 2024, esperando un crecimiento en los ingresos de un dígito alto y un crecimiento de las ganancias por acción diluidas ajustadas de un dígito medio.

센시언트 테크놀로지스 (NYSE: SXT)는 2024년 3분기에 강력한 재무 실적을 보고하며, 매출이 7.9% 증가한 3억9260만 달러에 달했습니다. 운영 소득은 13.4% 증가해 5050만 달러에 이르렀고, 희석 주당 순이익은 2.7% 증가하여 77센트에 달했습니다. 회사는 모든 부문에서 성장을 보였으며, Flavors & Extracts의 매출은 6.4% 증가하여 2억330만 달러에, Color Group의 매출은 11.8% 증가하여 1억6210만 달러, 아시아-태평양 지역의 매출은 13.6% 증가하여 4180만 달러에 도달했습니다. 회사는 2024년 전망을 유지하고 있으며, 높은 한 자릿수 매출 성장을 기대하고, 중간 한 자릿수 조정 희석 EPS 성장을 예상하고 있습니다.

Sensient Technologies (NYSE: SXT) a révélé de solides résultats financiers pour le troisième trimestre 2024, avec une augmentation du chiffre d'affaires de 7,9% pour atteindre 392,6 millions de dollars. Le résultat opérationnel a augmenté de 13,4% pour atteindre 50,5 millions de dollars, tandis que le bénéfice net par action dilué a crû de 2,7% pour atteindre 77 cents. La société a connu une croissance dans tous les segments : le chiffre d'affaires de Flavors & Extracts a augmenté de 6,4% pour atteindre 203,3 millions de dollars, celui du Color Group a crû de 11,8% pour atteindre 162,1 millions de dollars et les revenus de la région Asie-Pacifique ont augmenté de 13,6% pour atteindre 41,8 millions de dollars. L'entreprise maintient ses prévisions pour 2024, s'attendant à une croissance des revenus à un chiffre élevé et à une croissance du bénéfice par action dilué ajusté à un chiffre moyen.

Sensient Technologies (NYSE: SXT) berichtete über starke Finanzdaten für das dritte Quartal 2024, mit einem Umsatzanstieg von 7,9% auf 392,6 Millionen US-Dollar. Das Betriebsergebnis stieg um 13,4% auf 50,5 Millionen US-Dollar, während der verwässerte Gewinn pro Aktie um 2,7% auf 77 Cent wuchs. Das Unternehmen verzeichnete in allen Segmenten Wachstum: Der Umsatz im Bereich Flavors & Extracts stieg um 6,4% auf 203,3 Millionen US-Dollar, der Umsatz der Color Group wuchs um 11,8% auf 162,1 Millionen US-Dollar, und der Umsatz in der Region Asien-Pazifik stieg um 13,6% auf 41,8 Millionen US-Dollar. Das Unternehmen hält an seiner Prognose für 2024 fest und erwartet ein hohes einstelliges Umsatzwachstum sowie ein mittleres einstelliges Wachstum des bereinigten verwässerten EPS.

Positive
  • Revenue increased 7.9% to $392.6 million
  • Operating income grew 13.4% to $50.5 million
  • Color Group revenue increased 11.8% with operating income up 30%
  • All business segments showed volume growth and improved pricing
  • Company maintains positive guidance for 2024
Negative
  • Corporate & Other operating expenses increased from $9.6M to $14.5M
  • $1.2M costs related to Portfolio Optimization Plan
  • Diluted EPS growth of 2.7% lagged behind revenue and operating income growth

Insights

Sensient Technologies delivered a strong third quarter with notable growth across all segments. $392.6M revenue represents a 7.9% YoY increase, while operating income grew 13.4% to $50.5M. Key highlights include the Color Group's exceptional performance with 30% operating income growth and 11.8% revenue increase.

The company's improved guidance for local currency revenue to high single-digit growth from previous mid-to-high single-digit shows increasing confidence in market conditions. Strong volume growth across segments and successful pricing strategies have contributed to margin expansion. The $1.2M Portfolio Optimization Plan costs indicate continued focus on operational efficiency.

Market dynamics in food, pharmaceutical and personal care sectors are driving Sensient's growth. The Color Group's outstanding performance reflects increasing demand for natural colorants and specialized solutions. Asia Pacific's 13.6% revenue growth indicates strong market penetration in emerging markets.

The company's ability to implement pricing actions while maintaining volume growth suggests strong market positioning and product differentiation. The updated guidance reflects resilient end-market demand and successful execution of growth strategies, particularly in high-value segments.

MILWAUKEE--(BUSINESS WIRE)-- Sensient Technologies Corporation (NYSE: SXT), a leading provider of flavors and colors for the food, pharmaceutical, and personal care markets, today reported financial results for the third quarter ended September 30, 2024.

Third Quarter Consolidated Results

  • Reported revenue increased 7.9% to $392.6 million in the third quarter of 2024 versus last year’s third quarter results of $363.8 million. On a local currency basis(1), revenue increased 8.6%.
  • Reported operating income increased 13.4% to $50.5 million compared to $44.5 million recorded in the third quarter of 2023. In the third quarter of 2024, the Company recorded $1.2 million of costs related to its Portfolio Optimization Plan. Local currency adjusted operating income(1) and local currency adjusted EBITDA(1) increased 17.1% and 12.8%, respectively, in the third quarter.
  • Reported diluted earnings per share increased 2.7% to 77 cents in the third quarter of 2024 compared to 75 cents in the third quarter of 2023. Local currency adjusted diluted EPS(1) increased 8.0% to 80 cents in the third quarter.

“I am pleased with our results this quarter and remain confident that our solid performance and volume growth will allow the Company to achieve our 2024 guidance,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.

Third Quarter Group Results

Reported Local Currency(1)
Revenue Quarter Year-to-Date Quarter Year-to-Date
Flavors & Extracts

6.4%

 

8.5%

 

6.8%

 

8.3%

Color

11.8%

 

5.0%

 

13.0%

 

5.2%

Asia Pacific

13.6%

 

6.9%

 

13.4%

 

9.4%

Total Revenue

7.9%

 

6.7%

 

8.6%

 

6.9%

 

 

 

 

 

 

 

Reported

 

Adjusted Local Currency(1)

Operating Income

Quarter

 

Year-to-Date

 

Quarter

 

Year-to-Date

Flavors & Extracts

12.1%

 

8.7%

 

12.8%

 

8.8%

Color

30.0%

 

10.7%

 

30.9%

 

10.8%

Asia Pacific

15.0%

 

4.2%

 

15.3%

 

7.5%

Total Operating Income

13.4%

 

1.8%

 

17.1%

 

6.4%

 

The Flavors & Extracts Group reported third quarter 2024 revenue of $203.3 million, an increase of $12.3 million versus the prior year’s third quarter. Segment operating income was $25.9 million in the third quarter of 2024, an increase of $2.8 million compared to the prior year’s third quarter. The Group’s higher revenue and operating income were driven by higher volumes and pricing.

The Color Group reported revenue of $162.1 million in the third quarter of 2024, an increase of $17.1 million compared to the prior year’s third quarter. Segment operating income was $29.8 million in the third quarter of 2024, an increase of $6.9 million compared to the prior year’s third quarter results. The Group’s increased revenue and operating income were primarily a result of the higher volumes across all product lines and higher pricing.

The Asia Pacific Group reported revenue of $41.8 million in the third quarter of 2024, an increase of $5.0 million compared to the prior year’s third quarter. The Group benefited from higher revenues across nearly all geographies. Segment operating income was $9.3 million in the quarter, an increase of $1.2 million compared to the prior year’s third quarter. The higher operating income is primarily a result of higher volumes.

Corporate & Other reported operating expenses of $14.5 million in the third quarter of 2024, compared to $9.6 million of operating expenses reported in the prior year’s third quarter. In the third quarter of 2024, the Company recorded $1.2 million of Portfolio Optimization Plan costs in Corporate & Other. Local currency adjusted operating expenses(1) for Corporate & Other increased $3.7 million compared to the prior year’s third quarter, primarily due to the higher performance-based compensation costs recorded in the third quarter of 2024 compared to the low comparable amount recorded in the third quarter of 2023.

2024 Outlook

 
 
Metric Updated Guidance Prior Guidance
 
Local Currency Revenue(1) High Single-Digit Growth Mid-to High Single-Digit Growth
 
Local Currency Adjusted EBITDA(1) High Single-Digit Growth Mid-to High Single-Digit Growth
 
Diluted EPS (GAAP) Between $2.77 and $2.87* Between $2.77 and $2.87*
 
Local Currency Adjusted Diluted EPS(1) Mid-Single-Digit Growth Mid-Single-Digit Growth
 
*Includes approximately 18 cents of Portfolio Optimization Plan costs.

This guidance is based on current conditions and economic and market trends in the markets in which the Company operates and is subject to various risks and uncertainties as described below.

(1)

Please refer to “Reconciliation of Non-GAAP Amounts” at the end of this release for more information regarding our non-GAAP financial measures.

USE OF NON-GAAP FINANCIAL MEASURES

The Company’s non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include: currency movements, depreciation and amortization, Portfolio Optimization Plan costs, and non-cash share-based compensation. These measures are provided to enhance the overall understanding of the Company’s performance when viewed together with the GAAP results. Refer to “Reconciliation of Non-GAAP Amounts” at the end of this release.

CONFERENCE CALL

The Company will host a conference call to discuss its 2024 third quarter financial results at 8:30 a.m. CDT today, Friday, October 25, 2024. Investors may access the live webcast, including presentation slides, on the Company’s web site at investor.sensient.com. Alternatively, investors may join the conference call by contacting Chorus Call Inc. at (844) 492-3726 or (412) 317-1078.

A webcast replay will be available on the Company’s web site following the call. The call transcript will be available on the Company’s web site on or after October 29, 2024.

This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2024 Outlook” above. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: the Company’s ability to manage general business, economic, and capital market conditions, including actions taken by customers in response to such market conditions, and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies, disruptions and delays in the Company’s supply chain, and the conflicts between Russia and Ukraine and Israel and Hamas and other parties in the Middle East; the availability and cost of labor, logistics, and transportation; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences and changing technologies; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and Portfolio Optimization Plan; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; the Company’s ability to enhance its innovation efforts and drive cost efficiencies; currency exchange rate fluctuations; and other factors included in “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.

ABOUT SENSIENT TECHNOLOGIES

Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. Sensient uses advanced technologies and robust global supply chain capabilities to develop specialized solutions for food and beverages, as well as products that serve the pharmaceutical, nutraceutical, and personal care industries. Sensient’s customers range in size from small entrepreneurial businesses to major international manufacturers representing some of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.

www.sensient.com

Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
 
Consolidated Statements of Earnings Three Months Ended September 30, Nine Months Ended September 30,
 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

 
Revenue

$

392,613

 

$

363,829

 

7.9

%

$

1,180,808

 

$

1,107,148

 

6.7

%

 
Cost of products sold

 

262,209

 

 

250,202

 

4.8

%

 

793,133

 

 

746,681

 

6.2

%

Selling and administrative expenses

 

79,884

 

 

69,096

 

15.6

%

 

238,092

 

 

213,507

 

11.5

%

 
Operating income

 

50,520

 

 

44,531

 

13.4

%

 

149,583

 

 

146,960

 

1.8

%

Interest expense

 

7,696

 

 

6,294

 

 

22,394

 

 

18,648

 

 
Earnings before income taxes

 

42,824

 

 

38,237

 

 

127,189

 

 

128,312

 

Income taxes

 

10,134

 

 

6,694

 

 

32,627

 

 

29,085

 

 
Net earnings

$

32,690

 

$

31,543

 

3.6

%

$

94,562

 

$

99,227

 

(4.7

%)

 
Earnings per share of common stock:
Basic

$

0.78

 

$

0.75

 

$

2.24

 

$

2.36

 

 
Diluted

$

0.77

 

$

0.75

 

$

2.23

 

$

2.35

 

 
Average common shares outstanding:
Basic

 

42,159

 

 

42,045

 

 

42,139

 

 

42,020

 

 
Diluted

 

42,429

 

 

42,233

 

 

42,377

 

 

42,241

 

 
 
 
Results by Segment Three Months Ended September 30, Nine Months Ended September 30,
 

Revenue

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

 
Flavors & Extracts

$

203,279

 

$

190,997

 

6.4

%

$

605,584

 

$

558,133

 

8.5

%

Color

 

162,080

 

 

144,939

 

11.8

%

 

489,805

 

 

466,563

 

5.0

%

Asia Pacific

 

41,778

 

 

36,774

 

13.6

%

 

120,664

 

 

112,888

 

6.9

%

Intersegment elimination

 

(14,524

)

 

(8,881

)

 

(35,245

)

 

(30,436

)

 
Consolidated

$

392,613

 

$

363,829

 

7.9

%

$

1,180,808

 

$

1,107,148

 

6.7

%

 
Operating Income
 
Flavors & Extracts

$

25,862

 

$

23,078

 

12.1

%

$

75,749

 

$

69,714

 

8.7

%

Color

 

29,806

 

 

22,925

 

30.0

%

 

92,987

 

 

84,027

 

10.7

%

Asia Pacific

 

9,307

 

 

8,095

 

15.0

%

 

25,963

 

 

24,911

 

4.2

%

Corporate & Other

 

(14,455

)

 

(9,567

)

 

(45,116

)

 

(31,692

)

 
Consolidated

$

50,520

 

$

44,531

 

13.4

%

$

149,583

 

$

146,960

 

1.8

%

Sensient Technologies Corporation
(In thousands)
(Unaudited)
 
Consolidated Condensed Balance Sheets September 30, December 31,

2024

 

2023

 
Cash and cash equivalents

$

36,969

$

28,934

Trade accounts receivable

 

302,012

 

272,164

Inventories

 

580,847

 

598,399

Prepaid expenses and other current assets

 

38,973

 

37,119

Total Current Assets

 

958,801

 

936,616

 
Goodwill & intangible assets (net)

 

438,220

 

436,177

Property, plant, and equipment (net)

 

494,619

 

505,277

Other assets

 

150,972

 

136,437

 
Total Assets

$

2,042,612

$

2,014,507

 
Trade accounts payable

$

119,238

$

131,114

Short-term borrowings

 

17,811

 

13,460

Other current liabilities

 

119,406

 

91,732

Total Current Liabilities

 

256,455

 

236,306

 
Long-term debt

 

625,627

 

645,085

Accrued employee and retiree benefits

 

26,130

 

27,715

Other liabilities

 

53,949

 

52,077

Shareholders' Equity

 

1,080,451

 

1,053,324

 
Total Liabilities and Shareholders' Equity

$

2,042,612

$

2,014,507

Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
 
Consolidated Statements of Cash Flows
Nine Months Ended September 30,

 

2024

 

 

2023

 

Cash flows from operating activities:
Net earnings

$

94,562

 

$

99,227

 

Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization

 

45,185

 

 

43,360

 

Share-based compensation expense

 

6,980

 

 

7,285

 

Net gain on assets

 

(210

)

 

(81

)

Portfolio Optimization Plan costs

 

1,406

 

 

-

 

Deferred income taxes

 

(11,117

)

 

2,082

 

Changes in operating assets and liabilities:
Trade accounts receivable

 

(32,138

)

 

18,830

 

Inventories

 

14,902

 

 

(21,455

)

Prepaid expenses and other assets

 

221

 

 

842

 

Trade accounts payable and other accrued expenses

 

(4,664

)

 

(20,572

)

Accrued salaries, wages, and withholdings

 

16,769

 

 

(16,749

)

Income taxes

 

854

 

 

(6,536

)

Other liabilities

 

3,011

 

 

587

 

 
Net cash provided by operating activities

 

135,761

 

 

106,820

 

 
Cash flows from investing activities:
Acquisition of property, plant, and equipment

 

(36,088

)

 

(67,718

)

Proceeds from sale of assets

 

338

 

 

130

 

Other investing activities

 

(1,444

)

 

2,036

 

 
Net cash used in investing activities

 

(37,194

)

 

(65,552

)

 
Cash flows from financing activities:
Proceeds from additional borrowings

 

134,432

 

 

197,577

 

Debt payments

 

(154,219

)

 

(174,083

)

Dividends paid

 

(52,034

)

 

(51,900

)

Other financing activities

 

(3,317

)

 

(8,034

)

 
Net cash used in financing activities

 

(75,138

)

 

(36,440

)

 
Effect of exchange rate changes on cash and cash equivalents

 

(15,394

)

 

6,236

 

 
Net increase in cash and cash equivalents

 

8,035

 

 

11,064

 

Cash and cash equivalents at beginning of period

 

28,934

 

 

20,921

 

Cash and cash equivalents at end of period

$

36,969

 

$

31,985

 

 
Supplemental Information
Nine Months Ended September 30,

 

2024

 

 

2023

 

 
Dividends paid per share

$

1.23

 

$

1.23

 

Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
 
Reconciliation of Non-GAAP Amounts
The Company's results for the three and nine months ended September 30, 2024 and 2023 include adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which, in each case, exclude Portfolio Optimization Plan costs.
 
 
Three Months Ended September 30, Nine Months Ended September 30,

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

Operating income (GAAP)

$

50,520

 

$

44,531

 

13.4

%

$

149,583

 

$

146,960

 

1.8

%

Portfolio Optimization Plan costs – Cost of products sold

 

209

 

 

-

 

523

 

 

-

Portfolio Optimization Plan costs – Selling and administrative expenses

 

1,002

 

 

-

 

5,252

 

 

-

Adjusted operating income

$

51,731

 

$

44,531

 

16.2

%

$

155,358

 

$

146,960

 

5.7

%

 
Net earnings (GAAP)

$

32,690

 

$

31,543

 

3.6

%

$

94,562

 

$

99,227

 

(4.7

%)

Portfolio Optimization Plan costs, before tax

 

1,211

 

 

-

 

5,775

 

 

-

Tax impact of Portfolio Optimization Plan costs(1)

 

(17

)

 

-

 

(586

)

 

-

Adjusted net earnings

$

33,884

 

$

31,543

 

7.4

%

$

99,751

 

$

99,227

 

0.5

%

 
Diluted earnings per share (GAAP)

$

0.77

 

$

0.75

 

2.7

%

$

2.23

 

$

2.35

 

(5.1

%)

Portfolio Optimization Plan costs, net of tax

 

0.03

 

 

-

 

0.12

 

 

-

Adjusted diluted earnings per share

$

0.80

 

$

0.75

 

6.7

%

$

2.35

 

$

2.35

 

0.0

%

 
Note: Earnings per share calculations may not foot due to rounding differences.
 
(1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
 
 
Results by Segment Three Months Ended September 30,
Adjusted Adjusted
Operating Income

2024

 

Adjustments(2)

 

2024

 

2023

 

Adjustments(2)

 

2023

 
Flavors & Extracts

$

25,862

 

$

-

$

25,862

 

$

23,078

 

$

-

$

23,078

 

Color

 

29,806

 

 

-

 

29,806

 

 

22,925

 

 

-

 

22,925

 

Asia Pacific

 

9,307

 

 

-

 

9,307

 

 

8,095

 

 

-

 

8,095

 

Corporate & Other

 

(14,455

)

 

1,211

 

(13,244

)

 

(9,567

)

 

-

 

(9,567

)

 
Consolidated

$

50,520

 

$

1,211

$

51,731

 

$

44,531

 

$

-

$

44,531

 

 
Results by Segment Nine Months Ended September 30,
Adjusted Adjusted
Operating Income

2024

 

Adjustments(2)

 

2024

 

2023

 

Adjustments(2)

 

2023

 
Flavors & Extracts

$

75,749

 

$

-

$

75,749

 

$

69,714

 

$

-

$

69,714

 

Color

 

92,987

 

 

-

 

92,987

 

 

84,027

 

 

-

 

84,027

 

Asia Pacific

 

25,963

 

 

-

 

25,963

 

 

24,911

 

 

-

 

24,911

 

Corporate & Other

 

(45,116

)

 

5,775

 

(39,341

)

 

(31,692

)

 

-

 

(31,692

)

 
Consolidated

$

149,583

 

$

5,775

$

155,358

 

$

146,960

 

$

-

$

146,960

 

 
 
(2) Adjustments consist of Portfolio Optimization Plan costs.
Sensient Technologies Corporation
(In thousands, except percentages)
(Unaudited)
 
Reconciliation of Non-GAAP Amounts - Continued
 
The following table summarizes the percentage change in the 2024 results compared to the 2023 results for the corresponding periods.
 
Three Months Ended September 30, 2024
Revenue Total Foreign Exchange Rates Adjustments(3) Adjusted Local Currency
Flavors & Extracts

6.4

%

(0.4

%)

N/A

 

6.8

%

Color

11.8

%

(1.2

%)

N/A

 

13.0

%

Asia Pacific

13.6

%

0.2

%

N/A

 

13.4

%

Total Revenue

7.9

%

(0.7

%)

N/A

 

8.6

%

 
Operating Income
Flavors & Extracts

12.1

%

(0.7

%)

0.0

%

12.8

%

Color

30.0

%

(0.9

%)

0.0

%

30.9

%

Asia Pacific

15.0

%

(0.3

%)

0.0

%

15.3

%

Corporate & Other

51.1

%

0.1

%

12.6

%

38.4

%

Total Operating Income

13.4

%

(1.0

%)

(2.7

%)

17.1

%

Diluted Earnings Per Share

2.7

%

(1.3

%)

(4.0

%)

8.0

%

Adjusted EBITDA

12.0

%

(0.8

%)

N/A

 

12.8

%

 
 
Nine Months Ended September 30, 2024
Revenue Total Foreign Exchange Rates Adjustments(3) Adjusted Local Currency
Flavors & Extracts

8.5

%

0.2

%

N/A

 

8.3

%

Color

5.0

%

(0.2

%)

N/A

 

5.2

%

Asia Pacific

6.9

%

(2.5

%)

N/A

 

9.4

%

Total Revenue

6.7

%

(0.2

%)

N/A

 

6.9

%

 
Operating Income
Flavors & Extracts

8.7

%

(0.1

%)

0.0

%

8.8

%

Color

10.7

%

(0.1

%)

0.0

%

10.8

%

Asia Pacific

4.2

%

(3.3

%)

0.0

%

7.5

%

Corporate & Other

42.4

%

0.1

%

18.2

%

24.1

%

Total Operating Income

1.8

%

(0.7

%)

(3.9

%)

6.4

%

Diluted Earnings Per Share

(5.1

%)

(0.8

%)

(5.2

%)

0.9

%

Adjusted EBITDA

5.0

%

(0.5

%)

N/A

 

5.5

%

 
(3) Adjustments consist of Portfolio Optimization Plan costs.
Sensient Technologies Corporation
(In thousands, except percentages)
(Unaudited)
 
Reconciliation of Non-GAAP Amounts - Continued
 
The following table summarizes the reconciliation between Consolidated Operating Income (GAAP) and Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023.
 
Three Months Ended September 30, Nine Months Ended September 30,
 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

Operating income (GAAP)

$

50,520

 

$

44,531

 

13.4

%

$

149,583

$

146,960

1.8

%

Depreciation and amortization

 

15,460

 

 

14,770

 

 

45,185

 

43,360

Share-based compensation expense

 

2,069

 

 

2,519

 

 

6,980

 

7,285

Portfolio Optimization Plan costs, before tax

 

1,211

 

 

-

 

 

5,775

 

-

Adjusted EBITDA

$

69,260

 

$

61,820

 

12.0

%

$

207,523

$

197,605

5.0

%

 
 
The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the trailing twelve months ended September 30, 2024 and 2023.
 
September 30,
Debt

2024

 

2023

Short-term borrowings

$

17,811

 

$

22,807

 

Long-term debt

 

625,627

 

 

648,556

 

Credit Agreement adjustments(4)

 

(22,633

)

 

(19,463

)

Net Debt

$

620,805

 

$

651,900

 

 
Operating income (GAAP)

$

157,646

 

$

188,185

 

Depreciation and amortization

 

59,645

 

 

56,565

 

Share-based compensation expense

 

8,628

 

 

10,947

 

Portfolio Optimization Plan costs, before tax

 

33,616

 

 

-

 

Other non-operating gains(5)

 

(998

)

 

(3,783

)

Credit Adjusted EBITDA

$

258,537

 

$

251,914

 

 
Net Debt to Credit Adjusted EBITDA 2.4x 2.6x
 
(4) Adjustments include cash and cash equivalents, as described in the Company's Third Amended and Restated Credit Agreement (Credit Agreement), and certain letters of credit and hedge contracts.
(5) Adjustments consist of certain financing transaction costs, certain non-financing interest items, and gains and losses related to certain non-cash, non-operating, and/or non-recurring items as described in the Credit Agreement.
 
The following table summarizes the reconciliation between Diluted Earnings Per Share (GAAP) and Adjusted Diluted Earnings Per Share for the twelve months ended December 31, 2023.
 
Twelve Months Ended December 31,

2023

Diluted earnings per share (GAAP)

$

2.21

 

Portfolio Optimization Plan costs, net of tax

 

0.65

 

Adjusted diluted earnings per share

$

2.86

 

 
Note: Earnings per share calculations may not foot due to rounding differences.
 
We have included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable period-over-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this release and our SEC filings. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and we believe the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Category: Earnings

Amy Agallar

(414) 347-3706

investor.relations@sensient.com

Source: Sensient Technologies Corporation

FAQ

What was Sensient Technologies (SXT) revenue growth in Q3 2024?

Sensient Technologies reported a 7.9% revenue increase to $392.6 million in Q3 2024 compared to $363.8 million in Q3 2023.

How much did Sensient Technologies (SXT) earnings per share grow in Q3 2024?

Sensient Technologies reported diluted earnings per share of 77 cents in Q3 2024, representing a 2.7% increase from 75 cents in Q3 2023.

What is Sensient Technologies (SXT) guidance for 2024?

Sensient Technologies expects high single-digit revenue growth, high single-digit adjusted EBITDA growth, and mid-single-digit adjusted diluted EPS growth for 2024.

Sensient Technology Corporation

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