8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

April 26, 2024

(Date of Report/Date of earliest event reported)

SENSIENT TECHNOLOGIES CORPORATION

(Exact name of registrant as specified in its charter)

Wisconsin	001-07626	39-0561070
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

777 East Wisconsin Avenue

Milwaukee, Wisconsin 53202-5304

(Address and zip code of principal executive offices)

(414) 271-6755

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.10 per share	SXT	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

Sensient Technologies Corporation (the “Company”) issued a press release on April 26, 2024, disclosing its results of operations for its quarter ended March 31, 2024, and its financial condition at that date. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 2.02 (including Exhibit 99.1) is intended to be furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.

Item 7.01 Regulation FD Disclosure.

On April 26, 2024, the Company also posted an updated investor presentation for its quarter ended March 31, 2024, on the “Investor Information” section of its website.  A copy of the investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information contained in this Item 7.01 (including Exhibit 99.2) is intended to be furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The following exhibits are furnished with this Current Report on Form 8-K:

EXHIBIT INDEX

Exhibit Number	Description
99.1	Sensient Technologies Corporation Earnings Press Release for the Quarter Ended March 31, 2024.
99.2	Sensient Technologies Corporation Investor Presentation – Q1 2024.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SENSIENT TECHNOLOGIES CORPORATION
By:	/s/ John J. Manning
Name:	John J. Manning
Title:	Senior Vice President, General Counsel, and Secretary
Date:	April 26, 2024

EX-99.1

Exhibit 99.1

	Contact:
	Amy Agallar
	(414) 347-3706
	investor.relations@sensient.com

Sensient Technologies Corporation

Reports Results for the Quarter Ended March 31, 2024

and Raises Full Year Guidance

MILWAUKEE— April 26, 2024 — 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 first quarter ended March 31, 2024.

First Quarter Consolidated Results

• Reported revenue increased 4.2% to $384.7 million in the first quarter of 2024 versus last year’s first quarter results of $369.0 million. On a local currency basis⁽¹⁾, revenue increased 3.8%.

• Reported operating income decreased 2.8% to $49.4 million compared to $50.8 million recorded in the first quarter of 2023. In the first quarter of 2024, the Company recorded $2.8 million of costs related to its recently enacted Portfolio Optimization Plan. Local currency adjusted operating income⁽¹⁾ and local currency adjusted EBITDA⁽¹⁾ increased 2.6% and 2.2%, respectively, in the first quarter.

• Reported diluted earnings per share decreased 8.8% to 73 cents in the first quarter of 2024 compared to 80 cents in the first quarter of 2023. Local currency adjusted EPS⁽¹⁾ decreased 1.3% in the first quarter primarily as a result of higher interest expense and a higher tax rate.

“I am pleased that 2024 is off to a good start. Our underlying business and new sales wins remain strong. I am confident that our teams will execute on our strategy and deliver on expectations for 2024,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.

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Sensient Technologies Corporation	Page 2
Earnings Release – Quarter Ended March 31, 2024
April 26, 2024

First Quarter Group Results

Revenue	Reported Quarter			Local Currency(1) Quarter
Flavors & Extracts		8.0	%		6.9	%
Color		-0.7	%		-1.7	%
Asia Pacific		0.6	%		4.1	%
Total Revenue		4.2	%		3.8	%
Operating Income		Reported Quarter			Adjusted Local Currency(1) Quarter
Flavors & Extracts		6.8	%		6.3	%
Color		-0.6	%		-1.8	%
Asia Pacific		-5.0	%		-0.6	%
Total Operating Income		-2.8	%		2.6	%

The Flavors & Extracts Group reported first quarter 2024 revenue of $193.1 million, an increase of $14.2 million versus the prior year’s first quarter. The Group’s increased revenue was a result of higher volumes, favorable pricing, and favorable exchange rates. Segment operating income was $23.7 million in the first quarter of 2024, an increase of $1.5 million compared to the prior year’s first quarter. The higher operating income was primarily due to the higher volumes and favorable pricing.

The Color Group reported revenue of $160.0 million in the first quarter of 2024, a decrease of $1.1 million compared to the prior year’s first quarter. The Group’s revenue was negatively impacted by lower volumes in the food and pharmaceutical product line, primarily due to market declines and modest customer destocking. Segment operating income was $31.7 million in the first quarter of 2024, a decrease of $0.2 million compared to the prior year’s first quarter results. The lower operating income is primarily a result of the lower volumes in the food and pharmaceutical product lines, partially offset by higher operating income in the personal care product line.

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Sensient Technologies Corporation	Page 3
Earnings Release – Quarter Ended March 31, 2024
April 26, 2024

The Asia Pacific Group reported revenue of $40.3 million in the first quarter of 2024, an increase of $0.2 million compared to the prior year’s first quarter. The Group’s revenue benefited from higher volumes, partially offset by unfavorable exchange rates. Segment operating income was $8.8 million in the quarter, a decrease of $0.5 million compared to the prior year’s first quarter. The lower operating income is primarily a result of higher input costs and unfavorable exchange rates.

Corporate & Other reported operating expenses of $14.7 million in the first quarter of 2024, compared to $12.5 million of operating expenses reported in the prior year’s first quarter. The increase was primarily due to the Portfolio Optimization Plan costs of $2.8 million recorded in the first quarter of 2024. Local currency adjusted operating expenses⁽¹⁾ for Corporate & Other decreased $0.6 million compared to the prior year’s first quarter.

2024 OUTLOOK

Sensient continues to expect 2024 diluted earnings per share to be between $2.80 and $2.90, which includes approximately 15 cents of Portfolio Optimization Plan costs in 2024, compared to the Company’s 2023 reported GAAP diluted earnings per share of $2.21.

The Company now expects 2024 revenue and 2024 adjusted EBITDA⁽¹⁾ to each grow at a mid-single-digit rate on a local currency basis compared to the Company’s 2023 revenue and the Company’s 2023 adjusted EBITDA⁽¹⁾. The Company’s previous guidance called for 2024 revenue and 2024 adjusted EBITDA⁽¹⁾ to grow at a low to mid-single-digit rate on a local currency basis. The Company continues to expect 2024 adjusted diluted earnings per share⁽¹⁾ to grow at a low to mid-single-digit rate on a local currency basis compared to the Company’s 2023 adjusted diluted earnings per share⁽¹⁾ of $2.86.

The Company continues to expect its 2024 diluted earnings per share to be impacted by higher interest expense. The Company also expects its full year 2024 adjusted tax rate to be between 24% and 25%.

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Sensient Technologies Corporation	Page 4
Earnings Release – Quarter Ended March 31, 2024
April 26, 2024

The Company’s 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 first quarter financial results at 8:30 a.m. CDT on Friday, April 26, 2024. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company’s web site at www.sensient.com.

A replay of the call will be available one hour after the end of the conference call through May 3, 2024, by calling (877) 344-7529 and using access code 3617541. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company’s web site at www.sensient.com on or after April 30, 2024.

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Sensient Technologies Corporation	Page 5
Earnings Release – Quarter Ended March 31, 2024
April 26, 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.

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Sensient Technologies Corporation	Page 6
Earnings Release – Quarter Ended March 31, 2024
April 26, 2024

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

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Page 7

Sensient Technologies Corporation

(In thousands, except percentages and per share amounts)

(Unaudited)

Consolidated Statements of Earnings	Three Months Ended March 31,
	2024		2023		% Change
Revenue	$	384,670	$	369,006		4.2	%
Cost of products sold		258,121		244,343		5.6	%
Selling and administrative expenses		77,143		73,825		4.5	%
Operating income		49,406		50,838		(2.8	%)
Interest expense		7,045		6,002
Earnings before income taxes		42,361		44,836
Income taxes		11,421		11,185
Net earnings	$	30,940	$	33,651		(8.1	%)
Earnings per share of common stock:
Basic	$	0.73	$	0.80
Diluted	$	0.73	$	0.80
Average common shares outstanding:
Basic		42,104		41,970
Diluted		42,305		42,255

Results by Segment	Three Months Ended March 31,
Revenue	2024			2023			% Change
Flavors & Extracts	$	193,092		$	178,852			8.0	%
Color		160,025			161,161			(0.7	%)
Asia Pacific		40,306			40,085			0.6	%
Intersegment elimination		(8,753	)		(11,092	)
Consolidated	$	384,670		$	369,006			4.2	%
Operating Income
Flavors & Extracts	$	23,678		$	22,180			6.8	%
Color		31,679			31,885			(0.6	%)
Asia Pacific		8,776			9,241			(5.0	%)
Corporate & Other		(14,727	)		(12,468	)
Consolidated	$	49,406		$	50,838			(2.8	%)

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Page 8

Sensient Technologies Corporation

(In thousands)

(Unaudited)

Consolidated Condensed Balance Sheets	March 31, 2024		December 31, 2023
Cash and cash equivalents	$	25,417	$	28,934
Trade accounts receivable		298,488		272,164
Inventories		568,547		598,399
Prepaid expenses and other current assets		50,391		37,119
Total Current Assets		942,843		936,616
Goodwill & intangible assets (net)		432,247		436,177
Property, plant, and equipment (net)		498,188		505,277
Other assets		132,404		136,437
Total Assets	$	2,005,682	$	2,014,507
Trade accounts payable	$	104,834	$	131,114
Short-term borrowings		19,439		13,460
Other current liabilities		94,586		91,732
Total Current Liabilities		218,859		236,306
Long-term debt		643,511		645,085
Accrued employee and retiree benefits		28,276		27,715
Other liabilities		51,100		52,077
Shareholders’ Equity		1,063,936		1,053,324
Total Liabilities and Shareholders’ Equity	$	2,005,682	$	2,014,507

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Page 9

Sensient Technologies Corporation

(In thousands, except per share amounts)

(Unaudited)

Consolidated Statements of Cash Flows
Three Months Ended March 31,
	2024			2023
Cash flows from operating activities:
Net earnings	$	30,940		$	33,651
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization		14,709			14,150
Share-based compensation expense		1,995			2,267
Net loss (gain) on assets		(193	)		8
Portfolio Optimization Plan costs		1,189			-
Deferred income taxes		(4	)		(2,351	)
Changes in operating assets and liabilities:
Trade accounts receivable		(28,331	)		(7,142	)
Inventories		26,624			(4,374	)
Prepaid expenses and other assets		(13,655	)		(2,062	)
Trade accounts payable and other accrued expenses		(21,993	)		(19,251	)
Accrued salaries, wages, and withholdings		29			(21,187	)
Income taxes		3,150			2,548
Other liabilities		674			698
Net cash provided by (used in) operating activities		15,134			(3,045	)
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(11,030	)		(22,278	)
Proceeds from sale of assets		93			1
Other investing activities		(1	)		(602	)
Net cash used in investing activities		(10,938	)		(22,879	)
Cash flows from financing activities:
Proceeds from additional borrowings		38,053			50,827
Debt payments		(27,031	)		(1,351	)
Dividends paid		(17,312	)		(17,255	)
Other financing activities		(2,828	)		(7,669	)
Net cash (used in) provided by financing activities		(9,118	)		24,552
Effect of exchange rate changes on cash and cash equivalents		1,405			4,468
Net (decrease) increase in cash and cash equivalents		(3,517	)		3,096
Cash and cash equivalents at beginning of period		28,934			20,921
Cash and cash equivalents at end of period	$	25,417		$	24,017

Supplemental Information
Three Months Ended March 31,	2024		2023
Dividends paid per share	$	0.41	$	0.41

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Page 10

Sensient Technologies Corporation

(In thousands, except percentages and per share amounts)

(Unaudited)

Reconciliation of Non-GAAP Amounts

The Company’s results for the three months ended March 31, 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 March 31,
	2024			2023		% Change
Operating income (GAAP)	$	49,406		$	50,838		(2.8	%)
Portfolio Optimization Plan costs  – Cost of products sold		107			-
Portfolio Optimization Plan costs – Selling and administrative
expenses		2,705			-
Adjusted operating income	$	52,218		$	50,838		2.7	%
Net earnings (GAAP)	$	30,940		$	33,651		(8.1	%)
Portfolio Optimization Plan costs, before tax		2,812			-
Tax impact of Portfolio Optimization Plan costs(1)		(355	)		-
Adjusted net earnings	$	33,397		$	33,651		(0.8	%)
Diluted earnings per share (GAAP)	$	0.73		$	0.80		(8.8	%)
Portfolio Optimization Plan costs, net of tax		0.06			-
Adjusted diluted earnings per share	$	0.79		$	0.80		(1.3	%)

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 March 31,
Operating Income	2024			Adjustments(2)		Adjusted 2024			2023			Adjustments(2)		Adjusted 2023
Flavors & Extracts	$	23,678		$	-	$	23,678		$	22,180		$	-	$	22,180
Color		31,679			-		31,679			31,885			-		31,885
Asia Pacific		8,776			-		8,776			9,241			-		9,241
Corporate & Other		(14,727	)		2,812		(11,915	)		(12,468	)		-		(12,468	)
Consolidated	$	49,406		$	2,812	$	52,218		$	50,838		$	-	$	50,838

⁽²⁾ Adjustments consist of Portfolio Optimization Plan costs.

The following table summarizes the percentage change in the 2024 results compared to the 2023 results for the corresponding periods.

	Three Months Ended March 31,
Revenue	Total			Foreign Exchange Rates			Adjustments(3)			Adjusted Local Currency
Flavors & Extracts		8.0	%		1.1	%		N/A			6.9	%
Color		(0.7	%)		1.0	%		N/A			(1.7	%)
Asia Pacific		0.6	%		(3.5	%)		N/A			4.1	%
Total Revenue		4.2	%		0.4	%		N/A			3.8	%
Operating Income
Flavors & Extracts		6.8	%		0.5	%		0.0	%		6.3	%
Color		(0.6	%)		1.2	%		0.0	%		(1.8	%)
Asia Pacific		(5.0	%)		(4.4	%)		0.0	%		(0.6	%)
Corporate & Other		18.1	%		0.0	%		22.5	%		(4.4	%)
Total Operating Income		(2.8	%)		0.2	%		(5.6	%)		2.6	%
Diluted Earnings Per Share		(8.8	%)		0.0	%		(7.5	%)		(1.3	%)
Adjusted EBITDA		2.5	%		0.3	%		N/A			2.2	%

⁽³⁾ Adjustments consist of Portfolio Optimization Plan costs.

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Page 11

Sensient Technologies Corporation

(In thousands, except percentages)

(Unaudited)

Reconciliation of Non-GAAP Amounts – Continued

The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2024 and 2023.

	Three Months Ended March 31,
	2024		2023		% Change
Operating income (GAAP)	$	49,406	$	50,838		(2.8	%)
Depreciation and amortization		14,709		14,150
Share-based compensation expense		1,995		2,267
Portfolio Optimization Plan costs, before tax		2,812		-
Adjusted EBITDA	$	68,922	$	67,255		2.5	%

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 March 31, 2024 and 2023.

	March 31,
Debt	2024			2023
Short-term borrowings	$	19,439		$	24,849
Long-term debt		643,511			679,779
Credit Agreement adjustments(1)		(13,775	)		(11,525	)
Net Debt	$	649,175		$	693,103
Operating income (GAAP)	$	153,591		$	194,800
Depreciation and amortization		58,379			53,561
Share-based compensation expense		8,661			14,242
Portfolio Optimization Plan costs, before tax		30,653			-
Other non-operating gains(2)		(1,055	)		(3,359	)
Credit Adjusted EBITDA	$	250,229		$	259,244
Net Debt to Credit Adjusted EBITDA		2.6	x		2.7	x

⁽¹⁾ 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.

⁽²⁾ 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.

EX-99.2

Exhibit 99.2

 First Quarter 2024 Investor Presentation 

 FORWARD-LOOKING STATEMENTS  2  This document contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2024 Financial Outlook” in this presentation. 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 presentation contains time-sensitive information that reflects management’s best analysis only as of the date of this presentation. 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. 

 NON-GAAP FINANCIAL MEASURES  2  Within this document, the Company reports certain non-GAAP financial measures, including: (1) adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share (which exclude restructuring and other costs, including the Portfolio Optimization Plan costs),  (2) percentage changes in revenue, operating income, and diluted earnings per share on an adjusted local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars and restructuring and other costs, including the Portfolio Optimization Plan costs), and (3) adjusted EBITDA (which eliminates restructuring and other costs, including the Portfolio Optimization Plan costs, and non-cash share based compensation expense). The Company has included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable year-over-year 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 report. 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 the Company believes 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. 

 Sensient Overview  2  Provider of customized solutions for food and beverage, pharmaceutical, and personal care customers  Global market leader offering an extensive portfolio of natural flavor and color technology platforms and solutions  Exceptional innovation & applications expertise with unique ability to service global, regional, and local customers 

 Innovative Technologies Creating Unique Solutions  2  Applications expertise and solutions-based selling  High impact relative to cost  Technically-driven products that are difficult to replace Strong consumer trends  Opportunities to grow organically and through M&A 

 Natural solutions provider focused on consistent and sustainable supply chain  2  Provider of natural solutions to support health & wellness and clean label consumer trends  Robust agronomy program ensures responsible procurement and traceability of sustainable ingredients  Committed to delivering safe, authentic, high-quality natural products through Sensient’s CertasureTM program 

 Committed to ongoing portfolio optimization to drive margin improvement  2  Expanded flavor portfolio and strengthened technical solutions capabilities through the acquisition of Flavor Solutions, Inc. in July 2021  Strengthened extensive natural color portfolio by acquiring Endemix, a vertically integrated natural color and extracts company, in October 2022  Portfolio Optimization Plan initiated in 2023 and is expected to deliver approximately $8 million to $10 million of annual savings following plan completion in 2025 

 8  Color Group  2023 Revenue: $608M  Core Areas of Focus: Food and Pharmaceutical Colors and Personal Care  Flavors & Extracts Group  2023 Revenue: $741M  Core Areas of Focus: Natural Flavors, Extracts and Natural Ingredients  Asia Pacific Group  2023 Revenue: $146M  Core Areas of Focus: Flavors and Colors for food and beverage  Global Revenue by Group  2023 Global Revenues include intercompany sales which are eliminated on a consolidated basis. 

 9  Global market leader  Natural color innovator  Excellent innovation & applications expertise  Color Group 

 10  Color Overview  Food and  Pharmaceutical  74% of 2023 Segment Revenue  LC Revenue Change* Q1 ’24 (2.7%)  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts  Personal Care  26% of 2023 Segment Revenue  LC Revenue Change* Q1 ’24 0.9%  Demand for innovative and sustainable products with multiple benefits  Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care  2023 Revenue: $608M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. 

 11  Flavors & Extracts Group  Broad product offering  Unique ability to service global, regional, and local customers  Leading technology platforms  Outstanding applications expertise 

 12  Flavors & Extracts Overview  Flavors, Extracts, and Flavor Ingredients  67% of 2023 Segment Revenue  LC Revenue Change* Q1 ’24 (1.5%)  Opportunities for on trend products with extracts, taste modulation, and natural flavors  Natural Ingredients  33% of 2023 Segment Revenue  LC Revenue Change* Q1 ’24 +26.4%  Leading provider of dehydrated onion, garlic, and other products  2023 Revenue: $741M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. 

 13  Asia Pacific Group  Portfolio of food and beverage flavors and colors  R&D centers in key strategic markets to support local and regional customer base  Ability to deliver localized solutions  and technology platforms 

 14  2023 revenue of $146 million and operating income of $30.8 million  Sensient’s sales of flavors and colors for Food and Pharmaceutical are managed on a geographic basis and reported as a separate segment  Manufacturing capabilities in Australia, New Zealand, China, Japan, Philippines, Thailand, and India  Q1 2024 local currency revenue* was up 4.1% and operating profit*  declined 0.6%  *Local currency revenue and local currency operating profit are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.  Asia Pacific Overview 

 15  2024 Q1 Segment Results  Color Group reported lower revenue in the quarter due to lower volumes related to end market declines in certain product categories and modest customer destocking. Volume growth as a result of new sales wins and modest pricing partially offset these declines. Operating income declined due to lower volumes and higher input costs.  Flavors & Extracts Group first quarter revenue growth was driven by volume growth in natural ingredients and certain flavor product lines.  Operating income improved in the quarter due to higher volumes; however, this was partially offset due to higher costs on certain agricultural inputs and raw materials.  Asia Pacific Group first quarter revenue increased primarily due to higher volumes. Operating income declined as a result of higher input costs and sales mix.  Local Currency Revenue*  Local Currency* Commentary:  Q1  Color  (1.7%)  Flavors & Extracts  +6.9%  Asia Pacific  +4.1%  Local Currency Operating Income*  Q1  Color  (1.8%)  Flavors & Extracts  +6.3%  Asia Pacific  (0.6%)  * Local-currency (LC) revenue and operating income are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 

 16  2024 Q1 Consolidated Results  Q1  Local Currency Revenue*  +3.8%  Local Currency Adjusted Operating Income*  +2.6%  Local Currency Adjusted Diluted EPS*  (1.3%)  Local Currency Adjusted EBITDA*  +2.2%  Q1 consolidated local currency revenue increased due to volume growth in the Flavors & Extracts and Asia Pacific groups and modest pricing favorability.  Q1 consolidated local currency adjusted operating income grew as a result of higher volumes; however, this was partially offset by continued higher input costs in certain areas and sales mix.  Q1 local currency adjusted diluted EPS declined as a result of higher interest and tax expense.  * Local-currency (LC) revenue, adjusted operating income, adjusted diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 

 Capital Allocation  Prioritize ROI capital projects  Excess free cash flow to be used for debt reduction  Maintain prudent level of leverage to support Sensient’s long-standing dividend and opportunistic M&A and share repurchases  $43  $62  $66  $67  $69  $69  $39  $52  $61  $79  $88  $14  $23  $87  $118  $-  $50  $100  $150  $200  $250  2019  2020  2021  2022  2023  DOLLARS IN MILLIONS  Share Repurchase  Acquisitions  Dividends  Debt Repayments  Capital Expenditures  17 

 2024 Financial Outlook*  17  Metric  Revised Guidance  Previous Guidance  Comments  Local Currency Revenue**  Mid-single-digit growth  Low to mid-single- digit growth  Local Currency Adjusted EBITDA**  Mid-single-digit growth  Low to mid-single- digit growth  Excludes the impact of share-based stock compensation and the costs related to the Portfolio Optimization Plan  Diluted EPS (GAAP)  No Change  $2.80 to $2.90  Local Currency Adjusted Diluted EPS**  No Change  Low to mid-single- digit growth  Excludes the impact of the costs related to the  Portfolio Optimization Plan  * Represents outlook provided in our earnings release on April 26, 2024, and does not constitute an update or reissuance as of any later date.  ** The local currency revenue, adjusted diluted EPS, and adjusted EBITDA growth rates for 2024 are compared to 2023 revenue, adjusted diluted EPS, and adjusted EBITDA, respectively. Local currency revenue, adjusted diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.  ** The Portfolio Optimization Plan was approved in the fourth quarter of 2023 to undertake an effort to optimize certain production facilities and improve  efficiencies within the Company. The Company expects to incur $40M of costs associated with the plan, of which $30M will be non-cash. 

 Why Invest?  Strong competitive position  Defensible and ‘sticky’ business (& low portion of  customer costs)  Global presence  Exposure to stable and growing markets Focused on improving returns and on growth  17 

 APPENDIX*  *Amounts in thousands, except percentages and per share amounts 

 ESG Information  Environmental  Sensient is committed to the principles of sound environmental stewardship and the responsible and sustainable use of energy and natural resources.  Long-term goals to reduce emissions intensity, water withdrawal, and landfilled waste  Seed-to-shelf program focused on strengthening a sustainable supply chain  Emphasis on implementing sustainability from the design stage  Chemical Risk Strategy implemented to identify and reduce risk in our portfolio  Social  Sensient strives to conduct business in an ethical manner and to make a positive contribution to society through our product offerings and business activities.  Sensient’s Code of Conduct and Supplier Code of Conduct require strong ethical behavior, fair employment practices, and strict human rights practices and product safety standards  Robust product, environmental, and raw material safety programs designed to exceed industry standards  Raw material traceability and risk assessment programs  Support for our local communities through volunteerism, financial donations, sponsorships, and employee education opportunities  Governance  Sensient is committed to maintaining the highest standards of professional conduct and strong corporate  governance practices through our comprehensive corporate governance framework.  Board comprised of a majority of independent directors with diverse and accomplished backgrounds  Committed to board diversity and refreshment, Sensient has added eight new directors since 2014  Robust Code of Conduct built on a foundation of ethics, safety and quality, and professionalism resulting in ethical and lawful conduct of our business  21 

 Non-GAAP Financial Measures  22   2024    2023   Operating income (GAAP)  $ 49,406  $ 50,838  Portfolio Optimization Plan costs – Cost of products sold  107  -  Portfolio Optimization Plan costs – Selling and administrative expenses   2,705    -   Adjusted operating income   $ 52,218    $ 50,838   Net earnings (GAAP)  $ 30,940  $ 33,651  Portfolio Optimization Plan costs, before tax  2,812  -  Tax impact of Portfolio Optimization Plan costs*   (355)   -   Adjusted net earnings   $ 33,397    $ 33,651   Diluted earnings per share (GAAP)  $ 0.73  $ 0.80  Portfolio Optimization Plan costs, net of tax   0.06    -   Adjusted diluted earnings per share   $ 0.79    $ 0.80   * Tax impact adjustments were determined based on the nature of the underlying Non-GAAP adjustments and their relevant jurisdictional tax rates.  Note: Earnings per share calculations may not foot due to rounding differences.   Three Months Ended March 31,  

 Non-GAAP Financial Measures (Cont’d)  23  Revenue   Total   Foreign  Exchange   Rates    Adjustments*  Adjusted  Local   Currency   Flavors & Extracts  8.0%  1.1%  N/A  6.9%  Color  (0.7%)  1.0%  N/A  (1.7%)  Asia Pacific  0.6%  (3.5%)  N/A  4.1%  Total Revenue  4.2%  0.4%  N/A  3.8%  Operating Income  Flavors & Extracts  6.8%  0.5%  0.0%  6.3%  Color  (0.6%)  1.2%  0.0%  (1.8%)  Asia Pacific  (5.0%)  (4.4%)  0.0%  (0.6%)  Corporate & Other  18.1%  0.0%  22.5%  (4.4%)  Total Operating Income  (2.8%)  0.2%  (5.6%)  2.6%  Diluted Earnings Per Share  (8.8%)  0.0%  (7.5%)  (1.3%)  Adjusted EBITDA  2.5%  0.3%  N/A  2.2%  Three Months Ended March 31, 2024  * Adjustments consist of Portfolio Optimization Plan costs. 

 Non-GAAP Financial Measures (Cont’d)  21  Three Months Ended March 31, 2024  Revenue   Total   Foreign  Exchange   Rates    Local Currency   Flavors, Extracts and Flavor Ingredients  0.0%  1.5%  (1.5%)  Natural Ingredients  26.4%  0.0%  26.4%  Flavors & Extracts Group  8.0%  1.1%  6.9%  Food and Pharmaceutical  (1.4%)  1.3%  (2.7%)  Personal Care  1.3%  0.4%  0.9%  Color Group  (0.7%)  1.0%  (1.7%)  Asia Pacific  0.6%  (3.5%)  4.1%  Total revenue  4.2%  0.4%  3.8% 

d March 31,  

 Non-GAAP Financial Measures (Cont’d)  25  Results by Segment  Operating Income   2024   Adjustments*  Adjusted   2024    2023   Adjusted  Adjustments* 2023   Flavors & Extracts  $ 23,678  $ -  $ 23,678  $ 22,180  $ - $ 22,180  Color  31,679  -  31,679  31,885  - 31,885  Asia Pacific  8,776  -  8,776  9,241  - 9,241  Corporate & Other   (14,727)   2,812    (11,915)   (12,468)   - (12,468)  Consolidated   $ 49,406    $ 2,812    $ 52,218    $ 50,838    $ - $ 50,838   * Adjustments consist of Portfolio Optimization Plan costs.   Three Months Ended March 31,  

 Non-GAAP Financial Measures (Cont’d)  26   2024    2023    % Change   Operating income (GAAP)  $ 49,406  $ 50,838  (2.8%)  Depreciation and amortization  14,709  14,150  Share-based compensation expense  1,995  2,267  Portfolio Optimization Plan costs, before tax   2,812    -   Adjusted EBITDA   $ 68,922    $ 67,255    2.5%    Three Months Ended March 31,  

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XML

Document and Entity Information	Apr. 26, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 26, 2024
Entity File Number	001-07626
Entity Registrant Name	SENSIENT TECHNOLOGIES CORPORATION
Entity Central Index Key	0000310142
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-0561070
Entity Address, Address Line One	777 East Wisconsin Avenue
Entity Address, City or Town	Milwaukee
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53202-5304
City Area Code	414
Local Phone Number	271-6755
Title of 12(b) Security	Common stock, par value $0.10 per share
Trading Symbol	SXT
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false