![]() |
Contact:
Amy Agallar
(414) 347-3706
investor.relations@sensient.com
|
• |
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.
|
Sensient Technologies Corporation
|
Page 2
|
Earnings Release – Quarter Ended September 30, 2024
|
|
October 25, 2024
|
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%
|
|||
|
|
|
|
|
|
|
|
Sensient Technologies Corporation
|
Page 3
|
Earnings Release – Quarter Ended September 30, 2024
|
|
October 25, 2024
|
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.
|
|
|
(1) |
Please refer to “Reconciliation of Non-GAAP Amounts” at the end of this release for more information regarding our non-GAAP
financial measures.
|
Sensient Technologies Corporation
|
Page 4
|
Earnings Release – Quarter Ended September 30, 2024
|
|
October 25, 2024
|
Sensient Technologies Corporation
|
Page 5
|
Earnings Release – Quarter Ended September 30, 2024
|
|
October 25, 2024
|
Sensient Technologies Corporation
|
Page 6
|
(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
|
Page 7
|
(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
|
Page 8
|
(In thousands, except per share amounts)
|
|
(Unaudited)
|
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
|
Page 9
|
(In thousands, except percentages and per share amounts)
|
|
(Unaudited)
|
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
|
%
|
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
|
Sensient Technologies Corporation
|
Page 10
|
(In thousands, except percentages)
|
|
(Unaudited)
|
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
|
%
|
Sensient Technologies Corporation
|
Page 11
|
(In thousands, except percentages)
|
|
(Unaudited)
|
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
|
%
|
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
|
2.4
|
x
|
2.6
|
x
|
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
|