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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241024482476/en/
Amy Agallar (414) 347-3706 investor.relations@sensient.com
Sensient Technologies (NYSE:SXT)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Sensient Technologies (NYSE:SXT)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
