Sensient Technologies Corporation Reports Results for the Quarter Ended June 30, 2022

Rhea-AI Summary

Sensient Technologies reported a 10.7% increase in consolidated revenue for Q2 2022, reaching $371.7 million, compared to $335.8 million in Q2 2021. Operating income rose to $55.2 million from $35.8 million. Diluted earnings per share (EPS) also increased to 92 cents from 61 cents. Revenue was hindered by 3% foreign currency translation impact. The Flavors & Extracts segment had a 5.5% growth, while the Color Group increased 17.3%. Sensient's 2022 outlook remains positive, with anticipated EPS growth and high single-digit revenue growth in local currency.

Positive

• Consolidated revenue increased by 10.7% to $371.7 million.
• Operating income grew to $55.2 million, a rise of 54.6%.
• Diluted EPS rose to 92 cents, a 50.8% increase.
• Flavors & Extracts revenue increased by 5.5%, and Color Group revenue increased by 17.3%.
• 2022 outlook confirms high single-digit revenue growth in local currency.

Negative

• Foreign currency translation negatively impacted revenue by approximately 3%.
• Foreign currency translation decreased earnings per share by approximately 5%.

Double-Digit Growth in Reported and Adjusted Revenue

Sensient Operating at or Above its 2022 Guidance

MILWAUKEE--(BUSINESS WIRE)-- Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $371.7 million in this year’s second quarter compared to $335.8 million in last year’s second quarter. Reported operating income in the second quarter of 2022 was $55.2 million compared to $35.8 million in the second quarter of 2021. Reported diluted earnings per share was 92 cents in the second quarter of 2022 compared to 61 cents in the second quarter of 2021. Foreign currency translation decreased revenue by approximately 3% and earnings per share by approximately 5% in the present quarter.

The 2021 second quarter reported results included divestiture & other related costs and operational improvement plan costs, which in total decreased 2021 second quarter diluted earnings per share by $0.16. The 2021 second quarter reported results also included the operations of the divested product lines, which decreased diluted earnings per share by $0.01. We did not make any adjustments to our 2022 second quarter reported results for divestiture & other related costs, operational improvement plan costs, or results of the divested product lines. The adjustments to our reported results are described in more detail under “Reconciliation of Non-GAAP Amounts” at the end of this release.

BUSINESS REVIEW

			Reported
	Revenue		Quarter		Year-to-Date
	Flavors & Extracts		5.5%		-2.2%
	Color		17.3%		13.3%
	Asia Pacific		15.5%		11.5%
	Total Revenue		10.7%		4.6%
			Adjusted
			Local Currency (1)
	Revenue		Quarter		Year-to-Date
	Flavors & Extracts		8.8%		7.0%
	Color		21.9%		16.8%
	Asia Pacific		23.0%		18.6%
	Total Revenue		14.9%		11.6%
	(1) Adjusted local currency percentage changes are described in more detail in the "Reconciliation of Non-GAAP Amounts" at the end of this release.

The Flavors & Extracts Group reported second quarter revenue of $189.3 million compared to $179.4 million in last year’s second quarter, an increase of 5.5%. Adjusted local currency revenue increased 8.8% in the quarter. The Group had favorable pricing and volume growth in Flavors, Extracts & Flavor Ingredients, and favorable pricing in Natural Ingredients, partially offset by lower volumes in Natural Ingredients. The lower volumes in Natural Ingredients were primarily a result of a limited supply of onion combined with strong 2021 demand. Segment operating income was $30.0 million in the current quarter compared to $24.5 million reported in the comparable period last year, an increase of 22.3%. Adjusted local currency operating income increased 23.9% in the quarter. The higher operating income was primarily due to the favorable pricing and volume growth in Flavors, Extracts & Flavor Ingredients, and favorable pricing in Natural Ingredients, partially offset by higher input costs. Foreign currency translation decreased segment revenue by approximately 3% and segment operating income by approximately 1% in the quarter. Segment operating income as a percent of revenue in the second quarter of 2022 rose to 15.9%.

The Color Group reported revenue of $156.3 million in the quarter compared to $133.2 million in last year’s second quarter, an increase of 17.3%. Adjusted local currency revenue increased 21.9% in the quarter. The Group had strong volume growth and higher pricing in both Food & Pharmaceutical Colors and Personal Care. Segment operating income was $31.2 million in the quarter compared to $25.6 million in last year’s comparable period, an increase of 21.7%. Adjusted local currency operating income increased 23.9% compared to the prior year’s second quarter. The higher operating income is primarily a result of the higher volumes and favorable pricing, partially offset by higher input costs. Foreign currency translation decreased segment revenue by 4% and segment operating income by approximately 5% in the quarter. Segment operating income as a percent of revenue in the second quarter of 2022 was 20.0%.

The Asia Pacific Group reported revenue of $37.3 million in the quarter compared to $32.3 million in last year’s second quarter, an increase of 15.5%. Adjusted local currency revenue increased 23.0% in the quarter. The higher revenue was a result of strong volume growth and higher pricing. Segment operating income was $7.7 million in the quarter compared to $5.8 million in last year’s second quarter, an increase of 33.3%. Adjusted local currency operating income increased 43.3% in the quarter. The higher operating income was primarily a result of the favorable volume growth and higher pricing. Foreign currency translation decreased segment revenue and operating income by approximately 8% and 10%, respectively, in the quarter. Segment operating income as a percent of revenue in the second quarter of 2022 rose to 20.7%.

Corporate & Other reported operating costs of $13.7 million in the current quarter compared to $20.2 million in last year’s second quarter, a decrease of 32.3%. Adjusted local currency operating expenses for Corporate & Other increased 14.0% in the quarter primarily due to higher performance-based compensation.

2022 OUTLOOK

Sensient is reconfirming its expectation for 2022 full year GAAP diluted earnings per share to grow at a high-teen growth rate compared to the Company’s 2021 reported GAAP diluted earnings per share of $2.81. Our full year 2022 guidance does not include any material divestiture & other related costs, operational improvement plan costs, or results of divested businesses.

The Company now expects 2022 revenue to grow at a high single digit rate in local currency compared to the Company’s 2021 adjusted revenue⁽²⁾. The Company’s previous 2022 revenue guidance was for a mid-to-high single digit growth rate in local currency. The Company is reconfirming its expectation for 2022 adjusted EBITDA⁽²⁾ and diluted earnings per share to grow at a high single- to double-digit rate in local currency compared to the Company’s 2021 adjusted EBITDA⁽²⁾ and the Company’s 2021 adjusted diluted earnings per share⁽²⁾ of $3.13.

The Company now expects full year 2022 earnings per share reported on a U.S. dollar basis to be impacted by approximately twenty-three cents of foreign currency headwinds based on current exchange rates. The Company’s previous guidance anticipated twelve cents of foreign currency headwinds.

The Company’s guidance is based on current conditions and trends in the economy and the markets in which the Company operates and is subject to various risks and uncertainties as described below. The Company will continue to monitor the impacts of the ongoing COVID-19 pandemic and the conflict between Russia and Ukraine on our business.

⁽²⁾ See “Reconciliation of Non-GAAP Amounts” at the end of this release for more information.

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, non-cash share-based compensation, divestiture & other related costs, operational improvement plan costs and income, and the results of the divested operations. 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 2022 second quarter financial results at 8:30 a.m. CDT on Friday, July 22, 2022. 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 July 29, 2022, by calling (877) 344-7529 and referring to conference identification number 5230009. 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 July 26, 2022.

This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2022 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 impact and uncertainty created by the ongoing COVID-19 pandemic, including, but not limited to, its effects on our employees, facilities, customers, and suppliers, the availability and cost of raw materials, energy, and other supplies, the availability and cost of labor, logistics, and transportation; the uncertain impacts of the ongoing conflict between Russia and Ukraine on our supply chain, input costs, including energy and transportation, and on general economic conditions; governmental regulations and restrictions, and general economic conditions, including inflation; 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 operational improvement plan; changes in costs of raw materials, including energy; 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; 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, 2021, as updated and supplemented by the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, 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, cosmetic, 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 June 30,										Six Months Ended June 30,
		2022				2021				% Change		2022				2021				% Change
Revenue		$	371,706			$	335,827			10.7%		$	727,227			$	695,529			4.6%
Cost of products sold			240,703				224,233			7.3%			471,378				468,322			0.7%
Selling and administrative expenses			75,759				75,841			(0.1%)			147,816				144,557			2.3%
Operating income			55,244				35,753			54.5%			108,033				82,650			30.7%
Interest expense			3,083				3,322						6,076				6,755
Earnings before income taxes			52,161				32,431						101,957				75,895
Income taxes			13,514				6,495						26,239				18,291
Net earnings		$	38,647			$	25,936			49.0%		$	75,718			$	57,604			31.4%
Earnings per share of common stock:
Basic		$	0.92			$	0.62					$	1.81			$	1.37
Diluted		$	0.92			$	0.61					$	1.80			$	1.36
Average common shares outstanding:
Basic			41,893				42,135						41,879				42,199
Diluted			42,208				42,267						42,178				42,328
Results by Segment		Three Months Ended June 30,										Six Months Ended June 30,
Revenue		2022				2021				% Change		2022				2021				% Change
Flavors & Extracts		$	189,337			$	179,401			5.5%		$	372,064			$	380,312			(2.2%)
Color			156,268				133,207			17.3%			304,706				268,927			13.3%
Asia Pacific			37,328				32,317			15.5%			73,793				66,157			11.5%
Intersegment elimination			(11,227	)			(9,098	)					(23,336	)			(19,867	)
Consolidated		$	371,706			$	335,827			10.7%		$	727,227			$	695,529			4.6%
Operating Income
Flavors & Extracts		$	30,013			$	24,536			22.3%		$	57,592			$	51,554			11.7%
Color			31,178				25,615			21.7%			61,835				52,209			18.4%
Asia Pacific			7,721				5,793			33.3%			15,925				12,545			26.9%
Corporate & Other			(13,668	)			(20,191	)					(27,319	)			(33,658	)
Consolidated		$	55,244			$	35,753			54.5%		$	108,033			$	82,650			30.7%

Sensient Technologies Corporation
(In thousands)
(Unaudited)
Consolidated Condensed Balance Sheets		June 30,				December 31,
		2022				2021
Cash and cash equivalents		$	25,271			$	25,740
Trade accounts receivable			295,948				261,121
Inventories			452,161				411,635
Prepaid expenses and other current assets			48,146				42,657
Total Current Assets			821,526				741,153
Goodwill & intangible assets (net)			417,538				435,009
Property, plant, and equipment (net)			443,675				446,478
Other assets			120,483				122,853
Total Assets		$	1,803,222			$	1,745,493
Trade accounts payable		$	140,776			$	125,519
Short-term borrowings			26,624				8,539
Other current liabilities			96,516				98,247
Total Current Liabilities			263,916				232,305
Long-term debt			498,715				503,006
Accrued employee and retiree benefits			28,193				28,579
Other liabilities			53,431				43,178
Shareholders' Equity			958,967				938,425
Total Liabilities and Shareholders' Equity		$	1,803,222			$	1,745,493

Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Cash Flows
Six Months Ended June 30,
		2022				2021
Cash flows from operating activities:
Net earnings		$	75,718			$	57,604
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization			26,180				25,817
Share-based compensation expense			8,691				4,188
Net (gain) loss on assets			(38	)			206
Loss on divestitures and other charges			-				13,511
Deferred income taxes			12,244				1,702
Changes in operating assets and liabilities:
Trade accounts receivable			(41,592	)			(26,902	)
Inventories			(51,768	)			19,357
Prepaid expenses and other assets			(25,919	)			(15,573	)
Trade accounts payable and other accrued expenses			20,501				9,632
Accrued salaries, wages, and withholdings			(4,188	)			(3,944	)
Income taxes			2,765				1,953
Other liabilities			199				1,710
Net cash provided by operating activities			22,793				89,261
Cash flows from investing activities:
Acquisition of property, plant, and equipment			(32,468	)			(25,550	)
Proceeds from sale of assets			92				169
Proceeds from divestiture of businesses			-				36,255
Other investing activities			1,571				(254	)
Net cash (used in) provided by investing activities			(30,805	)			10,620
Cash flows from financing activities:
Proceeds from additional borrowings			69,424				25,997
Debt payments			(31,547	)			(62,578	)
Purchase of treasury stock			-				(22,507	)
Dividends paid			(34,446	)			(33,027	)
Other financing activities			(2,056	)			(582	)
Net cash provided by (used in) financing activities			1,375				(92,697	)
Effect of exchange rate changes on cash and cash equivalents			6,168				1,352
Net (decrease) increase in cash and cash equivalents			(469	)			8,536
Cash and cash equivalents at beginning of period			25,740				24,770
Cash and cash equivalents at end of period		$	25,271			$	33,306
Supplemental Information
Six Months Ended June 30,		2022				2021
Dividends paid per share		$	0.82			$	0.78

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 six months ended June 30, 2022 and 2021 include adjusted revenue, adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which exclude divestiture & other related costs, operational improvement plan costs and income, and the results of the divested operations.
		Three Months Ended June 30,										Six Months Ended June 30,
		2022				2021				% Change		2022				2021				% Change
Revenue (GAAP)		$	371,706			$	335,827			10.7%		$	727,227			$	695,529			4.6%
Revenue of the divested product lines			-				(2,207	)					-				(27,777	)
Adjusted revenue		$	371,706			$	333,620			11.4%		$	727,227			$	667,752			8.9%
Operating income (GAAP)		$	55,244			$	35,753			54.5%		$	108,033			$	82,650			30.7%
Divestiture & other related costs – Cost of products sold			-				3						-				28
Divestiture & other related costs – Selling and administrative expenses			-				11,685						-				13,232
Operating loss (income) of the divested product lines			-				459						-				(2,468	)
Operational improvement plan - Selling and administrative expenses			-				(3,494	)					-				(2,493	)
Adjusted operating income		$	55,244			$	44,406			24.4%		$	108,033			$	90,949			18.8%
Net earnings (GAAP)		$	38,647			$	25,936			49.0%		$	75,718			$	57,604			31.4%
Divestiture & other related costs, before tax			-				11,688						-				13,260
Tax impact of divestiture & other related costs			-				(1,689	)					-				(896	)
Net loss (earnings) of the divested product lines, before tax			-				459						-				(2,468	)
Tax impact of the divested product lines			-				(115	)					-				608
Operational improvement plan income, before tax			-				(3,494	)					-				(2,493	)
Tax impact of operational improvement plan			-				455						-				159
Adjusted net earnings		$	38,647			$	33,240			16.3%		$	75,718			$	65,774			15.1%
Diluted earnings per share (GAAP)		$	0.92			$	0.61			50.8%		$	1.80			$	1.36			32.4%
Divestiture & other related costs, net of tax			-				0.24						-				0.29
Results of operations of the divested product lines, net of tax			-				0.01						-				(0.04	)
Operational improvement plan income, net of tax			-				(0.07	)					-				(0.06	)
Adjusted diluted earnings per share		$	0.92			$	0.79			16.5%		$	1.80			$	1.55			16.1%
Note: Earnings per share calculations may not foot due to rounding differences.

Sensient Technologies Corporation
(In thousands)
(Unaudited)
Reconciliation of Non-GAAP Amounts - Continued
Results by Segment		Three Months Ended June 30,
Revenue		2022				Adjustments (1)				Adjusted 2022				2021				Adjustments (1)				Adjusted 2021
Flavors & Extracts		$	189,337			$	-			$	189,337			$	179,401			$	(1,415	)		$	177,986
Color			156,268				-				156,268				133,207				(792	)			132,415
Asia Pacific			37,328				-				37,328				32,317				-				32,317
Intersegment elimination			(11,227	)			-				(11,227	)			(9,098	)			-				(9,098	)
Consolidated		$	371,706			$	-			$	371,706			$	335,827			$	(2,207	)		$	333,620
Operating Income
Flavors & Extracts		$	30,013			$	-			$	30,013			$	24,536			$	(45	)		$	24,491
Color			31,178				-				31,178				25,615				504				26,119
Asia Pacific			7,721				-				7,721				5,793				-				5,793
Corporate & Other			(13,668	)			-				(13,668	)			(20,191	)			8,194				(11,997	)
Consolidated		$	55,244			$	-			$	55,244			$	35,753			$	8,653			$	44,406
Results by Segment		Six Months Ended June 30,
Revenue		2022				Adjustments (1)				Adjusted 2022				2021				Adjustments (1)				Adjusted 2021
Flavors & Extracts		$	372,064			$	-			$	372,064			$	380,312			$	(26,304	)		$	354,008
Color			304,706				-				304,706				268,927				(1,328	)			267,599
Asia Pacific			73,793				-				73,793				66,157				(295	)			65,862
Intersegment elimination			(23,336	)			-				(23,336	)			(19,867	)			150				(19,717	)
Consolidated		$	727,227			$	-			$	727,227			$	695,529			$	(27,777	)		$	667,752
Operating Income
Flavors & Extracts		$	57,592			$	-			$	57,592			$	51,554			$	(2,925	)		$	48,629
Color			61,835				-				61,835				52,209				544				52,753
Asia Pacific			15,925				-				15,925				12,545				(87	)			12,458
Corporate & Other			(27,319	)			-				(27,319	)			(33,658	)			10,767				(22,891	)
Consolidated		$	108,033			$	-			$	108,033			$	82,650			$	8,299			$	90,949

(1) For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, adjustments consist of the results of the divested product lines, divestiture & other related costs, and 2021 operational improvement plan costs and income.

Sensient Technologies Corporation
(In thousands, except percentages)
(Unaudited)
Reconciliation of Non-GAAP Amounts - Continued
The following tables summarize the percentage change in the 2022 results compared to the 2021 results for the corresponding periods.
		Three Months Ended June 30,
Revenue		Total		Foreign Exchange Rates		Adjustments (2)		Adjusted Local Currency
Flavors & Extracts		5.5%		(2.5%)		(0.8%)		8.8%
Color		17.3%		(3.9%)		(0.7%)		21.9%
Asia Pacific		15.5%		(7.5%)		0.0%		23.0%
Total Revenue		10.7%		(3.4%)		(0.8%)		14.9%
Operating Income
Flavors & Extracts		22.3%		(1.3%)		(0.3%)		23.9%
Color		21.7%		(4.6%)		2.4%		23.9%
Asia Pacific		33.3%		(10.0%)		0.0%		43.3%
Corporate & Other		(32.3%)		0.0%		(46.3%)		14.0%
Total Operating Income		54.5%		(5.8%)		31.2%		29.1%
Diluted Earnings Per Share		50.8%		(4.9%)		34.2%		21.5%
Adjusted EBITDA		22.6%		(4.1%)		N/A		26.7%
		Six Months Ended June 30,
Revenue		Total		Foreign Exchange Rates		Adjustments (2)		Adjusted Local Currency
Flavors & Extracts		(2.2%)		(2.1%)		(7.1%)		7.0%
Color		13.3%		(2.9%)		(0.6%)		16.8%
Asia Pacific		11.5%		(6.6%)		(0.5%)		18.6%
Total Revenue		4.6%		(2.8%)		(4.2%)		11.6%
Operating Income
Flavors & Extracts		11.7%		(1.2%)		(6.4%)		19.3%
Color		18.4%		(3.6%)		1.3%		20.7%
Asia Pacific		26.9%		(8.9%)		(0.9%)		36.7%
Corporate & Other		(18.8%)		0.0%		(38.2%)		19.4%
Total Operating Income		30.7%		(4.3%)		12.5%		22.5%
Diluted Earnings Per Share		32.4%		(4.4%)		17.4%		19.4%
Adjusted EBITDA		18.2%		(3.2%)		N/A		21.4%

(2) For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist of the results of the divested product lines, divestiture & other related costs, and 2021 operational improvement plan costs and income.

The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and six months ended June 30, 2022 and 2021.

		Three Months Ended June 30,										Six Months Ended June 30,
		2022				2021				% Change		2022				2021				% Change
Operating income (GAAP)		$	55,244			$	35,753			54.5%		$	108,033			$	82,650			30.7%
Depreciation and amortization			13,124				13,018						26,180				25,817
Depreciation and amortization, divested product lines			-				(48	)					-				(97	)
Share-based compensation expense			4,528				2,075						8,691				4,188
Divestiture & other related costs, before tax			-				11,688						-				13,260
Results of operations of the divested product lines, before tax			-				459						-				(2,468	)
Operational improvement plan costs (income), before tax			-				(3,494	)					-				(2,493	)
Adjusted EBITDA		$	72,896			$	59,451			22.6%		$	142,904			$	120,857			18.2%

The following table summarizes the reconciliation between Net cash provided by operating activities (GAAP) and Free Cash Flow for the three and six months ended June 30, 2022 and 2021.

		Three Months Ended June 30,											Six Months Ended June 30,
		2022				2021				% Change			2022				2021				% Change
Net cash provided by operating activities (GAAP)		$	23,685			$	60,297			(60.7	%)		$	22,793			$	89,261			(74.5	%)
Capital expenditures			(19,732	)			(11,306	)						(32,468	)			(25,550	)
Free Cash Flow		$	3,953			$	48,991			(91.9	%)		$	(9,675	)		$	63,711			(115.2	%)

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/20220721005644/en/

Amy Agallar

(414) 347-3706

Source: Sensient Technologies Corporation

FAQ

What were Sensient Technologies' Q2 2022 revenue figures for SXT?

Sensient Technologies reported Q2 2022 revenue of $371.7 million, a 10.7% increase from Q2 2021.

How did Sensient's earnings per share change in Q2 2022?

The diluted earnings per share (EPS) increased to 92 cents in Q2 2022, up from 61 cents in Q2 2021.

What is Sensient's outlook for 2022?

Sensient expects high single-digit revenue growth in local currency and a high-teen growth rate for diluted EPS compared to 2021.

What impact did foreign currency have on Sensient's Q2 2022 results?

Foreign currency translation decreased revenue by about 3% and diluted earnings per share by approximately 5%.

What segments contributed to Sensient's revenue growth in Q2 2022?

The Flavors & Extracts segment reported a 5.5% increase, while the Color Group saw a 17.3% rise in revenue.