Sensient Technologies Corporation Reports Results for the Quarter Ended June 30, 2024 and Raises Full Year Guidance

Rhea-AI Summary

Sensient Technologies (NYSE: SXT) reported its Q2 2024 financial results, showing a 7.8% increase in revenue to $403.5 million. However, reported operating income decreased by 3.7% to $49.7 million, and diluted EPS fell 9.9% to 73 cents. The company's performance was mixed across its business segments:

- Flavors & Extracts: Revenue up 11.1% to $209.2 million
- Color: Revenue up 4.5% to $167.7 million
- Asia Pacific: Revenue up 7.1% to $38.6 million

Despite challenges, Sensient raised its full-year guidance, projecting mid-to-high single-digit growth in local currency revenue and adjusted EBITDA. The company now expects diluted EPS between $2.77 and $2.87, including Portfolio Optimization Plan costs.

Positive

• Revenue increased 7.8% to $403.5 million in Q2 2024
• Flavors & Extracts segment revenue up 11.1% with higher volumes
• Color segment revenue increased 4.5% with higher volumes across all product lines
• Asia Pacific segment revenue grew 7.1% due to higher volumes
• Company raised full-year guidance for revenue and adjusted EBITDA growth

Negative

• Reported operating income decreased 3.7% to $49.7 million
• Diluted EPS fell 9.9% to 73 cents in Q2 2024
• Local currency adjusted EPS decreased 2.5% due to higher interest expense and tax rate
• Corporate & Other operating expenses increased to $15.9 million from $9.7 million
• Lowered full-year diluted EPS guidance to $2.77-$2.87 from $2.80-$2.90

Insights

Financial Analyst

Sensient Technologies 's Q2 2024 results present a mixed financial picture with some positive trends and areas of concern. The company reported a 7.8% increase in revenue to $403.5 million, demonstrating solid top-line growth. However, operating income and earnings per share declined, indicating potential pressure on profitability.

Key highlights include:

• Revenue growth across all segments, with Flavors & Extracts leading at 11.1% increase
• Operating income decrease of 3.7% to $49.7 million
• Diluted EPS decline of 9.9% to $0.73
• Raised full-year guidance for revenue and EBITDA growth

The company's ability to grow revenue in all segments is commendable, particularly given current market conditions. However, the decline in operating income and EPS raises questions about cost management and operational efficiency. The $1.8 million cost related to the Portfolio Optimization Plan partially explains this discrepancy, but investors should monitor whether this is a short-term issue or indicative of longer-term challenges.

The raised guidance for 2024 suggests management's confidence in future performance, which is a positive signal. However, the slight downward revision in EPS guidance (from $2.80-$2.90 to $2.77-$2.87) warrants attention.

Overall, while Sensient is showing resilience in revenue growth, the company needs to address profitability concerns to maintain investor confidence in the long term.

Market Research Analyst

Sensient's Q2 2024 results offer valuable insights into current market trends in the flavors, colors and specialty ingredients sectors. The company's performance across different geographical segments provides a snapshot of global demand patterns:

• Flavors & Extracts: 11.1% revenue growth indicates robust demand in food and beverage industries
• Color: 4.5% growth suggests steady but slower expansion in color applications
• Asia Pacific: 7.1% growth (or 11.1% in local currency) highlights the region's growing importance

The strong performance in Flavors & Extracts is particularly noteworthy, potentially reflecting increased consumer interest in novel and natural flavoring solutions. The Color segment's more modest growth might indicate market saturation or shifting consumer preferences towards natural colorants.

The Asia Pacific region's double-digit local currency growth underscores the increasing significance of emerging markets in driving industry expansion. This trend aligns with broader shifts in global economic power and changing consumption patterns in developing economies.

Sensient's raised guidance for revenue and EBITDA growth suggests an optimistic outlook for the specialty ingredients market for the remainder of 2024. However, the company's challenges in maintaining profitability growth in line with revenue expansion could indicate industry-wide pressures, such as increased raw material costs or pricing competition.

For investors and industry watchers, these results highlight the importance of monitoring regional trends, segment-specific dynamics and the balance between top-line growth and profitability in the specialty ingredients sector.

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

Second Quarter Consolidated Results

• Reported revenue increased 7.8% to $403.5 million in the second quarter of 2024 versus last year’s second quarter results of $374.3 million. On a local currency basis⁽¹⁾, revenue increased 8.5%.
• Reported operating income decreased 3.7% to $49.7 million compared to $51.6 million recorded in the second quarter of 2023. In the second quarter of 2024, the Company recorded $1.8 million of costs related to its Portfolio Optimization Plan. Local currency adjusted operating income⁽¹⁾ and local currency adjusted EBITDA⁽¹⁾ increased 1.1% and 2.3%, respectively, in the second quarter.
• Reported diluted earnings per share decreased 9.9% to 73 cents in the second quarter of 2024 compared to 81 cents in the second quarter of 2023. Local currency adjusted EPS⁽¹⁾ decreased 2.5% in the second quarter primarily as a result of higher interest expense and a higher tax rate.

“Sensient’s execution and focus on business growth have resulted in solid performance across all our Groups. I continue to remain very confident about our performance in 2024,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.

Second Quarter Group Results
		Reported				Local Currency(1)
Revenue		Quarter		Year-to-Date		Quarter		Year-to-Date
Flavors & Extracts		11.1%		9.6%		11.1%		9.1%
Color		4.5%		1.9%		5.2%		1.7%
Asia Pacific		7.1%		3.6%		11.1%		7.4%
Total Revenue		7.8%		6.0%		8.5%		6.1%
		Reported				Adjusted Local Currency(1)
Operating Income		Quarter		Year-to-Date		Quarter		Year-to-Date
Flavors & Extracts		7.2%		7.0%		7.4%		6.9%
Color		7.8%		3.4%		8.8%		3.3%
Asia Pacific		4.0%		-1.0%		9.2%		3.8%
Total Operating Income		-3.7%		-3.3%		1.1%		1.8%

The Flavors & Extracts Group reported second quarter 2024 revenue of $209.2 million, an increase of $20.9 million versus the prior year’s second quarter. The Group’s increased revenue was primarily a result of higher volumes. Segment operating income was $26.2 million in the second quarter of 2024, an increase of $1.8 million compared to the prior year’s second quarter. The higher operating income was primarily due to the higher volumes.

The Color Group reported revenue of $167.7 million in the second quarter of 2024, an increase of $7.2 million compared to the prior year’s second quarter. Segment operating income was $31.5 million in the second quarter of 2024, an increase of $2.3 million compared to the prior year’s second quarter results. The Group’s increased revenue and operating income were primarily a result of the higher volumes across all product lines.

The Asia Pacific Group reported revenue of $38.6 million in the second quarter of 2024, an increase of $2.6 million compared to the prior year’s second quarter. The Group’s revenue benefited from higher volumes, partially offset by unfavorable exchange rates. Segment operating income was $7.9 million in the quarter, an increase of $0.3 million compared to the prior year’s second quarter. The higher operating income is primarily a result of the higher volumes, partially offset by unfavorable exchange rates.

Corporate & Other reported operating expenses of $15.9 million in the second quarter of 2024, compared to $9.7 million of operating expenses reported in the prior year’s second quarter. In the second quarter of 2024, the Company recorded $1.8 million of Portfolio Optimization Plan costs in Corporate & Other. Local currency adjusted operating expenses⁽¹⁾ for Corporate & Other increased $4.5 million compared to the prior year’s second quarter, primarily due to the higher performance-based compensation costs recorded in the second quarter of 2024 compared to the low comparable amount recorded in the second quarter of 2023.

2024 Outlook
Metric		Updated Guidance		Prior Guidance
Local Currency Revenue(1)		Mid-to High Single-Digit Growth		Mid-Single-Digit Growth
Local Currency Adjusted EBITDA(1)		Mid-to High Single-Digit Growth		Mid-Single-Digit Growth
Diluted EPS (GAAP)		Between $2.77 and $2.87*		Between $2.80 and $2.90*
Local Currency Adjusted Diluted EPS(1)		Mid-Single-Digit Growth		Low to Mid-Single-Digit Growth
* The Updated Guidance includes approximately 18 cents of Portfolio Optimization Plan costs. The Prior Guidance included 15 cents of Portfolio Optimization Plan costs.

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 second quarter financial results at 8:30 a.m. CDT today, Friday, July 26, 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 July 30, 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 June 30,											Six Months Ended June 30,
		2024				2023				% Change			2024				2023				% Change
Revenue		$	403,525			$	374,313			7.8	%		$	788,195			$	743,319			6.0	%
Cost of products sold			272,803				252,136			8.2	%			530,924				496,479			6.9	%
Selling and administrative expenses			81,065				70,586			14.8	%			158,208				144,411			9.6	%
Operating income			49,657				51,591			(3.7	%)			99,063				102,429			(3.3	%)
Interest expense			7,653				6,352							14,698				12,354
Earnings before income taxes			42,004				45,239							84,365				90,075
Income taxes			11,072				11,206							22,493				22,391
Net earnings		$	30,932			$	34,033			(9.1	%)		$	61,872			$	67,684			(8.6	%)
Earnings per share of common stock:
Basic		$	0.73			$	0.81						$	1.47			$	1.61
Diluted		$	0.73			$	0.81						$	1.46			$	1.60
Average common shares outstanding:
Basic			42,154				42,043							42,129				42,006
Diluted			42,398				42,235							42,351				42,245

Results by Segment		Three Months Ended June 30,											Six Months Ended June 30,
Revenue		2024				2023				% Change			2024				2023				% Change
Flavors & Extracts		$	209,213			$	188,284			11.1	%		$	402,305			$	367,136			9.6	%
Color			167,700				160,463			4.5	%			327,725				321,624			1.9	%
Asia Pacific			38,580				36,029			7.1	%			78,886				76,114			3.6	%
Intersegment elimination			(11,968	)			(10,463	)						(20,721	)			(21,555	)
Consolidated		$	403,525			$	374,313			7.8	%		$	788,195			$	743,319			6.0	%
Operating Income
Flavors & Extracts		$	26,209			$	24,456			7.2	%		$	49,887			$	46,636			7.0	%
Color			31,502				29,217			7.8	%			63,181				61,102			3.4	%
Asia Pacific			7,880				7,575			4.0	%			16,656				16,816			(1.0	%)
Corporate & Other			(15,934	)			(9,657	)						(30,661	)			(22,125	)
Consolidated		$	49,657			$	51,591			(3.7	%)		$	99,063			$	102,429			(3.3	%)

Sensient Technologies Corporation
(In thousands)
(Unaudited)
Consolidated Condensed Balance Sheets		June 30,				December 31,
		2024				2023
Cash and cash equivalents		$	30,339			$	28,934
Trade accounts receivable			315,604				272,164
Inventories			553,415				598,399
Prepaid expenses and other current assets			44,897				37,119
Total Current Assets			944,255				936,616
Goodwill & intangible assets (net)			429,800				436,177
Property, plant, and equipment (net)			491,140				505,277
Other assets			129,672				136,437
Total Assets		$	1,994,867			$	2,014,507
Trade accounts payable		$	107,218			$	131,114
Short-term borrowings			26,995				13,460
Other current liabilities			92,822				91,732
Total Current Liabilities			227,035				236,306
Long-term debt			634,663				645,085
Accrued employee and retiree benefits			24,872				27,715
Other liabilities			50,522				52,077
Shareholders' Equity			1,057,775				1,053,324
Total Liabilities and Shareholders' Equity		$	1,994,867			$	2,014,507

Sensient Technologies Corporation
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Cash Flows
Six Months Ended June 30,
		2024				2023
Cash flows from operating activities:
Net earnings		$	61,872			$	67,684
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization			29,725				28,590
Share-based compensation expense			4,911				4,766
Net (gain) loss on assets			(195	)			81
Portfolio Optimization Plan costs			1,495				-
Deferred income taxes			529				(2,643	)
Changes in operating assets and liabilities:
Trade accounts receivable			(49,449	)			6,062
Inventories			36,730				(16,927	)
Prepaid expenses and other assets			(6,612	)			3,534
Trade accounts payable and other accrued expenses			(22,722	)			(18,329	)
Accrued salaries, wages, and withholdings			7,824				(19,713	)
Income taxes			(6,591	)			(1,998	)
Other liabilities			1,429				595
Net cash provided by operating activities			58,946				51,702
Cash flows from investing activities:
Acquisition of property, plant, and equipment			(22,850	)			(45,137	)
Proceeds from sale of assets			296				53
Other investing activities			(336	)			2,054
Net cash used in investing activities			(22,890	)			(43,030	)
Cash flows from financing activities:
Proceeds from additional borrowings			132,189				187,037
Debt payments			(120,571	)			(143,923	)
Dividends paid			(34,685	)			(34,577	)
Other financing activities			(3,016	)			(8,003	)
Net cash (used in) provided by financing activities			(26,083	)			534
Effect of exchange rate changes on cash and cash equivalents			(8,568	)			6,419
Net increase in cash and cash equivalents			1,405				15,625
Cash and cash equivalents at beginning of period			28,934				20,921
Cash and cash equivalents at end of period		$	30,339			$	36,546
Supplemental Information
Six Months Ended June 30,		2024				2023
Dividends paid per share		$	0.82			$	0.82

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, 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 June 30,												Six Months Ended June 30,
		2024				2023				% Change				2024				2023				% Change
Operating income (GAAP)		$	49,657			$	51,591				(3.7	%)		$	99,063			$	102,429				(3.3	%)
Portfolio Optimization Plan costs – Cost of products sold			207				-								314				-
Portfolio Optimization Plan costs – Selling and administrative
expenses			1,545				-								4,250				-
Adjusted operating income		$	51,409			$	51,591				(0.4	%)		$	103,627			$	102,429				1.2	%
Net earnings (GAAP)		$	30,932			$	34,033				(9.1	%)		$	61,872			$	67,684				(8.6	%)
Portfolio Optimization Plan costs, before tax			1,752				-								4,564				-
Tax impact of Portfolio Optimization Plan costs(1)			(214	)			-								(569	)			-
Adjusted net earnings		$	32,470			$	34,033				(4.6	%)		$	65,867			$	67,684				(2.7	%)
Diluted earnings per share (GAAP)		$	0.73			$	0.81				(9.9	%)		$	1.46			$	1.60				(8.8	%)
Portfolio Optimization Plan costs, net of tax			0.04				-								0.09				-
Adjusted diluted earnings per share		$	0.77			$	0.81				(4.9	%)		$	1.56			$	1.60				(2.5	%)
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 June 30,
										Adjusted												Adjusted
Operating Income		2024				Adjustments(2)				2024				2023				Adjustments(2)				2023
Flavors & Extracts		$	26,209			$	-			$	26,209			$	24,456			$	-			$	24,456
Color			31,502				-				31,502				29,217				-				29,217
Asia Pacific			7,880				-				7,880				7,575				-				7,575
Corporate & Other			(15,934	)			1,752				(14,182	)			(9,657	)			-				(9,657	)
Consolidated		$	49,657			$	1,752			$	51,409			$	51,591			$	-			$	51,591
Results by Segment		Six Months Ended June 30,
										Adjusted												Adjusted
Operating Income		2024				Adjustments(2)				2024				2023				Adjustments(2)				2023
Flavors & Extracts		$	49,887			$	-			$	49,887			$	46,636			$	-			$	46,636
Color			63,181				-				63,181				61,102				-				61,102
Asia Pacific			16,656				-				16,656				16,816				-				16,816
Corporate & Other			(30,661	)			4,564				(26,097	)			(22,125	)			-				(22,125	)
Consolidated		$	99,063			$	4,564			$	103,627			$	102,429			$	-			$	102,429
(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 June 30, 2024
Revenue		Total		Foreign Exchange Rates		Adjustments(3)		Adjusted Local Currency
Flavors & Extracts		11.1%		0.0%		N/A		11.1%
Color		4.5%		(0.7%)		N/A		5.2%
Asia Pacific		7.1%		(4.0%)		N/A		11.1%
Total Revenue		7.8%		(0.7%)		N/A		8.5%
Operating Income
Flavors & Extracts		7.2%		(0.2%)		0.0%		7.4%
Color		7.8%		(1.0%)		0.0%		8.8%
Asia Pacific		4.0%		(5.2%)		0.0%		9.2%
Corporate & Other		65.0%		0.0%		18.1%		46.9%
Total Operating Income		(3.7%)		(1.4%)		(3.4%)		1.1%
Diluted Earnings Per Share		(9.9%)		(2.5%)		(4.9%)		(2.5%)
Adjusted EBITDA		1.2%		(1.1%)		N/A		2.3%
		Six Months Ended June 30, 2024
Revenue		Total		Foreign Exchange Rates		Adjustments(3)		Adjusted Local Currency
Flavors & Extracts		9.6%		0.5%		N/A		9.1%
Color		1.9%		0.2%		N/A		1.7%
Asia Pacific		3.6%		(3.8%)		N/A		7.4%
Total Revenue		6.0%		(0.1%)		N/A		6.1%
Operating Income
Flavors & Extracts		7.0%		0.1%		0.0%		6.9%
Color		3.4%		0.1%		0.0%		3.3%
Asia Pacific		(1.0%)		(4.8%)		0.0%		3.8%
Corporate & Other		38.6%		0.0%		20.6%		18.0%
Total Operating Income		(3.3%)		(0.7%)		(4.4%)		1.8%
Diluted Earnings Per Share		(8.8%)		(0.7%)		(6.2%)		(1.9%)
Adjusted EBITDA		1.8%		(0.4%)		N/A		2.2%
(3) Adjustments consist of Portfolio Optimization Plan costs.

Sensient Technologies Corporation
(In thousands, except percentages and per share amounts)
(Unaudited)
Reconciliation of Non-GAAP Amounts - Continued
The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023.
		Three Months Ended June 30,											Six Months Ended June 30,
		2024				2023				% Change			2024				2023				% Change
Operating income (GAAP)		$	49,657			$	51,591			(3.7	%)		$	99,063			$	102,429			(3.3	%)
Depreciation and amortization			15,016				14,440							29,725				28,590
Share-based compensation expense			2,916				2,499							4,911				4,766
Portfolio Optimization Plan costs, before tax			1,752				-							4,564				-
Adjusted EBITDA		$	69,341			$	68,530			1.2	%		$	138,263			$	135,785			1.8	%

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 June 30, 2024 and 2023.
		June 30,
Debt		2024				2023
Short-term borrowings		$	26,995			$	15,436
Long-term debt			634,663				686,589
Credit Agreement adjustments(1)			(18,034	)			(19,755	)
Net Debt		$	643,624			$	682,270
Operating income (GAAP)		$	151,657			$	191,147
Depreciation and amortization			58,955				54,877
Share-based compensation expense			9,078				12,213
Portfolio Optimization Plan costs, before tax			32,405				-
Other non-operating gains(2)			(872	)			(3,326	)
Credit Adjusted EBITDA		$	251,223			$	254,911
Net Debt to Credit Adjusted EBITDA		2.6x				2.7x
(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.

Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725623696/en/

Amy Agallar

(414) 347-3706

investor.relations@sensient.com

Source: Sensient Technologies Corporation

FAQ

What was Sensient's revenue growth in Q2 2024?

Sensient Technologies (SXT) reported a 7.8% increase in revenue to $403.5 million in Q2 2024 compared to the same period last year.

How did Sensient's EPS perform in Q2 2024?

Sensient's diluted earnings per share (EPS) decreased 9.9% to 73 cents in Q2 2024 compared to 81 cents in Q2 2023.

Which Sensient segment showed the highest revenue growth in Q2 2024?

The Flavors & Extracts segment showed the highest revenue growth of 11.1% in Q2 2024, reaching $209.2 million.

Has Sensient updated its 2024 financial guidance?

Yes, Sensient (SXT) raised its 2024 guidance, projecting mid-to-high single-digit growth in local currency revenue and adjusted EBITDA, with diluted EPS now expected between $2.77 and $2.87.

What factors affected Sensient's Q2 2024 performance?

Sensient's Q2 2024 performance was affected by higher volumes across segments, increased interest expenses, a higher tax rate, and $1.8 million in Portfolio Optimization Plan costs.