Sensient Technologies Corporation Reports Results for the Quarter Ended March 31, 2025
First Quarter Consolidated Results
-
Reported revenue increased
2.0% to$392.3 million $384.7 million 4.1% . -
Reported operating income increased
8.3% to$53.5 million $49.4 million $2.9 million $2.8 million 10.3% and10.1% , respectively, in the first quarter. -
Reported earnings per share increased
11.0% to81 cents in the first quarter of 2025 compared to73 cents in the first quarter of 2024. Local currency adjusted diluted EPS(1) increased11.4% in the first quarter.
“As expected, Sensient got off to a strong start in the first quarter of 2025, building on the momentum from the previous year. Our results are driven by solid volume growth and sales wins, particularly in natural colors. The quarter’s achievements underscore our ability to adapt in dynamic market conditions, and I am pleased to reaffirm our 2025 guidance,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.
First Quarter Group Results |
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Reported |
|
Local Currency(1) |
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| Revenue | Quarter |
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Quarter |
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| Flavors & Extracts |
|
|
|
|
| Color |
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|
|
|
|
|
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| Total Revenue |
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|
|
|
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Reported |
|
Local Currency Adjusted(1) |
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| Operating Income | Quarter |
|
Quarter |
|
| Flavors & Extracts |
|
|
|
|
| Color |
|
|
|
|
|
|
|
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| Total Operating Income |
|
|
|
|
The Flavors & Extracts Group reported first quarter 2025 revenue of
The Color Group reported revenue of
The Asia Pacific Group reported revenue of
Corporate & Other reported operating expenses of
2025 OUTLOOK |
||
| Metric | Current Guidance | |
| Local Currency Revenue(1) | Mid-Single-Digit Growth | |
| Local Currency Adjusted EBITDA(1) | Mid-Single-Digit to High Single-Digit Growth | |
| Diluted EPS (GAAP) | Between |
|
| Local Currency Adjusted Diluted EPS(1) | High Single-Digit to Double-Digit Growth | |
| *Includes approximately |
||
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 2025 first quarter financial results at 8:30 a.m. CDT on Friday, April 25, 2025. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company’s web site at www.sensient.com.
A replay of the call will be available one hour after the end of the conference call through May 2, 2025, by calling (877) 344-7529 and using access code 4206177. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company’s web site at www.sensient.com on or after April 29, 2025.
This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2025 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
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
| Sensient Technologies Corporation | |||||||||||
| (In thousands, except percentages and per share amounts) | |||||||||||
| (Unaudited) | |||||||||||
| Consolidated Statements of Earnings | Three Months Ended March 31, |
||||||||||
|
|
|
|
|
|||||||
2025 |
|
2024 |
|
% Change |
|||||||
| Revenue | $ |
392,325 |
|
$ |
384,670 |
|
2.0 |
% |
|||
| Cost of products sold |
|
260,548 |
|
|
258,121 |
|
0.9 |
% |
|||
| Selling and administrative expenses |
|
78,247 |
|
|
77,143 |
|
1.4 |
% |
|||
| Operating income |
|
53,530 |
|
|
49,406 |
|
8.3 |
% |
|||
| Interest expense |
|
7,341 |
|
|
7,045 |
|
|||||
| Earnings before income taxes |
|
46,189 |
|
|
42,361 |
|
|||||
| Income taxes |
|
11,727 |
|
|
11,421 |
|
|||||
| Net earnings | $ |
34,462 |
|
$ |
30,940 |
|
11.4 |
% |
|||
| Earnings per share of common stock: | |||||||||||
| Basic | $ |
0.82 |
|
$ |
0.73 |
|
|||||
| Diluted | $ |
0.81 |
|
$ |
0.73 |
|
|||||
| Average common shares outstanding: | |||||||||||
| Basic |
|
42,197 |
|
|
42,104 |
|
|||||
| Diluted |
|
42,469 |
|
|
42,305 |
|
|||||
| Results by Segment | Three Months Ended March 31, |
||||||||||
|
|
|
|
|
|||||||
Revenue |
2025 |
|
2024 |
|
% Change |
||||||
| Flavors & Extracts | $ |
193,681 |
|
$ |
193,092 |
|
0.3 |
% |
|||
| Color |
|
167,750 |
|
|
160,025 |
|
4.8 |
% |
|||
|
41,901 |
|
|
40,306 |
|
4.0 |
% |
||||
| Intersegment elimination |
|
(11,007 |
) |
|
(8,753 |
) |
|||||
| Consolidated | $ |
392,325 |
|
$ |
384,670 |
|
2.0 |
% |
|||
| Operating Income | |||||||||||
| Flavors & Extracts | $ |
24,989 |
|
$ |
23,678 |
|
5.5 |
% |
|||
| Color |
|
34,852 |
|
|
31,679 |
|
10.0 |
% |
|||
|
9,442 |
|
|
8,776 |
|
7.6 |
% |
||||
| Corporate & Other |
|
(15,753 |
) |
|
(14,727 |
) |
|||||
| Consolidated | $ |
53,530 |
|
$ |
49,406 |
|
8.3 |
% |
|||
| Sensient Technologies Corporation | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| Consolidated Condensed Balance Sheets | March 31, |
|
December 31, |
|||
2025 |
|
2024 |
||||
| Cash and cash equivalents | $ |
32,574 |
$ |
26,626 |
||
| Trade accounts receivable |
|
315,024 |
|
290,087 |
||
| Inventories |
|
598,204 |
|
600,302 |
||
| Prepaid expenses and other current assets |
|
54,407 |
|
44,871 |
||
Total Current Assets |
|
1,000,209 |
|
961,886 |
||
| Goodwill & intangible assets (net) |
|
435,681 |
|
423,658 |
||
| Property, plant, and equipment (net) |
|
499,184 |
|
491,587 |
||
| Other assets |
|
157,594 |
|
146,663 |
||
| Total Assets | $ |
2,092,668 |
$ |
2,023,794 |
||
| Trade accounts payable | $ |
110,611 |
$ |
139,052 |
||
| Short-term borrowings |
|
18,575 |
|
19,848 |
||
| Other current liabilities |
|
101,509 |
|
111,739 |
||
| Total Current Liabilities |
|
230,695 |
|
270,639 |
||
| Long-term debt |
|
683,266 |
|
613,523 |
||
| Accrued employee and retiree benefits |
|
25,175 |
|
24,499 |
||
| Other liabilities |
|
58,498 |
|
54,147 |
||
| Shareholders' Equity |
|
1,095,034 |
|
1,060,986 |
||
Total Liabilities and Shareholders' Equity |
$ |
2,092,668 |
$ |
2,023,794 |
||
| Sensient Technologies Corporation | |||||||||
| (In thousands, except per share amounts) | |||||||||
| (Unaudited) | |||||||||
| Consolidated Statements of Cash Flows | |||||||||
| Three Months Ended March 31, | |||||||||
2025 |
2024 |
||||||||
| Cash flows from operating activities: | |||||||||
| Net earnings | $ |
34,462 |
|
$ |
30,940 |
|
|||
| Adjustments to arrive at net cash provided by operating activities: | |||||||||
| Depreciation and amortization |
|
15,074 |
|
|
14,709 |
|
|||
| Share-based compensation expense |
|
2,900 |
|
|
1,995 |
|
|||
| Net loss (gain) on assets |
|
46 |
|
|
(193 |
) |
|||
| Portfolio Optimization Plan costs |
|
831 |
|
|
1,189 |
|
|||
| Deferred income taxes |
|
1,282 |
|
|
(4 |
) |
|||
| Changes in operating assets and liabilities: | |||||||||
| Trade accounts receivable |
|
(20,780 |
) |
|
(28,331 |
) |
|||
| Inventories |
|
7,202 |
|
|
26,624 |
|
|||
| Prepaid expenses and other assets |
|
(8,064 |
) |
|
(13,655 |
) |
|||
| Trade accounts payable and other accrued expenses |
|
(25,859 |
) |
|
(21,993 |
) |
|||
| Accrued salaries, wages, and withholdings |
|
(21,665 |
) |
|
29 |
|
|||
| Income taxes |
|
4,989 |
|
|
3,150 |
|
|||
| Other liabilities |
|
604 |
|
|
674 |
|
|||
| Net cash (used in) provided by operating activities |
|
(8,978 |
) |
|
15,134 |
|
|||
| Cash flows from investing activities: | |||||||||
| Acquisition of property, plant, and equipment |
|
(16,854 |
) |
|
(11,030 |
) |
|||
| Proceeds from sale of assets |
|
7 |
|
|
93 |
|
|||
| Acquisition of new business |
|
(4,349 |
) |
|
- |
|
|||
| Other investing activities |
|
(88 |
) |
|
(1 |
) |
|||
| Net cash used in investing activities |
|
(21,284 |
) |
|
(10,938 |
) |
|||
| Cash flows from financing activities: | |||||||||
| Proceeds from additional borrowings |
|
66,449 |
|
|
38,053 |
|
|||
| Debt payments |
|
(10,771 |
) |
|
(27,031 |
) |
|||
| Dividends paid |
|
(17,376 |
) |
|
(17,312 |
) |
|||
| Other financing activities |
|
(2,341 |
) |
|
(2,828 |
) |
|||
| Net cash provided by (used in) financing activities |
|
35,961 |
|
|
(9,118 |
) |
|||
| Effect of exchange rate changes on cash and cash equivalents |
|
249 |
|
|
1,405 |
|
|||
| Net increase (decrease) in cash and cash equivalents |
|
5,948 |
|
|
(3,517 |
) |
|||
| Cash and cash equivalents at beginning of period |
|
26,626 |
|
|
28,934 |
|
|||
| Cash and cash equivalents at end of period | $ |
32,574 |
|
$ |
25,417 |
|
|||
| Supplemental Information | |||||||||
| Three Months Ended March 31, | 2025 |
|
2024 |
||||||
| Dividends paid per share | $ |
0.41 |
|
$ |
0.41 |
|
|||
| Sensient Technologies Corporation | |||||||||||||||||||||||
| (In thousands, except percentages and per share amounts) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Reconciliation of Non-GAAP Amounts | |||||||||||||||||||||||
| The Company's results for the three months ended March 31, 2025 and 2024 include adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which, in each case, exclude Portfolio Optimization Plan costs. | |||||||||||||||||||||||
Three Months Ended March 31, |
|||||||||||||||||||||||
2025 |
|
2024 |
|
% Change |
|||||||||||||||||||
| Operating income (GAAP) | $ |
53,530 |
|
$ |
49,406 |
|
|
8.3 |
% |
||||||||||||||
| Portfolio Optimization Plan costs – Cost of products sold |
|
1,814 |
|
|
107 |
|
|||||||||||||||||
| Portfolio Optimization Plan costs – Selling and administrative | |||||||||||||||||||||||
| expenses |
|
1,050 |
|
|
2,705 |
|
|||||||||||||||||
| Adjusted operating income | $ |
56,394 |
|
$ |
52,218 |
|
|
8.0 |
% |
||||||||||||||
| Net earnings (GAAP) | $ |
34,462 |
|
$ |
30,940 |
|
|
11.4 |
% |
||||||||||||||
| Portfolio Optimization Plan costs, before tax |
|
2,864 |
|
|
2,812 |
|
|||||||||||||||||
| Tax impact of Portfolio Optimization Plan costs(1) |
|
(702 |
) |
|
(355 |
) |
|||||||||||||||||
| Adjusted net earnings | $ |
36,624 |
|
$ |
33,397 |
|
|
9.7 |
% |
||||||||||||||
| Diluted earnings per share (GAAP) | $ |
0.81 |
|
$ |
0.73 |
|
|
11.0 |
% |
||||||||||||||
| Portfolio Optimization Plan costs, net of tax |
|
0.05 |
|
|
0.06 |
|
|||||||||||||||||
| Adjusted diluted earnings per share | $ |
0.86 |
|
$ |
0.79 |
|
|
8.9 |
% |
||||||||||||||
| Note: Earnings per share calculations may not foot due to rounding differences. | |||||||||||||||||||||||
| (1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. | |||||||||||||||||||||||
| Results by Segment | Three Months Ended March 31, |
||||||||||||||||||||||
|
|
|
|
Adjusted |
|
|
|
|
|
Adjusted |
|||||||||||||
| Operating Income | 2025 |
|
Adjustments(2) |
|
2025 |
|
2024 |
|
Adjustments(2) |
|
2024 |
||||||||||||
| Flavors & Extracts | $ |
24,989 |
|
$ |
- |
|
$ |
24,989 |
|
$ |
23,678 |
|
$ |
- |
$ |
23,678 |
|
||||||
| Color |
|
34,852 |
|
|
- |
|
|
34,852 |
|
|
31,679 |
|
|
- |
|
31,679 |
|
||||||
|
9,442 |
|
|
- |
|
|
9,442 |
|
|
8,776 |
|
|
- |
|
8,776 |
|
|||||||
| Corporate & Other |
|
(15,753 |
) |
|
2,864 |
|
|
(12,889 |
) |
|
(14,727 |
) |
|
2,812 |
|
(11,915 |
) |
||||||
| Consolidated | $ |
53,530 |
|
$ |
2,864 |
|
$ |
56,394 |
|
$ |
49,406 |
|
$ |
2,812 |
$ |
52,218 |
|
||||||
| (2) Adjustments consist of Portfolio Optimization Plan costs. | |||||||||||||||||||||||
| The following table summarizes the percentage change in the 2025 results compared to the 2024 results for the corresponding periods. | |||||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||
| Revenue | Total | Foreign Exchange Rates |
Adjustments(3) | Local Currency Adjusted |
|||||||||||||||||||
| Flavors & Extracts |
|
0.3 |
% |
|
(1.4 |
%) |
|
N/A |
|
|
1.7 |
% |
|||||||||||
| Color |
|
4.8 |
% |
|
(3.4 |
%) |
|
N/A |
|
|
8.2 |
% |
|||||||||||
|
4.0 |
% |
|
(0.8 |
%) |
|
N/A |
|
|
4.8 |
% |
||||||||||||
| Total Revenue |
|
2.0 |
% |
|
(2.1 |
%) |
|
N/A |
|
|
4.1 |
% |
|||||||||||
| Operating Income | |||||||||||||||||||||||
| Flavors & Extracts |
|
5.5 |
% |
|
(0.7 |
%) |
|
0.0 |
% |
|
6.2 |
% |
|||||||||||
| Color |
|
10.0 |
% |
|
(3.5 |
%) |
|
0.0 |
% |
|
13.5 |
% |
|||||||||||
|
7.6 |
% |
|
0.6 |
% |
|
0.0 |
% |
|
7.0 |
% |
||||||||||||
| Corporate & Other |
|
7.0 |
% |
|
0.0 |
% |
|
(1.2 |
%) |
|
8.2 |
% |
|||||||||||
| Total Operating Income |
|
8.3 |
% |
|
(2.5 |
%) |
|
0.5 |
% |
|
10.3 |
% |
|||||||||||
| Diluted Earnings Per Share |
|
11.0 |
% |
|
(2.7 |
%) |
|
2.3 |
% |
|
11.4 |
% |
|||||||||||
| Adjusted EBITDA |
|
7.9 |
% |
|
(2.2 |
%) |
|
N/A |
|
|
10.1 |
% |
|||||||||||
| (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 Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2025 and 2024. | |||||||||||||
|
|
|
|||||||||||
Three Months Ended March 31, |
|||||||||||||
|
|
|
|
||||||||||
2025 |
2024 |
|
% Change |
||||||||||
| Operating income (GAAP) | $ |
53,530 |
|
$ |
49,406 |
|
8.3 |
% |
|||||
| Depreciation and amortization |
|
15,074 |
|
|
14,709 |
|
|||||||
| Share-based compensation expense |
|
2,900 |
|
|
1,995 |
|
|||||||
| Portfolio Optimization Plan costs, before tax |
|
2,864 |
|
|
2,812 |
|
|||||||
| Adjusted EBITDA | $ |
74,368 |
|
$ |
68,922 |
|
7.9 |
% |
|||||
| The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the trailing twelve months ended March 31, 2025 and 2024. | |||||||||||||
March 31, |
|||||||||||||
| Debt | 2025 |
|
2024 |
||||||||||
| Short-term borrowings | $ |
18,575 |
|
$ |
19,439 |
|
|||||||
| Long-term debt |
|
683,266 |
|
|
643,511 |
|
|||||||
| Credit Agreement adjustments(4) |
|
(21,165 |
) |
|
(13,775 |
) |
|||||||
| Net Debt | $ |
680,676 |
|
$ |
649,175 |
|
|||||||
| Operating income (GAAP) | $ |
195,703 |
|
$ |
153,591 |
|
|||||||
| Depreciation and amortization |
|
60,694 |
|
|
58,379 |
|
|||||||
| Share-based compensation expense |
|
10,989 |
|
|
8,661 |
|
|||||||
| Portfolio Optimization Plan costs, before tax |
|
6,683 |
|
|
30,653 |
|
|||||||
| Other non-operating gains(5) |
|
(871 |
) |
|
(1,055 |
) |
|||||||
| Credit Adjusted EBITDA | $ |
273,198 |
|
$ |
250,229 |
|
|||||||
| Net Debt to Credit Adjusted EBITDA | 2.5x | 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. | |||||||||||||
| 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
Source: Sensient Technologies Corporation
View source version on businesswire.com: https://www.businesswire.com/news/home/20250424600201/en/
Amy Agallar
(414) 347-3706
investor.relations@sensient.com
Source: Sensient Technologies Corporation
