Sensient Technologies Corporation (NYSE: SXT), a global leader in flavors and colors for the food, pharmaceutical, and personal care industries, has released its financial results for the third quarter of 2024.
Key Highlights
- Revenue Growth: Revenue for the third quarter increased by 7.9%, reaching $392.6 million, up from $363.8 million in the same period last year. In local currency, revenue rose by 8.6%.
- Operating Income: The company reported a 13.4% growth in operating income, totaling $50.5 million, compared to $44.5 million in the third quarter of 2023. Local currency adjusted operating income and adjusted EBITDA increased by 17.1% and 12.8%, respectively.
- Earnings Per Share (EPS): Diluted EPS rose by 2.7% to $0.77, while local currency adjusted diluted EPS increased by 8.0% to $0.80.
Paul Manning, Chairman, President, and CEO, expressed confidence in the company’s performance, stating, “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.”
Segment Performance
- Flavors & Extracts: Revenue increased by 6.4% to $203.3 million, driven by higher volumes and pricing, with operating income rising by 12.1%.
- Color: Revenue grew by 11.8% to $162.1 million, supported by increased volumes across all product lines, leading to a 30.0% rise in operating income.
- Asia Pacific: The region saw revenue climb by 13.6% to $41.8 million, reflecting broad-based growth across geographies, with operating income up by 15.0%.
Outlook for 2024
- The company has updated its revenue guidance to reflect high single-digit growth in local currency. Adjusted EBITDA is also expected to grow in the high single digits.
- The guidance for GAAP diluted EPS remains between $2.77 and $2.87, with local currency adjusted diluted EPS projected to see mid-single-digit growth.
Conference Call and Webcast
Sensient will host a conference call at 8:30 a.m. CDT on October 25, 2024, to discuss the results. A webcast and presentation slides will be available on the company’s website, with a replay accessible following the call.
About Sensient Technologies
Headquartered in Milwaukee, Wisconsin, Sensient Technologies is a prominent global manufacturer specializing in flavors, colors, and specialty ingredients. It serves diverse markets including food, beverages, pharmaceuticals, nutraceuticals, and personal care, supporting customers ranging from small businesses to international corporations.
Forward-Looking Statements
This release contains forward-looking statements subject to risks and uncertainties that may affect actual results. These include economic conditions, supply chain challenges, geopolitical factors, and other risks outlined in Sensient’s SEC filings. Sensient does not commit to updating forward-looking statements, except as legally required.
