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Mar 31, 2020
Sensient Q1 2020 Earnings Report
Sensient Technologies Corporation reported an increase in consolidated revenue and confirmed full-year guidance.
Key Takeaways
Sensient Technologies Corporation reported a revenue increase of 0.9% to $350.7 million in Q1 2020, with diluted earnings per share of 49 cents. The company confirmed its full-year guidance despite challenges posed by COVID-19, with all production facilities remaining operational.
Consolidated revenue increased by 0.9%, with adjusted local currency consolidated revenue up by 3.1%.
Cash provided by operating activities increased by 58% in the quarter.
Sensient confirmed its full-year diluted earnings per share guidance of $1.85 to $2.15.
The company's plants remain operational to meet customer demand during the COVID-19 pandemic.
Sensient
Sensient
Sensient Revenue by Segment
Sensient Revenue by Geographic Location
Revenue by Segment
Flavors & Extracts Revenue
CapyFin.comColor Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comRevenue by Geographic Location
Asia Pacific Revenue
CapyFin.com Forward Guidance
Sensient reconfirmed its previously issued diluted earnings per share guidance for 2020 of $1.85 to $2.15 and low to mid-single digit revenue growth in 2020 on a local currency basis, excluding the revenues of the product lines to be divested.
Positive Outlook
- Reconfirming diluted earnings per share guidance for 2020 of $1.85 to $2.15.
- Reconfirming guidance of $2.60 to $2.80 for adjusted diluted earnings per share.
- Confirming low to mid-single digit revenue growth in 2020 on a local currency basis.
- Expects 2020 Adjusted EBITDA to grow at a low to mid-single digit rate.
- All production facilities are open and producing.
Challenges Ahead
- Guidance includes 55 to 65 cents per share of divestiture & other related costs and the results of the operations to be divested.
- Guidance includes approximately 10 cents of foreign currency headwinds.
- Adjusted Operating Income will be impacted by higher non-cash performance-based compensation.
- The full impact of COVID-19 is unknown and creates uncertainty.
- Operating income was $34.6 million in the first quarter of 2020 compared to operating income of $49.4 million in last year’s first quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income