Sensient Q1 2023 Earnings Report
Key Takeaways
Sensient Technologies Corporation reported consolidated revenue of $369.0 million for the first quarter of 2023, up from $355.5 million in the first quarter of 2022. Diluted earnings per share decreased to 80 cents, compared to 88 cents in the prior year. The company reconfirmed its full year 2023 GAAP diluted earnings per share to be flat to low-single digit growth compared to 2022.
Consolidated revenue increased to $369.0 million from $355.5 million year-over-year.
Diluted earnings per share decreased to 80 cents from 88 cents year-over-year.
Flavors & Extracts Group revenue decreased by 2.1%, while Color Group revenue increased by 8.6%, and Asia Pacific Group revenue increased by 9.9%.
The company reconfirmed its expectation for 2023 full year GAAP diluted earnings per share to be flat to low-single digit growth compared to 2022.
Sensient
Sensient
Sensient Revenue by Segment
Sensient Revenue by Geographic Location
Forward Guidance
Sensient reconfirmed its expectation for the 2023 full year GAAP diluted earnings per share to be flat to low-single digit growth compared to 2022. The Company continues to expect 2023 revenue to grow at a mid-single digit rate on a local currency basis compared to the Company’s 2022 revenue.
Positive Outlook
- Company expects 2023 revenue to grow at a mid-single digit rate on a local currency basis compared to the Company’s 2022 revenue.
- Company expects 2023 diluted earnings per share to be flat to low-single digit growth on a local currency basis compared to the Company’s 2022 adjusted diluted earnings per share of $3.29.
- Company expects 2023 adjusted EBITDA to grow at a mid-to-high single digit rate on a local currency basis compared to the Company’s 2022 adjusted EBITDA.
- The company expects its 2023 diluted earnings per share to be impacted by higher interest rates and a higher tax rate.
- Based on current exchange rates, the Company expects foreign exchange rates to be modestly favorable for the full year.
Challenges Ahead
- Guidance is based on current conditions and economic and market trends and is subject to various risks and uncertainties.
- Company's ability to manage economic and capital 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
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income