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Mar 31, 2024
Sensient Q1 2024 Earnings Report
Sensient's Q1 2024 results were reported, and full-year guidance was raised.
Key Takeaways
Sensient Technologies Corporation reported a 4.2% increase in revenue to $384.7 million for the first quarter of 2024. However, operating income decreased by 2.8% to $49.4 million, and diluted earnings per share decreased by 8.8% to 73 cents. The company has raised its full-year guidance, expecting mid-single-digit growth in revenue and adjusted EBITDA on a local currency basis.
Revenue increased by 4.2% to $384.7 million compared to the previous year.
Operating income decreased by 2.8% to $49.4 million.
Diluted earnings per share decreased by 8.8% to 73 cents.
Full-year guidance raised, expecting mid-single-digit growth in revenue and adjusted EBITDA.
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 expects 2024 diluted earnings per share to be between $2.80 and $2.90, including approximately 15 cents of Portfolio Optimization Plan costs. The company anticipates revenue and adjusted EBITDA to grow at a mid-single-digit rate on a local currency basis. Adjusted diluted earnings per share are expected to grow at a low to mid-single-digit rate on a local currency basis. The company expects higher interest expense and a full-year adjusted tax rate between 24% and 25%.
Positive Outlook
- Revenue is expected to grow at a mid-single-digit rate on a local currency basis.
- Adjusted EBITDA is expected to grow at a mid-single-digit rate on a local currency basis.
- Adjusted diluted earnings per share are expected to grow at a low to mid-single-digit rate on a local currency basis.
- Company expects 2024 diluted earnings per share to be between $2.80 and $2.90
- The Company also expects its full year 2024 adjusted tax rate to be between 24% and 25%.
Challenges Ahead
- Diluted earnings per share will include approximately 15 cents of Portfolio Optimization Plan costs.
- Diluted earnings per share are expected to be impacted by higher interest expense.
- Color Group's revenue was negatively impacted by lower volumes in the food and pharmaceutical product line, primarily due to market declines and modest customer destocking.
- Asia Pacific Group's revenue benefited from higher volumes, partially offset by unfavorable exchange rates.
- Company's guidance is based on current conditions and economic and market trends and is subject to various risks and uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income