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Jun 30, 2020
Sensient Q2 2020 Earnings Report
Sensient's Q2 2020 earnings were reported, with Flavors & Fragrances Group showing strong revenue and profit growth and the sale of the Inks product line completed.
Key Takeaways
Sensient Technologies Corporation reported a decrease in revenue and operating income for the second quarter of 2020 compared to the same period in 2019. Revenue decreased by 4.7% to $323.1 million, and operating income decreased by 11.1% to $42.1 million. Diluted earnings per share also decreased from 81 cents to 72 cents.
Diluted earnings per share were reported at 72 cents, down from 81 cents in Q2 2019.
Revenue reached $323.1 million, a decrease from $339.2 million in the prior year's quarter.
Operating income totaled $42.1 million, compared to $47.4 million in Q2 2019.
The Flavors & Fragrances Group experienced revenue growth, while the Color Group and Asia Pacific Group saw revenue declines.
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 Technologies Corporation provided its diluted earnings per share guidance for 2020, setting it at $2.10 to $2.35. This includes divestiture & other related costs and the results of operations divested and to be divested. The company also reconfirms its previously issued guidance of $2.60 to $2.80 for adjusted diluted earnings per share, excluding certain costs and impacts.
Positive Outlook
- Reconfirms previously issued guidance of $2.60 to $2.80 for adjusted diluted earnings per share.
- Expects 2020 Adjusted EBITDA to grow at a low to mid-single digit rate on a local currency basis.
- Sale of Inks product line completed.
- Definitive agreement signed for the sale of its yogurt fruit preparations product line.
- Company expects low to mid-single digit revenue growth in 2020 on a local currency basis, excluding the revenues of the product lines divested and to be divested.
Challenges Ahead
- Previous diluted earnings per share guidance for 2020 was $1.85 to $2.15.
- Adjusted Operating Income will be impacted by higher non-cash performance-based compensation.
- Full impact of COVID-19 remains unknown and continues to create uncertainty.
- Foreign currency translation decreased revenue, operating income, and earnings per share by approximately 3% in the quarter.
- Operating income decreased by 11.1%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income