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Sensient
🇺🇸 NYSE:SXT
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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.

Total Revenue
$323M
Previous year: $339M
-4.7%
EPS
$0.7
Previous year: $0.81
-13.6%
Total Revenue Change
-4.7%
Flavors & Fragrances Change
1.9%
Color Change
-12.7%
Gross Profit
$102M
Previous year: $112M
-8.5%
Cash and Equivalents
$20.9M
Previous year: $29.9M
-30.1%
Free Cash Flow
$58.7M
Previous year: $44.5M
+31.9%
Total Assets
$1.67B
Previous year: $1.83B
-8.3%

Sensient

Sensient

Sensient Revenue by Segment

Sensient Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

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