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Jun 30, 2021
Sensient Q2 2021 Earnings Report
Sensient reported a consolidated revenue increase of 3.9% and adjusted local currency revenue growth of 9.1%.
Key Takeaways
Sensient Technologies Corporation reported a consolidated revenue increase of 3.9% in the second quarter of 2021, reaching $335.8 million compared to $323.1 million in the previous year. However, the reported operating income decreased to $35.8 million from $42.1 million, and diluted earnings per share fell to 61 cents from 72 cents.
Consolidated revenue increased by 3.9% year-over-year.
Adjusted consolidated local currency revenue increased by 9.1%.
Flavors & Extracts Group reported a revenue decrease of 2.3%, but adjusted local currency revenue increased by 9.1%.
Color Group reported a revenue increase of 9.8%, with adjusted local currency revenue up by 7.1%.
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 is reconfirming its previously issued 2021 guidance for GAAP diluted earnings per share to grow at a mid to high single digit growth rate compared to the Company’s 2020 reported GAAP diluted earnings per share of $2.59.
Positive Outlook
- Reconfirming 2021 EPS guidance for mid to high single digit growth.
- Adjusted local currency revenue is expected to grow at a mid-single digit rate.
- Adjusted local currency EBITDA is expected to grow at a mid-single digit rate.
- Adjusted diluted earnings per share is expected to grow at a mid-single digit rate compared to 2020.
- Earnings per share reported on a U.S. dollar basis is expected to benefit by approximately ten cents based on current exchange rates.
Challenges Ahead
- Full year 2021 guidance includes approximately 25 cents per share of estimated divestiture & other related costs, the results of the divested operations, and the operational improvement plan costs.
- The company expects its reported tax rate to be approximately 24% for the last six months of 2021.
- The company expects its adjusted tax rate to be approximately 22% for the last six months of 2021.
- Guidance is based upon current trends, current tax law, and the effects of COVID-19 to date.
- The full impacts of the ongoing COVID-19 pandemic remain uncertain and management will continue to monitor its impacts on our business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income