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Sensient
🇺🇸 NYSE:SXT
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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%.

Total Revenue
$336M
Previous year: $323M
+3.9%
EPS
$0.79
Previous year: $0.7
+12.9%
Total Revenue Change
3.9%
Previous year: -4.7%
-183.0%
Flavors & Fragrances Change
-2.3%
Previous year: 1.9%
-221.1%
Color Change
9.8%
Previous year: -12.7%
-177.2%
Gross Profit
$112M
Previous year: $102M
+9.2%
Cash and Equivalents
$33.3M
Previous year: $20.9M
+59.5%
Free Cash Flow
$49M
Previous year: $58.7M
-16.5%
Total Assets
$1.7B
Previous year: $1.67B
+1.5%

Sensient

Sensient

Sensient Revenue by Segment

Sensient Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

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