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Jun 30, 2024

Sensient Q2 2024 Earnings Report

Sensient's Q2 2024 performance was solid, driven by business growth across all groups, with revenue increasing but operating income and EPS decreasing.

Key Takeaways

Sensient Technologies reported a 7.8% increase in revenue to $403.5 million compared to the previous year. However, operating income decreased by 3.7% to $49.7 million, and diluted earnings per share decreased by 9.9% to $0.73. The company raised its full year guidance for local currency revenue and local currency adjusted EBITDA to mid-to-high single-digit growth and for diluted EPS (GAAP) to between $2.77 and $2.87.

Reported revenue increased by 7.8% to $403.5 million.

Operating income decreased by 3.7% to $49.7 million.

Diluted earnings per share decreased by 9.9% to $0.73.

Full year guidance was raised for local currency revenue, local currency adjusted EBITDA, and diluted EPS (GAAP).

Total Revenue
$404M
Previous year: $374M
+7.8%
EPS
$0.77
Previous year: $0.81
-4.9%
Total Revenue Change
7.8%
Previous year: 0.7%
+1014.3%
Flavors & Fragrances Change
11.1%
Previous year: -0.6%
-1950.0%
Color Change
4.5%
Previous year: 2.7%
+66.7%
Gross Profit
$131M
Previous year: $122M
+7.0%
Cash and Equivalents
$30.3M
Previous year: $36.5M
-17.0%
Free Cash Flow
$32M
Previous year: $31.9M
+0.3%
Total Assets
$1.99B
Previous year: $2.05B
-2.5%

Sensient

Sensient

Sensient Revenue by Segment

Sensient Revenue by Geographic Location

Forward Guidance

Sensient updated its 2024 outlook, raising guidance for local currency revenue, local currency adjusted EBITDA, and GAAP diluted EPS.

Positive Outlook

  • Local currency revenue is expected to have mid-to-high single-digit growth.
  • Local currency adjusted EBITDA is expected to have mid-to-high single-digit growth.
  • Diluted EPS (GAAP) is projected to be between $2.77 and $2.87.
  • Local currency adjusted diluted EPS is expected to have mid-single-digit growth.
  • The updated guidance reflects current conditions and economic trends.

Challenges Ahead

  • The updated guidance includes approximately 18 cents of Portfolio Optimization Plan costs.
  • The company's guidance is subject to various risks and uncertainties.
  • Factors such as economic conditions, supply chain disruptions, and geopolitical volatility could affect the company's future financial performance.
  • The availability and cost of labor, logistics, and transportation may impact results.
  • Currency exchange rate fluctuations could affect the company's performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income