Loading...
•
Sep 30, 2020
Sensient Q3 2020 Earnings Report
Sensient reported an increase in revenue and operating income, driven by Flavors & Extracts Group's strong performance, while growth in food and pharmaceutical color sales was offset by lower personal care revenue.
Key Takeaways
Sensient Technologies Corporation reported consolidated revenue of $323.6 million, a 1.9% increase compared to the previous year. Operating income rose to $41.2 million, and diluted earnings per share reached 78 cents. The Flavors & Extracts Group showed strong revenue and profit growth, while the Color Group faced challenges due to lower personal care revenue.
Consolidated revenue increased by 1.9% to $323.6 million.
Operating income rose by 6.1% to $41.2 million.
Diluted earnings per share increased to 78 cents, up from 75 cents in the previous year.
Flavors & Extracts Group reported a revenue increase of 9.1%.
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
The Company reconfirms its previously issued diluted earnings per share guidance for 2020 of $2.10 to $2.35. The Company also reconfirms its previously issued 2020 adjusted diluted earnings per share guidance of $2.60 to $2.80, which excludes divestiture & other related costs, operational improvement plan costs, the results of the operations divested and to be divested, and foreign currency impacts.
Positive Outlook
- Reconfirms diluted earnings per share guidance for 2020 of $2.10 to $2.35.
- Reconfirms adjusted diluted earnings per share guidance of $2.60 to $2.80.
- Confirms low to mid-single digit revenue growth in 2020 on a local currency basis, excluding divested revenues.
- Expects 2020 Adjusted EBITDA to grow at a low to mid-single digit rate.
- Adjusted Operating Income is expected to be flat to down at a low-single digit rate on a local currency basis.
Challenges Ahead
- Full year guidance includes approximately 5 cents of foreign currency headwinds.
- Adjusted Operating Income will be impacted by higher non-cash performance-based compensation.
- The full impacts of the ongoing COVID-19 pandemic remain uncertain.
- Guidance is based upon current trends and the effects of COVID-19 to date.
- COVID-19 pandemic may impact the business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income