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Sensient
🇺🇸 NYSE:SXT
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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%.

Total Revenue
$324M
Previous year: $318M
+1.9%
EPS
$0.77
Previous year: $0.75
+2.7%
Total Revenue Change
1.9%
Flavors & Fragrances Change
9.1%
Color Change
-8.3%
Gross Profit
$106M
Previous year: $102M
+3.2%
Cash and Equivalents
$26.9M
Previous year: $34.4M
-21.9%
Free Cash Flow
$22.7M
Previous year: $41.9M
-45.8%
Total Assets
$1.71B
Previous year: $1.78B
-3.6%

Sensient

Sensient

Sensient Revenue by Segment

Sensient Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

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