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Sep 30, 2024

Sensient Q3 2024 Earnings Report

Sensient's revenue and operating income increased, driven by solid performance and volume growth.

Key Takeaways

Sensient Technologies reported a 7.9% increase in revenue to $392.6 million and a 13.4% increase in operating income to $50.5 million for the third quarter ended September 30, 2024. Diluted earnings per share increased by 2.7% to $0.77. The company remains confident in achieving its 2024 guidance.

Revenue increased by 7.9% to $392.6 million compared to the prior year.

Operating income rose by 13.4% to $50.5 million, including $1.2 million in Portfolio Optimization Plan costs.

Diluted earnings per share increased by 2.7% to $0.77.

Flavors & Extracts, Color, and Asia Pacific groups all reported revenue and operating income growth.

Total Revenue
$393M
Previous year: $364M
+7.9%
EPS
$0.8
Previous year: $0.75
+6.7%
Total Revenue Change
7.9%
Previous year: 0.8%
+887.5%
Flavors & Fragrances Change
6.4%
Previous year: 2.1%
+204.8%
Color Change
11.8%
Previous year: -4.3%
-374.4%
Gross Profit
$130M
Previous year: $114M
+14.8%
Cash and Equivalents
$37M
Previous year: $32M
+15.6%
Free Cash Flow
$63.6M
Previous year: $32.5M
+95.4%
Total Assets
$2.04B
Previous year: $2.01B
+1.6%

Sensient

Sensient

Sensient Revenue by Segment

Sensient Revenue by Geographic Location

Forward Guidance

Sensient expects high single-digit growth in local currency revenue and local currency adjusted EBITDA. Diluted EPS (GAAP) is projected to be between $2.77 and $2.87, which includes approximately 18 cents of Portfolio Optimization Plan costs. Local currency adjusted diluted EPS is expected to see mid-single-digit growth.

Positive Outlook

  • High single-digit growth in local currency revenue
  • High single-digit growth in local currency adjusted EBITDA
  • Diluted EPS (GAAP) between $2.77 and $2.87
  • Mid-single-digit growth in local currency adjusted diluted EPS
  • Solid performance and volume growth

Challenges Ahead

  • Guidance is based on current conditions and economic and market trends
  • Subject to various risks and uncertainties
  • Includes approximately 18 cents of Portfolio Optimization Plan costs in Diluted EPS (GAAP)
  • Impact of macroeconomic and geopolitical volatility
  • Potential disruptions and delays in the Company’s supply chain

Revenue & Expenses

Visualization of income flow from segment revenue to net income