Sensient Q4 2021 Earnings Report
Key Takeaways
Sensient Technologies Corporation reported a 1.7% increase in consolidated revenue, reaching $340.4 million for Q4 2021. The company's operating income increased by 16.1% to $40.4 million, and diluted earnings per share rose to $0.65, compared to $0.59 in the same quarter of the previous year. Flavors & Extracts revenue decreased due to divestiture, while Color and Asia Pacific groups reported double-digit revenue growth.
Consolidated revenue increased by 1.7% to $340.4 million.
Operating income rose by 16.1% to $40.4 million.
Diluted earnings per share increased to $0.65 from $0.59.
Color and Asia Pacific groups experienced double-digit revenue and profit growth.
Sensient
Sensient
Sensient Revenue by Segment
Sensient Revenue by Geographic Location
Forward Guidance
Sensient expects 2022 full year GAAP diluted earnings per share to grow at a mid-teen growth rate compared to the Company’s 2021 reported GAAP diluted earnings per share of $2.81. The Company expects 2022 local currency revenue to grow at a mid-single-digit rate compared to the Company’s 2021 adjusted revenue. The Company expects 2022 local currency adjusted EBITDA and local currency diluted earnings per share to grow at a high single-digit rate compared to the Company’s 2021 adjusted EBITDA and the Company’s 2021 adjusted diluted earnings per share of $3.13, respectively.
Positive Outlook
- 2022 full year GAAP diluted earnings per share to grow at a mid-teen growth rate compared to the Company’s 2021 reported GAAP diluted earnings per share of $2.81.
- 2022 local currency revenue to grow at a mid-single-digit rate compared to the Company’s 2021 adjusted revenue
- 2022 local currency adjusted EBITDA to grow at a high single-digit rate compared to the Company’s 2021 adjusted EBITDA
- 2022 local currency diluted earnings per share to grow at a high single-digit rate compared to the Company’s 2021 adjusted diluted earnings per share of $3.13
- Company’s guidance is based upon current trends, current tax law, and the effects of COVID-19 to date.
Challenges Ahead
- Full year 2022 guidance does not include any material divestiture related costs, operational improvement plan costs, or results of divested businesses.
- Company expects earnings per share reported on a U.S. dollar basis to be impacted by approximately ten cents of foreign currency headwinds based on current exchange rates.
- The full impacts of the ongoing COVID-19 pandemic remain uncertain
- Management will continue to monitor its impacts on our business.
- Uncertainty related to governmental regulations and restrictions, and general economic conditions, including inflation
Revenue & Expenses
Visualization of income flow from segment revenue to net income