Loading...
•
Dec 31, 2022
Sensient Q4 2022 Earnings Report
Sensient reported slight revenue and operating income growth in Q4 2022, with diluted EPS increasing to $0.69.
Key Takeaways
Sensient Technologies Corporation reported a revenue increase of 2.4% to $348.7 million in Q4 2022 compared to $340.4 million in Q4 2021. The operating income also saw a slight increase to $41.2 million from $40.4 million in the previous year. Reported diluted earnings per share increased to $0.69 compared to $0.65 in the prior year.
Consolidated revenue increased by 2.4% to $348.7 million in Q4 2022.
Operating income rose to $41.2 million, a 2.0% increase year-over-year.
Diluted earnings per share increased to $0.69, compared to $0.65 in the prior year.
Foreign currency translation negatively impacted revenue by approximately 3% and EPS by 6%.
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
Sensient expects 2023 full year GAAP diluted earnings per share to be flat to low-single digit growth compared to our 2022 reported GAAP diluted earnings per share of $3.34. The Company expects 2023 revenue to grow at a mid-single digit rate on a local currency basis compared to the Company’s 2022 revenue.
Positive Outlook
- Company expects 2023 revenue to grow at a mid-single digit rate on a local currency basis compared to the Company’s 2022 revenue.
- Company expects 2023 diluted earnings per share to be flat to low-single digit growth on a local currency basis compared to the Company’s 2022 adjusted diluted earnings per share of $3.29.
- Company expects 2023 adjusted EBITDA to grow at a mid-to-high single digit rate on a local currency basis compared to the Company’s 2022 adjusted EBITDA.
- Based on current exchange rates, the Company expects foreign exchange rates to be modestly favorable for the full year.
- The Company does not anticipate any divestiture related costs, operational improvement plan costs, or results of divested business in 2023 at this time.
Challenges Ahead
- Sensient expects 2023 full year GAAP diluted earnings per share to be flat to low-single digit growth compared to our 2022 reported GAAP diluted earnings per share of $3.34.
- Company expects its 2023 diluted earnings per share to be impacted by higher interest rates and a higher tax rate.
- Company currently expects interest expense to increase by approximately $11 million ($0.20 per diluted share) in 2023 compared to the Company’s 2022 full year interest expense of $14.5 million.
- Company also expects its full year 2023 tax rate to be approximately 25%.
- Company expects foreign exchange rates to be a headwind for the beginning of the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income