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Sensient
🇺🇸 NYSE:SXT
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Dec 31, 2023

Sensient Q4 2023 Earnings Report

Sensient Technologies Corporation's Q4 2023 results were impacted by lower sales volumes and Portfolio Optimization Plan costs, resulting in a net loss.

Key Takeaways

Sensient Technologies Corporation reported a slight increase in revenue for Q4 2023, but operating income and earnings per share decreased significantly due to lower sales volumes and costs associated with the Portfolio Optimization Plan. The company is optimistic about 2024, expecting a return to volume growth and cost savings from the optimization plan.

Revenue increased slightly by 0.2% to $349.3 million, but decreased by 1.8% on a local currency basis.

Operating income declined significantly by 80.4% to $8.1 million due to Portfolio Optimization Plan costs.

The company recorded a loss per share of 14 cents, compared to earnings of 69 cents in Q4 2022.

A Portfolio Optimization Plan was initiated, expected to deliver $8 million to $10 million in annual cost savings once fully implemented.

Total Revenue
$349M
Previous year: $349M
+0.2%
EPS
$0.51
Previous year: $0.64
-20.3%
Gross Profit
$99.8M
Previous year: $112M
-10.5%
Cash and Equivalents
$28.9M
Previous year: $20.9M
+38.3%
Free Cash Flow
$42.7M
Previous year: -$30.4M
-240.3%
Total Assets
$2.01B
Previous year: $1.98B
+1.7%

Sensient

Sensient

Sensient Revenue by Segment

Sensient Revenue by Geographic Location

Forward Guidance

Sensient expects 2024 diluted earnings per share to be between $2.80 and $2.90, including approximately 15 cents of Portfolio Optimization Plan costs. The company anticipates low-to-mid single-digit growth in revenue, adjusted EBITDA, and adjusted diluted earnings per share on a local currency basis.

Positive Outlook

  • Revenue growth at a low-to-mid single-digit rate on a local currency basis.
  • Adjusted EBITDA growth at a low-to-mid single-digit rate on a local currency basis.
  • Adjusted diluted earnings per share growth at a low-to-mid single-digit rate on a local currency basis.
  • Diluted earnings per share to be between $2.80 and $2.90.
  • Full year 2024 tax rate to be between 24% and 25%.

Challenges Ahead

  • Diluted earnings per share to be impacted by higher interest expense.
  • Interest expense is expected to increase by approximately $3 million ($0.05 per diluted share).
  • Guidance is based on current conditions and economic and market trends.
  • Guidance is subject to various risks and uncertainties.
  • Portfolio Optimization Plan costs are expected to impact diluted earnings per share by approximately 15 cents.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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