Sensient Technologies: Q3 Earnings Snapshot
Friday, Oct 25, 2024 7:01 am ET
1min read Sensient Technologies Corporation (NYSE: SXT), a leading provider of flavors and colors for the food, pharmaceutical, and personal care markets, recently reported its financial results for the third quarter ended September 30, 2024. The company's strong performance in the quarter was driven by higher volumes and pricing across its segments.
Revenue Growth by Segment
In the third quarter, Sensient's revenue increased by 7.9% to $392.6 million compared to the same period last year. On a local currency basis, revenue grew by 8.6%. The Flavors & Extracts Group led the growth with an 8.5% increase in revenue, followed by the Color Group with an 11.8% increase. The Asia Pacific Group also contributed to the growth with a 13.6% increase in revenue.
Operating Income and Adjusted EBITDA Growth
Sensient's operating income increased by 13.4% to $50.5 million in the third quarter, compared to the same period last year. Adjusted EBITDA grew by 12.8% to $63.7 million. The company's adjusted operating income and adjusted EBITDA both grew by 17.1% on a local currency basis.
Key Drivers of Growth
The increase in operating income and adjusted EBITDA was primarily driven by higher volumes and pricing across all segments. The Flavors & Extracts Group's higher volumes and pricing contributed to a 12.1% increase in operating income, while the Color Group's higher volumes and pricing resulted in a 30.0% increase in operating income. The Asia Pacific Group's higher volumes also contributed to a 15.0% increase in operating income.
Diluted EPS and Adjusted EPS
Sensient's diluted earnings per share (EPS) increased by 2.7% to 77 cents in the third quarter, compared to the same period last year. Adjusted EPS grew by 8.0% to 80 cents. The company's strong performance in the quarter was driven by its solid execution and volume growth.
Outlook
Sensient expects to achieve high single-digit growth in local currency revenue and adjusted EBITDA for the full year 2024. The company also expects its diluted EPS to be between $2.77 and $2.87, which includes approximately 18 cents of Portfolio Optimization Plan costs.
In conclusion, Sensient Technologies' strong performance in the third quarter was driven by higher volumes and pricing across its segments. The company's solid execution and volume growth resulted in increased operating income, adjusted EBITDA, and EPS. Sensient's positive outlook for the full year 2024 reflects its confidence in its ability to continue delivering strong results.
Revenue Growth by Segment
In the third quarter, Sensient's revenue increased by 7.9% to $392.6 million compared to the same period last year. On a local currency basis, revenue grew by 8.6%. The Flavors & Extracts Group led the growth with an 8.5% increase in revenue, followed by the Color Group with an 11.8% increase. The Asia Pacific Group also contributed to the growth with a 13.6% increase in revenue.
Operating Income and Adjusted EBITDA Growth
Sensient's operating income increased by 13.4% to $50.5 million in the third quarter, compared to the same period last year. Adjusted EBITDA grew by 12.8% to $63.7 million. The company's adjusted operating income and adjusted EBITDA both grew by 17.1% on a local currency basis.
Key Drivers of Growth
The increase in operating income and adjusted EBITDA was primarily driven by higher volumes and pricing across all segments. The Flavors & Extracts Group's higher volumes and pricing contributed to a 12.1% increase in operating income, while the Color Group's higher volumes and pricing resulted in a 30.0% increase in operating income. The Asia Pacific Group's higher volumes also contributed to a 15.0% increase in operating income.
Diluted EPS and Adjusted EPS
Sensient's diluted earnings per share (EPS) increased by 2.7% to 77 cents in the third quarter, compared to the same period last year. Adjusted EPS grew by 8.0% to 80 cents. The company's strong performance in the quarter was driven by its solid execution and volume growth.
Outlook
Sensient expects to achieve high single-digit growth in local currency revenue and adjusted EBITDA for the full year 2024. The company also expects its diluted EPS to be between $2.77 and $2.87, which includes approximately 18 cents of Portfolio Optimization Plan costs.
In conclusion, Sensient Technologies' strong performance in the third quarter was driven by higher volumes and pricing across its segments. The company's solid execution and volume growth resulted in increased operating income, adjusted EBITDA, and EPS. Sensient's positive outlook for the full year 2024 reflects its confidence in its ability to continue delivering strong results.
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