MILWAUKEE, February 14, 2025--(BUSINESS WIRE)--Sensient Technologies Corporation (NYSE: SXT), a leading provider of flavors and colors for the food, pharmaceutical, and personal care markets, today reported financial results for the fourth quarter ended December 31, 2024.

Fourth Quarter Consolidated Results

Reported revenue increased 7.8% to $376.4 million in the fourth quarter of 2024 versus last year’s fourth quarter results of $349.3 million. On a local currency basis(1), revenue increased 8.9%. Reported operating income increased to $42.0 million compared to $8.1 million recorded in the fourth quarter of 2023. In the fourth quarter of 2024, the Company recorded $0.9 million of costs related to its Portfolio Optimization Plan versus last year’s $27.8 million in the fourth quarter. Local currency adjusted operating income(1) and local currency adjusted EBITDA(1) increased 20.8% and 18.8%, respectively, in the fourth quarter, with each increasing primarily as a result of higher sales volumes. Reported earnings per share was 71 cents in the fourth quarter of 2024 compared to a loss of 14 cents in the fourth quarter of 2023. Local currency adjusted EPS(1) increased 29.4% in the fourth quarter.

"As expected, Sensient delivered strong performance in 2024, driven by solid volume growth and sales wins, particularly in natural colors. Our results demonstrate our ability to succeed in the markets we participate in and the strength of our product portfolio," said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.

Fourth Quarter Group Results   Reported  Local Currency(1) Revenue  Quarter  Year-to-Date  Quarter  Year-to-Date Flavors & Extracts  2.8%  7.1%  3.4%  7.1% Color  11.8%  6.6%  14.0%  7.3% Asia Pacific  26.1%  11.2%  25.2%  13.0% Total Revenue  7.8%  6.9%  8.9%  7.4%  Reported  Adjusted Local Currency(1) Operating Income  Quarter  Year-to-Date  Quarter  Year-to-Date Flavors & Extracts  18.2%  10.6%  18.4%  10.8% Color  24.4%  13.4%  27.4%  14.2% Asia Pacific  44.3%  11.9%  41.7%  14.1% Total Operating Income  420.8%  23.6%  20.8%  9.3%

The Flavors & Extracts Group reported fourth quarter 2024 revenue of $188.1 million, an increase of $5.2 million versus the prior year’s fourth quarter. The Group’s revenue benefited from favorable pricing and higher volumes. Segment operating income was $21.3 million in the fourth quarter of 2024, an increase of $3.3 million compared to the prior year’s fourth quarter. The higher operating income was also driven by the favorable pricing and higher volumes.

Story Continues

The Color Group reported revenue of $158.1 million in the fourth quarter of 2024, an increase of $16.7 million compared to the prior year’s fourth quarter. The Group’s revenue increase was driven primarily by higher volumes in both the food and pharmaceutical and personal care product lines. Segment operating income was $26.5 million in the fourth quarter of 2024, an increase of $5.2 million compared to the prior year’s fourth quarter results. The higher operating income was primarily a result of the higher volumes, along with favorable pricing.

The Asia Pacific Group reported revenue of $41.9 million in the fourth quarter of 2024, an increase of $8.7 million compared to the prior year’s fourth quarter. The Group’s revenue benefited primarily by higher volumes across nearly all geographies. Segment operating income was $8.5 million in the quarter, an increase of $2.6 million compared to the prior year’s fourth quarter. The higher operating income was primarily a result of the higher volumes.

Corporate & Other reported operating expenses of $14.4 million in the fourth quarter of 2024, compared to $37.2 million of operating expenses reported in the prior year’s fourth quarter. The decrease was primarily due to the Portfolio Optimization Plan costs of $27.8 million recorded in the fourth quarter of 2023, which were primarily non-cash costs. Local currency adjusted operating expenses(1) for Corporate & Other increased $4.1 million compared to the prior year’s fourth quarter, primarily due to higher performance-based compensation costs recorded in 2024.

2025 OUTLOOK   Metric  Current Guidance  Local Currency Revenue(1)  Mid-Single-Digit Growth  Local Currency Adjusted EBITDA(1)  Mid-Single-Digit to High Single-Digit Growth  Diluted EPS (GAAP)  Between $3.05 and $3.15*  Local Currency Adjusted Diluted EPS(1)  High Single-Digit to Double-Digit Growth  *Includes approximately 13 cents of Portfolio Optimization Plan costs and 10 to 15 cents of foreign currency headwinds based on current exchange rates

The Company’s guidance is based on current conditions and economic and market trends in the markets in which the Company operates and is subject to various risks and uncertainties as described below.

(1) Please refer to "Reconciliation of Non-GAAP Amounts" at the end of this release for more information regarding our non-GAAP financial measures.

USE OF NON-GAAP FINANCIAL MEASURES

The Company’s non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include: currency movements, depreciation and amortization, Portfolio Optimization Plan costs, and non-cash share-based compensation. These measures are provided to enhance the overall understanding of the Company’s performance when viewed together with the GAAP results. Refer to "Reconciliation of Non-GAAP Amounts" at the end of this release.

CONFERENCE CALL

The Company will host a conference call to discuss its 2024 fourth quarter financial results at 8:30 a.m. CST on Friday, February 14, 2025. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company’s web site at www.sensient.com.

A replay of the call will be available one hour after the end of the conference call through February 21, 2025, by calling (877) 344-7529 and using access code 3864433. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company’s web site at www.sensient.com on or after February 18, 2025.

This release contains statements that may constitute "forward-looking statements" within the meaning of Federal securities laws including under "2025 Outlook" above. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: the Company’s ability to manage general business, economic, and capital market conditions, including actions taken by customers in response to such market conditions, and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies, disruptions and delays in the Company’s supply chain, and the conflicts between Russia and Ukraine and in the Middle East; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; the availability and cost of labor, logistics, and transportation; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences, changing technologies, and changing regulations; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and Portfolio Optimization Plan; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; the Company’s ability to enhance its innovation efforts and drive cost efficiencies; currency exchange rate fluctuations; and other factors included in "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.

ABOUT SENSIENT TECHNOLOGIES

Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. Sensient uses advanced technologies and robust global supply chain capabilities to develop specialized solutions for food and beverages, as well as products that serve the pharmaceutical, nutraceutical, and personal care industries. Sensient’s customers range in size from small entrepreneurial businesses to major international manufacturers representing some of the world’s best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.

www.sensient.com

Sensient Technologies Corporation (In thousands, except percentages and per share amounts) (Unaudited)  Consolidated Statements of Earnings  Three Months Ended December 31,  Year Ended December 31,  2024  2023  % Change  2024  2023  % Change  Revenue  $ 376,420   $ 349,302   7.8 %  $ 1,557,228   $ 1,456,450   6.9 %  Cost of products sold   257,002    249,472   3.0 %   1,050,135    996,153   5.4 % Selling and administrative expenses   77,422    91,767   (15.6 %)   315,514    305,274   3.4 %  Operating income   41,996    8,063   420.8 %   191,579    155,023   23.6 % Interest expense   6,387    6,524      28,781    25,172   Earnings before income taxes   35,609    1,539      162,798    129,851  Income taxes   5,505    7,372      38,132    36,457   Net earnings  $ 30,104   $ (5,833 )  616.1 %  $ 124,666   $ 93,394   33.5 %  Earnings per share of common stock:  Basic  $ 0.71   $ (0.14 )    $ 2.96   $ 2.22  Diluted  $ 0.71   $ (0.14 )    $ 2.94   $ 2.21   Average common shares outstanding:  Basic   42,163    42,051      42,145    42,027  Diluted   42,454    42,051      42,396    42,242   Results by Segment  Three Months Ended December 31,  Year Ended December 31,  Revenue  2024  2023  % Change  2024  2023  % Change  Flavors & Extracts  $ 188,114   $ 182,939   2.8 %  $ 793,698   $ 741,072   7.1 % Color   158,134    141,396   11.8 %   647,939    607,959   6.6 % Asia Pacific   41,861    33,202   26.1 %   162,525    146,090   11.2 % Intersegment elimination   (11,689 )   (8,235 )     (46,934 )   (38,671 )   Consolidated  $ 376,420   $ 349,302   7.8 %  $ 1,557,228   $ 1,456,450   6.9 %  Operating Income   Flavors & Extracts  $ 21,345   $ 18,059   18.2 %  $ 97,094   $ 87,773   10.6 % Color   26,542    21,343   24.4 %   119,529    105,370   13.4 % Asia Pacific   8,495    5,889   44.3 %   34,458    30,800   11.9 % Corporate & Other   (14,386 )   (37,228 )     (59,502 )   (68,920 )   Consolidated  $ 41,996   $ 8,063   420.8 %  $ 191,579   $ 155,023   23.6 %

Sensient Technologies Corporation (In thousands) (Unaudited)  Consolidated Condensed Balance Sheets  December 31,  December 31, 2024  2023  Cash and cash equivalents  $ 26,626   $ 28,934  Trade accounts receivable   290,087    272,164  Inventories   600,302    598,399  Prepaid expenses and other current assets   44,871    37,119  Total Current Assets   961,886    936,616   Goodwill & intangible assets (net)   423,658    436,177  Property, plant, and equipment (net)   491,587    505,277  Other assets   146,663    136,437   Total Assets  $ 2,023,794   $ 2,014,507   Trade accounts payable  $ 139,052   $ 131,114  Short-term borrowings   19,848    13,460  Other current liabilities   111,739    91,732  Total Current Liabilities   270,639    236,306   Long-term debt   613,523    645,085  Accrued employee and retiree benefits   24,499    27,715  Other liabilities   54,147    52,077  Shareholders' Equity   1,060,986    1,053,324   Total Liabilities and Shareholders' Equity  $ 2,023,794   $ 2,014,507

Sensient Technologies Corporation (In thousands, except per share amounts) (Unaudited)  Consolidated Statements of Cash Flows Year Ended December 31,  2024  2023 Cash flows from operating activities:  Net earnings $ 124,666   $ 93,394  Adjustments to arrive at net cash provided by operating activities:  Depreciation and amortization  60,329    57,820  Share-based compensation expense  10,084    8,933  Net (gain) loss on assets  (140 )   541  Portfolio Optimization Plan costs  1,415    24,089  Deferred income taxes  (18,598 )   (5,100 ) Changes in operating assets and liabilities:  Trade accounts receivable  (29,638 )   35,801  Inventories  (18,295 )   (28,193 ) Prepaid expenses and other assets  (5,407 )   5,767  Trade accounts payable and other accrued expenses  8,995    (5,978 ) Accrued salaries, wages, and withholdings  22,518    (17,830 ) Income taxes  (810 )   (1,175 ) Other liabilities  2,032    1,628   Net cash provided by operating activities  157,151    169,697   Cash flows from investing activities:  Acquisition of property, plant, and equipment  (59,212 )   (87,868 ) Proceeds from sale of assets  339    156  Acquisition of new businesses  -    (1,650 ) Other investing activities  (336 )   1,741   Net cash used in investing activities  (59,209 )   (87,621 )  Cash flows from financing activities:  Proceeds from additional borrowings  159,321    351,662  Debt payments  (167,073 )   (355,161 ) Dividends paid  (69,399 )   (69,222 ) Other financing activities  (4,395 )   (9,278 )  Net cash used in financing activities  (81,546 )   (81,999 )  Effect of exchange rate changes on cash and cash equivalents  (18,704 )   7,936   Net (decrease) increase in cash and cash equivalents  (2,308 )   8,013  Cash and cash equivalents at beginning of period  28,934    20,921  Cash and cash equivalents at end of period $ 26,626   $ 28,934   Supplemental Information  Year Ended December 31, 2024  2023  Dividends paid per share $ 1.64   $ 1.64

Sensient Technologies Corporation (In thousands, except percentages and per share amounts) (Unaudited)  Reconciliation of Non-GAAP Amounts   The Company's results for the three and twelve months ended December 31, 2024 and 2023 include adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which, in each case, exclude Portfolio Optimization Plan costs.  Three Months Ended December 31,  Year Ended December 31, 2024  2023  % Change  2024  2023  % Change Operating income (GAAP)  $ 41,996   $ 8,063    420.8 %  $ 191,579   $ 155,023    23.6 % Portfolio Optimization Plan costs – Cost of products sold   839    3,135      1,362    3,135  Portfolio Optimization Plan costs – Selling and administrative expenses   17    24,706      5,269    24,706  Adjusted operating income  $ 42,852   $ 35,904    19.4 %  $ 198,210   $ 182,864    8.4 %  Net earnings (GAAP)  $ 30,104   $ (5,833 )   616.1 %  $ 124,666   $ 93,394    33.5 % Portfolio Optimization Plan costs, before tax   856    27,841      6,631    27,841  Tax impact of Portfolio Optimization Plan costs(1)   (3,570 )   (415 )     (4,156 )   (415 )  Adjusted net earnings  $ 27,390   $ 21,593    26.8 %  $ 127,141   $ 120,820    5.2 %  Diluted earnings per share (GAAP)  $ 0.71   $ (0.14 )   607.1 %  $ 2.94   $ 2.21    33.0 % Portfolio Optimization Plan costs, net of tax   (0.06 )   0.65      0.06    0.65  Adjusted diluted earnings per share  $ 0.65   $ 0.51    27.5 %  $ 3.00   $ 2.86    4.9 %  Note: Earnings per share calculations may not foot due to rounding differences.  (1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.  Results by Segment  Three Months Ended December 31, Adjusted      Adjusted Operating Income  2024  Adjustments(2)  2024  2023  Adjustments(2)  2023  Flavors & Extracts  $ 21,345   $ -   $ 21,345   $ 18,059   $ -   $ 18,059  Color   26,542    -    26,542    21,343    -    21,343  Asia Pacific   8,495    -    8,495    5,889    -    5,889  Corporate & Other   (14,386 )   856    (13,530 )   (37,228 )   27,841    (9,387 )  Consolidated  $ 41,996   $ 856   $ 42,852   $ 8,063   $ 27,841   $ 35,904   Results by Segment  Year Ended December 31, Adjusted      Adjusted Operating Income  2024  Adjustments(2)  2024  2023  Adjustments(2)  2023  Flavors & Extracts  $ 97,094   $ -   $ 97,094   $ 87,773   $ -   $ 87,773  Color   119,529    -    119,529    105,370    -    105,370  Asia Pacific   34,458    -    34,458    30,800    -    30,800  Corporate & Other   (59,502 )   6,631    (52,871 )   (68,920 )   27,841    (41,079 )  Consolidated  $ 191,579   $ 6,631   $ 198,210   $ 155,023   $ 27,841   $ 182,864   (2) Adjustments consist of Portfolio Optimization Plan costs.

Sensient Technologies Corporation (In thousands, except percentages) (Unaudited)  Reconciliation of Non-GAAP Amounts - Continued  The following table summarizes the percentage change in the 2024 results compared to the 2023 results for the corresponding periods.  Three Months Ended December 31, 2024 Revenue  Total  Foreign
Exchange
Rates  Adjustments(3)  Adjusted
Local
Currency Flavors & Extracts  2.8 %  (0.6 %)  N/A   3.4 % Color  11.8 %  (2.2 %)  N/A   14.0 % Asia Pacific  26.1 %  0.9 %  N/A   25.2 % Total Revenue  7.8 %  (1.1 %)  N/A   8.9 %  Operating Income  Flavors & Extracts  18.2 %  (0.2 %)  0.0 %  18.4 % Color  24.4 %  (3.0 %)  0.0 %  27.4 % Asia Pacific  44.3 %  2.6 %  0.0 %  41.7 % Corporate & Other  (61.4 %)  0.0 %  (105.5 %)  44.1 % Total Operating Income  420.8 %  (6.7 %)  406.7 %  20.8 % Diluted Earnings Per Share  607.1 %  (7.2 %)  584.9 %  29.4 % Adjusted EBITDA  17.5 %  (1.3 %)  N/A   18.8 %   Year Ended December 31, 2024 Revenue  Total  Foreign
Exchange
Rates  Adjustments(3)  Adjusted
Local
Currency Flavors & Extracts  7.1 %  0.0 %  N/A   7.1 % Color  6.6 %  (0.7 %)  N/A   7.3 % Asia Pacific  11.2 %  (1.8 %)  N/A   13.0 % Total Revenue  6.9 %  (0.5 %)  N/A   7.4 %  Operating Income  Flavors & Extracts  10.6 %  (0.2 %)  0.0 %  10.8 % Color  13.4 %  (0.8 %)  0.0 %  14.2 % Asia Pacific  11.9 %  (2.2 %)  0.0 %  14.1 % Corporate & Other  (13.7 %)  0.0 %  (42.4 %)  28.7 % Total Operating Income  23.6 %  (1.0 %)  15.3 %  9.3 % Diluted Earnings Per Share  33.0 %  (1.4 %)  28.5 %  5.9 % Adjusted EBITDA  7.6 %  (0.7 %)  N/A   8.3 %  (3) Adjustments consist of Portfolio Optimization Plan costs.

Sensient Technologies Corporation (In thousands, except percentages) (Unaudited)  Reconciliation of Non-GAAP Amounts - Continued  The following table summarizes the reconciliation between Consolidated Operating Income (GAAP) and Adjusted EBITDA for the three and twelve months ended December 31, 2024 and 2023.  Three Months Ended December 31,  Year Ended December 31,  2024  2023  % Change  2024  2023  % Change Operating income (GAAP)  $ 41,996   $ 8,063   420.8%  $ 191,579   $ 155,023   23.6% Depreciation and amortization   15,144    14,460      60,329    57,820  Share-based compensation expense   3,104    1,648      10,084    8,933  Portfolio Optimization Plan costs, before tax   856    27,841      6,631    27,841  Adjusted EBITDA  $ 61,100   $ 52,012   17.5%  $ 268,623   $ 249,617   7.6%  The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the year ended December 31, 2024 and 2023.  Year Ended December 31,  Debt  2024  2023  Short-term borrowings  $ 19,848   $ 13,460  Long-term debt   613,523    645,085  Credit Agreement adjustments(4)   (13,129 )   (16,743 )  Net Debt  $ 620,242   $ 641,802   Operating income (GAAP)  $ 191,579   $ 155,023  Depreciation and amortization   60,329    57,820  Share-based compensation expense   10,084    8,933  Portfolio Optimization Plan costs, before tax   6,631    27,841  Other non-operating gains(5)   (905 )   (762 )  Credit Adjusted EBITDA  $ 267,718   $ 248,855   Net Debt to Credit Adjusted EBITDA  2.3x  2.6x   (4) Adjustments include cash and cash equivalents, as described in the Company's Third Amended and Restated Credit Agreement (Credit Agreement), and certain letters of credit and hedge contracts. (5) Adjustments consist of certain financing transaction costs, certain non-financing interest items, and gains and losses related to certain non-cash, non-operating, and/or non-recurring items as described in the Credit Agreement.  We have included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable period-over-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this release and our SEC filings. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and we believe the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

Category: Earnings

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Contacts

Amy Agallar
(414) 347-3706
[email protected]

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