Sensient Technologies Corporation, a leading provider of flavors and colors for the food, pharmaceutical, and personal care industries, has announced its financial results for the second quarter ending June 30, 2024.
Second Quarter Consolidated Results
Revenue for the second quarter of 2024 rose by 7.8% to $403.5 million, up from $374.3 million in the same period last year. When adjusted for local currency, revenue grew by 8.5%.
Operating income for the quarter decreased by 3.7% to $49.7 million, down from $51.6 million a year ago. The decrease was influenced by $1.8 million in costs associated with the company’s Portfolio Optimization Plan. Adjusted for local currency, operating income and EBITDA increased by 1.1% and 2.3%, respectively.
Diluted earnings per share fell by 9.9% to 73 cents compared to 81 cents in the previous year’s second quarter. Local currency adjusted EPS dropped by 2.5%, mainly due to higher interest expenses and an increased tax rate.
Segment Performance
- Flavors & Extracts Group: This segment reported revenue of $209.2 million for the second quarter of 2024, marking an increase of $20.9 million from the previous year. The rise in revenue was driven by higher volumes, with segment operating income growing by $1.8 million to $26.2 million.
- Color Group: Revenue for this segment reached $167.7 million, up by $7.2 million from the prior year. Operating income for the second quarter increased by $2.3 million to $31.5 million, largely due to increased volumes across all product lines.
- Asia Pacific Group: Revenue grew to $38.6 million, an increase of $2.6 million compared to the previous year’s second quarter. While revenue benefited from higher volumes, it was somewhat offset by unfavorable exchange rates. Operating income for the quarter was $7.9 million, up by $0.3 million from the prior year.
Corporate & Other
Operating expenses for Corporate & Other totaled $15.9 million, compared to $9.7 million in the same quarter last year. The increase included $1.8 million related to the Portfolio Optimization Plan. Local currency adjusted operating expenses rose by $4.5 million, primarily due to higher performance-based compensation costs compared to the previous year.
