Sensient Technologies Corporation Reports Third Quarter 2024 Financial Results
Overview
Sensient Technologies Corporation (NYSE: SXT), a prominent supplier of flavors and colors for the food, pharmaceutical, and personal care industries, has announced its financial results for the third quarter ending September 30, 2024.
Consolidated Third Quarter Results
The company’s reported revenue grew by 7.9% year-over-year, reaching $392.6 million, compared to $363.8 million in the third quarter of 2023. On a local currency basis, revenue increased by 8.6%. Operating income rose by 13.4%, from $44.5 million in Q3 2023 to $50.5 million. This quarter, Sensient recorded $1.2 million in costs linked to its Portfolio Optimization Plan. Local currency-adjusted operating income and EBITDA saw respective increases of 17.1% and 12.8%.
Reported diluted earnings per share (EPS) climbed by 2.7%, reaching $0.77 in Q3 2024 compared to $0.75 in the same quarter of the previous year. Local currency-adjusted diluted EPS was up by 8.0%, reaching $0.80.
Segment Performance
- Flavors & Extracts Group: The group reported revenue of $203.3 million, up $12.3 million from Q3 2023, with segment operating income of $25.9 million, marking an increase of $2.8 million year-over-year. These gains were driven by higher volumes and pricing adjustments.
- Color Group: Revenue in the Color Group reached $162.1 million, an increase of $17.1 million compared to Q3 2023. Operating income rose to $29.8 million, up $6.9 million from the prior year. The revenue boost resulted from increased volumes across product lines and price enhancements.
- Asia Pacific Group: This group posted revenue of $41.8 million, up by $5.0 million year-over-year, driven by growth in nearly all regions. Operating income for the quarter was $9.3 million, a $1.2 million increase compared to Q3 2023, primarily due to higher volumes.
Corporate & Other
Operating expenses in the Corporate & Other category rose to $14.5 million in Q3 2024 from $9.6 million in Q3 2023. This increase reflects $1.2 million in Portfolio Optimization Plan costs and higher performance-based compensation costs.
Non-GAAP Financial Measures
Sensient’s non-GAAP financial measures exclude the effects of currency fluctuations, depreciation, amortization, Portfolio Optimization Plan costs, and non-cash share-based compensation. These adjustments aim to provide an enhanced understanding of the company’s financial performance alongside GAAP results. Refer to “Reconciliation of Non-GAAP Amounts” at the end of the original release for further details.
