Sensient Technologies Corporation, a global leader in flavors, colors, and specialty ingredients for food, pharmaceutical, and personal care sectors, announced its third-quarter financial results for the period ending September 30, 2024.
Consolidated Third Quarter Highlights
Sensient’s revenue rose by 7.9% to $392.6 million from $363.8 million in Q3 2023, with an 8.6% increase on a local currency basis. Operating income grew by 13.4% to $50.5 million compared to $44.5 million in the same quarter of 2023, despite $1.2 million in Portfolio Optimization Plan costs. Local currency adjusted operating income and EBITDA were up 17.1% and 12.8%, respectively. Diluted earnings per share increased by 2.7% to $0.77, and local currency adjusted EPS grew by 8.0% to $0.80.
Paul Manning, Chairman, President, and CEO, noted, “Our strong performance this quarter reinforces our confidence in meeting our 2024 guidance.”
Performance by Segment
- Flavors & Extracts: Q3 revenue increased by 6.4% to $203.3 million, with segment operating income up by 12.1%, primarily driven by volume and pricing improvements.
- Color Group: Revenue rose by 11.8% to $162.1 million, with a 30.0% boost in operating income, due to higher volumes and pricing.
- Asia Pacific: Revenue in this segment grew by 13.6% to $41.8 million, with a 15.0% increase in operating income, largely from higher volumes across most regions.
2024 Outlook Updated guidance includes high single-digit growth in local currency revenue and adjusted EBITDA. Diluted EPS is expected between $2.77 and $2.87, including approximately $0.18 in Portfolio Optimization Plan costs.
Sensient will discuss these results in an investor call at 8:30 a.m. CDT on Friday, October 25, 2024. A replay will be available online after the event.
Forward-Looking Statements
The company acknowledges the potential impact of various factors on future performance, including economic conditions, geopolitical volatility, supply chain disruptions, regulatory developments, and competitive actions. Full risk disclosures can be found in Sensient’s filings with the SEC.
