 |
Contact:
David Plautz
(414) 347-3706
investor.relations@sensient.com
|
Sensient Technologies Corporation
Reports Results for the Quarter Ended June 30, 2025
MILWAUKEE— July 25, 2025 — 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 second quarter ended June 30, 2025.
Second Quarter Consolidated Results
| • |
Reported revenue increased 2.7% to $414.2 million in the second quarter of 2025 versus last year’s second quarter results of $403.5 million. On a local currency basis(1), revenue increased
2.1%.
|
| • |
Reported operating income increased 16.2% to $57.7 million compared to $49.7 million recorded in the second quarter of 2024. In the second quarter of 2025, the Company recorded $3.3 million of costs
related to its Portfolio Optimization Plan versus last year’s $1.8 million in the second quarter. Local currency adjusted operating income(1) and local currency adjusted EBITDA(1) increased 16.9% and 14.1%, respectively,
in the second quarter.
|
| • |
Reported earnings per share increased 20.5% to 88 cents in the second quarter of 2025 compared to 73 cents in the second quarter of 2024. Local currency adjusted diluted EPS(1) increased
20.8% in the second quarter.
|
“Sensient continued to build on a strong first quarter. Our results are a testament to
our relentless focus on customer service and innovation. I remain very confident about our performance in 2025 and beyond,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.
|
Sensient Technologies Corporation
|
Page 2
|
|
Earnings Release – Quarter Ended June 30, 2025
July 25, 2025
|
Second Quarter Group Results
|
Reported
|
Local Currency(1)
|
|||||||||||||||
|
Revenue
|
Quarter
|
Year-to-Date
|
Quarter
|
Year-to-Date
|
||||||||||||
|
Flavors & Extracts
|
-2.8
|
%
|
-1.3
|
%
|
-3.2
|
%
|
-0.9
|
%
|
||||||||
|
Color
|
6.9
|
%
|
5.9
|
%
|
6.6
|
%
|
7.4
|
%
|
||||||||
|
Asia Pacific
|
10.8
|
%
|
7.3
|
%
|
7.6
|
%
|
6.2
|
%
|
||||||||
|
Total Revenue
|
2.7
|
%
|
2.3
|
%
|
2.1
|
%
|
3.1
|
%
|
||||||||
|
Reported
|
Local Currency Adjusted(1)
|
|||||||||||||||
|
Operating Income
|
Quarter
|
Year-to-Date
|
Quarter
|
Year-to-Date
|
||||||||||||
|
Flavors & Extracts
|
8.8
|
%
|
7.2
|
%
|
8.6
|
%
|
7.5
|
%
|
||||||||
|
Color
|
23.6
|
%
|
16.8
|
%
|
22.1
|
%
|
17.8
|
%
|
||||||||
|
Asia Pacific
|
13.5
|
%
|
10.4
|
%
|
8.0
|
%
|
7.5
|
%
|
||||||||
|
Total Operating Income
|
16.2
|
%
|
12.3
|
%
|
16.9
|
%
|
13.6
|
%
|
||||||||
The Flavors & Extracts Group reported second quarter 2025 revenue of $203.3 million, a decrease of $6.0 million versus the prior year’s second
quarter. The Group’s revenue was unfavorably impacted by lower volumes in natural ingredients, partially offset by higher volumes in our flavors, extracts, and flavor ingredients product lines. Segment operating income was $28.5 million in the second
quarter of 2025, an increase of $2.3 million compared to the prior year’s second quarter. The segment operating income increased despite the decline in segment revenues due to strong profitability of the flavors, extracts, and flavor ingredients
product lines.
The Color Group reported revenue of $179.3 million in the second quarter of 2025, an increase of $11.6 million compared to the prior year’s second
quarter. The Group’s revenue increase was driven by strong growth in the food and pharmaceutical product lines. Segment operating income was $38.9 million in the second quarter of 2025, an increase of $7.4 million compared to the prior year’s second
quarter results.
|
Sensient Technologies Corporation
|
Page 3
|
|
Earnings Release – Quarter Ended June 30, 2025
July 25, 2025
|
The Asia Pacific Group reported revenue of $42.7 million in the second quarter of 2025, an increase of $4.2 million compared to the prior year’s second
quarter. The Group’s revenue increased across nearly all geographies. Segment operating income was $8.9 million in the quarter, an increase of $1.1 million compared to the prior year’s second quarter.
Corporate & Other reported operating expenses of $18.7 million in the second quarter of 2025, compared to $15.9 million of operating expenses
reported in the prior year’s second quarter. The higher operating expenses were primarily due to higher Portfolio Optimization Plan costs in the quarter. Local currency adjusted operating expenses(1) for Corporate & Other increased
$1.1 million compared to the prior year’s second quarter, primarily due to higher performance-based compensation costs recorded in 2025.
2025 OUTLOOK
|
Metric
|
Current Guidance
|
Prior Guidance
|
||
|
Local Currency Revenue(1)
|
Mid-Single-Digit Growth
|
Mid-Single-Digit Growth
|
||
|
Local Currency Adjusted EBITDA(1)
|
High Single-Digit Growth
|
Mid-Single-Digit to High Single-Digit Growth
|
||
|
Diluted EPS (GAAP)
|
Between $3.13 and $3.23*
|
Between $3.13 and $3.23
|
||
|
Local Currency Adjusted Diluted EPS(1)
|
High Single-Digit to Double-Digit Growth
|
High Single-Digit to Double-Digit Growth
|
||
*Includes approximately 20 cents of Portfolio Optimization Plan costs. Based on current exchange rates, foreign currency impact is
expected to be a slight tailwind for the year.
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.
|
|
Sensient Technologies Corporation
|
Page 4
|
|
Earnings Release – Quarter Ended June 30, 2025
July 25, 2025
|
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 2025 second quarter financial results at 8:30 a.m. CDT on Friday, July 25, 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 August 1, 2025, by calling (877) 344-7529 and using access
code 2167989. 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 July 29, 2025.
|
Sensient Technologies Corporation
|
Page 5
|
|
Earnings Release – Quarter Ended June 30, 2025
July 25, 2025
|
This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws
including in the quote from our Chairman, President, and Chief Executive Office and 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
|
Page 6
|
|
(In thousands, except percentages and per share amounts)
(Unaudited)
|
|
Consolidated Statements of Earnings
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2025
|
2024
|
% Change
|
2025
|
2024
|
% Change
|
|||||||||||||||||
|
Revenue
|
$
|
414,230
|
$
|
403,525
|
2.7
|
%
|
$
|
806,555
|
$
|
788,195
|
2.3
|
%
|
||||||||||
|
Cost of products sold
|
271,398
|
272,803
|
(0.5
|
%)
|
531,946
|
530,924
|
0.2
|
%
|
||||||||||||||
|
Selling and administrative expenses
|
85,126
|
81,065
|
5.0
|
%
|
163,373
|
158,208
|
3.3
|
%
|
||||||||||||||
|
Operating income
|
57,706
|
49,657
|
16.2
|
%
|
111,236
|
99,063
|
12.3
|
%
|
||||||||||||||
|
Interest expense
|
7,391
|
7,653
|
14,732
|
14,698
|
||||||||||||||||||
|
Earnings before income taxes
|
50,315
|
42,004
|
96,504
|
84,365
|
||||||||||||||||||
|
Income taxes
|
12,728
|
11,072
|
24,455
|
22,493
|
||||||||||||||||||
|
Net earnings
|
$
|
37,587
|
$
|
30,932
|
21.5
|
%
|
$
|
72,049
|
$
|
61,872
|
16.4
|
%
|
||||||||||
|
Earnings per share of common stock:
|
||||||||||||||||||||||
|
Basic
|
$
|
0.89
|
$
|
0.73
|
$
|
1.71
|
$
|
1.47
|
||||||||||||||
|
|
||||||||||||||||||||||
|
Diluted
|
$
|
0.88
|
$
|
0.73
|
$
|
1.69
|
$
|
1.46
|
||||||||||||||
|
Average common shares outstanding:
|
||||||||||||||||||||||
|
Basic
|
42,246
|
42,154
|
42,221
|
42,129
|
||||||||||||||||||
|
|
||||||||||||||||||||||
|
Diluted
|
42,575
|
42,398
|
42,522
|
42,351
|
||||||||||||||||||
|
Results by Segment
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
Revenue
|
2025
|
2024
|
% Change
|
2025
|
2024
|
% Change
|
||||||||||||||||
|
Flavors & Extracts
|
$
|
203,251
|
$
|
209,213
|
(2.8
|
%)
|
$
|
396,932
|
$
|
402,305
|
(1.3
|
%)
|
||||||||||
|
Color
|
179,282
|
167,700
|
6.9
|
%
|
347,032
|
327,725
|
5.9
|
%
|
||||||||||||||
|
Asia Pacific
|
42,744
|
38,580
|
10.8
|
%
|
84,645
|
78,886
|
7.3
|
%
|
||||||||||||||
|
Intersegment elimination
|
(11,047
|
)
|
(11,968
|
)
|
(22,054
|
)
|
(20,721
|
)
|
||||||||||||||
|
Consolidated
|
$
|
414,230
|
$
|
403,525
|
2.7
|
%
|
$
|
806,555
|
$
|
788,195
|
2.3
|
%
|
||||||||||
|
Operating Income
|
||||||||||||||||||||||
|
Flavors & Extracts
|
$
|
28,506
|
$
|
26,209
|
8.8
|
%
|
$
|
53,495
|
$
|
49,887
|
7.2
|
%
|
||||||||||
|
Color
|
38,922
|
31,502
|
23.6
|
%
|
73,774
|
63,181
|
16.8
|
%
|
||||||||||||||
|
Asia Pacific
|
8,943
|
7,880
|
13.5
|
%
|
18,385
|
16,656
|
10.4
|
%
|
||||||||||||||
|
Corporate & Other
|
(18,665
|
)
|
(15,934
|
)
|
(34,418
|
)
|
(30,661
|
)
|
||||||||||||||
|
Consolidated
|
$
|
57,706
|
$
|
49,657
|
16.2
|
%
|
$
|
111,236
|
$
|
99,063
|
12.3
|
%
|
||||||||||
|
Sensient Technologies Corporation
|
Page 7
|
|
(In thousands)
(Unaudited)
|
|
Consolidated Condensed Balance Sheets
|
June 30,
2025
|
December 31,
2024
|
||||||
|
Cash and cash equivalents
|
$
|
56,686
|
$
|
26,626
|
||||
|
Trade accounts receivable
|
333,951
|
290,087
|
||||||
|
Inventories
|
619,595
|
600,302
|
||||||
|
Prepaid expenses and other current assets
|
54,221
|
44,871
|
||||||
|
Fixed assets held for sale
|
1,629
|
-
|
||||||
|
Total Current Assets
|
1,066,082
|
961,886
|
||||||
|
Goodwill & intangible assets (net)
|
451,942
|
423,658
|
||||||
|
Property, plant, and equipment (net)
|
515,469
|
491,587
|
||||||
|
Other assets
|
171,068
|
146,663
|
||||||
|
Total Assets
|
$
|
2,204,561
|
$
|
2,023,794
|
||||
|
Trade accounts payable
|
$
|
121,442
|
$
|
139,052
|
||||
|
Short-term borrowings
|
26,280
|
19,848
|
||||||
|
Other current liabilities
|
103,402
|
111,739
|
||||||
|
Total Current Liabilities
|
251,124
|
270,639
|
||||||
|
Long-term debt
|
710,119
|
613,523
|
||||||
|
Accrued employee and retiree benefits
|
26,865
|
24,499
|
||||||
|
Other liabilities
|
59,332
|
54,147
|
||||||
|
Shareholders' Equity
|
1,157,121
|
1,060,986
|
||||||
|
Total Liabilities and Shareholders' Equity
|
$
|
2,204,561
|
$
|
2,023,794
|
||||
|
Sensient Technologies Corporation
|
Page 8
|
|
(In thousands, except per share amounts)
(Unaudited)
|
|
Consolidated Statements of Cash Flows
Six Months Ended June 30,
|
2025
|
2024
|
||||||
|
Cash flows from operating activities:
|
||||||||
|
Net earnings
|
$
|
72,049
|
$
|
61,872
|
||||
|
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
30,334
|
29,725
|
||||||
|
Share-based compensation expense
|
6,639
|
4,911
|
||||||
|
Net loss (gain) on assets
|
76
|
(195
|
)
|
|||||
|
Portfolio Optimization Plan costs
|
1,274
|
1,495
|
||||||
|
Deferred income taxes
|
2,711
|
529
|
||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Trade accounts receivable
|
(30,293
|
)
|
(49,449
|
)
|
||||
|
Inventories
|
(548
|
)
|
36,730
|
|||||
|
Prepaid expenses and other assets
|
(11,028
|
)
|
(6,612
|
)
|
||||
|
Trade accounts payable and other accrued expenses
|
(17,578
|
)
|
(22,722
|
)
|
||||
|
Accrued salaries, wages, and withholdings
|
(15,129
|
)
|
7,824
|
|||||
|
Income taxes
|
(937
|
)
|
(6,591
|
)
|
||||
|
Other liabilities
|
1,734
|
1,429
|
||||||
|
Net cash provided by operating activities
|
39,304
|
58,946
|
||||||
|
Cash flows from investing activities:
|
||||||||
|
Acquisition of property, plant, and equipment
|
(38,035
|
)
|
(22,850
|
)
|
||||
|
Proceeds from sale of assets
|
56
|
296
|
||||||
|
Acquisition of new business
|
(4,867
|
)
|
-
|
|||||
|
Other investing activities
|
1,354
|
(336
|
)
|
|||||
|
Net cash used in investing activities
|
(41,492
|
)
|
(22,890
|
)
|
||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from additional borrowings
|
106,484
|
132,189
|
||||||
|
Debt payments
|
(43,148
|
)
|
(120,571
|
)
|
||||
|
Dividends paid
|
(34,700
|
)
|
(34,685
|
)
|
||||
|
Other financing activities
|
(2,648
|
)
|
(3,016
|
)
|
||||
|
Net cash provided by (used in) financing activities
|
25,988
|
(26,083
|
)
|
|||||
|
Effect of exchange rate changes on cash and cash equivalents
|
6,260
|
(8,568
|
)
|
|||||
|
Net increase in cash and cash equivalents
|
30,060
|
1,405
|
||||||
|
Cash and cash equivalents at beginning of period
|
26,626
|
28,934
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
56,686
|
$
|
30,339
|
||||
|
Supplemental Information
Six Months Ended June 30,
|
2025
|
2024
|
||||||
|
Dividends paid per share
|
$
|
0.82
|
$
|
0.82
|
||||
| Sensient Technologies Corporation | Page 9 |
|
(In thousands, except percentages and per share amounts)
(Unaudited)
|
Reconciliation of Non-GAAP Amounts
The Company's results for the three and six months ended June 30, 2025 and 2024 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 June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
2025
|
2024
|
% Change
|
2025
|
2024
|
% Change
|
|||||||||||||||||||
|
Operating income (GAAP)
|
$
|
57,706
|
$
|
49,657
|
16.2
|
%
|
$
|
111,236
|
$
|
99,063
|
12.3
|
%
|
||||||||||||
|
Portfolio Optimization Plan costs – Cost of products sold
|
1,789
|
207
|
3,603
|
314
|
||||||||||||||||||||
|
Portfolio Optimization Plan costs – Selling and administrative
|
||||||||||||||||||||||||
|
expenses
|
1,550
|
1,545
|
2,600
|
4,250
|
||||||||||||||||||||
|
Adjusted operating income
|
$
|
61,045
|
$
|
51,409
|
18.7
|
%
|
$
|
117,439
|
$
|
103,627
|
13.3
|
%
|
||||||||||||
|
Net earnings (GAAP)
|
$
|
37,587
|
$
|
30,932
|
21.5
|
%
|
$
|
72,049
|
$
|
61,872
|
16.4
|
%
|
||||||||||||
|
Portfolio Optimization Plan costs, before tax
|
3,339
|
1,752
|
6,203
|
4,564
|
||||||||||||||||||||
|
Tax impact of Portfolio Optimization Plan costs(1)
|
(815
|
)
|
(214
|
)
|
(1,517
|
)
|
(569
|
)
|
||||||||||||||||
|
Adjusted net earnings
|
$
|
40,111
|
$
|
32,470
|
23.5
|
%
|
$
|
76,735
|
$
|
65,867
|
16.5
|
%
|
||||||||||||
|
Diluted earnings per share (GAAP)
|
$
|
0.88
|
$
|
0.73
|
20.5
|
%
|
$
|
1.69
|
$
|
1.46
|
15.8
|
%
|
||||||||||||
|
Portfolio Optimization Plan costs, net of tax
|
0.06
|
0.04
|
0.11
|
0.09
|
||||||||||||||||||||
|
Adjusted diluted earnings per share
|
$
|
0.94
|
$
|
0.77
|
22.1
|
%
|
$
|
1.80
|
$
|
1.56
|
15.4
|
%
|
||||||||||||
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 June 30,
|
|||||||||||||||||||||||
|
Operating Income
|
2025
|
Adjustments(2)
|
Adjusted
2025
|
2024
|
Adjustments(2)
|
Adjusted
2024
|
||||||||||||||||||
|
Flavors & Extracts
|
$
|
28,506
|
$
|
-
|
$
|
28,506
|
$
|
26,209
|
$
|
-
|
$
|
26,209
|
||||||||||||
|
Color
|
38,922
|
-
|
38,922
|
31,502
|
-
|
31,502
|
||||||||||||||||||
|
Asia Pacific
|
8,943
|
-
|
8,943
|
7,880
|
-
|
7,880
|
||||||||||||||||||
|
Corporate & Other
|
(18,665
|
)
|
3,339
|
(15,326
|
)
|
(15,934
|
)
|
1,752
|
(14,182
|
)
|
||||||||||||||
|
Consolidated
|
$
|
57,706
|
$
|
3,339
|
$
|
61,045
|
$
|
49,657
|
$
|
1,752
|
$
|
51,409
|
||||||||||||
|
Results by Segment
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
Adjusted
|
Adjusted
|
|||||||||||||||||||||||
|
Operating Income
|
2025
|
Adjustments(2)
|
2025
|
2024
|
Adjustments(2)
|
2024
|
||||||||||||||||||
|
Flavors & Extracts
|
$
|
53,495
|
$
|
-
|
$
|
53,495
|
$
|
49,887
|
$
|
-
|
$
|
49,887
|
||||||||||||
|
Color
|
73,774
|
-
|
73,774
|
63,181
|
-
|
63,181
|
||||||||||||||||||
|
Asia Pacific
|
18,385
|
-
|
18,385
|
16,656
|
-
|
16,656
|
||||||||||||||||||
|
Corporate & Other
|
(34,418
|
)
|
6,203
|
(28,215
|
)
|
(30,661
|
)
|
4,564
|
(26,097
|
)
|
||||||||||||||
|
Consolidated
|
$
|
111,236
|
$
|
6,203
|
$
|
117,439
|
$
|
99,063
|
$
|
4,564
|
$
|
103,627
|
||||||||||||
(2) Adjustments consist of Portfolio Optimization Plan costs.
|
Sensient Technologies Corporation
|
Page 10
|
|
(Unaudited)
|
|
Reconciliation of Non-GAAP Amounts - Continued
The following table summarizes the percentage change in the 2025 results compared to the 2024 results for the corresponding periods.
|
Three Months Ended June 30, 2025
|
||||||||||||||||
|
Revenue
|
Total
|
Foreign
Exchange
Rates |
Adjustments(3)
|
Local
Currency
Adjusted
|
||||||||||||
|
Flavors & Extracts
|
(2.8
|
%)
|
0.4
|
%
|
N/A
|
(3.2
|
%)
|
|||||||||
|
Color
|
6.9
|
%
|
0.3
|
%
|
N/A
|
6.6
|
%
|
|||||||||
|
Asia Pacific
|
10.8
|
%
|
3.2
|
%
|
N/A
|
7.6
|
%
|
|||||||||
|
Total Revenue
|
2.7
|
%
|
0.6
|
%
|
N/A
|
2.1
|
%
|
|||||||||
|
|
||||||||||||||||
|
Operating Income
|
||||||||||||||||
|
Flavors & Extracts
|
8.8
|
%
|
0.2
|
%
|
0.0
|
%
|
8.6
|
%
|
||||||||
|
Color
|
23.6
|
%
|
1.5
|
%
|
0.0
|
%
|
22.1
|
%
|
||||||||
|
Asia Pacific
|
13.5
|
%
|
5.5
|
%
|
0.0
|
%
|
8.0
|
%
|
||||||||
|
Corporate & Other
|
17.1
|
%
|
0.0
|
%
|
9.0
|
%
|
8.1
|
%
|
||||||||
|
Total Operating Income
|
16.2
|
%
|
1.9
|
%
|
(2.6
|
%)
|
16.9
|
%
|
||||||||
|
Diluted Earnings Per Share
|
20.5
|
%
|
1.3
|
%
|
(1.6
|
%)
|
20.8
|
%
|
||||||||
|
Adjusted EBITDA
|
15.4
|
%
|
1.3
|
%
|
N/A
|
14.1
|
%
|
|||||||||
|
Six Months Ended June 30, 2025
|
||||||||||||||||
|
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Adjustments(3)
|
Local
Currency
Adjusted
|
||||||||||||
|
Flavors & Extracts
|
(1.3
|
%)
|
(0.4
|
%)
|
N/A
|
(0.9
|
%)
|
|||||||||
|
Color
|
5.9
|
%
|
(1.5
|
%)
|
N/A
|
7.4
|
%
|
|||||||||
|
Asia Pacific
|
7.3
|
%
|
1.1
|
%
|
N/A
|
6.2
|
%
|
|||||||||
|
Total Revenue
|
2.3
|
%
|
(0.8
|
%)
|
N/A
|
3.1
|
%
|
|||||||||
|
|
||||||||||||||||
|
Operating Income
|
||||||||||||||||
|
Flavors & Extracts
|
7.2
|
%
|
(0.3
|
%)
|
0.0
|
%
|
7.5
|
%
|
||||||||
|
Color
|
16.8
|
%
|
(1.0
|
%)
|
0.0
|
%
|
17.8
|
%
|
||||||||
|
Asia Pacific
|
10.4
|
%
|
2.9
|
%
|
0.0
|
%
|
7.5
|
%
|
||||||||
|
Corporate & Other
|
12.3
|
%
|
0.0
|
%
|
4.2
|
%
|
8.1
|
%
|
||||||||
|
Total Operating Income
|
12.3
|
%
|
(0.3
|
%)
|
(1.0
|
%)
|
13.6
|
%
|
||||||||
|
Diluted Earnings Per Share
|
15.8
|
%
|
0.0
|
%
|
(0.2
|
%)
|
16.0
|
%
|
||||||||
|
Adjusted EBITDA
|
11.7
|
%
|
(0.4
|
%)
|
N/A
|
12.1
|
%
|
|||||||||
(3) Adjustments consist of Portfolio Optimization Plan costs.
| Sensient Technologies Corporation |
Page 11 |
|
(In thousands, except percentages)
(Unaudited)
|
Reconciliation of Non-GAAP Amounts - Continued
The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
2025
|
2024
|
% Change
|
2025
|
2024
|
% Change
|
|||||||||||||||||||
|
Operating income (GAAP)
|
$
|
57,706
|
$
|
49,657
|
16.2
|
%
|
$
|
111,236
|
$
|
99,063
|
12.3
|
%
|
||||||||||||
|
Depreciation and amortization
|
15,260
|
15,016
|
30,334
|
29,725
|
||||||||||||||||||||
|
Share-based compensation expense
|
3,739
|
2,916
|
6,639
|
4,911
|
||||||||||||||||||||
|
Portfolio Optimization Plan costs, before tax
|
3,339
|
1,752
|
6,203
|
4,564
|
||||||||||||||||||||
|
Adjusted EBITDA
|
$
|
80,044
|
$
|
69,341
|
15.4
|
%
|
$
|
154,412
|
$
|
138,263
|
11.7
|
%
|
||||||||||||
The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the trailing twelve months
ended June 30, 2025 and 2024.
|
June 30,
|
||||||||
|
Debt
|
2025
|
2024
|
||||||
|
Short-term borrowings
|
$
|
26,280
|
$
|
26,995
|
||||
|
Long-term debt
|
710,119
|
634,663
|
||||||
|
Credit Agreement adjustments(4)
|
(43,393
|
)
|
(18,034
|
)
|
||||
|
Net Debt
|
$
|
693,006
|
$
|
643,624
|
||||
|
Operating income (GAAP)
|
$
|
203,752
|
$
|
151,657
|
||||
|
Depreciation and amortization
|
60,938
|
58,955
|
||||||
|
Share-based compensation expense
|
11,812
|
9,078
|
||||||
|
Portfolio Optimization Plan costs, before tax
|
8,270
|
32,405
|
||||||
|
Other non-operating gains(5)
|
(816
|
)
|
(872
|
)
|
||||
|
Credit Adjusted EBITDA
|
$
|
283,956
|
$
|
251,223
|
||||
|
Net Debt to Credit Adjusted EBITDA
|
2.4x
|
|
2.6x
|
|
||||
(4) Adjustments include cash and cash equivalents, as described in the Company's Fourth 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.