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Sensient Technologies Corporation reports results for quarter ended June 30, 2024
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Wednesday, 14 August, 2024, 08 : 00 AM [IST]
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Milwaukee
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Sensient Technologies Corporation, a leading provider of flavours and colours for the food, pharmaceutical, and personal care markets, reported financial results for the second quarter ended June 30, 2024.
Second Quarter Consolidated Results
Reported revenue increased 7.8% to $403.5 million in the second quarter of 2024 versus last year’s second quarter results of $374.3 million. On a local currency basis, revenue increased 8.5%.
Reported operating income decreased 3.7% to $49.7 million compared to $51.6 million recorded in the second quarter of 2023. In the second quarter of 2024, the Company recorded $1.8 million of costs related to its Portfolio Optimization Plan. Local currency adjusted operating income and local currency adjusted EBITDA increased 1.1% and 2.3%, respectively, in the second quarter.
Reported diluted earnings per share decreased 9.9% to 73 cents in the second quarter of 2024 compared to 81 cents in the second quarter of 2023. Local currency adjusted EPS decreased 2.5% in the second quarter primarily as a result of higher interest expense and a higher tax rate.
Paul Manning, Sensient’s chairman, president, and chief executive officer, said, “Sensient’s execution and focus on business growth have resulted in solid performance across all our Groups. I continue to remain very confident about our performance in 2024.”
The Flavours & Extracts Group reported second quarter 2024 revenue of $209.2 million, an increase of $20.9 million versus the prior year’s second quarter. The group’s increased revenue was primarily a result of higher volumes. Segment operating income was $26.2 million in the second quarter of 2024, an increase of $1.8 million compared to the prior year’s second quarter. The higher operating income was primarily due to the higher volumes.
The Colour Group reported revenue of $167.7 million in the second quarter of 2024, an increase of $7.2 million compared to the prior year’s second quarter. Segment operating income was $31.5 million in the second quarter of 2024, an increase of $2.3 million compared to the prior year’s second quarter results. The group’s increased revenue and operating income were primarily a result of the higher volumes across all product lines.
The Asia Pacific Group reported revenue of $38.6 million in the second quarter of 2024, an increase of $2.6 million compared to the prior year’s second quarter. The group’s revenue benefited from higher volumes, partially offset by unfavourable exchange rates. Segment operating income was $7.9 million in the quarter, an increase of $0.3 million compared to the prior year’s second quarter. The higher operating income is primarily a result of the higher volumes, partially offset by unfavourable exchange rates.
Corporate & Other reported operating expenses of $15.9 million in the second quarter of 2024, compared to $9.7 million of operating expenses reported in the prior year’s second quarter. In the second quarter of 2024, the Company recorded $1.8 million of Portfolio Optimization Plan costs in Corporate & Other. Local currency adjusted operating expenses for Corporate & Other increased $4.5 million compared to the prior year’s second quarter, primarily due to the higher performance-based compensation costs recorded in the second quarter of 2024 compared to the low comparable amount recorded in the second quarter of 2023.
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