Q3 2024 Sensient Technologies Corp Earnings Call Transcript
Key Points
- Sensient Technologies Corp (SXT) reported strong local currency revenue growth of approximately 9% in the third quarter, primarily driven by volume increases.
- The company's consolidated local currency adjusted EBITDA was up 13% for the third quarter, with an adjusted EBITDA margin of 17.6%, up 60 basis points from the prior year's third quarter.
- The Color Group delivered 13% local currency revenue growth and 31% local currency operating profit growth, with a third-quarter EBITDA margin of 22.2%, an increase of 250 basis points versus the prior year's third quarter.
- The Flavors and Extracts Group achieved 7% local currency revenue growth and 13% local currency operating profit growth, benefiting from strong new sales wins and innovative product offerings.
- The Asia Pacific Group reported 13% local currency revenue growth and 15% local currency operating profit growth, with a strong third-quarter margin of 23.8%.
- Higher taxes and interest expenses are impacting the company's adjusted EPS growth, which is expected to be mid-single digit despite strong revenue and EBITDA growth.
- The company is experiencing headwinds from higher interest expenses, which are expected to be up approximately $4 million for the year compared to 2023.
- Foreign currency translation reduced EPS by approximately 1 cent in the third quarter of 2024.
- The company's balance sheet, while well-positioned, still shows a focus on reducing debt levels due to the high interest rate environment.
- The EBIT margin for the Color Group was 18.4% in Q3, slightly below Q2's 18.8%, despite strong top-line growth.
Good morning, and welcome to the Sensient Technologies Corporation 2024 third-quarter earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Mr. Tobin Tornehl. Please go ahead, sir.
Good morning. Welcome to Sensient's earnings call for the third quarter of 2024. I'm Tobin Tornehl, Vice President and Chief Financial Officer of Sensient Technologies Corporation. I'm joined today by Paul Manning, Sensient's Chairman, President and Chief Executive Officer.
Earlier today, we released our 2024 third quarter results. A copy of the earnings release and the slides we'll be using during today's call are available on the Investor Relations section of our website at sensient.com. During our call today, we will reference certain non-GAAP financial measures, which remove the impact of currency movements, cost of the company's portfolio optimization
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
