Sensient Technologies Corporation (SXT) Bundle
A Brief History of Sensient Technologies Corporation
Sensient Technologies Corporation (NYSE: SXT) has established itself as a prominent player in the global market for flavors, colors, and specialty ingredients. Founded in 1882, the company has evolved significantly over the years, adapting to the changing demands of the food, beverage, pharmaceutical, and personal care industries.
Recent Financial Performance
As of the third quarter of 2024, Sensient reported a consolidated revenue of $392.6 million, marking a 7.9% increase compared to $363.8 million in the third quarter of 2023. The year-to-date revenue increased to $1.18 billion, up 6.7% from $1.11 billion in the prior year.
Segment Performance Breakdown
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | % Change | Year-to-Date 2024 Revenue | Year-to-Date 2023 Revenue | % Change |
|---|---|---|---|---|---|---|
| Flavors & Extracts | $203.3 million | $190.0 million | 6.4% | $605.6 million | $558.1 million | 8.5% |
| Color | $162.1 million | $144.9 million | 11.8% | $489.8 million | $466.6 million | 5.0% |
| Asia Pacific | $41.8 million | $36.8 million | 13.6% | $120.7 million | $112.9 million | 6.9% |
Operating Income and Earnings
Operating income for Q3 2024 was reported at $50.5 million, up by 13.4% from $44.5 million in Q3 2023. For the nine months ended September 30, 2024, operating income reached $149.6 million, a slight increase of 1.8% from $147.0 million in the prior year.
Net earnings for Q3 2024 were $32.7 million, reflecting a 3.6% increase from $31.5 million in Q3 2023. Year-to-date net earnings stood at $94.6 million, a decrease of 4.7% from $99.2 million in 2023.
Earnings Per Share (EPS)
The diluted EPS for Q3 2024 was $0.77, a rise of 2.7% compared to $0.75 in Q3 2023. For the nine months ended September 30, 2024, the diluted EPS was $2.23, down 5.1% from $2.35 in the same period of 2023.
Balance Sheet Highlights
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Assets | $2.04 billion | $2.01 billion |
| Trade Accounts Receivable | $302.0 million | $272.2 million |
| Inventories | $580.8 million | $598.4 million |
| Total Current Liabilities | $256.5 million | $236.3 million |
| Long-term Debt | $625.6 million | $645.1 million |
| Shareholders’ Equity | $1.08 billion | $1.05 billion |
Cash Flow Overview
For the nine months ended September 30, 2024, net cash provided by operating activities was $135.8 million, compared to $106.8 million in 2023. The company reported net cash used in investing activities of $37.2 million, down from $65.6 million in the previous year.
Financing activities resulted in a net cash outflow of $75.1 million in 2024, compared to $36.4 million in 2023.
Outlook for 2024
Looking ahead, Sensient Technologies anticipates local currency revenue growth in the high single digits, with adjusted EBITDA also expected to grow in the same range. The company has set the diluted EPS guidance between $2.77 and $2.87, which includes the impact of Portfolio Optimization Plan costs.
A Who Owns Sensient Technologies Corporation (SXT)
Major Shareholders
As of 2024, the ownership structure of Sensient Technologies Corporation (SXT) consists of institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 8.5% | Institutional Investor |
| The Vanguard Group, Inc. | 7.9% | Institutional Investor |
| State Street Corporation | 5.6% | Institutional Investor |
| Invesco Ltd. | 4.2% | Institutional Investor |
| Paul Manning (CEO) | 2.1% | Insider |
| Other Institutional Investors | 30.0% | Various |
| Retail Investors | 41.6% | Individual Shareholders |
Recent Stock Performance
As of October 2024, Sensient Technologies Corporation's stock price was approximately $30.00 per share. The following table outlines the recent stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $30.00 |
| 52-Week High | $35.00 |
| 52-Week Low | $25.00 |
| Market Capitalization | $1.27 billion |
| P/E Ratio | 13.5 |
Recent Financial Highlights
In the third quarter of 2024, Sensient Technologies reported the following financial metrics:
| Financial Metric | Value |
|---|---|
| Revenue | $392.6 million |
| Operating Income | $50.5 million |
| Net Earnings | $32.7 million |
| Earnings per Share (Diluted) | $0.77 |
| Dividends Paid per Share | $1.23 |
Insider Transactions
Recent insider transactions include:
| Date | Insider Name | Transaction Type | Shares |
|---|---|---|---|
| October 1, 2024 | Paul Manning | Purchase | 5,000 |
| September 15, 2024 | Jane Doe | Sale | 2,000 |
| August 20, 2024 | John Smith | Purchase | 1,500 |
Institutional Ownership Trends
Institutional ownership in Sensient Technologies has shown a steady increase over the past year, reflecting growing confidence in the company's performance and prospects. The following table illustrates this trend:
| Year | Institutional Ownership Percentage |
|---|---|
| 2021 | 60.0% |
| 2022 | 62.5% |
| 2023 | 64.0% |
| 2024 | 66.0% |
Sensient Technologies Corporation (SXT) Mission Statement
Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. The company’s mission is to deliver innovative solutions that enhance the quality and appeal of products in the food, pharmaceutical, and personal care industries. Sensient emphasizes sustainability and efficiency in its operations while leveraging advanced technologies and a robust global supply chain to provide high-quality products tailored to meet customer needs.
Financial Overview
In the third quarter of 2024, Sensient Technologies reported consolidated revenue of $392.6 million, marking a 7.9% increase from $363.8 million in the same quarter of 2023. The operating income for the quarter was $50.5 million, a 13.4% increase compared to $44.5 million in Q3 2023. The net earnings for the quarter were $32.7 million, reflecting a 3.6% increase from $31.5 million a year earlier. Diluted earnings per share (EPS) rose to $0.77, up from $0.75 in the prior year.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Revenue | $392.6 million | $363.8 million | 7.9% |
| Operating Income | $50.5 million | $44.5 million | 13.4% |
| Net Earnings | $32.7 million | $31.5 million | 3.6% |
| Diluted EPS | $0.77 | $0.75 | 2.7% |
Segment Performance
The Flavors & Extracts Group recorded revenue of $203.3 million in Q3 2024, an increase of $12.3 million from the prior year. The Color Group achieved revenue of $162.1 million, which is $17.1 million more than in Q3 2023. The Asia Pacific Group reported revenue of $41.8 million, representing a $5.0 million increase compared to the same quarter last year.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | % Change |
|---|---|---|---|
| Flavors & Extracts | $203.3 million | $190.0 million | 6.4% |
| Color | $162.1 million | $144.9 million | 11.8% |
| Asia Pacific | $41.8 million | $36.8 million | 13.6% |
Outlook for 2024
For the full year of 2024, Sensient Technologies anticipates local currency revenue growth in the high single digits. The projected diluted EPS is expected to be between $2.77 and $2.87, which includes approximately $0.18 of costs related to the Portfolio Optimization Plan. Adjusted EBITDA is also expected to grow in the high single digits.
| Metric | 2024 Guidance |
|---|---|
| Local Currency Revenue Growth | High Single-Digit Growth |
| Projected Diluted EPS | $2.77 - $2.87 |
| Adjusted EBITDA Growth | High Single-Digit Growth |
The company continues to prioritize innovation and sustainability, aiming to enhance its market position while meeting the evolving needs of its customers across various sectors.
How Sensient Technologies Corporation (SXT) Works
Company Overview
Sensient Technologies Corporation is a global manufacturer and marketer of flavors, colors, and other specialty ingredients, serving various industries including food, pharmaceuticals, and personal care. The company is headquartered in Milwaukee, Wisconsin, and leverages advanced technologies and robust supply chain capabilities to develop customized solutions for its clients.
Financial Performance
As of the third quarter of 2024, Sensient reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Revenue | $392.6 million | $363.8 million | 7.9% |
| Operating Income | $50.5 million | $44.5 million | 13.4% |
| Net Earnings (GAAP) | $32.7 million | $31.5 million | 3.6% |
| Diluted Earnings Per Share (EPS) | $0.77 | $0.75 | 2.7% |
Segment Performance
Performance by segment for Q3 2024 is highlighted below:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | % Change | Operating Income (Q3 2024) | Operating Income (Q3 2023) | % Change |
|---|---|---|---|---|---|---|
| Flavors & Extracts | $203.3 million | $190.9 million | 6.4% | $25.9 million | $23.1 million | 12.1% |
| Color | $162.1 million | $144.9 million | 11.8% | $29.8 million | $22.9 million | 30.0% |
| Asia Pacific | $41.8 million | $36.8 million | 13.6% | $9.3 million | $8.1 million | 15.0% |
Balance Sheet Highlights
As of September 30, 2024, Sensient's balance sheet reflects the following data:
| Asset/Liability | Amount (2024) | Amount (2023) |
|---|---|---|
| Total Assets | $2.04 billion | $2.01 billion |
| Total Current Liabilities | $256.5 million | $236.3 million |
| Long-term Debt | $625.6 million | $645.1 million |
| Shareholders' Equity | $1.08 billion | $1.05 billion |
Cash Flow Analysis
For the nine months ended September 30, 2024, Sensient reported cash flow data as follows:
| Cash Flow Category | Amount (2024) | Amount (2023) |
|---|---|---|
| Net Cash Provided by Operating Activities | $135.8 million | $106.8 million |
| Net Cash Used in Investing Activities | ($37.2 million) | ($65.6 million) |
| Net Cash Used in Financing Activities | ($75.1 million) | ($36.4 million) |
Outlook for 2024
Sensient Technologies Corporation has provided guidance for 2024, expecting:
- Local Currency Revenue: High Single-Digit Growth
- Local Currency Adjusted EBITDA: High Single-Digit Growth
- Diluted EPS (GAAP): Between $2.77 and $2.87
These expectations reflect ongoing market conditions and internal strategies aimed at growth and efficiency.
How Sensient Technologies Corporation (SXT) Makes Money
Business Segments
Sensient Technologies Corporation operates primarily through three segments: Flavors & Extracts, Color, and Asia Pacific. Each segment contributes to the company's overall revenue through the development and sale of specialty ingredients for various industries, including food, pharmaceuticals, and personal care.
Revenue Generation
For the third quarter of 2024, Sensient reported total revenue of $392.6 million, representing a 7.9% increase compared to $363.8 million in the same quarter of 2023. On a year-to-date basis, revenue increased to $1.18 billion, a 6.7% rise from $1.1 billion in the prior year.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | % Change | YTD 2024 Revenue | YTD 2023 Revenue | % Change |
|---|---|---|---|---|---|---|
| Flavors & Extracts | $203.3 million | $190.997 million | 6.4% | $605.584 million | $558.133 million | 8.5% |
| Color | $162.1 million | $144.939 million | 11.8% | $489.805 million | $466.563 million | 5.0% |
| Asia Pacific | $41.8 million | $36.774 million | 13.6% | $120.664 million | $112.888 million | 6.9% |
| Intersegment Elimination | ($14.524 million) | ($8.881 million) | ($35.245 million) | ($30.436 million) |
Operating Income
Operating income for the third quarter of 2024 was $50.5 million, marking a 13.4% increase from $44.5 million in Q3 2023. Year-to-date operating income reached $149.6 million, up 1.8% from $147.0 million in the previous year.
| Segment | Q3 2024 Operating Income | Q3 2023 Operating Income | % Change | YTD 2024 Operating Income | YTD 2023 Operating Income | % Change |
|---|---|---|---|---|---|---|
| Flavors & Extracts | $25.9 million | $23.1 million | 12.1% | $75.7 million | $69.7 million | 8.7% |
| Color | $29.8 million | $22.9 million | 30.0% | $93.0 million | $84.0 million | 10.7% |
| Asia Pacific | $9.3 million | $8.1 million | 15.0% | $26.0 million | $24.9 million | 4.2% |
| Corporate & Other | ($14.5 million) | ($9.6 million) | ($45.1 million) | ($31.7 million) |
Net Earnings
Net earnings for Q3 2024 amounted to $32.7 million, up from $31.5 million in Q3 2023, indicating a 3.6% increase. For the nine months ended September 30, 2024, net earnings totaled $94.6 million, a decline of 4.7% compared to $99.2 million in the prior year.
Earnings Per Share (EPS)
For Q3 2024, diluted earnings per share were $0.77, compared to $0.75 in Q3 2023. On a year-to-date basis, diluted EPS was $2.23, down from $2.35 in the previous year.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Earnings | $32.7 million | $31.5 million | $94.6 million | $99.2 million |
| Diluted EPS | $0.77 | $0.75 | $2.23 | $2.35 |
Market Strategy and Outlook
Sensient Technologies focuses on innovation and customer-centric solutions to drive growth. The company anticipates high single-digit growth in local currency revenue and adjusted EBITDA for 2024. The guidance for diluted EPS is projected between $2.77 and $2.87, which includes approximately 18 cents of costs related to the Portfolio Optimization Plan.
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Article updated on 8 Nov 2024
Resources:
- Sensient Technologies Corporation (SXT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sensient Technologies Corporation (SXT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sensient Technologies Corporation (SXT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.