On October 20, 2023, Sensient Technologies Corp (SXT, Financial), a leading provider of flavors and colors for the food, pharmaceutical, and personal care markets, released its financial results for the third quarter ended September 30, 2023. Despite facing market challenges and destocking headwinds, the company's underlying business remains robust, with expectations of improved revenue growth as market dynamics improve.
Third Quarter Group Results
The Flavors & Extracts Group reported a revenue increase of $4.0 million compared to the same quarter of the previous year, reaching $191.0 million. However, the group's operating income decreased by $3.3 million due to lower volumes and higher input costs. The Color Group reported a revenue decrease of $6.5 million, reaching $145.0 million, with operating income also decreasing by $5.3 million. The Asia Pacific Group reported a revenue increase of $1.6 million, reaching $36.8 million, with operating income increasing by $1.1 million.
2023 Outlook
Sensient Technologies Corp (SXT, Financial) has revised its 2023 full-year GAAP diluted earnings per share to be down low double digits compared to its 2022 reported GAAP diluted earnings per share of $3.34. The company's previous guidance was for GAAP diluted earnings per share to be down high single digits. The company now expects 2023 revenue to grow at a low single-digit rate on a local currency basis compared to the Company’s 2022 revenue, a revision from the previous guidance of a mid-single-digit growth rate.
About Sensient Technologies
Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. The company 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.
Conference Call
The company will host a conference call to discuss its 2023 third quarter financial results at 8:30 a.m. CDT on Friday, October 20, 2023. 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.
