EX-99.1 2 ef20047856_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

Contact:
Amy Agallar
(414) 347-3706

Sensient Technologies Corporation
Reports Results for the Quarter Ended March 31, 2025

MILWAUKEE— April 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 first quarter ended March 31, 2025.

First Quarter Consolidated Results


 •
Reported revenue increased 2.0% to $392.3 million in the first quarter of 2025 versus last year’s first quarter results of $384.7 million. On a local currency basis(1), revenue increased 4.1%.


•
Reported operating income increased 8.3% to $53.5 million compared to $49.4 million recorded in the first quarter of 2024. In the first quarter of 2025, the Company recorded $2.9 million of costs related to its Portfolio Optimization Plan versus last year’s $2.8 million in the first quarter. Local currency adjusted operating income(1) and local currency adjusted EBITDA(1) increased 10.3% and 10.1%, respectively, in the first quarter.


•
Reported earnings per share increased 11.0% to 81 cents in the first quarter of 2025 compared to 73 cents in the first quarter of 2024. Local currency adjusted diluted EPS(1) increased 11.4% in the first quarter.

“As expected, Sensient got off to a strong start in the first quarter of 2025, building on the momentum from the previous year. Our results are driven by solid volume growth and sales wins, particularly in natural colors. The quarter’s achievements underscore our ability to adapt in dynamic market conditions, and I am pleased to reaffirm our 2025 guidance,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2025
April 25, 2025
 Page 2
First Quarter Group Results  
   
             
Revenue
  
Reported
Quarter
    
Local Currency(1)
Quarter
  
Flavors & Extracts
    
0.3
%
    
1.7
%
Color
    
4.8
%
    
8.2
%
Asia Pacific
    
4.0
%
    
4.8
%
Total Revenue
    
2.0
%
    
4.1
%
                 
Operating Income
  
Reported
Quarter
    
Local Currency Adjusted(1)
Quarter
  
Flavors & Extracts
    
5.5
%
    
6.2
%
Color
    
10.0
%
    
13.5
%
Asia Pacific
    
7.6
%
    
7.0
%
Total Operating Income
    
8.3
%
    
10.3
%
 
                

The Flavors & Extracts Group reported first quarter 2025 revenue of $193.7 million, an increase of $0.6 million versus the prior year’s first quarter. The Group’s revenue benefited from higher volumes in our flavors, extracts, and flavor ingredients product lines, offset by lower volumes in natural ingredients. Segment operating income was $25.0 million in the first quarter of 2025, an increase of $1.3 million compared to the prior year’s first quarter.

The Color Group reported revenue of $167.8 million in the first quarter of 2025, an increase of $7.7 million compared to the prior year’s first quarter. The Group’s revenue increase was broad-based across all product lines. Segment operating income was $34.9 million in the first quarter of 2025, an increase of $3.2 million compared to the prior year’s first quarter results.

The Asia Pacific Group reported revenue of $41.9 million in the first quarter of 2025, an increase of $1.6 million compared to the prior year’s first quarter. The Group’s revenue increased across nearly all geographies. Segment operating income was $9.4 million in the quarter, an increase of $0.7 million compared to the prior year’s first quarter.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2025
April 25, 2025
 Page 3
Corporate & Other reported operating expenses of $15.8 million in the first quarter of 2025, compared to $14.7 million of operating expenses reported in the prior year’s first quarter. Local currency adjusted operating expenses(1) for Corporate & Other increased $1.0 million compared to the prior year’s first quarter, primarily due to higher performance-based compensation costs recorded in 2025.

2025 OUTLOOK
     
     
Metric
  
Current Guidance
     
Local Currency Revenue(1)
  
Mid-Single-Digit Growth
     
Local Currency Adjusted EBITDA(1)
  
Mid-Single-Digit to High Single-Digit Growth
     
Diluted EPS (GAAP)
  
Between $3.13 and $3.23*
     
Local Currency Adjusted Diluted EPS(1)
  
High Single-Digit to Double-Digit Growth
     
*Includes approximately 15 cents of Portfolio Optimization Plan costs. Based on current exchange rates, foreign currency impact is expected to be approximately a 2 cent headwind for the year.  Previous range was between $3.05 and $3.15.

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.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2025
April 25, 2025
 Page 4
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 first quarter financial results at 8:30 a.m. CDT on Friday, April 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 May 2, 2025, by calling (877) 344-7529 and using access code 4206177. 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 April 29, 2025.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2025
April 25, 2025
 Page 5
This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including 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

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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2025
April 25, 2025
 Page 6
Consolidated Statements of Earnings
  
Three Months Ended March 31,
  
                   
   
2025
    
2024
    
% Change
  
                   
Revenue
  
$
392,325
    
$
384,670
      
2.0
%
                         
Cost of products sold
    
260,548
      
258,121
      
0.9
%
Selling and administrative expenses
    
78,247
      
77,143
      
1.4
%
                         
Operating income
    
53,530
      
49,406
      
8.3
%
Interest expense
    
7,341
      
7,045
          
                         
Earnings before income taxes
    
46,189
      
42,361
          
Income taxes
    
11,727
      
11,421
          
                         
Net earnings
  
$
34,462
    
$
30,940
      
11.4
%
                         
Earnings per share of common stock:
                        
Basic
  
$
0.82
    
$
0.73
          
 
                        
Diluted
  
$
0.81
    
$
0.73
          
                         
Average common shares outstanding:
                        
Basic
    
42,197
      
42,104
          
 
                        
Diluted
    
42,469
      
42,305
          

Results by Segment
  
Three Months Ended March 31,
  
                   
Revenue
  
2025
    
2024
    
% Change
  
                   
Flavors & Extracts
  
$
193,681
    
$
193,092
      
0.3
%
Color
    
167,750
      
160,025
      
4.8
%
Asia Pacific
    
41,901
      
40,306
      
4.0
%
Intersegment elimination
    
(11,007
)
    
(8,753
)
        
                         
Consolidated
  
$
392,325
    
$
384,670
      
2.0
%
                         
Operating Income
                        
                         
Flavors & Extracts
  
$
24,989
    
$
23,678
      
5.5
%
Color
    
34,852
      
31,679
      
10.0
%
Asia Pacific
    
9,442
      
8,776
      
7.6
%
Corporate & Other
    
(15,753
)
    
(14,727
)
        
                         
Consolidated
  
$
53,530
    
$
49,406
      
8.3
%

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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2025
April 25, 2025
 Page 7
Consolidated Condensed Balance Sheets
  
March 31,
    
December 31,
  
   
2025
    
2024
  
             
Cash and cash equivalents
  
$
32,574
    
$
26,626
  
Trade accounts receivable
    
315,024
      
290,087
  
Inventories
    
598,204
      
600,302
  
Prepaid expenses and other current assets
    
54,407
      
44,871
  
Total Current Assets
    
1,000,209
      
961,886
  
                 
Goodwill & intangible assets (net)
    
435,681
      
423,658
  
Property, plant, and equipment (net)
    
499,184
      
491,587
  
Other assets
    
157,594
      
146,663
  
                 
Total Assets
  
$
2,092,668
    
$
2,023,794
  
                 
Trade accounts payable
  
$
110,611
    
$
139,052
  
Short-term borrowings
    
18,575
      
19,848
  
Other current liabilities
    
101,509
      
111,739
  
Total Current Liabilities
    
230,695
      
270,639
  
                 
Long-term debt
    
683,266
      
613,523
  
Accrued employee and retiree benefits
    
25,175
      
24,499
  
Other liabilities
    
58,498
      
54,147
  
Shareholders’ Equity
    
1,095,034
      
1,060,986
  
                 
Total Liabilities and Shareholders’ Equity
  
$
2,092,668
    
$
2,023,794
  

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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2025
April 25, 2025
 Page 8
Consolidated Statements of Cash Flows
Three Months Ended March 31,

   
2025
    
2024
  
Cash flows from operating activities:
            
Net earnings
  
$
34,462
    
$
30,940
  
Adjustments to arrive at net cash provided by operating activities:
                
Depreciation and amortization
    
15,074
      
14,709
  
Share-based compensation expense
    
2,900
      
1,995
  
Net loss (gain) on assets
    
46
      
(193
)
Portfolio Optimization Plan costs
    
831
      
1,189
  
Deferred income taxes
    
1,282
      
(4
)
Changes in operating assets and liabilities:
                
Trade accounts receivable
    
(20,780
)
    
(28,331
)
Inventories
    
7,202
      
26,624
  
Prepaid expenses and other assets
    
(8,064
)
    
(13,655
)
Trade accounts payable and other accrued expenses
    
(25,859
)
    
(21,993
)
Accrued salaries, wages, and withholdings
    
(21,665
)
    
29
  
Income taxes
    
4,989
      
3,150
  
Other liabilities
    
604
      
674
  
                 
Net cash (used in) provided by operating activities
    
(8,978
)
    
15,134
  
                 
Cash flows from investing activities:
                
Acquisition of property, plant, and equipment
    
(16,854
)
    
(11,030
)
Proceeds from sale of assets
    
7
      
93
  
Acquisition of new business
    
(4,349
)
    
-
  
Other investing activities
    
(88
)
    
(1
)
                 
Net cash used in investing activities
    
(21,284
)
    
(10,938
)
                 
Cash flows from financing activities:
                
Proceeds from additional borrowings
    
66,449
      
38,053
  
Debt payments
    
(10,771
)
    
(27,031
)
Dividends paid
    
(17,376
)
    
(17,312
)
Other financing activities
    
(2,341
)
    
(2,828
)
                 
Net cash provided by (used in) financing activities
    
35,961
      
(9,118
)
                 
Effect of exchange rate changes on cash and cash equivalents
    
249
      
1,405
  
                 
Net increase (decrease) in cash and cash equivalents
    
5,948
      
(3,517
)
Cash and cash equivalents at beginning of period
    
26,626
      
28,934
  
Cash and cash equivalents at end of period
  
$
32,574
    
$
25,417
  

Supplemental Information
            
Three Months Ended March 31,
  
2025
    
2024
  
             
Dividends paid per share
  
$
0.41
    
$
0.41
  

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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2025
April 25, 2025
 Page 9
Reconciliation of Non-GAAP Amounts 
The Company’s results for the three months ended March 31, 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 March 31,
 
   
2025
    
2024
    
% Change
  
Operating income (GAAP)
  
$
53,530
    
$
49,406
      
8.3
%
Portfolio Optimization Plan costs  – Cost of products sold
    
1,814
      
107
          
Portfolio Optimization Plan costs – Selling and administrative expenses
    
1,050
      
2,705
          
Adjusted operating income
  
$
56,394
    
$
52,218
      
8.0
%
                         
Net earnings (GAAP)
  
$
34,462
    
$
30,940
      
11.4
%
Portfolio Optimization Plan costs, before tax
    
2,864
      
2,812
          
Tax impact of Portfolio Optimization Plan costs(1)
    
(702
)
    
(355
)
        
Adjusted net earnings
  
$
36,624
    
$
33,397
      
9.7
%
                         
Diluted earnings per share (GAAP)
  
$
0.81
    
$
0.73
      
11.0
%
Portfolio Optimization Plan costs, net of tax
    
0.05
      
0.06
          
Adjusted diluted earnings per share
  
$
0.86
    
$
0.79
      
8.9
%

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 March 31,
  
               
Adjusted
                
Adjusted
  
Operating Income
  
2025
    
Adjustments(2)
    
2025
    
2024
    
Adjustments(2)
    
2024
  
                                     
Flavors & Extracts
  
$
24,989
    
$
-
    
$
24,989
    
$
23,678
    
$
-
    
$
23,678
  
Color
    
34,852
      
-
      
34,852
      
31,679
      
-
      
31,679
  
Asia Pacific
    
9,442
      
-
      
9,442
      
8,776
      
-
      
8,776
  
Corporate & Other
    
(15,753
)
    
2,864
      
(12,889
)
    
(14,727
)
    
2,812
      
(11,915
)
                                                 
Consolidated
  
$
53,530
    
$
2,864
    
$
56,394
    
$
49,406
    
$
2,812
    
$
52,218
  

(2)
Adjustments consist of Portfolio Optimization Plan costs.

The following table summarizes the percentage change in the 2025 results compared to the 2024 results for the corresponding periods.

   
Three Months Ended March 31, 2025
  
Revenue
  
Total
    
Foreign
Exchange
Rates
    
Adjustments(3)
    
Local Currency Adjusted
  
Flavors & Extracts
    
0.3
%
    
(1.4
%)
    
N/A
      
1.7
%
Color
    
4.8
%
    
(3.4
%)
    
N/A
      
8.2
%
Asia Pacific
    
4.0
%
    
(0.8
%)
    
N/A
      
4.8
%
Total Revenue
    
2.0
%
    
(2.1
%)
    
N/A
      
4.1
%
                                 
Operating Income
                                
Flavors & Extracts
    
5.5
%
    
(0.7
%)
    
0.0
%
    
6.2
%
Color
    
10.0
%
    
(3.5
%)
    
0.0
%
    
13.5
%
Asia Pacific
    
7.6
%
    
0.6
%
    
0.0
%
    
7.0
%
Corporate & Other
    
7.0
%
    
0.0
%
    
(1.2
%)
    
8.2
%
Total Operating Income
    
8.3
%
    
(2.5
%)
    
0.5
%
    
10.3
%
Diluted Earnings Per Share
    
11.0
%
    
(2.7
%)
    
2.3
%
    
11.4
%
Adjusted EBITDA
    
7.9
%
    
(2.2
%)
    
N/A
      
10.1
%

(3)
Adjustments consist of Portfolio Optimization Plan costs.

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Sensient Technologies Corporation
Earnings Release – Quarter Ended March 31, 2025
April 25, 2025
 Page 10
Reconciliation of Non-GAAP Amounts - Continued  

The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2025 and 2024.
   
Three Months Ended March 31,
  
                   
   
2025
    
2024
    
% Change
  
Operating income (GAAP)
  
$
53,530
    
$
49,406
      
8.3
%
Depreciation and amortization
    
15,074
      
14,709
          
Share-based compensation expense
    
2,900
      
1,995
          
Portfolio Optimization Plan costs, before tax
    
2,864
      
2,812
          
Adjusted EBITDA
  
$
74,368
    
$
68,922
      
7.9
%

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 March 31, 2025 and 2024.

   
March 31,
  
Debt
  
2025
  
2024
  
Short-term borrowings
  
$
18,575
  
$
19,439
  
Long-term debt
    
683,266
    
643,511
  
Credit Agreement adjustments(4)
    
(21,165
 )
  
(13,775
)
Net Debt
  
$
680,676
  
$
649,175
  
               
Operating income (GAAP)
  
$
195,703
  
$
153,591
  
Depreciation and amortization
    
60,694
    
58,379
  
Share-based compensation expense
    
10,989
    
8,661
  
Portfolio Optimization Plan costs, before tax
    
6,683
    
30,653
  
Other non-operating gains(5)
    
(871
 )
  
(1,055
)
Credit Adjusted EBITDA
  
$
273,198
  
$
250,229
  
               
Net Debt to Credit Adjusted EBITDA
    
2.5
 x
  
2.6
x

(4) Adjustments include cash and cash equivalents, as described in the Company’s Third 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.