Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Q1 2025 Earnings Presentation
27 slides from Sensient Technologies's earnings presentation, Apr 25, 2025
Slide 1: Sensient Technologies Corporation First Quarter 2025 Earnings Call
Sensient Technologies Corporation First Quarter 2025 Earnings Call April 25, 2025
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures Within this document, the Company reports certain non-GAAP financial measures, including: (1) adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which exclude restructuring and other costs, including the Portfolio Optimization Plan
Slide 3: Forward Looking Statements
Forward Looking Statements This document contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2025 Financial Outlook”, “Long-Term Outlook”, and “Consolidated Full Year 2025 Outlook” in this presentation. Such forward-look
Slide 4: Quarterly Results and Business Update
aS SENSIENT’ Quarterly Results and Business Update
Slide 5: Q1 2025 Consolidated Results
Q1 2025 Consolidated Results 5 (1) See appendix for our GAAP to Non-GAAP reconciliations.
Slide 6: Color Group Performance
Color Group Performance Local Currency Results Commentary 1 Revenue o Strong growth across all product lines in the quarter driven by new sales wins in natural colors Operating Results o Strong operating leverage in the quarter due to volume growth o Adjusted EBITDA Margin1 for the Group was 24.4% i
Slide 7: Flavors & Extracts Group Performance
Flavors & Extracts Group Performance Local Currency Results Commentary1 Revenue o Strong growth within Flavors, Extracts, and Flavor Ingredients Operating Results o Operating leverage improved in the quarter due to growth within the Flavors, Extracts, and Flavor Ingredients business o Adjusted EBITD
Slide 8: Asia Pacific Group Performance
Asia Pacific Group Performance Local Currency Results Commentary 1 Revenue o Growth driven by new sales wins across the region Operating Results o Growth driven by higher sales across the Group o Adjusted EBITDA Margin1 for the Group was 23.9% in Q1 2025, up 50 bps from Q1 2024 8 (1) See appendix fo
Slide 9: Business Outlook
Business Outlook 1 Consolidated Full Year 2025 Outlook Long-Term Outlook Local Currency Revenue 2 Local Currency Revenue 2 o Growth rate of mid-single-digit o Growth rate of mid-single-digit Local Currency Adjusted EBITDA 2 Local Currency Adjusted EBITDA 2 o Growth rate of mid-to high single-digit o
Slide 10: Shifting regulatory environment provides opportunity
Shifting regulatory environment provides opportunity Current Synthetic Color Regulatory Actions – U.S. Food and Beverage * First First State-wide School Red 3 Ban Synthetic Lunch Ban Color Ban West Virginia- U.S. Federal Ban- West Virginia - August 2025 January 2027 January 2028 *As of April 21, 202
Slide 11: Preparing our customers and investing for the future
Preparing our customers and investing for the future Product Technical Capacity Natural Color Transition Development Support Expansions Availability Timing Considerations We can provide the Natural colors are We continue to Botanical The timeline to support brands, not a 1-for-1 expand our developme
Slide 12: 2025 Natural Color Launch Highlights
2025 Natural Color Launch Highlights Groundbreaking Blue 1 Clean label brown solving replacement for beverages caramel and cocoa challenges ✓ Advanced color Ideal for: technology Ideal for: ✓ Advanced color • Sports drinks • Plant-based protein technology • Carbonated soft drinks ✓ Stabilized spirul
Slide 13: Financial Update and Outlook
aS SENSIENT’ Financial Update and Outlook
Slide 14: Q1 2025 Financial Review
Q1 2025 Financial Review Local Currency (dollars in thousands) Q1 2024 Q1 2025 Growth1 Consolidated Commentary: Revenue $ 384,670 $ 392,325 +4.1% o Local currency revenue1 increased 4.1% Operating Income (GAAP) $ 49,406 $ 53,530 Operating Margin 12.8% 13.6% o Q1 2025 results included $2.9 million of
Slide 15: 2025 Cash Flow and Debt Metrics
2025 Cash Flow and Debt Metrics Q1 2024 Q1 2025 Commentary: YTD YTD Cash Flow from Operations $ 15.1 million ($ 9.0 million) o Net cash used in operating activities was $9 million in the first quarter of 2025, primarily Capital Expenditures $ 11.0 million $ 16.9 million due to higher incentive-based
Slide 16: 2025 Financial Outlook
2025 Financial Outlook 1 Metric Current Guidance Prior Guidance 2 Local Currency Revenue Mid-single-digit growth Mid-single-digit growth 2 Local Currency Adjusted EBITDA Mid-to high single-digit growth Mid-to high single-digit growth 3 Diluted EPS (GAAP) $3.13 to $3.23 $3.05 to $3.15 2 High single-d
Slide 17: Sensient
—__"S ss SENSIENT™
Slide 18: Appendix
Appendix 1 (1) Amounts in thousands, except percentages and per share amounts.
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended March 31, Foreign Local Exchange Currency (1) Revenue Total Rates Adjustments 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 & Ext
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended March 31, 2025 Foreign Exchange Revenue Total Rates Local Currency Flavors, Extracts, and Flavor Ingredients 4.3% (2.2%) 6.5% Natural Ingredients (7.0%) 0.0% (7.0%) Flavors & Extracts Group 0.3% (1.4%) 1.7% Food and Pharmaceutical 6.4% (3.4%) 9.8% Perso
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Results by Segment Three Months Ended March 31, Adjusted Adjusted (1) Operating Income 2025 Adjustments 2025 2024 Adjustments (1) 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
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Flavors & Extracts Group Three Months Ended March 31, 2025 2024 Operating Income (GAAP) $ 24,989 $ 23,678 Depreciation and amortization 7,640 7,620 Share-based compensation expense 52 - Adjusted EBITDA $ 32,681 $ 31,298 Segment Revenue $ 193,681 $ 193,092 Operating Income
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Color Group Three Months Ended March 31, 2025 2024 Operating Income (GAAP) $ 34,852 $ 31,679 Depreciation and amortization 5,936 5,440 Share-based compensation expense 69 - Adjusted EBITDA $ 40,857 $ 37,119 Segment Revenue $ 167,750 $ 160,025 Operating Income Margin (GAAP
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Asia Pacific Group Three Months Ended March 31, 2025 2024 Operating Income (GAAP) $ 9,442 $ 8,776 Depreciation and amortization 548 636 Share-based compensation expense 22 - Adjusted EBITDA $ 10,012 $ 9,412 Segment Revenue $ 41,901 $ 40,306 Operating Income Margin (GAAP)
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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,
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures March 31, Debt 2025 2024 Short-term borrowings $ 18,575 $ 19,439 Long-term debt 683,266 643,511 Credit Agreement adjustments(1) (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-bas
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