Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Q4 2024 Earnings Presentation
28 slides from Sensient Technologies's earnings presentation, Feb 14, 2025
Slide 1: Fourth Quarter 2024 Earnings Call
Sensient Technologies Corporation Fourth Quarter 2024 Earnings Call February 14, 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”, “Full Year 2025 Group Outlook”, “Long-Term Outlook”, “Consolidated Full Year 2025 Outlook”, and "Busin
Slide 4: Quarterly Results and Business Update
—_-""==_ SENSIENT’ Quarterly Results and Business Update
Slide 5: Q4 2024 Consolidated Results
Q4 2024 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 volume growth across all product lines in the quarter driven by new wins o Low single-digit pricing Operating Results o Strong operating leverage in the quarter due to volume growth and favorable pricing o Adjusted EBITDA M
Slide 7: Flavors & Extracts Group Performance
Flavors & Extracts Group Performance Local Currency Results Commentary 1 Revenue o Favorable pricing and strong volume growth driven by new wins Operating Results o Operating leverage improved in the quarter due to favorable pricing and solid volume growth Local Currency Full Year Results 1 vs. Prio
Slide 8: Asia Pacific Group Performance
Asia Pacific Group Performance Local Currency Results Commentary 1 Revenue o Volume growth driven by increase in new sales wins Operating Results o Growth driven by higher volumes across the Group o Adjusted EBITDA Margin1 for the Group was 21.7% in Q4 2024, up 190 bps from Q4 2023 Local Currency Fu
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 o Growth rate of mid-to high single-digit Local Currency Adjusted EPS 2 o Gr
Slide 10: Natural color demand provides growth opportunity for Sensient
Natural color demand provides growth opportunity for Sensient Global Natural Color Launches • Among colored food and beverage launches, Europe natural colors have increased in all regions in the 2024: 86% past 10 years. • Consumers desire natural products North America • Natural color trend provides
Slide 11: Food & Pharmaceutical Color Portfolio
Food & Pharmaceutical Color Portfolio Color Commentary • Natural colors make up ~60% of food and pharmaceutical product line revenue and ~20% of total company revenue Personal Care Synthetic • Natural colors continue to grow above Natural overall company mid-term outlook Food & Pharma • Red 3, a syn
Slide 12: Supporting our customers and delivering leading natural color technologies
Supporting our customers and delivering leading natural color technologies 12
Slide 13: Q4 2024 Financial Review
Q4 2024 Financial Review Local Currency (dollars in thousands) Q4 2023 Q4 2024 Growth1 Consolidated Commentary: Revenue $ 349,302 $ 376,420 +8.9% o Local currency revenue1 increased 8.9% Operating Income (GAAP) $ 8,063 $ 41,996 Operating Margin 2.3% 11.2% o Q4 2024 results included $0.9 million of P
Slide 14: 2024 Cash Flow and Debt Metrics
2024 Cash Flow and Debt Metrics Q4 2023 Q4 2024 YTD YTD Commentary: Cash Flow from Operations $ 169.7 million $ 157.2 million o Cash flow from operations of $157.2 million in Capital Expenditures $ 87.9 million $ 59.2 million 2024 compared to $169.7 million in 2023 due to higher net working capital.
Slide 15: 2025 Financial Outlook
2025 Financial Outlook 1 Metric Current Guidance 2 Local Currency Revenue Mid-single-digit growth 2 Local Currency Adjusted EBITDA Mid-to high single-digit growth 3 Diluted EPS (GAAP) $3.05 to $3.15 2 High single-digit to Local Currency Adjusted Diluted EPS double-digit growth Capital Expenditures $
Slide 16: Sensient
—_—_"—S —s~ SENSIENT™
Slide 17: Appendix
Appendix 1 (1) Amounts in thousands, except percentages and per share amounts.
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended December 31, 2024 2023 % Change Operating income (GAAP) $ 41,996 $ 8,063 420.8% Portfolio Optimization Plan costs – Cost of products sold 839 3,135 Portfolio Optimization Plan costs – Selling and administrative expenses 17 24,706 Adjusted operating inco
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended December 31, 2024 Foreign Adjusted Exchange Local (1) Revenue Total Rates Adjustments Currency Flavors & Extracts 2.8% (0.6%) N/A 3.4% Color 11.8% (2.2%) N/A 14.0% Asia Pacific 26.1% 0.9% N/A 25.2% Total Revenue 7.8% (1.1%) N/A 8.9% Operating Income Fla
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Year Ended December 31, 2024 Foreign Adjusted Exchange Local (1) Revenue Total Rates Adjustments Currency Flavors & Extracts 7.1% 0.0% N/A 7.1% Color 6.6% (0.7%) N/A 7.3% Asia Pacific 11.2% (1.8%) N/A 13.0% Total Revenue 6.9% (0.5%) N/A 7.4% Operating Income Flavors & Ext
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended December 31, 2024 Foreign Revenue Total Exchange Rates Local Currency Flavors, Extracts, and Flavor Ingredients 5.9% (1.0%) 6.9% Natural Ingredients (2.1%) (0.0%) (2.1%) Flavors & Extracts Group 2.8% (0.6%) 3.4% Food and Pharmaceutical 13.6% (2.2%) 15.8
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Results by Segment Three Months Ended December 31, Adjusted Adjusted (1) Operating Income 2024 Adjustments 2024 2023 Adjustments (1) 2023 Flavors & Extracts $ 21,345 $ - $ 21,345 $ 18,059 $ - $ 18,059 Color 26,542 - 26,542 21,343 - 21,343 Asia Pacific 8,495 - 8,495 5,889
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Flavors & Extracts Group Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Operating Income (GAAP) $ 21,345 $ 18,059 $ 97,094 $ 87,773 Depreciation and amortization 7,603 7,378 30,437 29,400 Adjusted EBITDA $ 28,948 $ 25,437 $ 127,531 $ 117,173 S
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Color Group Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Operating Income (GAAP) $ 26,542 $ 21,343 $ 119,529 $ 105,370 Depreciation and amortization 5,992 5,487 23,417 22,294 Adjusted EBITDA $ 32,534 $ 26,830 $ 142,946 $ 127,664 Segment Reve
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Asia Pacific Group Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Operating Income (GAAP) $ 8,495 $ 5,889 $ 34,458 $ 30,800 Depreciation and amortization 596 683 2,472 2,548 Adjusted EBITDA $ 9,091 $ 6,572 $ 36,930 $ 33,348 Segment Revenue $ 4
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended December 31, 2024 2023 % Change Operating Income (GAAP) $ 41,996 $ 8,063 420.8% Depreciation and amortization 15,144 14,460 Share-based compensation expense 3,104 1,648 Portfolio Optimization Plan costs, before tax 856 27,841 Adjusted EBITDA $ 61,100 $
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Twelve Months Ended December 31, 2024 2023 % Change Net cash provided by operating activities (GAAP) $ 157,151 $ 169,697 (7.4%) Capital expenditures (59,212) (87,868) Free Cash Flow $ 97,939 $ 81,829 19.7% 27
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures Year Ended December 31, Debt 2024 2023 Short-term borrowings $ 19,848 $ 13,460 Long-term debt 613,523 645,085 (1) Credit Agreement adjustments (13,129) (16,743) Net Debt $ 620,242 $ 641,802 Operating income (GAAP) $ 191,579 $ 155,023 Depreciation and amortization 60,329 5
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