Slide 1: Sensient Technologies Corporation Third Quarter 2024 Earnings Call
Sensient Technologies Corporation Third Quarter 2024 Earnings Call October 25, 2024
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 “2024 Financial Outlook”, “Full Year 2024 Group Outlook”, “Long-Term Outlook”, “Consolidated Full Year 2024 Outlook”, and "Busin
Slide 4: Quarterly Results and Business Update
aS SENSIENT’ Quarterly Results and Business Update
Slide 5: Q3 2024 Consolidated Results
Q3 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 o Adjusted EBITDA Margin1 for the Group w
Slide 7: Flavors & Extracts Group Performance
Flavors & Extracts Group Performance Local Currency Results Commentary 1 Revenue o Strong volume growth due to new wins o Low single-digit pricing Operating Results o Operating leverage improved in the quarter due to solid volume growth and select pricing actions o Adjusted EBITDA Margin1 for the Gr
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 win rate o Low single-digit pricing Operating Results o Growth driven by higher volumes across the Group in third quarter o Adjusted EBITDA Margin1 for the Group was 23.8% in Q3
Slide 9: Business Initiatives and Outlook
Business Initiatives and Outlook 1 Consolidated Full Year 2024 Outlook Long-Term Outlook Local Currency Revenue 2 Local Currency Revenue 2 o Growth rate of high single-digit o Growth rate of mid-single-digit Local Currency Adjusted EBITDA 2 Local Currency Adjusted EBITDA 2 o Growth rate of high sing
Slide 10: Innovative Flavor Technologies
Innovative Flavor Technologies SensaMeltsTM - A unique, optimized flavor and color delivery system for use in sweet and savory products subjected to high-heat processes. - Delivers discrete, impactful pockets of flavor and color in the finished product. TrueboostTM - Products within the portfolio ca
Slide 11: Financial Update and Outlook
aS SENSIENT’ Financial Update and Outlook
Slide 12: Q3 2024 Financial Review
Q3 2024 Financial Review Local Currency (dollars in thousands) Q3 2023 Q3 2024 Growth1 Consolidated Commentary: Revenue $ 363,829 $ 392,613 +8.6% o Local currency revenue1 increased 8.6% Operating Income (GAAP) $ 44,531 $ 50,520 Operating Margin 12.2% 12.9% o Q3 2024 results included $1.2 million of
Slide 13: 2024 Cash Flow and Debt Metrics
2024 Cash Flow and Debt Metrics Q3 2023 Q3 2024 YTD YTD Commentary: Cash Flow from Operations $ 106.8 million $ 135.8 million o Cash flow from operations improved approximately $29 million compared to 2023, Capital Expenditures $ 67.7 million $ 36.1 million due to strong operating income contributio
Slide 14: 2024 Financial Outlook
2024 Financial Outlook 1 Metric Current Guidance Prior Guidance 2 Local Currency Revenue High single-digit growth Mid-to high single-digit growth 2 Local Currency Adjusted EBITDA High single-digit growth Mid-to high single-digit growth 3 Diluted EPS (GAAP) $2.77 to $2.87 $2.77 to $2.87 2 Local Curre
Slide 15: —__"S ss
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Slide 16: Appendix
Appendix 1 (1) Amounts in thousands, except percentages and per share amounts.
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, 2024 2023 % Change Operating income (GAAP) $ 50,520 $ 44,531 13.4% Portfolio Optimization Plan costs – Cost of products sold 209 - Portfolio Optimization Plan costs – Selling and administrative expenses 1,002 - Adjusted operating income $
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, 2024 Foreign Adjusted Exchange Local Revenue Total Rates Adjustments(1) Currency Flavors & Extracts 6.4% (0.4%) N/A 6.8% Color 11.8% (1.2%) N/A 13.0% Asia Pacific 13.6% 0.2% N/A 13.4% Total Revenue 7.9% (0.7%) N/A 8.6% Operating Income Fla
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, 2024 Foreign Revenue Total Exchange Rates Local Currency Flavors, Extracts & Flavor Ingredients 3.4% (0.6%) 4.0% Natural Ingredients 12.0% 0.0% 12.0% Flavors & Extracts Group 6.4% (0.4%) 6.8% Food and Pharmaceutical 10.4% (1.2%) 11.6% Pers
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Results by Segment Three Months Ended September 30, Adjusted Adjusted (1) (1) Operating Income 2024 Adjustments 2024 2023 Adjustments 2023 Flavors & Extracts $ 25,862 $ - $ 25,862 $ 23,078 $ - $ 23,078 Color 29,806 - 29,806 22,925 - 22,925 Asia Pacific 9,307 - 9,307 8,095
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Flavors & Extracts Group Three Months Ended September 30, 2024 2023 Operating Income (GAAP) $ 25,862 $ 23,078 Depreciation and amortization 7,576 7,657 Adjusted EBITDA $ 33,438 $ 30,735 Segment Revenue $ 203,279 $ 190,997 Operating Income Margin (GAAP) 12.7% 12.1% Adjuste
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Color Group Three Months Ended September 30, 2024 2023 Operating Income (GAAP) $ 29,806 $ 22,925 Depreciation and amortization 6,236 5,615 Adjusted EBITDA $ 36,042 $ 28,540 Segment Revenue $ 162,080 $ 144,939 Operating Income Margin (GAAP) 18.4% 15.8% Adjusted EBITDA Marg
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Asia Pacific Group Three Months Ended September 30, 2024 2023 Operating Income (GAAP) $ 9,307 $ 8,095 Depreciation and amortization 623 617 Adjusted EBITDA $ 9,930 $ 8,712 Segment Revenue $ 41,778 $ 36,774 Operating Income Margin (GAAP) 22.3% 22.0% Adjusted EBITDA Margin
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, 2024 2023 % Change Operating Income (GAAP) $ 50,520 $ 44,531 13.4% Depreciation and amortization 15,460 14,770 Share-based compensation expense 2,069 2,519 Portfolio Optimization Plan costs, before tax 1,211 - Adjusted EBITDA $ 69,260 $ 61
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures September 30, Debt 2024 2023 Short-term borrowings $ 17,811 $ 22,807 Long-term debt 625,627 648,556 (1) Credit Agreement adjustments (22,633) (19,463) Net Debt $ 620,805 $ 651,900 Operating income (GAAP) $ 157,646 $ 188,185 Depreciation and amortization 59,645 56,565 Shar