Sensient Technologies Corporation · NYSE:SXT
Sensient Technologies — Q1 2022 Earnings Presentation
28 slides from Sensient Technologies's earnings presentation, Apr 29, 2022
Slide 1: First Quarter 2022 Investor Presentation
First Quarter 2022 Investor Presentation
Slide 2: 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 “2022 Financial Outlook” in this presentation. Such forward-looking statements are not guarantees of future performance and invo
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Within this document, the Company reports certain non-GAAP financial measures, including: (1) adjusted revenue, adjusted operating income, adjusted net earnings, adjusted EBITDA, and adjusted diluted earnings per share (which exclude divestiture & other related costs, the
Slide 4: Sensient Overview
Sensient Overview Provider of customized solutions for food and beverage, pharmaceutical, and personal care customers Global market leader offering an extensive portfolio of natural flavor and color technology platforms and solutions Exceptional innovation & applications expertise with unique abilit
Slide 5: Innovative Technologies Creating Unique Solutions
Innovative Technologies Creating Unique Solutions Applications expertise and solutions-based selling High impact relative to cost Technically-driven products that are difficult to replace Strong consumer trends Opportunities to grow organically and through M&A 5
Slide 6: Focusing our portfolio and strengthening our commitment to the end markets
Focusing our portfolio and strengthening our commitment to the end markets Investing in core focus areas of Flavors and Extracts, Natural Ingredients, Food and Pharmaceutical Colors, and Personal Care Divested non-core product lines (inks, fragrances, and yogurt fruit prep product lines) in 2020 and
Slide 7: Natural solutions provider focused on consistent and sustainable supply chain
Natural solutions provider focused on consistent and sustainable supply chain Provider of natural solutions to support health & wellness and clean label consumer trends Robust agronomy program ensures responsible procurement and traceability of sustainable ingredients Committed to delivering safe, a
Slide 8: Global Revenue by Group
Global Revenue by Group Color Group 2021 Revenue: $545M 2021 Adj. Revenue*: $543M Core Areas of Focus: Food and Pharmaceutical Colors and Personal Care Flavors & Extracts Group 2021 Revenue: $739M 2021 Adj. Revenue*: $712M Core Areas of Focus: Natural Flavors, Extracts and Natural Ingredients Asia P
Slide 9: Color Group
Color Group Global market leader Natural color innovator Excellent innovation & applications expertise 9
Slide 10: Color Overview
Color Overview 2021 Revenue: $545M 2021 Adj. Revenue*: $543M Food and 71% of Segment Revenue 71% of Adj. Segment Revenue Pharmaceutical LC Revenue Change* • Market trend toward natural colors in food and beverage Q1 ’22 +11.8% • Unique value proposition for Pharmaceutical customers includes colors,
Slide 11: Flavors & Extracts Group
Flavors & Extracts Group Broad product offering Unique ability to service global, regional, and local customers Leading technology platforms Outstanding applications expertise 11
Slide 12: Flavors & Extracts Overview
Flavors & Extracts Overview 2021 Revenue: $739M 2021 Adj. Revenue*: $712M Flavors, Extracts, 62% of Segment Revenue 64% of Adj. Segment Revenue and Flavor LC Revenue Change* • Opportunities for on trend products with extracts, taste modulation, Q1 ’22 +13.2% and natural flavors Ingredients Natural 3
Slide 13: Asia Pacific Group
Asia Pacific Group Portfolio of food and beverage flavors and colors R&D centers in Singapore, Thailand, and China to support local and regional customer base Ability to deliver localized solutions and technology platforms 13
Slide 14: Asia Pacific Overview
Asia Pacific Overview 2021 adjusted revenue of $135 million and adjusted operating income of $26 million Sensient’s sales of flavors and colors for Food and Pharmaceutical are managed on a geographic basis and reported as a separate segment Manufacturing capabilities in Australia, New Zealand, China
Slide 15: 2022 Q1 Segment Results
2022 Q1 Segment Results Local Currency Adjusted Revenue* Local Currency Adjusted* Commentary: Q1 Color Group reported higher revenue in the quarter due to Color +11.8% double digit growth in both Food and Pharmaceutical and Personal Care. Operating income was up due to product mix, Flavors & Extract
Slide 16: 2022 Q1 Consolidated Results
2022 Q1 Consolidated Results Q1 Local Currency Adjusted Revenue* +8.4% Local Currency Adjusted Operating Income* +16.2% Local Currency Adjusted Diluted EPS* +16.9% Local Currency Adjusted EBITDA* +16.3% Q1 consolidated local currency adjusted revenue was up high-single digits despite the anticipated
Slide 17: Capital Allocation
Capital Allocation $250 Prioritize ROI capital projects $200 $9 $31 $118 $56 $14 Maintain financial flexibility to pursue DOLLARS IN MILLIONS $51 $150 $87 $61 M&A $54 $100 $57 $52 Dividend payout increased 5.1% in 2021 $39 $67 $50 $87 Excess capital returned to shareholders $77 $62 $66 $43 through o
Slide 18: 2022 Financial Outlook
2022 Financial Outlook Revised Previous Metric Comments Guidance* Guidance* At current rates, we anticipate a FX headwind of Diluted EPS (GAAP) High-teen growth Mid-teen growth approximately 12 cents High single to High single-digit Local Currency Diluted EPS* double-digit growth growth Mid-to-High
Slide 19: Why Invest?
Why Invest? Strong competitive position Defensible and ‘sticky’ business (& low portion of customer costs) Global presence Exposure to stable and growing markets Focused on improving returns and on growth 19
Slide 20: Appendix
APPENDIX* *Amounts in thousands, except percentages and per share amounts
Slide 21: ESG Information
Click here to access our ESG Information Sensient is committed to the principles of sound environmental stewardship and the responsible and sustainable use of energy and natural resources. • Long-term goals to reduce Energy, Water, and Hazardous Waste intensity Environmental • Seed-to-shelf program
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended Three Months Ended Year Ended March 31, 2022 March 31, 2021 December 31, 2021 Revenue (GAAP) $ 355,521 $ 359,702 $ 1,380,264 Revenue of the divested product lines - (25,570) (30,062) Adjusted revenue $ 355,521 $ 334,132 $ 1,350,202 Operating income (GAA
Slide 23: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended March 31, 2022 Foreign Adjusted Exchange Local Revenue Total Rates Adjustments* Currency Flavors & Extracts (9.1%) (1.9%) (12.3%) 5.1% Color 9.4% (1.9%) (0.5%) 11.8% Asia Pacific 7.8% (5.6%) (1.0%) 14.4% Total Revenue (1.2%) (2.2%) (7.4%) 8.4%
Slide 24: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended March 31, 2022 Foreign Exchange Local Revenue Total Rates Currency Flavors, Extracts and Flavor Ingredients 11.2% (2.0%) 13.2% Natural Ingredients (9.6%) 0.1% (9.7%) Fragrances* (100.0%) 0.0% (100.0%) Yogurt Fruit Prep* (100.0%) 0.0% (100.0%) F
Slide 25: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Results by Segment Three Months Ended March 31, Adjusted Adjusted Revenue 2022 Adjustments* 2022 2021 Adjustments* 2021 Flavors & Extracts $ 182,727 $ - $ 182,727 $ 200,911 $ (24,889) $ 176,022 Color 148,438 - 148,438 135,720 (536) 135,184 Asia Pacific 36,465 - 3
Slide 26: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Results by Segment Year Ended December 31, Adjusted Revenue 2021 Adjustments* 2021 Flavors & Extracts $ 739,427 $ (27,837) $ 711,590 Color 545,270 (2,080) 543,190 Asia Pacific 135,348 (295) 135,053 Intersegment elimination (39,781) 150 (39,631) Consolidated $ 1,3
Slide 27: Non-GAAP Financial Measures (Cont'd)
Non-GAAP Financial Measures (Cont’d) Three Months Ended March 31, 2022 2021 % Change Operating income (GAAP) $ 52,789 $ 46,897 12.6% Depreciation and amortization 13,056 12,799 Depreciation and amortization, divested product lines - (49) Share-based compensation expense 4,163 2,113 Divestiture & oth
Slide 28: Sensient
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