UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

April 29, 2022
(Date of Report/Date of earliest event reported)

SENSIENT TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)

Wisconsin
001-07626
39-0561070
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202-5304
(Address and zip code of principal executive offices)

(414) 271-6755
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.10 per share
SXT
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02
Results of Operations and Financial Condition.

Sensient Technologies Corporation (the “Company”) issued a press release on April 29, 2022 disclosing its results of operations for its quarter ended March 31, 2022, and its financial condition at that date.  The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 2.02 (including Exhibit 99.1) is intended to be furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.

Item 7.01
Regulation FD Disclosure.

On April 29, 2022, the Company also posted an updated investor presentation for its quarter ended March 31, 2022 on the “Investor Information” section of its website.  A copy of the investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information contained in this Item 7.01 (including Exhibit 99.2) is intended to be furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01
Financial Statements and Exhibits.


(d)
Exhibits. The following exhibits are furnished with this Current Report on Form 8-K:

EXHIBIT INDEX

Exhibit
Number
Description
Sensient Technologies Corporation Earnings Press Release for the Quarter Ended March 31, 2022.
Sensient Technologies Corporation Investor Presentation – Q1 2022.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
SENSIENT TECHNOLOGIES CORPORATION
     
 
By:
/s/ John J. Manning
 
 
Name:
John J. Manning
 
 
Title:
Senior Vice President, General Counsel, and Secretary
 
 
Date:
April 29, 2022
 




Exhibit 99.1

Contact:
Amy Agallar
 
(414) 347-3706

Sensient Technologies Corporation
Reports Results for the Quarter Ended March 31, 2022

Sensient Raises 2022 Guidance Based on Strong First Quarter Results and Favorable Outlook

MILWAUKEE— April 29, 2022 — Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $355.5 million in this year’s first quarter compared to $359.7 million in last year’s first quarter. Reported operating income in the first quarter of 2022 was $52.8 million compared to $46.9 million in the first quarter of 2021. Reported diluted earnings per share was 88 cents in the first quarter of 2022 compared to 75 cents in the first quarter of 2021. Foreign currency translation decreased revenue by approximately 2% and earnings per share by approximately 4% in the quarter.

The 2021 first quarter reported results include divestiture & other related costs and operational improvement plan costs, which in total decreased 2021 first quarter diluted earnings per share by $0.07. The 2021 first quarter reported results also include the operations of the divested product lines, which increased diluted earnings per share by $0.05. We did not make any adjustments to our 2022 first quarter reported results for divestiture & other related costs, operational improvement plan costs, or results of the divested product lines. The adjustments to our reported results are described in more detail under “Reconciliation of Non-GAAP Amounts” at the end of this release.

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Sensient Technologies Corporation
Page 2
Earnings Release – Quarter Ended March 31, 2022
April 29, 2022


BUSINESS REVIEW

Revenue
 
Reported
Quarter
 
Flavors & Extracts
   
-9.1
%
Color
   
9.4
%
Asia Pacific
   
7.8
%
Total Revenue
   
-1.2
%

Revenue
 
Adjusted
Local Currency (1)
Quarter
 
Flavors & Extracts
   
5.1
%
Color
   
11.8
%
Asia Pacific
   
14.4
%
Total Revenue
   
8.4
%
         

 
(1)
Adjusted local currency percentage changes are described in more detail in the "Reconciliation of Non-GAAP Amounts" at the end of this release.

The Flavors & Extracts Group reported first quarter revenue of $182.7 million compared to $200.9 million reported in the comparable period last year, a decrease of 9.1%, primarily due to the divestiture of the Fragrances product line in April 2021. Adjusted local currency revenue increased 5.1% in the quarter. The higher adjusted local currency revenue was primarily the result of favorable pricing and volume growth in flavors, extracts & flavor ingredients, and favorable pricing in natural ingredients, partially offset by lower volumes in natural ingredients. The lower volumes in natural ingredients were primarily a result of a limited supply of onion combined with strong 2021 demand. Segment operating income was $27.6 million in the current quarter compared to $27.0 million reported in the comparable period last year, an increase of 2.1%. Adjusted local currency operating income increased 14.7% in the quarter. The higher operating income was primarily due to the favorable pricing and volume growth in flavors, extracts & flavor ingredients, and favorable pricing in natural ingredients, partially offset by higher input costs.  Foreign currency translation decreased segment revenue by approximately 2% and segment operating income by approximately 1% in the quarter. Segment operating income as a percent of revenue in the first quarter of 2022 rose to 15.1%.

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Sensient Technologies Corporation
Page 3
Earnings Release – Quarter Ended March 31, 2022
April 29, 2022


The Color Group reported revenue of $148.4 million in the quarter compared to $135.7 million in last year’s comparable period, an increase of 9.4%. Adjusted local currency revenue increased 11.8% in the quarter. The Group experienced strong volume growth and higher pricing in both Food & Pharmaceutical Colors and Personal Care. Segment operating income was $30.7 million in the quarter compared to $26.6 million in last year’s comparable period, an increase of 15.3%. Adjusted local currency operating income increased 17.5% compared to the prior year’s first quarter. The higher operating income is primarily a result of the higher volumes and favorable pricing, partially offset by higher input costs. Foreign currency translation decreased both segment revenue and operating income by approximately 2% in the quarter. Segment operating income as a percent of revenue in the first quarter of 2022 rose to 20.7%.

The Asia Pacific Group reported revenue of $36.5 million in the quarter compared to $33.8 million in last year’s comparable period, an increase of 7.8%. Adjusted local currency revenue increased 14.4% in the quarter. Segment operating income was $8.2 million in the quarter compared to $6.8 million in last year’s comparable quarter, an increase of 21.5%. Adjusted local currency operating income increased 31.0% in the quarter. The higher operating income was primarily a result of the favorable volume growth and higher pricing. Foreign currency translation decreased segment revenue and operating income by approximately 6% and 8%, respectively, in the quarter. Segment operating income as a percent of revenue in the first quarter of 2022 rose to 22.5%.

Corporate & Other reported operating costs of $13.7 million in the current quarter compared to $13.5 million in last year’s comparable period, an increase of 1.4%. Adjusted local currency operating expenses for Corporate & Other increased 25.4% in the quarter primarily due to higher performance-based compensation.

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Sensient Technologies Corporation
Page 4
Earnings Release – Quarter Ended March 31, 2022
April 29, 2022


2022 OUTLOOK

Sensient now expects 2022 full year GAAP diluted earnings per share to grow at a high-teen growth rate compared to the Company’s 2021 reported GAAP diluted earnings per share of $2.81. The Company’s previous 2022 GAAP diluted earnings per share guidance was for a mid-teen growth rate. Our full year 2022 guidance does not include any material divestiture & other related costs, operational improvement plan costs, or results of divested businesses.

The Company now expects 2022 revenue to grow at a mid-to-high single-digit rate in local currency compared to the Company’s 2021 adjusted revenue (2). The Company’s previous 2022 revenue guidance was for a mid-single-digit growth rate in local currency. The Company now expects 2022 adjusted EBITDA(2) and diluted earnings per share to grow at a high single- to double-digit rate in local currency compared to the Company’s 2021 adjusted EBITDA(2) and the Company’s 2021 adjusted diluted earnings per share(2) of $3.13. The Company’s previous guidance for 2022 adjusted EBITDA(2) and diluted earnings per share was for a high single-digit growth rate in local currency.

The Company now expects earnings per share reported on a U.S. dollar basis to be impacted by approximately twelve cents of foreign currency headwinds based on current exchange rates.

The Company’s guidance is based upon current trends, current tax law, and the effects of COVID-19 to date. The full impacts of the ongoing COVID-19 pandemic remain uncertain and management will continue to monitor its impacts on our business.


(2)
See “Reconciliation of Non-GAAP Amounts” at the end of this release for more information.

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Sensient Technologies Corporation
Page 5
Earnings Release – Quarter Ended March 31, 2022
April 29, 2022


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, non-cash share-based compensation, divestiture & other related costs, operational improvement plan costs and income, and the results of the divested operations. 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 2022 first quarter financial results at 8:30 a.m. CDT on Friday, April 29, 2022. 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 6, 2022, by calling (877) 344-7529 and referring to conference identification number 1394798. 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 May 3, 2022.

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Sensient Technologies Corporation
Page 6
Earnings Release – Quarter Ended March 31, 2022
April 29, 2022


This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2022 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 impact and uncertainty created by the ongoing COVID-19 pandemic, including, but not limited to, its effects on our employees, facilities, customers, and suppliers, the availability and cost of raw materials, energy, and other supplies, the availability and cost of labor, logistics, and transportation; the uncertain impacts of the ongoing conflict between Russia and Ukraine on our supply chain, input costs, including energy and transportation, and generally on economic conditions; governmental regulations and restrictions, and general economic conditions, including inflation; 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 and changing technologies; 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 operational improvement plan; the effectiveness of the Company’s past restructuring activities; changes in costs of raw materials, including energy; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; 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, 2021, 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, cosmetic, 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
Page 7
(In thousands, except percentages and per share amounts)
(Unaudited)


Consolidated Statements of Earnings
 
Three Months Ended March 31,
 
                   
   
2022
   
2021
   
% Change
 
                   
Revenue
 
$
355,521
   
$
359,702
     
(1.2
%)
                         
Cost of products sold
   
230,675
     
244,089
     
(5.5
%)
Selling and administrative expenses
   
72,057
     
68,716
     
4.9
%
                         
Operating income
   
52,789
     
46,897
     
12.6
%
Interest expense
   
2,993
     
3,433
         
                         
Earnings before income taxes
   
49,796
     
43,464
         
Income taxes
   
12,725
     
11,796
         
                         
Net earnings
 
$
37,071
   
$
31,668
     
17.1
%
                         
Earnings per share of common stock:
                       
Basic
 
$
0.89
   
$
0.75
         
                         
Diluted
 
$
0.88
   
$
0.75
         
                         
Average common shares outstanding:
                       
Basic
   
41,865
     
42,263
         
                         
Diluted
   
42,148
     
42,389
         

Results by Segment
 
Three Months Ended March 31,
 
                   
Revenue
 
2022
   
2021
   
% Change
 
                   
Flavors & Extracts
 
$
182,727
   
$
200,911
     
(9.1
%)
Color
   
148,438
     
135,720
     
9.4
%
Asia Pacific
   
36,465
     
33,840
     
7.8
%
Intersegment elimination
   
(12,109
)
   
(10,769
)
       
                         
Consolidated
 
$
355,521
   
$
359,702
     
(1.2
%)
                         
                         
Operating Income
                       
                         
Flavors & Extracts
 
$
27,579
   
$
27,018
     
2.1
%
Color
   
30,657
     
26,594
     
15.3
%
Asia Pacific
   
8,204
     
6,752
     
21.5
%
Corporate & Other
   
(13,651
)
   
(13,467
)
       
                         
Consolidated
 
$
52,789
   
$
46,897
     
12.6
%

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Sensient Technologies Corporation
Page 8
(In thousands)
(Unaudited)


Consolidated Condensed Balance Sheets
 
March 31,
2022
   
December 31,
2021
 
             
Cash and cash equivalents
 
$
32,175
   
$
25,740
 
Trade accounts receivable
   
282,265
     
261,121
 
Inventories
   
422,837
     
411,635
 
Prepaid expenses and other current assets
   
46,081
     
42,657
 
Total Current Assets
   
783,358
     
741,153
 
                 
Goodwill & intangible assets (net)
   
429,814
     
435,009
 
Property, plant, and equipment (net)
   
445,251
     
446,478
 
Other assets
   
130,196
     
122,853
 
                 
Total Assets
 
$
1,788,619
   
$
1,745,493
 
                 
Trade accounts payable
 
$
114,858
   
$
125,519
 
Short-term borrowings
   
7,475
     
8,539
 
Other current liabilities
   
92,050
     
98,247
 
Total Current Liabilities
   
214,383
     
232,305
 
                 
Long-term debt
   
530,005
     
503,006
 
Accrued employee and retiree benefits
   
28,441
     
28,579
 
Other liabilities
   
54,080
     
43,178
 
Shareholders' Equity
   
961,710
     
938,425
 
                 
Total Liabilities and Shareholders' Equity
 
$
1,788,619
   
$
1,745,493
 

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Sensient Technologies Corporation
Page 9
(In thousands, except per share amounts)
(Unaudited)


Consolidated Statements of Cash Flows
Three Months Ended March 31,
           
   
2022
   
2021
 
Cash flows from operating activities:
           
Net earnings
 
$
37,071
   
$
31,668
 
Adjustments to arrive at net cash (used in) provided by operating activities:
               
Depreciation and amortization
   
13,056
     
12,799
 
Share-based compensation expense
   
4,163
     
2,113
 
Net (gain) loss on assets
   
(48
)
   
161
 
Loss on divestitures and other charges
   
-
     
1,238
 
Deferred income taxes
   
4,211
     
4,257
 
Changes in operating assets and liabilities:
               
Trade accounts receivable
   
(20,841
)
   
(27,237
)
Inventories
   
(11,901
)
   
27,621
 
Prepaid expenses and other assets
   
(11,111
)
   
(13,239
)
Trade accounts payable and other accrued expenses
   
(10,267
)
   
(6,242
)
Accrued salaries, wages, and withholdings from employees
   
(12,425
)
   
(10,872
)
Income taxes
   
7,063
     
5,742
 
Other liabilities
   
137
     
955
 
                 
Net cash (used in) provided by operating activities
   
(892
)
   
28,964
 
                 
Cash flows from investing activities:
               
Acquisition of property, plant, and equipment
   
(12,736
)
   
(14,244
)
Proceeds from sale of assets
   
89
     
69
 
Proceeds from divestiture of businesses
   
-
     
4,059
 
Other investing activities
   
434
     
286
 
                 
Net cash used in investing activities
   
(12,213
)
   
(9,830
)
                 
Cash flows from financing activities:
               
Proceeds from additional borrowings
   
40,099
     
21,530
 
Debt payments
   
(6,275
)
   
(8,999
)
Purchase of treasury stock
   
-
     
(11,665
)
Dividends paid
   
(17,211
)
   
(16,535
)
Other financing activities
   
(1,679
)
   
(228
)
                 
Net cash provided by (used in) financing activities
   
14,934
     
(15,897
)
                 
Effect of exchange rate changes on cash and cash equivalents
   
4,606
     
(7
)
                 
Net increase in cash and cash equivalents
   
6,435
     
3,230
 
Cash and cash equivalents at beginning of period
   
25,740
     
24,770
 
Cash and cash equivalents at end of period
 
$
32,175
   
$
28,000
 
                 
                 
Supplemental Information
               
Three Months Ended March 31,
   
2022
     
2021
 
                 
Dividends paid per share
 
$
0.41
   
$
0.39
 

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Sensient Technologies Corporation
Page 10
(In thousands, except percentages and per share amounts)
(Unaudited)


Reconciliation of Non-GAAP Amounts

The Company's results for the three months ended March 31, 2022 and 2021 include adjusted revenue, adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which exclude divestiture & other related costs, operational improvement plan costs and the results of the divested operations.

   
Three Months Ended March 31,
 
   
2022
   
2021
   
% Change
 
Revenue (GAAP)
 
$
355,521
   
$
359,702
     
(1.2
%)
Revenue of the divested product lines
   
-
     
(25,570
)
       
Adjusted revenue
 
$
355,521
   
$
334,132
     
6.4
%
                         
Operating income (GAAP)
 
$
52,789
   
$
46,897
     
12.6
%
Divestiture & other related costs – Cost of products sold
   
-
     
25
         
Divestiture & other related costs – Selling and administrative expenses
   
-
     
1,547
         
Operating income of the divested product lines
   
-
     
(2,927
)
       
Operational improvement plan - Selling and administrative expenses
   
-
     
1,001
         
Adjusted operating income
 
$
52,789
   
$
46,543
     
13.4
%
                         
Net earnings (GAAP)
 
$
37,071
   
$
31,668
     
17.1
%
Divestiture & other related costs, before tax
   
-
     
1,572
         
Tax impact of divestiture & other related costs
   
-
     
793
         
Net earnings of the divested product lines, before tax
   
-
     
(2,927
)
       
Tax impact of the divested product lines
   
-
     
723
         
Operational improvement plan costs, before tax
   
-
     
1,001
         
Tax impact of operational improvement plan
   
-
     
(296
)
       
Adjusted net earnings
 
$
37,071
   
$
32,534
     
13.9
%
                         
Diluted earnings per share (GAAP)
 
$
0.88
   
$
0.75
     
17.3
%
Divestiture & other related costs, net of tax
   
-
     
0.06
         
Results of operations of the divested product lines, net of tax
   
-
     
(0.05
)
       
Operational improvement plan costs, net of tax
   
-
     
0.02
         
Adjusted diluted earnings per share
 
$
0.88
   
$
0.77
     
14.3
%

Note: Earnings per share calculations may not foot due to rounding differences.

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Sensient Technologies Corporation
Page 11
(In thousands)
(Unaudited)


Reconciliation of Non-GAAP Amounts - Continued

Results by Segment
 
Three Months Ended March 31,
 
Revenue
 
2022
   
Adjustments (1)
   
Adjusted
2022
   
2021
   
Adjustments (1)
   
Adjusted
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
     
-
     
36,465
     
33,840
     
(295
)
   
33,545
 
Intersegment elimination
   
(12,109
)
   
-
     
(12,109
)
   
(10,769
)
   
150
     
(10,619
)
                                                 
Consolidated
 
$
355,521
   
$
-
   
$
355,521
   
$
359,702
   
$
(25,570
)
 
$
334,132
 
                                                 
                                                 
Operating Income
                                               
                                                 
Flavors & Extracts
 
$
27,579
   
$
-
   
$
27,579
   
$
27,018
   
$
(2,880
)
 
$
24,138
 
Color
   
30,657
     
-
     
30,657
     
26,594
     
40
     
26,634
 
Asia Pacific
   
8,204
     
-
     
8,204
     
6,752
     
(87
)
   
6,665
 
Corporate & Other
   
(13,651
)
   
-
     
(13,651
)
   
(13,467
)
   
2,573
     
(10,894
)
                                                 
Consolidated
 
$
52,789
   
$
-
   
$
52,789
   
$
46,897
   
$
(354
)
 
$
46,543
 

(1) For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, adjustments consist of the results of the divested product lines, divestiture & other related costs, and operational improvement plan costs.

- MORE -

Sensient Technologies Corporation
Page 12
(In thousands, except percentages)
(Unaudited)


Reconciliation of Non-GAAP Amounts - Continued

The following tables summarize the percentage change in the 2022 results compared to the 2021 results for the corresponding periods.

   
Three Months Ended March 31,
 
Revenue
 
Total
   
Foreign
Exchange
Rates
   
Adjustments (2)
   
Adjusted
Local
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
%
                                 
Operating Income
                               
Flavors & Extracts
   
2.1
%
   
(1.2
%)
   
(11.4
%)
   
14.7
%
Color
   
15.3
%
   
(2.4
%)
   
0.2
%
   
17.5
%
Asia Pacific
   
21.5
%
   
(7.8
%)
   
(1.7
%)
   
31.0
%
Corporate & Other
   
1.4
%
   
0.0
%
   
(24.0
%)
   
25.4
%
Total Operating Income
   
12.6
%
   
(3.2
%)
   
(0.4
%)
   
16.2
%
Diluted Earnings Per Share
   
17.3
%
   
(4.0
%)
   
4.4
%
   
16.9
%
Adjusted EBITDA
   
14.0
%
   
(2.3
%)
   
N/A
     
16.3
%

(2) For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist of the results of the divested product lines, divestiture & other related costs, and operational improvement plan costs.

The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2022 and 2021.

   
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 & other related costs, before tax
   
-
     
1,572
         
Results of operations of the divested product lines, before tax
   
-
     
(2,927
)
       
Operational improvement plan costs, before tax
   
-
     
1,001
         
Adjusted EBITDA
 
$
70,008
   
$
61,406
     
14.0
%

The following table summarizes the reconciliation between Net cash provided by operating activities (GAAP) and Free Cash Flow for the three months ended March 31, 2022 and 2021.

   
Three Months Ended March 31,
 
   
2022
   
2021
   
% Change
 
Net cash (used in) provided by operating activities (GAAP)
 
$
(892
)
 
$
28,964
     
(103.1
%)
Capital expenditures
   
(12,736
)
   
(14,244
)
       
Free Cash Flow
 
$
(13,628
)
 
$
14,720
     
(192.6
%)

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.




Exhibit 99.2

 First Quarter 2022 Investor Presentation 
 

 FORWARD-LOOKING STATEMENTS  2  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 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 impact and uncertainty created by the ongoing COVID-19 pandemic, including, but not limited to, its effects on our employees, facilities, customers, and suppliers, the availability and cost of raw materials, energy, and other supplies, the availability and cost of labor, logistics, and transportation; the uncertain impacts of the ongoing conflict between Russia and Ukraine on our supply chain, input costs, including energy and transportation, and generally on economic conditions; governmental regulations and restrictions, and general economic conditions, including inflation; 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 and changing  technologies; 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 operational improvement plan; the effectiveness of the Company’s past restructuring activities; changes in costs of raw materials, including energy; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; 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, 2021, 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 presentation contains time-sensitive information that reflects management’s best analysis only as of the date of this presentation. 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. 
 

 NON-GAAP FINANCIAL MEASURES  2  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 results of the divested product lines, and restructuring and other costs, which include operational improvement plan costs and income) (2) adjusted results by segment (which exclude divestiture & other related costs, operational improvement plan costs and income, and the results of the divested operations), (3) percentage changes in revenue, operating income, diluted earnings per share, and EBITDA on an adjusted local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars, divestiture & other related costs, the results of the divested product lines, and restructuring and other costs, which include operational improvement plan costs), and (4) adjusted EBITDA (which excludes depreciation and amortization expense, non-cash share based compensation expense, the results of the divested product lines, the divestiture & other related costs, and operational improvement plan costs and income). The Company has included each of these non- GAAP measures in order to provide additional information regarding the 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 presentation and the Company’s 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. The Company believes this information can be beneficial to investors for these same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies. Refer to “Non-GAAP Financial Measures” at the end of this presentation for reconciliations and additional information. 
 

 Sensient Overview  2  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 ability to service global, regional, and local customers 
 

 Innovative Technologies Creating Unique Solutions  2  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 
 

 Focusing our portfolio and strengthening our commitment to the end markets  2  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 2021  Expanded flavor portfolio and strengthened technical solutions capabilities through the acquisition of Flavor Solutions, Inc. on July 15, 2021 
 

 Natural solutions provider focused on consistent and sustainable supply chain  2  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, authentic, high-quality natural products through Sensient’s CertasureTM program 
 

 8  Global Revenue by Group  2021 Global Revenues include intercompany sales which are eliminated on a consolidated basis.  *Adj. Revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.  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 Pacific Group  2021 Revenue: $135M 2021 Adj. Revenue*: $135M Core Areas of Focus: Flavors and Colors for food and beverage 
 

 9  Global market leader  Natural color innovator  Excellent innovation & applications expertise  Color Group 
 

 10  Color Overview  Food and Pharmaceutical  LC Revenue Change*  Q1 ’22 +11.8%  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes  colors, flavors, coatings, and extracts  Personal Care 29% of  Segment Revenue 29% of Adj. Segment Revenue  LC Revenue  Q1 ’22  Change* • Demand for innovative products with multiple benefits  +10.6% • Product line includes dyes, pigments, formulation aides and  ingredients for color cosmetics, hair care, and skin care  2021 Revenue: $545M 2021 Adj. Revenue*: $543M  71% of Segment Revenue 71% of Adj. Segment Revenue  *Local-currency (LC) revenue and adjusted revenue are Non-GAAP metrics, please see our GAAP to Non- GAAP Reconciliation at the end of this document. 
 

 11  Flavors & Extracts Group  Broad product offering  Unique ability to service global, regional, and local customers  Leading technology platforms  Outstanding applications expertise 
 

 12  Flavors & Extracts Overview  Flavors, Extracts, and Flavor Ingredients  62% of Segment Revenue 64% of Adj. Segment Revenue  LC Revenue Change* Q1 ’22 +13.2%  Opportunities for on trend products with extracts, taste modulation, and natural flavors  Natural  Ingredients  35% of Segment Revenue 36% of Adj. Segment Revenue  LC Revenue Change*  Q1 ’22 (9.7%)  Leading provider of dehydrated onion, garlic, and other products  Temporary headwind due to a limited supply of onion and strong onion sales in 2021, anticipate recovery beginning in Q2  Fragrances & Yogurt Fruit Prep  3% of Segment Revenue  Yogurt Fruit Prep divested September 2020  Fragrances divested April 2021  2021 Revenue: $739M 2021 Adj. Revenue*: $712M  *Local-currency (LC) revenue and adjusted revenue are Non-GAAP metrics, please see our GAAP to Non- GAAP Reconciliation at the end of this document. 
 

 13  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 
 

 14  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, Japan, Philippines, Thailand, and India  Q1 2022 local currency adjusted revenue and operating profit improved  14.4% and 31.0%, respectively  * Adjusted revenue, local currency adjusted revenue, adjusted operating income, and local currency adjusted operating profit are Non-GAAP metrics.  Please see our GAAP to Non-GAAP Reconciliation at the end of this document.  Asia Pacific Overview 
 

 15  2022 Q1 Segment Results  Flavors & Extracts Group first quarter revenue increased as a result of growth in flavors, extracts and flavors ingredients and pricing actions across the Group. Flavor Solutions acquisition contributed $2.7 million, or 1.6%, of growth in the quarter.  Operating income was up as a result of higher volumes, product mix, and pricing.  Asia Pacific Group first quarter revenue increased double digits driven by volume growth in almost all regions. Operating income improved in the quarter due to volume growth and pricing.  Local Currency Adjusted Operating  Income*  Q1  Color  +17.5%  Flavors & Extracts  +14.7%  Asia Pacific  +31.0%  Local Currency Adjusted Revenue*  Local Currency Adjusted* Commentary:  Q1  Color Group reported higher revenue in the quarter due to double digit growth in both Food and Pharmaceutical and Personal Care. Operating income was up due to product mix, volume recovery in color make-up, and pricing.  Color  +11.8%  Flavors & Extracts  +5.1%  Asia Pacific  +14.4%  * Local-currency (LC) adjusted revenue and adjusted operating income are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 
 

 16  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 headwind in the Flavor Group related to limited supply of onion and strong 2021 onion sales. The Color Group, Asia Pacific Group, and flavors, extracts and flavor ingredients in the Flavor Group were all up double-digits. Pricing actions contributed to the overall results.  Q1 consolidated local currency adjusted operating income was up due to the overall volume growth across our businesses and the impact of pricing actions. The operating income improvement was partially offset due to higher year- over-year Corporate expenses related to performance-based compensation.  * Local-currency (LC) adjusted revenue, adjusted operating income, adjusted diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 
 

 Capital Allocation  Prioritize ROI capital projects  Maintain financial flexibility to pursue  M&A  Dividend payout increased 5.1% in 2021  Excess capital returned to shareholders  through opportunistic share repurchases  $87  $77  $43  $54  $57  $62  $66  $67  $56  $51  $39  $52  $61  $31  $14  $9  $87  $118  $-  $50  $100  $150  $200  $250  2017  2018  2019  2020  2021  DOLLARS IN MILLIONS  Share Repurchase  Acquisitions  Dividends  Debt Repayments  Capital Expenditures  17 
 

 2022 Financial Outlook  17  Metric  Revised  Guidance*  Previous  Guidance*  Comments  Diluted EPS (GAAP)  High-teen growth  Mid-teen growth  At current rates, we anticipate a FX headwind of approximately 12 cents  Local Currency Diluted EPS*  High single to double-digit growth  High single-digit growth  Local Currency Revenue*  Mid-to-High single- digit growth  Mid-single-digit growth  Adjusted Local Currency EBITDA*  High single to double-digit growth  High single-digit growth  Excludes the impact of share-based stock compensation  *In 2022, the Company does not anticipate any impact to the above metrics as a result of divestiture & other related costs, operational improvement plan  costs, or the results of the divested operations.  The 2022 Local Currency Diluted EPS, Local Currency Revenue and Adjusted Local Currency EBITDA growth rates for 2022 are compared to the 2021 Adjusted Diluted EPS, Adjusted Revenue and Adjusted EBITDA, respectively, which excluded the divestiture & other related costs, operational improvement plan costs and the results of operations of the divested product lines. Adjusted revenue, adjusted diluted EPS and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 
 

 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  17 
 

 APPENDIX*  *Amounts in thousands, except percentages and per share amounts 
 

 ESG Information  Click here to access our  Environmental  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  Seed-to-shelf program focused on sustainable supply chain  Emphasis on new products and technologies that minimize waste and environmental impacts  Chemical Risk Strategy implemented to identify and reduce risk in our portfolio  Social  Sensient strives to conduct business in an ethical manner and to make a positive contribution to society through our product offerings and business activities.  Sensient’s Code of Conduct and Supplier Code of Conduct require strong ethical behavior, fair employment practices, and strict human rights practices and product safety standards  Robust product, environmental, and raw material safety programs designed to exceed industry standards  Raw material traceability and sustainability programs  Support for our local communities through volunteerism, financial donations, sponsorships, and employee education opportunities  Governance  Sensient is committed to maintaining the highest standards of professional conduct and strong corporate  governance practices through our comprehensive corporate governance framework.  Board comprised of a majority of independent directors with diverse and accomplished backgrounds  Committed to board diversity and refreshment, we were recognized by 50/50 Women on Boards for the tenth year in a row and we have added seven new directors since 2014.  Robust Code of Conduct built on a foundation of ethics, safety and quality, and professionalism resulting in ethical and lawful conduct of our business  21 
 

 22  Non-GAAP Financial Measures  Note: EPS Calculations may not foot due to rounding differences  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 (GAAP)  $ 52,789  $ 46,897  $ 170,028  Divestiture & other related costs – Cost of products sold  -  25  86  Divestiture & other related costs – Selling and administrative expenses  -  1,547  14,052  Operating income of the divested product lines  -  (2,927)  (1,880)  Operational improvement plan – Selling and administrative expenses (income)  -  1,001  (1,895)  Adjusted operating income  $ 52,789  $ 46,543  $ 180,391  Net earnings (GAAP)  $ 37,071  $ 31,668  $ 118,745  Divestiture & other related costs, before tax  -  1,572  14,138  Tax impact of divestiture & other related costs  -  793  2,092  Net earnings of the divested product lines, before tax  -  (2,927)  (1,880)  Tax impact of the divested product lines  -  723  460  Operational improvement plan costs (income), before tax  -  1,001  (1,895)  Tax impact of operational improvement plan  -  (296)  471  Adjusted net earnings  $ 37,071  $ 32,534  $ 132,131  Diluted earnings per share (GAAP)  $ 0.88  $ 0.75  $ 2.81  Divestiture & other related costs, net of tax  -  0.06  0.38  Results of operations of the divested product lines, net of tax  -  (0.05)  (0.03)  Operational improvement plan costs (income), net of tax  -  0.02  (0.03)  Adjusted diluted earnings per share  $ 0.88  $ 0.77  $ 3.13 
 

 Non-GAAP Financial Measures (Cont’d)  Three Months Ended March 31, 2022  * For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist of the results of the divested product lines, divestiture & other related costs, and operational improvement plan costs.  Revenue  Total  Foreign  Exchange Rates  Adjustments*  Adjusted  Local 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%  Operating Income   Flavors & Extracts  2.1%  (1.2%)  (11.4%)  14.7%  Color  15.3%  (2.4%)  0.2%  17.5%  Asia Pacific  21.5%  (7.8%)  (1.7%)  31.0%  Corporate & Other  1.4%  0.0%  (24.0%)  25.4%  Total Operating Income  12.6%  (3.2%)  (0.4%)  16.2%  Diluted Earnings Per Share  17.3%  (4.0%)  4.4%  16.9%  Adjusted EBITDA  14.0%  (2.3%)  N/A  16.3%  28 
 

 Non-GAAP Financial Measures (Cont’d)  28  Note: *Fragrances was divested in April 2021, Inks was divested in June 2020, and Yogurt Fruit Prep was divested in September 2020.  Revenue  Total  Foreign Exchange Rates  Local 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%)  Flavors & Extracts Group  (9.1%)  (1.9%)  (7.2%)  Food and Pharmaceutical  9.9%  (1.9%)  11.8%  Personal Care  8.3%  (2.3%)  10.6%  Inks*  14.9%  0.0%  14.9%  Color Group  9.4%  (1.9%)  11.3%  Asia Pacific  7.8%  (5.6%)  13.4%  Total revenue including the product lines divested  (1.2%)  (2.2%)  1.0%  Three Months Ended March 31, 2022 
 

 Non-GAAP Financial Measures (Cont’d)  Results by Segment Three Months Ended March 31,   * For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, adjustments consist of the results of the divested product lines, divestiture & other related costs, and operational improvement plan costs.  Revenue   2022    Adjustments*  Adjusted   2022    2021    Adjustments*  Adjusted   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  -  36,465  33,840  (295)  33,545  Intersegment elimination   (12,109)   -    (12,109)   (10,769)   150    (10,619)  Consolidated   $ 355,521   $ -  $ 355,521  $ 359,702  $ (25,570)  $ 334,132  Operating Income  Flavors & Extracts  $ 27,579  $ -  $ 27,579  $ 27,018  $ (2,880)  $ 24,138  Color  30,657  -  30,657  26,594  40  26,634  Asia Pacific  8,204  -  8,204  6,752  (87)  6,665  Corporate & Other   (13,651)   -    (13,651)   (13,467)   2,573    (10,894)  Consolidated   $ 52,789   $ -  $ 52,789  $ 46,897  $ (354)  $ 46,543  28 
 

 Non-GAAP Financial Measures (Cont’d)  Results by Segment   Year Ended December 31,   Adjusted  * For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, adjustments consist of the results of the divested product lines, divestiture & other related costs, and operational improvement plan costs and income.  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   $ 1,380,264   $ (30,062)  $ 1,350,202  Operating Income  Flavors & Extracts  $ 98,660  $ (2,368)  $ 96,292  Color  103,575  575  104,150  Asia Pacific  26,330  (87)  26,243  Corporate & Other   (58,537)   12,243    (46,294)  Consolidated   $ 170,028   $ 10,363  $ 180,391  28 
 

 Non-GAAP Financial Measures (Cont’d)  Operating income (GAAP)  $ 52,789  $  Depreciation and amortization  13,  Depreciation and amortization, divested product lines  Share-based compensation expense  Divestiture & other related costs, before ta  Results of operations of the dive  Operational improveme  Adjusted EBIT  Three Months Ended March 31,   2022 2021  28