SXT 8-K
Sensient Technologies Corp (SXT)
8-K
2021-07-23
For: 2021-07-23
View Original
Added on
April 10, 2026
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
(Date of Report/Date of earliest event reported)
(Exact name of registrant as specified in its charter)
|
|
|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
, 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
|
|
|
|
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 July 23, 2021 disclosing its results of operations for its quarter ended June 30, 2021, 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 July 23,
2021, the Company also posted an updated investor presentation for its quarter ended June 30, 2021 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 June 30, 2021.
|
|
|
Sensient Technologies Corporation Investor Presentation – Q2 2021.
|
|
|
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:
|
July 23, 2021
|
||
Exhibit 99.1
|
Contact:
|
Amy Agallar
|
(414) 347-3706
Sensient Technologies Corporation
Reports Results for the Quarter Ended June 30, 2021
Reported Consolidated Revenue Growth of 3.9%
Adjusted Consolidated Local Currency Revenue Growth of 9.1%
Sensient Expects to be at or Above Previously Issued 2021 Guidance
MILWAUKEE— July 23, 2021 — Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $335.8 million in this year’s second quarter compared to $323.1
million in last year’s second quarter. Reported operating income in the second quarter of 2021 was $35.8 million compared to $42.1 million in the second quarter of 2020. Reported diluted earnings per share was 61 cents in the second quarter of 2021
compared to 72 cents in the second quarter of 2020. Foreign currency translation increased revenue and earnings per share by approximately 4% and 6%, respectively, in the quarter.
The 2021 second quarter reported results include divestiture & other related costs and operational improvement plan costs, which in total decreased
second quarter net earnings by $7.0 million ($0.16 per diluted share). The 2020 second quarter reported results include divestiture & other related costs which increased net earnings by $1.0 million ($0.02 per diluted share). The 2021 and 2020
second quarter results also include the operations of the divested product lines, which included $2.2 million of revenue and decreased diluted earnings per share by $0.01 in the second quarter of 2021, and included $28.2 million of revenue and were
not significant to diluted earnings per share in the second quarter of 2020. These adjustments are described in more detail under “Reconciliation of Non-GAAP Amounts” at the end of this release.
|
Sensient Technologies Corporation
|
Page 2
|
|
Earnings Release – Quarter Ended June 30, 2021
|
|
|
July 23, 2021
|
BUSINESS REVIEW
|
Revenue
|
Reported
Quarter |
|||
|
Flavors & Extracts
|
-2.3
|
%
|
||
|
Color
|
9.8
|
%
|
||
|
Asia Pacific
|
15.9
|
%
|
||
|
Total Revenue
|
3.9
|
%
|
||
|
Revenue
|
Adjusted
Local Currency (1)Quarter
|
|||
|
Flavors & Extracts
|
9.1
|
%
|
||
|
Color
|
7.1
|
%
|
||
|
Asia Pacific
|
11.3
|
%
|
||
|
Total Revenue
|
9.1
|
%
|
||
|
|
||||
|
(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 second quarter revenue of $179.4 million compared to $183.6 million reported in the comparable period last
year, a decrease of 2.3%, primarily due to the divestiture of the Fragrances product line in early April 2021. Adjusted local currency revenue increased 9.1% in the quarter. The higher adjusted local currency revenue was the result of strong growth
in all product categories. Segment operating income was $24.5 million in the current quarter compared to $22.8 million reported in the comparable period last year, an increase of 7.8%. Adjusted local currency operating income increased 13.2% in
the quarter. The Group’s higher profit was primarily a result of favorable volume growth. Foreign currency translation increased segment revenue and operating income by approximately 4% and 3%, respectively, in the quarter.
|
Sensient Technologies Corporation
|
Page 3
|
|
Earnings Release – Quarter Ended June 30, 2021
|
|
|
July 23, 2021
|
The Color Group reported revenue of $133.2 million in the quarter compared to $121.3 million in last year’s comparable period, an increase of 9.8%.
Adjusted local currency revenue increased 7.1% in the quarter. The Group experienced growth in Food & Pharmaceutical colors and in Personal Care. Segment operating income was $25.6 million in the quarter compared to $22.3 million in last year’s
comparable period, an increase of 15.1%. Adjusted local currency operating income increased 5.2% compared to prior year’s second quarter. The higher operating income is primarily a result of the higher volumes. Foreign currency translation
increased both segment revenue and operating income by approximately 5% in the quarter.
The Asia Pacific Group reported revenue of $32.3 million in the quarter compared to $27.9 million in last year’s comparable period, an increase of
15.9%. Adjusted local currency revenue increased 11.3% in the quarter. Segment operating income was $5.8 million in the quarter compared to $4.8 million in last year’s comparable quarter, an increase of 19.5%. Adjusted local currency operating
income increased 21.6% in the quarter. The higher profit was primarily a result of the favorable volume growth. Foreign currency translation increased segment revenue by approximately 6% and decreased segment operating income by approximately 1% in
the quarter.
Corporate & Other reported operating costs of $20.2 million in the current quarter compared to $7.7 million in last year’s comparable period, an
increase of 160.9%. The higher costs are primarily due to higher divestiture & other costs reported in the second quarter of 2021 compared to the amount recorded in the second quarter of 2020. Adjusted local currency operating expenses for
Corporate & Other increased 29.4% in the quarter partly due to higher performance based executive compensation.
|
Sensient Technologies Corporation
|
Page 4
|
|
Earnings Release – Quarter Ended June 30, 2021
|
|
|
July 23, 2021
|
2021 OUTLOOK
Sensient is reconfirming its previously issued 2021 guidance for GAAP diluted earnings per share to grow at a mid to high single digit growth rate
compared to the Company’s 2020 reported GAAP diluted earnings per share of $2.59. Our full year 2021 guidance includes approximately 25 cents per share of estimated divestiture & other related costs, the results of the divested operations, and
the operational improvement plan costs. The Company expects its reported tax rate to be approximately 24% for the last six months of 2021.
The Company now expects its 2021 adjusted local currency revenue(2) to grow at a mid-single digit rate. The Company’s previous 2021
guidance for adjusted local currency revenue(2) was a low to mid-single digit growth rate. The Company reconfirms its previously issued 2021 adjusted local currency EBITDA(2) to grow at a mid-single digit rate. The Company
also continues to expect, on a local currency basis, 2021 adjusted diluted earnings per share(2) to grow at a mid-single digit growth rate compared to the Company’s 2020 adjusted diluted earnings per share(2) of $2.79. The
Company expects its adjusted tax rate(2) to be approximately 22% for the last six months of 2021.
The Company expects earnings per share reported on a U.S. dollar basis to benefit by approximately ten cents 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.
|
|
Sensient Technologies Corporation
|
Page 5
|
|
Earnings Release – Quarter Ended June 30, 2021
|
|
|
July 23, 2021
|
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 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 2021 second quarter financial results at 8:30 a.m. CDT on Friday, July 23, 2021. 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 July 30, 2021, by calling (877) 344-7529 and referring to
conference identification number 10156624. 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 July 27, 2021.
|
Sensient Technologies Corporation
|
Page 6
|
|
Earnings Release – Quarter Ended June 30, 2021
|
|
|
July 23, 2021
|
This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws
including under “2021 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 and other supplies, the availability of logistics
and transportation, governmental regulations and restrictions and general economic conditions; 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, 2020, 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
|
Sensient Technologies Corporation
|
Page 7
|
|
(In thousands, except percentages and per share amounts)
|
|
|
(Unaudited)
|
|
|
Consolidated Statements of Earnings
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
|||||||||||||||||||
|
Revenue
|
$
|
335,827
|
$
|
323,090
|
3.9
|
%
|
$
|
695,529
|
$
|
673,767
|
3.2
|
%
|
||||||||||||
|
Cost of products sold
|
224,233
|
220,876
|
1.5
|
%
|
468,322
|
459,660
|
1.9
|
%
|
||||||||||||||||
|
Selling and administrative expenses
|
75,841
|
60,089
|
26.2
|
%
|
144,557
|
137,421
|
5.2
|
%
|
||||||||||||||||
|
Operating income
|
35,753
|
42,125
|
(15.1
|
%)
|
82,650
|
76,686
|
7.8
|
%
|
||||||||||||||||
|
Interest expense
|
3,322
|
3,608
|
6,755
|
7,915
|
||||||||||||||||||||
|
Earnings before income taxes
|
32,431
|
38,517
|
75,895
|
68,771
|
||||||||||||||||||||
|
Income taxes
|
6,495
|
7,897
|
18,291
|
17,378
|
||||||||||||||||||||
|
Net earnings
|
$
|
25,936
|
$
|
30,620
|
(15.3
|
%)
|
$
|
57,604
|
$
|
51,393
|
12.1
|
%
|
||||||||||||
|
Earnings per share of common stock:
|
||||||||||||||||||||||||
|
Basic
|
$
|
0.62
|
$
|
0.72
|
$
|
1.37
|
$
|
1.22
|
||||||||||||||||
|
|
||||||||||||||||||||||||
|
Diluted
|
$
|
0.61
|
$
|
0.72
|
$
|
1.36
|
$
|
1.21
|
||||||||||||||||
|
Average common shares outstanding:
|
||||||||||||||||||||||||
|
Basic
|
42,135
|
42,305
|
42,199
|
42,294
|
||||||||||||||||||||
|
Diluted
|
42,267
|
42,322
|
42,328
|
42,315
|
||||||||||||||||||||
|
Results by Segment
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
Revenue
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
||||||||||||||||||
|
Flavors & Extracts
|
$
|
179,401
|
$
|
183,611
|
(2.3
|
%)
|
$
|
380,312
|
$
|
370,109
|
2.8
|
%
|
||||||||||||
|
Color
|
133,207
|
121,296
|
9.8
|
%
|
268,927
|
264,791
|
1.6
|
%
|
||||||||||||||||
|
Asia Pacific
|
32,317
|
27,873
|
15.9
|
%
|
66,157
|
58,322
|
13.4
|
%
|
||||||||||||||||
|
Intersegment elimination
|
(9,098
|
)
|
(9,690
|
)
|
(19,867
|
)
|
(19,455
|
)
|
||||||||||||||||
|
Consolidated
|
$
|
335,827
|
$
|
323,090
|
3.9
|
%
|
$
|
695,529
|
$
|
673,767
|
3.2
|
%
|
||||||||||||
|
Operating Income
|
||||||||||||||||||||||||
|
Flavors & Extracts
|
$
|
24,536
|
$
|
22,752
|
7.8
|
%
|
$
|
51,554
|
$
|
43,623
|
18.2
|
%
|
||||||||||||
|
Color
|
25,615
|
22,263
|
15.1
|
%
|
52,209
|
51,927
|
0.5
|
%
|
||||||||||||||||
|
Asia Pacific
|
5,793
|
4,849
|
19.5
|
%
|
12,545
|
9,908
|
26.6
|
%
|
||||||||||||||||
|
Corporate & Other
|
(20,191
|
)
|
(7,739
|
)
|
(33,658
|
)
|
(28,772
|
)
|
||||||||||||||||
|
Consolidated
|
$
|
35,753
|
$
|
42,125
|
(15.1
|
%)
|
$
|
82,650
|
$
|
76,686
|
7.8
|
%
|
||||||||||||
|
Sensient Technologies Corporation
|
Page 8
|
|
(In thousands)
|
|
|
(Unaudited)
|
|
|
Consolidated Condensed Balance Sheets
|
June 30,
2021
|
December 31,
2020
|
||||||
|
Cash and cash equivalents
|
$
|
33,306
|
$
|
24,770
|
||||
|
Trade accounts receivable
|
258,411
|
234,132
|
||||||
|
Inventories
|
360,240
|
381,346
|
||||||
|
Prepaid expenses and other current assets
|
56,111
|
48,578
|
||||||
|
Assets held for sale
|
-
|
52,760
|
||||||
|
Total Current Assets
|
708,068
|
741,586
|
||||||
|
Goodwill & intangible assets (net)
|
429,204
|
434,220
|
||||||
|
Property, plant, and equipment (net)
|
442,022
|
445,493
|
||||||
|
Other assets
|
118,436
|
119,561
|
||||||
|
Total Assets
|
$
|
1,697,730
|
$
|
1,740,860
|
||||
|
Trade accounts payable
|
$
|
115,325
|
$
|
107,324
|
||||
|
Short-term borrowings
|
771
|
9,247
|
||||||
|
Other current liabilities
|
80,320
|
82,045
|
||||||
|
Liabilities held for sale
|
-
|
17,339
|
||||||
|
Total Current Liabilities
|
196,416
|
215,955
|
||||||
|
Long-term debt
|
483,230
|
518,004
|
||||||
|
Accrued employee and retiree benefits
|
29,863
|
28,941
|
||||||
|
Other liabilities
|
43,944
|
43,624
|
||||||
|
Shareholders' Equity
|
944,277
|
934,336
|
||||||
|
Total Liabilities and Shareholders' Equity
|
$
|
1,697,730
|
$
|
1,740,860
|
||||
|
Sensient Technologies Corporation
|
Page 9
|
|
(In thousands, except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
Six Months Ended June 30,
|
|
|
2021
|
2020
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net earnings
|
$
|
57,604
|
$
|
51,393
|
||||
|
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
|
Depreciation and amortization
|
25,817
|
24,522
|
||||||
|
Share-based compensation expense
|
4,188
|
2,662
|
||||||
|
Net loss on assets
|
206
|
50
|
||||||
|
Loss on divestitures and other charges
|
13,511
|
6,634
|
||||||
|
Deferred income taxes
|
1,702
|
1,075
|
||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Trade accounts receivable
|
(26,902
|
)
|
(20,494
|
)
|
||||
|
Inventories
|
19,357
|
24,816
|
||||||
|
Prepaid expenses and other assets
|
(15,573
|
)
|
(3,975
|
)
|
||||
|
Trade accounts payable and other accrued expenses
|
9,632
|
9,961
|
||||||
|
Accrued salaries, wages, and withholdings
|
(3,944
|
)
|
6,483
|
|||||
|
Income taxes
|
1,953
|
3,899
|
||||||
|
Other liabilities
|
1,710
|
588
|
||||||
|
Net cash provided by operating activities
|
89,261
|
107,614
|
||||||
|
Cash flows from investing activities:
|
||||||||
|
Acquisition of property, plant, and equipment
|
(25,550
|
)
|
(21,417
|
)
|
||||
|
Proceeds from sale of assets
|
169
|
6
|
||||||
|
Proceeds from divestiture of businesses
|
36,255
|
11,255
|
||||||
|
Other investing activities
|
(254
|
)
|
4,395
|
|||||
|
Net cash provided by (used in) investing activities
|
10,620
|
(5,761
|
)
|
|||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from additional borrowings
|
25,997
|
38,670
|
||||||
|
Debt payments
|
(62,578
|
)
|
(98,849
|
)
|
||||
|
Purchase of treasury stock
|
(22,507
|
)
|
-
|
|||||
|
Dividends paid
|
(33,027
|
)
|
(33,018
|
)
|
||||
|
Other financing activities
|
(582
|
)
|
(414
|
)
|
||||
|
Net cash used in financing activities
|
(92,697
|
)
|
(93,611
|
)
|
||||
|
Effect of exchange rate changes on cash and cash equivalents
|
1,352
|
(8,519
|
)
|
|||||
|
Net increase (decrease) in cash and cash equivalents
|
8,536
|
(277
|
)
|
|||||
|
Cash and cash equivalents at beginning of period
|
24,770
|
21,153
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
33,306
|
$
|
20,876
|
||||
|
Supplemental Information
|
||||||||
|
Six Months Ended June 30,
|
2021
|
2020
|
||||||
|
Dividends paid per share
|
$
|
0.78
|
$
|
0.78
|
||||
|
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 and six months ended June 30, 2021 and 2020 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 income, and the results of the divested operations.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
|||||||||||||||||||
|
Revenue (GAAP)
|
$
|
335,827
|
$
|
323,090
|
3.9
|
%
|
$
|
695,529
|
$
|
673,767
|
3.2
|
%
|
||||||||||||
|
Revenue of the divested product lines
|
(2,207
|
)
|
(28,217
|
)
|
(27,777
|
)
|
(64,802
|
)
|
||||||||||||||||
|
Adjusted revenue
|
$
|
333,620
|
$
|
294,873
|
13.1
|
%
|
$
|
667,752
|
$
|
608,965
|
9.7
|
%
|
||||||||||||
|
Operating income (GAAP)
|
$
|
35,753
|
$
|
42,125
|
(15.1
|
%)
|
$
|
82,650
|
$
|
76,686
|
7.8
|
%
|
||||||||||||
|
Divestiture & other related costs – Cost of products sold
|
3
|
1,749
|
28
|
1,939
|
||||||||||||||||||||
|
Divestiture & other related costs – Selling and administrative expenses
|
11,685
|
(3,276
|
)
|
13,232
|
8,377
|
|||||||||||||||||||
|
Operating loss (income) of the divested product lines
|
459
|
(331
|
)
|
(2,468
|
)
|
(1,716
|
)
|
|||||||||||||||||
|
Operational improvement plan - Selling and administrative expenses
|
(3,494
|
)
|
-
|
(2,493
|
)
|
-
|
||||||||||||||||||
|
Adjusted operating income
|
$
|
44,406
|
$
|
40,267
|
10.3
|
%
|
$
|
90,949
|
$
|
85,286
|
6.6
|
%
|
||||||||||||
|
Net earnings (GAAP)
|
$
|
25,936
|
$
|
30,620
|
(15.3
|
%)
|
$
|
57,604
|
$
|
51,393
|
12.1
|
%
|
||||||||||||
|
Divestiture & other related costs, before tax
|
11,688
|
(1,527
|
)
|
13,260
|
10,316
|
|||||||||||||||||||
|
Tax impact of divestiture & other related costs
|
(1,689
|
)
|
509
|
(896
|
)
|
(425
|
)
|
|||||||||||||||||
|
Net loss (earnings) of the divested product lines, before tax
|
459
|
(331
|
)
|
(2,468
|
)
|
(1,716
|
)
|
|||||||||||||||||
|
Tax impact of the divested product lines
|
(115
|
)
|
203
|
608
|
500
|
|||||||||||||||||||
|
Operational improvement plan income, before tax
|
(3,494
|
)
|
-
|
(2,493
|
)
|
-
|
||||||||||||||||||
|
Tax impact of operational improvement plan
|
455
|
-
|
159
|
-
|
||||||||||||||||||||
|
Adjusted net earnings
|
$
|
33,240
|
$
|
29,474
|
12.8
|
%
|
$
|
65,774
|
$
|
60,068
|
9.5
|
%
|
||||||||||||
|
Diluted earnings per share (GAAP)
|
$
|
0.61
|
$
|
0.72
|
(15.3
|
%)
|
$
|
1.36
|
$
|
1.21
|
12.4
|
%
|
||||||||||||
|
Divestiture & other related costs, net of tax
|
0.24
|
(0.02
|
)
|
0.29
|
0.23
|
|||||||||||||||||||
|
Results of operations of the divested product lines, net of tax
|
0.01
|
-
|
(0.04
|
)
|
(0.03
|
)
|
||||||||||||||||||
|
Operational improvement plan income, net of tax
|
(0.07
|
)
|
-
|
(0.06
|
)
|
-
|
||||||||||||||||||
|
Adjusted diluted earnings per share
|
$
|
0.79
|
$
|
0.70
|
12.9
|
%
|
$
|
1.55
|
$
|
1.42
|
9.2
|
%
|
||||||||||||
Note: Earnings per share calculations may not foot due to rounding differences.
|
Sensient Technologies Corporation
|
Page 11
|
|
(In thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
Reconciliation of Non-GAAP Amounts - Continued
|
|
|
Results by Segment
|
Three Months Ended June 30,
|
|||||||||||||||||||||||
|
Revenue
|
2021
|
Adjustments (1)
|
Adjusted
2021
|
2020
|
Adjustments (1)
|
Adjusted
2020 |
||||||||||||||||||
|
Flavors & Extracts
|
$
|
179,401
|
$
|
(1,415
|
)
|
$
|
177,986
|
$
|
183,611
|
$
|
(24,742
|
)
|
$
|
158,869
|
||||||||||
|
Color
|
133,207
|
(792
|
)
|
132,415
|
121,296
|
(3,501
|
)
|
117,795
|
||||||||||||||||
|
Asia Pacific
|
32,317
|
-
|
32,317
|
27,873
|
(213
|
)
|
27,660
|
|||||||||||||||||
|
Intersegment elimination
|
(9,098
|
)
|
-
|
(9,098
|
)
|
(9,690
|
)
|
239
|
(9,451
|
)
|
||||||||||||||
|
Consolidated
|
$
|
335,827
|
$
|
(2,207
|
)
|
$
|
333,620
|
$
|
323,090
|
$
|
(28,217
|
)
|
$
|
294,873
|
||||||||||
|
Operating Income
|
||||||||||||||||||||||||
|
Flavors & Extracts
|
$
|
24,536
|
$
|
(45
|
)
|
$
|
24,491
|
$
|
22,752
|
$
|
(1,619
|
)
|
$
|
21,133
|
||||||||||
|
Color
|
25,615
|
504
|
26,119
|
22,263
|
1,347
|
23,610
|
||||||||||||||||||
|
Asia Pacific
|
5,793
|
-
|
5,793
|
4,849
|
(59
|
)
|
4,790
|
|||||||||||||||||
|
Corporate & Other
|
(20,191
|
)
|
8,194
|
(11,997
|
)
|
(7,739
|
)
|
(1,527
|
)
|
(9,266
|
)
|
|||||||||||||
|
Consolidated
|
$
|
35,753
|
$
|
8,653
|
$
|
44,406
|
$
|
42,125
|
$
|
(1,858
|
)
|
$
|
40,267
|
|||||||||||
|
Results by Segment
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
Revenue
|
2021
|
Adjustments (1)
|
Adjusted
2021 |
2020
|
Adjustments (1)
|
Adjusted
2020 |
||||||||||||||||||
|
Flavors & Extracts
|
$
|
380,312
|
$
|
(26,304
|
)
|
$
|
354,008
|
$
|
370,109
|
$
|
(52,187
|
)
|
$
|
317,922
|
||||||||||
|
Color
|
268,927
|
(1,328
|
)
|
267,599
|
264,791
|
(12,573
|
)
|
252,218
|
||||||||||||||||
|
Asia Pacific
|
66,157
|
(295
|
)
|
65,862
|
58,322
|
(334
|
)
|
57,988
|
||||||||||||||||
|
Intersegment elimination
|
(19,867
|
)
|
150
|
(19,717
|
)
|
(19,455
|
)
|
292
|
(19,163
|
)
|
||||||||||||||
|
Consolidated
|
$
|
695,529
|
$
|
(27,777
|
)
|
$
|
667,752
|
$
|
673,767
|
$
|
(64,802
|
)
|
$
|
608,965
|
||||||||||
|
Operating Income
|
||||||||||||||||||||||||
|
Flavors & Extracts
|
$
|
51,554
|
$
|
(2,925
|
)
|
$
|
48,629
|
$
|
43,623
|
$
|
(2,837
|
)
|
$
|
40,786
|
||||||||||
|
Color
|
52,209
|
544
|
52,753
|
51,927
|
1,214
|
53,141
|
||||||||||||||||||
|
Asia Pacific
|
12,545
|
(87
|
)
|
12,458
|
9,908
|
(93
|
)
|
9,815
|
||||||||||||||||
|
Corporate & Other
|
(33,658
|
)
|
10,767
|
(22,891
|
)
|
(28,772
|
)
|
10,316
|
(18,456
|
)
|
||||||||||||||
|
Consolidated
|
$
|
82,650
|
$
|
8,299
|
$
|
90,949
|
$
|
76,686
|
$
|
8,600
|
$
|
85,286
|
||||||||||||
(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 2021 operational improvement plan costs and income.
|
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 2021 results compared to the 2020 results for the corresponding periods.
|
Three Months Ended June 30,
|
||||||||||||||||
|
Revenue
|
Total
|
Foreign Exchange Rates
|
Adjustments (2)
|
Adjusted Local Currency
|
||||||||||||
|
Flavors & Extracts
|
(2.3
|
%)
|
3.7
|
%
|
(15.1
|
%)
|
9.1
|
%
|
||||||||
|
Color
|
9.8
|
%
|
5.3
|
%
|
(2.6
|
%)
|
7.1
|
%
|
||||||||
|
Asia Pacific
|
15.9
|
%
|
5.5
|
%
|
(0.9
|
%)
|
11.3
|
%
|
||||||||
|
Total Revenue
|
3.9
|
%
|
4.4
|
%
|
(9.6
|
%)
|
9.1
|
%
|
||||||||
|
Operating Income
|
||||||||||||||||
|
Flavors & Extracts
|
7.8
|
%
|
3.1
|
%
|
(8.5
|
%)
|
13.2
|
%
|
||||||||
|
Color
|
15.1
|
%
|
5.4
|
%
|
4.5
|
%
|
5.2
|
%
|
||||||||
|
Asia Pacific
|
19.5
|
%
|
(0.6
|
%)
|
(1.5
|
%)
|
21.6
|
%
|
||||||||
|
Corporate & Other
|
160.9
|
%
|
0.1
|
%
|
131.4
|
%
|
29.4
|
%
|
||||||||
|
Total Operating Income
|
(15.1
|
%)
|
4.5
|
%
|
(25.4
|
%)
|
5.8
|
%
|
||||||||
|
Diluted Earnings Per Share
|
(15.3
|
%)
|
5.5
|
%
|
(29.4
|
%)
|
8.6
|
%
|
||||||||
|
Adjusted EBITDA
|
10.4
|
%
|
4.4
|
%
|
N/A
|
6.0
|
%
|
|||||||||
|
Six Months Ended June 30,
|
||||||||||||||||
|
Revenue
|
Total
|
Foreign Exchange Rates
|
Adjustments (2)
|
Adjusted Local Currency
|
||||||||||||
|
Flavors & Extracts
|
2.8
|
%
|
3.1
|
%
|
(9.3
|
%)
|
9.0
|
%
|
||||||||
|
Color
|
1.6
|
%
|
3.8
|
%
|
(4.5
|
%)
|
2.3
|
%
|
||||||||
|
Asia Pacific
|
13.4
|
%
|
5.7
|
%
|
(0.1
|
%)
|
7.8
|
%
|
||||||||
|
Total Revenue
|
3.2
|
%
|
3.5
|
%
|
(6.7
|
%)
|
6.4
|
%
|
||||||||
|
Operating Income
|
||||||||||||||||
|
Flavors & Extracts
|
18.2
|
%
|
2.6
|
%
|
(1.5
|
%)
|
17.1
|
%
|
||||||||
|
Color
|
0.5
|
%
|
4.1
|
%
|
1.4
|
%
|
(5.0
|
%)
|
||||||||
|
Asia Pacific
|
26.6
|
%
|
0.3
|
%
|
(0.3
|
%)
|
26.6
|
%
|
||||||||
|
Corporate & Other
|
17.0
|
%
|
0.1
|
%
|
(7.1
|
%)
|
24.0
|
%
|
||||||||
|
Total Operating Income
|
7.8
|
%
|
4.3
|
%
|
0.6
|
%
|
2.9
|
%
|
||||||||
|
Diluted Earnings Per Share
|
12.4
|
%
|
5.0
|
%
|
1.8
|
%
|
5.6
|
%
|
||||||||
|
Adjusted EBITDA
|
7.5
|
%
|
3.5
|
%
|
N/A
|
4.0
|
%
|
|||||||||
(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 2021 operational improvement plan costs and income.
The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three and six months ended June 30, 2021 and 2020.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
|||||||||||||||||||
|
Operating income (GAAP)
|
$
|
35,753
|
$
|
42,125
|
(15.1
|
%)
|
$
|
82,650
|
$
|
76,686
|
7.8
|
%
|
||||||||||||
|
Depreciation and amortization
|
13,018
|
12,118
|
25,817
|
24,522
|
||||||||||||||||||||
|
Depreciation and amortization, divested product lines
|
(48
|
)
|
(16
|
)
|
(97
|
)
|
(96
|
)
|
||||||||||||||||
|
Share-based compensation expense
|
2,075
|
1,485
|
4,188
|
2,662
|
||||||||||||||||||||
|
Divestiture & other related costs, before tax
|
11,688
|
(1,527
|
)
|
13,260
|
10,316
|
|||||||||||||||||||
|
Results of operations of the divested product lines, before tax
|
459
|
(331
|
)
|
(2,468
|
)
|
(1,716
|
)
|
|||||||||||||||||
|
Operational improvement plan costs (income), before tax
|
(3,494
|
)
|
-
|
(2,493
|
)
|
-
|
||||||||||||||||||
|
Adjusted EBITDA
|
$
|
59,451
|
$
|
53,854
|
10.4
|
%
|
$
|
120,857
|
$
|
112,374
|
7.5
|
%
|
||||||||||||
The following table summarizes the reconciliation between Net cash provided by operating activities (GAAP) and Free Cash Flow for the three and six months ended June 30,
2021 and 2020.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
|||||||||||||||||||
|
Net cash provided by operating activities (GAAP)
|
$
|
60,297
|
$
|
70,686
|
(14.7
|
%)
|
$
|
89,261
|
$
|
107,614
|
(17.1
|
%)
|
||||||||||||
|
Capital expenditures
|
(11,306
|
)
|
(12,006
|
)
|
(25,550
|
)
|
(21,417
|
)
|
||||||||||||||||
|
Free Cash Flow
|
$
|
48,991
|
$
|
58,680
|
(16.5
|
%)
|
$
|
63,711
|
$
|
86,197
|
(26.1
|
%)
|
||||||||||||
|
Sensient Technologies Corporation
|
Page 13
|
|
(In thousands, except percentages)
|
|
|
(Unaudited)
|
|
The following table summarizes the reconciliation between Forecasted GAAP Tax Rate and Forecasted Adjusted Tax Rate for the last six months of 2021.
|
Last Six
Months of
2021
|
||||
|
Forecasted GAAP Tax Rate
|
24
|
%
|
||
|
Forecasted tax impact of divestiture and other related costs, the results of operations of the divested product lines, and the operational improvement plan costs
|
(2
|
%)
|
||
|
Forecasted Adjusted Tax Rate
|
22
|
%
|
||
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
Second Quarter 2021 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 “2021 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 and other supplies, the availability of logistics and transportation, governmental regulations and restrictions and general economic conditions; 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, 2020, 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, operational improvement plan costs,
and the results of the divested operations), (2) adjusted results by segment (which exclude divestiture & other related costs, operational improvement plan costs, 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 and exclude divestiture & other
related costs, operational improvement plan costs, and the results of the divested operations), 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). 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, and the Company believes 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. Refer to “Non-GAAP Financial Measures” at the end of this presentation for reconciliations and additional information.
Over 135 years of Industry Leadership 2 Established in 1882 as Meadow Springs DistilleryEvolved
into Universal Foods as a diversified food and ingredients companyName changed to Sensient Technologies Corporation in 2000Today, we are a provider of advanced technologies, serving markets with strong growth profiles through delivery of
customized solutions for food and beverages, pharmaceutical, personal care, and other applications
Innovative Technologies Creating Unique Solutions 2 Applications expertise and solutions-based
sellingHigh impact relative to costTechnically-driven products that are difficult to replace Strong consumer trendsOpportunities 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 CareDivested non-core product lines (inks, fragrances, and yogurt fruit prep product lines)Expanded flavor portfolio and strengthened
technical solutions capabilities through the acquisition of Flavor Solutions, Inc. on July 15, 2021
7 Color Group2020 Revenue: $501M 2020 Adj. Revenue*: $487M Core Areas of Focus: Food and
Pharmaceutical Colors and Personal CareFlavors & Extracts Group2020 Revenue: $742M 2020 Adj. Revenue*: $642MCore Areas of Focus: Flavors and Extracts, Natural Ingredients, and Other Flavor IngredientsAsia Pacific Group2020 Revenue: $121M
2020 Adj. Revenue*: $121M Core Areas of Focus: Flavors and Colors for food and beverage Global Revenue by Group 2020 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.
8 Global market leaderNatural color innovatorUnmatched innovation & applications
expertise Color Group
9 Color Overview Food and Pharmaceutical 69% of Segment Revenue 71% of Adj. Segment
Revenue LC Revenue Change Q2 ’21 +3.6%YTD ’21 +2.4% Market trend toward natural colors in food and beverageUnique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts Personal Care 28% of
Segment Revenue 29% of Adj. Segment Revenue LC Revenue Change Q2 ’21 +16.8%YTD ’21 +2.1% Demand for innovative products with multiple benefitsProduct line includes formulation aides and ingredients for color cosmetics, hair care, and
skin careRecovery from negative COVID impacts underway Inks 3% of Segment Revenue Completed divestiture in June 2020 2020 Revenue: $501M 2020 Adj. Revenue*: $487M *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.
10 Flavors & Extracts Group Broad product offeringUnique ability to service global, regional,
and local customersLeading technology platformsUnmatched applications expertise
11 Flavors & Extracts Overview Flavors, Extracts, and Flavor Ingredients 54% of Segment
Revenue 62% of Adj. Segment Revenue LC Revenue Change Q2 ’21 +11.2%YTD ’21 +10.3% Opportunities for on trend products with extracts, taste modulation, and natural flavors Natural Ingredients 33% of Segment Revenue 38% of Adj. Segment
Revenue LC Revenue Change Q2 ’21 +5.3%YTD ’21 +6.6% Leading provider of dehydrated onion, garlic, and other products Fragrances & Yogurt Fruit Prep 13% of Segment Revenue Yogurt Fruit Prep (2% of revenue) divested September
2020Fragrances (11% of revenue) divested April 2021 2020 Revenue: $742M 2020 Adj. Revenue*: $642M *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.
12 Asia Pacific Group 2020 adjusted revenue of $121 million and adjusted operating income of
$22 millionSensient’s sales of flavors and colors for Food and Pharmaceutical are managed on a geographic basis and reported as a separate segmentManufacturing capabilities in Australia, New Zealand, China, Japan, Philippines, Thailand, and
India; R&D capabilities in Singapore, Thailand, and ChinaQ2 2021 local currency adjusted revenue and operating profit improved 11.3% and 21.6%, respectively * Adjusted revenue, local currency adjusted revenue, adjusted operating income,
and local currency adjusted operating income are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.
13 2021 Q2 Segment Results Color Group second quarter revenue increase was primarily driven by
the start of the color cosmetic market recovery in Personal Care. Operating income was up in the quarter primarily due to volume.Flavors & Extracts Group reported higher revenue in the quarter driven by growth in all product categories.
Operating income was up as a result of the higher volumes and product mix.Asia Pacific Group second quarter revenue increased double-digits with growth in almost all regions. Operating income improved in the quarter due to volume
growth. Local Currency Adjusted Revenue* Local Currency Adjusted* Commentary: Q2 YTD Color +7.1% +2.3% Flavors & Extracts +9.1% +9.0% Asia Pacific +11.3% +7.8% Local Currency Adjusted Operating
Income* Q2 YTD Color +5.2% (5.0%) Flavors & Extracts +13.2% +17.1% Asia Pacific +21.6% +26.6% * 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.
14 2021 Q2 Consolidated Results Q2 YTD Local Currency Adjusted Revenue* +9.1% +6.4% Local
Currency Adjusted Operating Income* +5.8% +2.9% Local Currency Adjusted Diluted EPS* +8.6% +5.6% Local Currency Adjusted EBITDA* +6.0% +4.0% Q2 consolidated local currency adjusted revenue was up due to continued strong growth in
Flavors & Extracts, Colors and Asia Pacific groups. Savory and sweet flavors, natural colors, and personal care product lines had healthy growth within the quarter.Q2 consolidated local currency adjusted operating income was up due to the
overall volume growth across our businesses; however, 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.
15 Capital Allocation Prioritize ROI capital projects Maintain dividend payout ratio Debt
reduction to maintain targeted leverage Maintain financial flexibility to pursue M&A Excess capital returned to shareholders through opportunistic share
repurchases $50 $87 $77 $50 $54 $57 $62 $66 $81 $56 $51 $39 $52 $31 $25 $9 $87 $118 $- $50 $100 $150 $200 $250 2016 2017 2018 2019 2020 DOLLARS IN MILLIONS Share
Repurchase Acquisitions Dividends Debt Repayments Capital Expenditures
16 2021 Financial Outlook * Local-currency 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. Metric Guidance Comments Diluted EPS (GAAP) Mid-to-high single digit growth Includes approximately 25 cents of divestiture &
other related costs, operational improvement plan costs, and the results of the divested operationsAt current rates FX provides a 10 cent benefit Adjusted Diluted EPS in Local Currency* Mid-single digit growth Excludes divestiture &
other related costs and operational improvement plan costsExcludes results of the divested operations Adjusted Local Currency Revenue* Mid-single digit growth Excludes revenue of the divested product lines Adjusted Local Currency
EBITDA* Mid-single digit growth Excludes divestiture & other related costs and operational improvement plan costsExcludes results of the divested operations
Why Invest? Strong competitive position‘Sticky’ business (& low portion of customer costs)
Global presenceExposure to stable and growing markets Focused on improving returns and on growth 17
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 intensitySeed-to-shelf program focused on sustainable supply chainEmphasis
on new products and technologies that minimize waste and environmental impactsChemical 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 standardsRobust product, environmental, and raw material safety programs designed to exceed industry standards.Raw material traceability and sustainability programsSupport 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 backgroundsCommitted to board diversity and refreshment, we are a 2020 Women on Boards Winning Company for the seventh year in
a row and we have added seven new directors since 2013. 40% of our Board is female.Robust Code of Conduct built on a foundation of ethics, safety and quality, and professionalism resulting in ethical and lawful conduct of our business 18
APPENDIX – NON-GAAP TABLES
20 Non-GAAP Financial Measures Note: EPS Calculations may not foot due to rounding
differences Three Months EndedJune 30, 2021 Three Months EndedJune 30, 2020 Six Months EndedJune 30, 2021 Six Months EndedJune 30, 2020 Revenue (GAAP) $ 335,827 $ 323,090 $ 695,529 $ 673,767 Revenue of the
divested product lines (2,207) (28,217) (27,777) (64,802) Adjusted revenue $ 333,620 $ 294,873 $ 667,752 $ 608,965 Operating income (GAAP) $ 35,753 $ 42,125 $ 82,650 $ 76,686 Divestiture &
other related costs – Cost of products sold 3 1,749 28 1,939 Divestiture & other related costs – Selling and administrative expenses 11,685 (3,276) 13,232 8,377 Operating loss (income) of the divested
product lines 459 (331) (2,468) (1,716) Operational improvement plan - Selling and administrative expenses (3,494) - (2,493) - Adjusted operating
income $ 44,406 $ 40,267 $ 90,949 $ 85,286 Net earnings (GAAP) $ 25,936 $ 30,620 $ 57,604 $ 51,393 Divestiture & other related costs, before tax 11,688 (1,527) 13,260 10,316 Tax impact of
divestiture & other related costs (1,689) 509 (896) (425) Net loss (earnings) of the divested product lines, before tax 459 (331) (2,468) (1,716) Tax impact of the divested product
lines (115) 203 608 500 Operational improvement plan income, before tax (3,494) - (2,493) - Tax impact of operational improvement plan 455 - 159 - Adjusted net
earnings $ 33,240 $ 29,474 $ 65,774 $ 60,068 Diluted earnings per share (GAAP) $ 0.61 $ 0.72 $ 1.36 $ 1.21 Divestiture & other related costs, net of tax 0.24 (0.02) 0.29 0.23 Results of
operations of the divested product lines, net of tax 0.01 - (0.04) (0.03) Operational improvement plan income, net of tax (0.07) - (0.06) - Adjusted diluted earnings per
share $ 0.79 $ 0.70 $ 1.55 $ 1.42
Non-GAAP Financial Measures (Cont’d) Revenue Total ForeignExchange
Rates Adjustments* AdjustedLocal Currency Total ForeignExchange Rates Adjustments* AdjustedLocal Currency Flavors &
Extracts (2.3%) 3.7% (15.1%) 9.1% 2.8% 3.1% (9.3%) 9.0% Color 9.8% 5.3% (2.6%) 7.1% 1.6% 3.8% (4.5%) 2.3% Asia Pacific 15.9% 5.5% (0.9%) 11.3% 13.4% 5.7% (0.1%) 7.8% Total
Revenue 3.9% 4.4% (9.6%) 9.1% 3.2% 3.5% (6.7%) 6.4% Operating Income Flavors &
Extracts 7.8% 3.1% (8.5%) 13.2% 18.2% 2.6% (1.5%) 17.1% Color 15.1% 5.4% 4.5% 5.2% 0.5% 4.1% 1.4% (5.0%) Asia
Pacific 19.5% (0.6%) (1.5%) 21.6% 26.6% 0.3% (0.3%) 26.6% Corporate & Other 160.9% 0.1% 131.4% 29.4% 17.0% 0.1% (7.1%) 24.0% Total Operating
Income (15.1%) 4.5% (25.4%) 5.8% 7.8% 4.3% 0.6% 2.9% Diluted Earnings Per Share (15.3%) 5.5% (29.4%) 8.6% 12.4% 5.0% 1.8% 5.6% Adjusted
EBITDA 10.4% 4.4% N/A 6.0% 7.5% 3.5% N/A 4.0% Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 * 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 2021 operational improvement plan costs and income. 21
Non-GAAP Financial Measures (Cont’d) 22 2021 2020 % Change 2021 2020 % Change Operating
income (GAAP) $ 35,753 $ 42,125 (15.1%) $ 82,650 $ 76,686 7.8% Depreciation and amortization 13,018 12,118 25,817 24,522 Depreciation and amortization, divested product lines (48) (16) (97) (96) Share-based
compensation expense 2,075 1,485 4,188 2,662 Divestiture & other related costs, before tax 11,688 (1,527) 13,260 10,316 Results of operations of the divested product lines, before
tax 459 (331) (2,468) (1,716) Operational improvement plan costs (income), before tax (3,494) - (2,493) - Adjusted EBITDA $ 59,451 $ 53,854 10.4% $ 120,857 $ 112,374 7.5% Three Months Ended June 30, Six
Months Ended June 30,
Non-GAAP Financial Measures (Cont’d) 23 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 Total Foreign Exchange Rates Local Currency Flavors, Extracts and Flavor
Ingredients 15.8% 4.6% 11.2% 14.0% 3.7% 10.3% Natural Ingredients 5.4% 0.1% 5.3% 6.7% 0.1% 6.6% Fragrances* (100.0%) 10.2% (110.2%) (47.6%) 8.9% (56.5%) Yogurt Fruit
Prep* (61.4%) 0.0% (61.4%) (59.6%) 0.0% (59.6%) Flavors & Extracts Group (2.3%) 3.7% (6.0%) 2.8% 3.1% (0.3%) Food and Pharmaceutical 8.7% 5.1% 3.6% 6.1% 3.7% 2.4% Personal
Care 22.6% 5.8% 16.8% 6.1% 4.0% 2.1% Inks* (76.6%) 3.8% (80.4%) (90.2%) 2.0% (92.2%) Color Group 9.8% 5.3% 4.5% 1.6% 3.8% (2.2%) Asia PacificTotal revenue including the product lines
divested 15.9%3.9% 5.5%4.4% 10.4%(0.5%) 13.4%3.2% 5.7%3.5% 7.7%(0.3%) Three Months Ended June 30, 2021 Six Months Ended June 30, 2021
Q2 Divested Operations 24 Results by Segment Three Months Ended June
30, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 2020 Flavors & Extracts $ 179,401 $ (1,415) $ 177,986 $ 183,611 $ (24,742) $
158,869 Color 133,207 (792) 132,415 121,296 (3,501) 117,795 Asia Pacific 32,317 - 32,317 27,873 (213) 27,660 Intersegment elimination (9,098) - (9,098) (9,690) 239
(9,451) Consolidated $ 335,827 $ (2,207) $ 333,620 $ 323,090 $ (28,217) $ 294,873 Operating Income Flavors & Extracts $ 24,536 $ (45) $ 24,491 $ 22,752 $ (1,619) $
21,133 Color 25,615 504 26,119 22,263 1,347 23,610 Asia Pacific 5,793 - 5,793 4,849 (59) 4,790 Corporate & Other (20,191) 8,194 (11,997) (7,739) (1,527) (9,266) Consolidated $
35,753 $ 8,653 $ 44,406 $ 42,125 $ (1,858) $ 40,267 * 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 2021 operational improvement plan costs and income.
Q2 YTD Divested Operations 25 Results by Segment Six Months Ended June
30, Adjusted Adjusted Revenue 2021 Adjustments* 2021 2020 Adjustments* 2020 Flavors & Extracts $ 380,312 $ (26,304) $ 354,008 $ 370,109 $ (52,187) $
317,922 Color 268,927 (1,328) 267,599 264,791 (12,573) 252,218 Asia Pacific 66,157 (295) 65,862 58,322 (334) 57,988 Intersegment elimination (19,867) 150 (19,717) (19,455) 292
(19,163) Consolidated $ 695,529 $ (27,777) $ 667,752 $ 673,767 $ (64,802) $ 608,965 Operating Income Flavors & Extracts $ 51,554 $ (2,925) $ 48,629 $ 43,623 $ (2,837) $
40,786 Color 52,209 544 52,753 51,927 1,214 53,141 Asia Pacific 12,545 (87) 12,458 9,908 (93) 9,815 Corporate & Other (33,658) 10,767 (22,891) (28,772) 10,316
(18,456) Consolidated $ 82,650 $ 8,299 $ 90,949 $ 76,686 $ 8,600 $ 85,286 * 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 2021 operational improvement plan costs and income.
26