Sensient(US:SXT)2024-07-26 11:05Revenue Performance - Reported revenue increased 7.8% to $403.5 million in Q2 2024 compared to $374.3 million in Q2 2023[3] - The Flavors & Extracts Group reported revenue of $209.2 million in Q2 2024, an increase of $20.9 million year-over-year[18] - The Color Group reported revenue of $167.7 million in Q2 2024, an increase of $7.2 million compared to the prior year[5] - The Asia Pacific Group reported revenue of $38.6 million in Q2 2024, an increase of $2.6 million year-over-year[19] - Total revenue growth for the three months ended June 30, 2024, was 7.8%, with adjusted local currency growth at 8.5%[47] Earnings and Profitability - Diluted earnings per share decreased 9.9% to $0.73 in Q2 2024 from $0.81 in Q2 2023, primarily due to higher interest expense and tax rate[3] - Net earnings decreased 9.1% to $30.9 million in Q2 2024 from $34.0 million in Q2 2023[13] - Adjusted diluted earnings per share for Q2 2024 were $0.77, a decrease of 4.9% from $0.81 in Q2 2023[30] - Net earnings for the six months ended June 30, 2024, were $61,872,000, a decrease of 8.5% compared to $67,684,000 in 2023[42] - Diluted earnings per share decreased by 9.9% year-over-year, indicating a decline in profitability[47] Operating Income - Reported operating income decreased 3.7% to $49.7 million in Q2 2024 from $51.6 million in Q2 2023, impacted by $1.8 million in Portfolio Optimization Plan costs[3] - Operating income for Q2 2024 was $49,657, a decrease of 3.7% compared to $51,591 in Q2 2023[30] - Operating income for the Flavors & Extracts segment increased to $49,887,000, up from $46,636,000, reflecting a growth of 4.8%[45] - The Color segment reported an operating income of $63,181,000, an increase from $61,102,000, marking a growth of 3.4%[45] - The Asia Pacific segment's operating income was $16,656,000, slightly down from $16,816,000, indicating a decrease of 1.0%[45] - Corporate & Other segment showed an operating loss of $30,661,000, compared to a loss of $22,125,000, reflecting a deterioration in performance[45] Expenses and Costs - Selling and administrative expenses increased 14.8% to $81.1 million in Q2 2024 compared to $70.6 million in Q2 2023[13] - The Portfolio Optimization Plan costs impacted both operating income and net earnings, with costs before tax amounting to $32,405 in June 2024[36] Guidance and Projections - Updated guidance for diluted EPS (GAAP) is between $2.77 and $2.87, including approximately 18 cents of Portfolio Optimization Plan costs[8] - Local currency revenue growth is projected at mid-to-high single-digit growth, an increase from prior guidance of mid-single-digit growth[8] Balance Sheet and Cash Flow - Total current assets increased to $944,255 in June 2024 from $936,616 in December 2023[28] - Total liabilities and shareholders' equity decreased to $1,994,867 in June 2024 from $2,014,507 in December 2023[28] - Short-term borrowings increased to $26,995 in June 2024 from $13,460 in December 2023[36] - The company reported a net debt of $643,624 in June 2024, down from $682,270 in December 2023[36] - Net cash provided by operating activities increased to $58,946,000 from $51,702,000, representing a growth of 14.4% year-over-year[42] - Net debt to credit adjusted EBITDA ratio improved slightly to 2.6x from 2.7x[50] Dividends - The company paid dividends of $0.82 per share, consistent with the previous year[42]