Sensient(US:SXT)2025-02-14 12:09Financial Performance - Reported revenue increased by 7.8% to $376.4 million in Q4 2024, compared to $349.3 million in Q4 2023[5] - Reported operating income surged to $42.0 million, a 420.8% increase from $8.1 million in Q4 2023[5] - Earnings per share (EPS) was reported at $0.71 in Q4 2024, compared to a loss of $0.14 in Q4 2023, marking a significant turnaround[5] - Total revenue for the year ended December 31, 2024, was $1.557 billion, reflecting a 6.9% increase from $1.456 billion in 2023[26] - Net earnings for the year ended December 31, 2024, increased to $124,666,000, a 33.5% rise from $93,394,000 in 2023[30] - Adjusted operating income for the year ended December 31, 2024, was $198,210,000, reflecting an 8.4% increase from $182,864,000 in 2023[32] - The company reported a diluted earnings per share (EPS) of $2.94 for 2024, up 33.0% from $2.21 in 2023[32] - Adjusted EBITDA for the year ended December 31, 2024, was $268,623 million, reflecting a 7.6% increase from $249,617 million in 2023[41] - Credit Adjusted EBITDA for the year ended December 31, 2024, was $267,718 million, compared to $248,855 million in 2023[42] Segment Performance - The Flavors & Extracts Group revenue increased by 2.8% to $188.1 million, while the Color Group revenue rose by 11.8% to $158.1 million in Q4 2024[6] - The Asia Pacific Group reported a revenue increase of 26.1% to $41.9 million in Q4 2024, driven by higher volumes across nearly all geographies[9] - Total revenue for the year ended December 31, 2024, grew by 7.4% compared to 2023, with significant contributions from the Flavors & Extracts segment, which saw a 7.1% increase[38] - The Flavors & Extracts segment reported an adjusted operating income of $97,094,000 for the year ended December 31, 2024, up from $87,773,000 in 2023, marking a 10.6% increase[34] - The Color segment achieved an adjusted operating income of $119,529,000 for 2024, a 13.4% increase from $105,370,000 in 2023[34] Cost Management - Corporate & Other operating expenses decreased significantly to $14.4 million in Q4 2024 from $37.2 million in Q4 2023, largely due to reduced costs from the Portfolio Optimization Plan[10] - The company recorded $0.9 million in costs related to its Portfolio Optimization Plan in Q4 2024, down from $27.8 million in the prior year[5] - Portfolio Optimization Plan costs before tax were $6,631 million in 2024, significantly lower than $27,841 million in 2023[42] Balance Sheet and Cash Flow - Cash flows from operating activities for the year ended December 31, 2024, totaled $157,151,000, slightly down from $169,697,000 in 2023[30] - The company’s total assets increased to $2,023,794,000 as of December 31, 2024, compared to $2,014,507,000 in 2023[28] - The company’s total current liabilities increased to $270,639,000 in 2024 from $236,306,000 in 2023[28] - Cash and cash equivalents at the end of the period decreased to $26,626,000 in 2024 from $28,934,000 in 2023[30] Debt and Financing - Net Debt decreased to $620,242 million in 2024 from $641,802 million in 2023, resulting in a Net Debt to Credit Adjusted EBITDA ratio of 2.3x, down from 2.6x[42] - Short-term borrowings rose to $19,848 million in 2024, compared to $13,460 million in 2023[42] - Long-term debt decreased to $613,523 million in 2024 from $645,085 million in 2023[42] Other Financial Metrics - Share-based compensation expense increased to $10,084 million in 2024, up from $8,933 million in 2023[42] - Depreciation and amortization expenses increased to $60,329 million in 2024, up from $57,820 million in 2023[42] Non-GAAP Measures - The company emphasizes the importance of non-GAAP measures for evaluating underlying operating results and performance trends[44]