Sensient(US:SXT)2025-02-19 17:55Acquisitions and Divestitures - The Company acquired Endemix, a natural colors business in Turkey, for $23.3 million, net of $1.3 million in debt assumed[17]. - The Company received $2.5 million in net cash from the sale of its yogurt fruit preparations product line in 2022[18]. - The Company acquired Endemix for $23.3 million, net of $1.3 million in debt assumed, with net assets of $9.0 million and identified intangible assets of $4.9 million[223]. Financial Performance - The Company reported revenue of $1,557,228,000 for the year ended December 31, 2024, representing an increase of 6.9% from $1,456,450,000 in 2023[173]. - Net earnings for 2024 were $124,666,000, up from $93,394,000 in 2023, reflecting a year-over-year growth of 33.5%[173]. - Operating income increased to $191,579,000 in 2024, compared to $155,023,000 in 2023, marking a growth of 23.6%[173]. - Basic earnings per share rose to $2.96 in 2024, compared to $2.22 in 2023, reflecting a significant increase of 33.5%[173]. - Total comprehensive income for 2024 decreased to $69,944,000, down 42.5% from $121,965,000 in 2023[175]. - Cash flow from operating activities for 2024 was $157,151,000, compared to $169,697,000 in 2023, reflecting a decrease of 7.5%[179]. - The Company reported net earnings of $124.7 million for the year ended December 31, 2024, compared to $93.4 million in 2023, representing a year-over-year increase of 33.5%[212]. - Basic earnings per share (EPS) increased to $2.96 in 2024 from $2.22 in 2023, while diluted EPS rose to $2.94 from $2.21, reflecting a significant improvement in profitability[212]. Assets and Liabilities - Total assets rose to $2,023,794,000 in 2024, a slight increase of 0.5% from $2,014,507,000 in 2023[177]. - Long-term debt decreased to $613,523,000 in 2024, down 4.9% from $645,085,000 in 2023[177]. - Cash and cash equivalents at the end of 2024 were $26,626,000, a decrease of 7.9% from $28,934,000 at the end of 2023[179]. - The Company had short-term borrowings totaling $19.8 million as of December 31, 2024, up from $13.5 million in 2023[243]. - The fair value of the Company's long-term debt at December 31, 2024, was estimated at $622.0 million, down from $653.7 million in 2023[283]. Operational Metrics - The Company employed 4,014 persons worldwide as of December 31, 2024, with approximately 44% based in the United States and 56% outside[42]. - The Company employed 772 people in research and development, quality assurance, agronomy, and related positions[31]. - The Company’s inventories totaled $600.3 million as of December 31, 2024, compared to $598.4 million in 2023, with finished and in-process products accounting for $426.8 million[193]. - The Company’s principal manufacturing plants are located in multiple countries, including the U.S., Brazil, China, and Turkey, enhancing its global supply chain capabilities[22][25]. Market and Industry Position - The Company believes it is one of the largest producers of synthetic and natural colors globally, with a significant market share in certified food colors[24]. - The Flavors & Extracts Group is a leading supplier of flavor systems for food, beverage, and personal care industries, serving both multinational and regional companies[19]. - The Company focuses on developing high-performance components and specialized solutions for various industries, including food, pharmaceuticals, and personal care[15]. Financial Risks and Management - The Company is exposed to market risks including interest rates, currency exchange rates, and commodity prices, with potential impacts quantified in millions[166]. - The net fair value of foreign exchange contracts was a liability of $0.8 million as of December 31, 2024, compared to an asset of $1.0 million in 2023[168]. - The Company utilizes derivative financial instruments to manage foreign currency and interest rate risks, reflecting a proactive approach to financial risk management[202]. Taxation and Deferred Tax Assets - The effective tax rate for 2024 was 23.4%, a decrease from 28.1% in 2023[266]. - Deferred tax assets decreased from $83.257 million in 2023 to $82.557 million in 2024, while net deferred tax assets increased from $27.304 million to $35.780 million[268]. - The Company recognized interest and penalties related to unrecognized tax benefits amounting to $0.5 million in 2024, up from $0.4 million in 2023[272]. Employee and Leadership Development - The Company has a strong focus on talent acquisition and development, with over half of senior leadership promoted from within[48]. - Total expense for the Company's defined contribution plans was $8.0 million in 2024, slightly down from $8.2 million in 2023[256]. Capital Expenditures and Investments - The Company’s capital expenditures for 2024 totaled $59.212 million, a decrease from $87.868 million in 2023[279]. - The Company plans to adopt ASU No. 2023-09 for income tax disclosures in the fourth quarter of 2025, which may impact its consolidated financial statements[220]. - The Company will adopt ASU No. 2024-03 for disaggregation of income statement expenses in fiscal years beginning after December 15, 2026[221].