Sensient Technologies Corporation has released its 2018 second quarter results, which reported revenues at $363 million compared to $338.5 million from last year’s second quarter.
For the first six months ending on June 30, 2018, the company reported total revenues of $719.5 million, compared to $679.9 million for the same period in 2017. Operating income was also higher in 2018 with it being reported at $107.9 million, opposed to $68.4 million in the first six months of 2017. Additionally, the company didn't incur any costs from its restructuring efforts, which were completed in 2017.
“Sensient delivered solid results in the second quarter, with revenue growth in each of the company’s reporting segments,” said Paul Manning, Chairman, president and CEO of Sensient Technologies Corporation. “Color had another strong quarter driven by strong demand for cosmetic ingredients and natural food colors, and flavors and fragrances performance was in line with my expectations. I remain very optimistic about the company’s future.”
Color Group Leads Growth
The company saw growth among all its key business segments. The group that saw the highest growth was the color group with $144.3 million in revenue for the quarter, an increase of approximately 9% over last year’s second quarter. Growth in the segment was driven by strong demand for cosmetics and natural food colors. For the first six months of 2018, the color group reported revenues at $291.5 million, compared to $267 million over the same period in 2017.
Another strong category was the company’s flavors and fragrances group, which saw revenues of $198.7 million in the second quarter - an increase of approximately 7% from last year’s revenue. The growth in the category was attributed to strong growth in North American savory flavors markets, fragrances and bionutrients in Latin America and sweet and beverage businesses in Europe. However, the category did see lower profits due to higher onion costs and dairy markets declining in several markets. For the first six months of 2018, the company reported revenues of $387.0 million, compared to $372.4 million in the first six months of 2017, an increase of approximately 4%.