Sensient Technologies Corporation has released its Q1 2020 financial results, which were in line with the company’s expectations, and also reported diluted earnings per share of 49 cents, compared to diluted earnings per share of 78 cents in Q1 2019.
Previously: Sensient Technologies Releases Q4 2019 & Full Year Results
Revenue totalled $350.7 million, compared to $347.5 million year-over-year and operating income declined, totaling $34.6 million, compared to $49.4 million year-over-year. Foreign currency translation decreased revenues and operating income by approximately 2% and earnings per share by approximately 3% in the quarter.
Previously: Sensient Technologies Sees Sales Dip During Q1 2019
The Q1 2020 reported results include divestiture and other related costs, primarily non-cash impairment charges, which decreased net earnings by $10.9 million ($0.26 per diluted share), and the results of operations of the product lines to be divested, which increased net earnings by $1.1 million ($0.03 per diluted share).
- Flavors & Fragrances: $186.5 million, up from $183.6 million in Q1 2019
- Revenue: up 1.6%
- Adjusted local currency revenue: up 3.6%
- Color: $143.5 million, down from $143.9 million in Q1 2019
- Revenue: down 0.3%
- Adjusted local currency revenue: up 2.8%
- Asia Pacific: 30.4 million, up from $28.5 million in Q1 2019
- Revenue: up 6.8%
- Adjusted local currency revenue: up 8.5%
Based upon current trends, Sensient is reconfirming its previously issued diluted earnings per share guidance for 2020 of $1.85 to $2.15. The guidance now includes 55 to 65 cents per share of divestiture and other related costs and the results of the operations to be divested. The guidance also includes approximately 10 cents of foreign currency headwinds based on current exchanges rates.
The company is also reconfirming the previously issued guidance of $2.60 to $2.80 for adjusted diluted earnings per share, which excludes divestiture and other related costs, the results of the operations to be divested and foreign currency impacts.
“While this market is challenging for all businesses as a result of COVID-19, our results for the first quarter were in line with my expectations, and we are on track for the year,” Paul Manning, chairman, president and CEO of Sensient Technologies Corporation, said. “All of our production facilities are open and producing to support our customers and their demand for our products during these unprecedented times.”