Sensient Technologies Corporation has reported its 2018 Q3 revenues were $342.7 million, a slight decrease from 2017 Q3 results of $353.5 million.
For the nine months ending on Sept. 30, 2018, total revenue reached $1.1 billion, in comparison to $1 billion in 2017. Additionally, operating income rose to $158.1 million for the first nine months of 2018, in comparison to $120.4 million for the same period in 2017. Earning per shares increased as well reaching $2.92 for the first nine months of 2018, opposed to $1.72 for the same period in 2017.
Moving Past Restructure
Growth was led by gains in the group’s color division. The business saw revenues reach $135 million in the quarter, an increase from last year’s third quarter results of $133.2 million. Operating income for the division was $27.3 million in the third quarter, opposed to $28.6 million for last year’s quarter. Higher revenues were attributed to demand for natural colors but were offset by lower revenues for its cosmetic businesses.
Despite seeing growth in its color business, the flavors and fragrances group saw a dip in revenue. The segment saw revenues for the quarter reach $184.4 million, which was lower than 2017 Q3 results of $196 million. For the first nine months of 2018, the flavors and fragrance group reported revenues of $571.4 million, compared to $568.4 million for the same period in 2017. The lower profit was attributed to a decrease in volumes at the production site affected by the company’s plant consolidation, higher onion costs and an ongoing market decline in several key dairy categories. These losses were offset by solid revenue in Latin America, fragrance, bionutrients and the European sweet and beverage markets.
The company also reported that its Asia Pacific Group saw $31.3 million of revenue for the third quarter, compared to $32.7 million for the same quarter in 2017. For the first nine months of 2018, the company reported that the segmented revenues at $92.1 million, compared to $91.3 million for the same period in 2017. The segment operating income for the first nine months of 2017 and 2018 were both reported at $5.8 million.
“I am pleased that we have now lapped the aftermath of our restructuring as well as our onion issues, which have impacted the flavors and fragrances segment this year,” said Paul Manning, chairman, president and CEO of Sensient Technologies Corporation. “Our key focus going forward will be to capitalize on our positive commercial activity.”
