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Sensient Technologies Releases Q2 2020 Results

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Sensient Technologies only observes growth in the flavor and fragrances segment for Q2 2020.

Sensient Technologies Corporation has released its Q2 2020 results, along with an updated 2020 outlook, and the company reported diluted earnings per share of $0.72 compared to $0.81 in Q2 2019.

Previously: Sensient Technologies Releases Q1 2020 Results, Slightly Up From 2019

Revenue dropped from $323.1 million in this year’s second quarter compared to $339.2 million in the comparable period last year. Operating income was $42.1 million in Q2 2020 compared to operating income of $47.4 million in last year’s second quarter. Foreign currency translation decreased revenue, operating income and earnings per share by approximately 3% in the quarter.

The Q2 2020 reported results include divestiture and other related costs, primarily non-cash impairment charges, which increased net earnings by $1 million ($0.02 per diluted share), and the results of operations of the product lines to be divested, which were not significant to net earnings or diluted earnings per share.

By segment

  • Flavors & Fragrances: $183.6 million, up from $180.1 million in Q2 2019
    • Revenue: up 1.9%
    • Adjusted local currency revenue: up 5.7%
  • Color: $121.3 million, down from $138.9 million in Q2 2019
    • Revenue: down 14.5%
    • Adjusted local currency revenue: up 5.1%
  • Asia Pacific: 27.9 million, up from $29.0 million in Q2 2019
    • Revenue: down 3.9%
    • Adjusted local currency revenue: up 1.4%

Sensient Technologies will be hosting a conference call to discuss the Q2 2020 financial results Friday, July 17, 2020 at 8:30 a.m. CDT. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call.

2020 Outlook 

Based upon current trends, the company’s current diluted earnings per share guidance for 2020 is $2.10 to $2.35. This guidance now includes $0.35-$0.40 per share of divestiture and other related costs and the results of the operations divested and to be divested. The company also reconfirms its 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 divested and to be divested, and foreign currency impacts.