Sensient Technologies Reports Results for Quarter Ended Sept. 30, 2017

Sensient Technologies reported earnings per share from continuing operations of 73 cents in the third quarter of 2017 compared to 79 cents in last year’s third quarter. Revenue was $353.5 million in this year’s third quarter compared to $349.7 million in the comparable period last year. Operating income was $52.0 million in the third quarter of 2017 and $51.2 million in last year’s third quarter. Foreign currency translation increased revenue by approximately 2%, and operating income and earnings per share by approximately 1%, each in the third quarter.
 
For the nine months ended Sept. 30, 2017 and 2016, earnings per share from continuing operations were $1.72 and $2.04, respectively. Revenue was $1.0 billion in the first nine months of 2017 and $1.1 billion in the first nine months of 2016. Operating income was $120.4 million and $142.3 million in the first nine months of 2017 and 2016, respectively.
 
Cash provided by operating activities was $48.3 million in the quarter compared to $49.7 million in last year’s third quarter.
 
Business Review
 
The Color Group reported revenue of $133.2 million in the quarter, an increase of 6% compared to $125.7 million in last year’s third quarter. Segment operating income increased approximately 8% to $28.6 million in the quarter. The Group’s higher profit was driven by strong results in Cosmetics and solid performances by the Food Color businesses in Europe, North America and Asia.
 
For the first nine months of 2017, the Color Group reported revenue of $400.2 million, an increase of approximately 4% over $384.4 million reported in the comparable period last year. Segment operating income increased approximately 6% to $87.9 million in the first nine months of this year compared to $82.9 million reported in the first nine months of last year.
 
The Flavors & Fragrances Group reported third quarter revenue of $196.0 million, a decrease of approximately 2% compared to $200.8 million reported in the comparable period last year. Segment operating income was $33.0 million, an increase of approximately 2% compared to $32.4 million reported in the third quarter of 2016. The Group’s higher profit was a result of solid performances in the Bionutrients, North America Savory, Europe Savory, Latin America, North America Beverage and Natural Ingredients businesses.
 
The Flavors & Fragrances Group reported revenue of $568.4 million and $608.7 million in the first nine months of 2017 and 2016, respectively. Segment operating income was $90.3 and $95.5 million in the first nine months of 2017 and 2016, respectively.
 
The Asia Pacific Group reported revenue of $32.7 million, an increase of approximately 2% compared to $32.1 million reported in the comparable period last year. Segment operating income was $5.8 million and $6.3 million in the third quarters of 2017 and 2016, respectively. For the first nine months of 2017 and 2016, revenue was $91.3 million and $90.4 million, respectively. Segment operating income was $14.8 million and $17.5 million in the first nine months of 2017 and 2016, respectively.
 
“Sensient had another solid quarter with good performances in both the Color Group and Flavors & Fragrances Group,” said Paul Manning, chairman, president and CEO of Sensient Technologies. “The Color Group delivered a very good result driven by strong demand for cosmetics, while several businesses contributed to a solid performance by the Flavors & Fragrances Group. I remain very optimistic about the company’s future.” 





Photo courtesy Sensient