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Sensient Technologies Corp (SXT) Q4 2024 Earnings Call Highlights: Robust Growth in Revenue and ...

In This Article:

  • Fourth Quarter Revenue: $376.4 million, up from $349.3 million in the previous year.

  • Fourth Quarter Operating Income: $42 million, compared to $8.1 million in the prior year.

  • Adjusted Operating Income: $42.9 million in Q4 2024, a 20.8% increase in local currency.

  • Local Currency Revenue Growth: 8.9% in Q4 2024.

  • Local Currency Adjusted EBITDA Growth: 18.8% in Q4 2024.

  • Local Currency Adjusted EPS Growth: 29.4% in Q4 2024.

  • Full Year Revenue Growth: 7.4% in local currency for 2024.

  • Full Year Adjusted EBITDA Growth: 8.3% in local currency for 2024.

  • Color Group Revenue Growth: 14% in Q4 2024, 7.3% for the full year.

  • Color Group Operating Profit Growth: 27.4% in Q4 2024, 14.2% for the full year.

  • Color Group Adjusted EBITDA Margin: 22.1% for the full year, up 110 basis points.

  • Flavors and Extracts Revenue Growth: 3.4% in Q4 2024, 7.1% for the full year.

  • Flavors and Extracts Operating Profit Growth: 18.4% in Q4 2024, 10.8% for the full year.

  • Flavors and Extracts Adjusted EBITDA Margin: 16.1% for the full year, up 30 basis points.

  • Asia Pacific Group Revenue Growth: 25.2% in Q4 2024, 13% for the full year.

  • Asia Pacific Group Operating Profit Growth: 41.7% in Q4 2024, 14.1% for the full year.

  • Asia Pacific Group Adjusted EBITDA Margin: 22.7% for the full year.

  • Free Cash Flow: $98 million in 2024, up 19.7% from 2023.

  • Total Debt: $633 million as of December 31, 2024.

  • Net Debt to Credit Adjusted EBITDA: 2.3 times as of December 31, 2024.

  • Capital Expenditures: $59 million in 2024, expected to be $70 million to $80 million in 2025.

  • 2025 Revenue Guidance: Mid-single digit local currency growth expected.

  • 2025 Adjusted EBITDA Guidance: Mid to high-single digit local currency growth expected.

  • 2025 Adjusted EPS Guidance: High single digit to double digit local currency growth expected.

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Sensient Technologies Corp (NYSE:SXT) reported strong fourth quarter results with 8.9% local currency revenue growth and 18.8% local currency adjusted EBITDA growth.

  • The Color group achieved 14% local currency revenue growth and 27.4% local currency operating profit growth in Q4 2024.

  • The Asia Pacific Group delivered exceptional performance with 25.2% local currency revenue growth and 41.7% local currency operating profit growth in Q4 2024.

  • The company successfully reduced its leverage ratio to 2.3 at the end of 2024 from 2.6 at the end of 2023.

  • Sensient Technologies Corp (NYSE:SXT) anticipates continued growth opportunities in natural colors, driven by increasing consumer demand and regulatory shifts.