Sensient Technologies Corporation reported consolidated revenue of $374.3 million in the second quarter of 2023 compared to $371.7 million in 2022’s second quarter. Reported operating income in the second quarter of 2023 was $51.6 million compared to $55.2 million in the second quarter of 2022. Reported diluted earnings per share was 81 cents in the second quarter of 2023 compared to 92 cents in the second quarter of 2022. Foreign currency translation increased revenue by approximately 1% in the quarter and did not have a material impact on earnings per share in the current quarter.
Below are category highlights for Flavors & Extracts, Color Group, Asia Pacific as well as Corporate.
Related: Sensient Technologies 2023 Leaders & Newsmakers
Flavors & Extracts
The Flavors & Extracts Group reported second quarter revenue of $188.3 million compared to $189.3 million in 2022’s second quarter, a decrease of 0.6%. Local currency revenue decreased 1.6% in the quarter.
- The group’s revenue was negatively impacted by lower volumes, primarily due to customer destocking in certain product lines and market declines in certain product lines, partially offset by favorable pricing.
Segment operating income was $24.5 million in the current quarter compared to $30.0 million reported in the comparable period 2022, a decrease of 18.5%. Local currency operating income decreased 19.1% in the quarter.
- The lower operating income was primarily due to the lower volumes and higher input costs, partially offset by favorable pricing. Foreign currency translation increased segment revenue and operating income by approximately 1% in the quarter.
Color Group
The Color Group reported revenue of $160.5 million in the quarter compared to $156.3 million in 2022’s second quarter, an increase of 2.7%. Local currency revenue increased 1.6% in the quarter.
- The group benefited from higher pricing offset by lower volumes in both the food and pharmaceutical and personal care product lines, primarily due to customer destocking and market declines in certain product lines.
Segment operating income was $29.2 million in the quarter compared to $31.2 million in 2022’s comparable period, a decrease of 6.3%. Local currency operating income decreased 7.6% compared to the prior year’s second quarter.
- The lower operating income is primarily a result of the lower volumes and higher input costs, partially offset by favorable pricing. Foreign currency translation increased segment revenue and operating income by approximately 1% in the quarter.
Asia Pacific
The Asia Pacific Group reported revenue of $36.0 million in the quarter compared to $37.3 million in 2022’s second quarter, a decrease of 3.5%. Local currency revenue decreased 0.7% in the quarter, primarily as a result of lower volumes. Segment operating income was $7.6 million in the quarter compared to $7.7 million in 2022’s second quarter, a decrease of 1.9%. Local currency operating income increased 0.9% in the quarter.
- Operating income benefited from higher pricing, which was offset by lower volumes and higher input costs. Foreign currency translation decreased segment revenue and operating income by approximately 3% in the quarter.
Corporate & Other reported an operating loss of $9.7 million in the current quarter compared to $13.7 million in 2022's second quarter, a decrease of 29.3%, primarily due to lower performance-based compensation.
