Sensient Technologies Corporation reported consolidated revenue of $355.5 million in this year’s first quarter compared to $359.7 million in last year’s first quarter. Reported operating income in the first quarter of 2022 was $52.8 million compared to $46.9 million in the first quarter of 2021. Reported diluted earnings per share was 88 cents in the first quarter of 2022 compared to 75 cents in the first quarter of 2021. Foreign currency translation decreased revenue by approximately 2% and earnings per share by approximately 4% in the quarter.

 

The 2021 first quarter reported results include divestiture & other related costs and operational improvement plan costs, which in total decreased 2021 first quarter diluted earnings per share by $0.07. The 2021 first quarter reported results also include the operations of the divested product lines, which increased diluted earnings per share by $0.05. 

 

The Flavors & Extracts Group reported first quarter revenue of $182.7 million compared to $200.9 million reported in the comparable period last year, a decrease of 9.1%, primarily due to the divestiture of the Fragrances product line in April 2021. Adjusted local currency revenue increased 5.1% in the quarter. The higher adjusted local currency revenue was primarily the result of favorable pricing and volume growth in flavors, extracts & flavor ingredients, and favorable pricing in natural ingredients, partially offset by lower volumes in natural ingredients. The lower volumes in natural ingredients were primarily a result of a limited supply of onion combined with strong 2021 demand. Segment operating income was $27.6 million in the current quarter compared to $27.0 million reported in the comparable period last year, an increase of 2.1%. Adjusted local currency operating income increased 14.7% in the quarter. The higher operating income was primarily due to the favorable pricing and volume growth in flavors, extracts & flavor ingredients, and favorable pricing in natural ingredients, partially offset by higher input costs. Foreign currency translation decreased segment revenue by approximately 2% and segment operating income by approximately 1% in the quarter. Segment operating income as a percent of revenue in the first quarter of 2022 rose to 15.1%.

 

The Color Group reported revenue of $148.4 million in the quarter compared to $135.7 million in last year’s comparable period, an increase of 9.4%. Adjusted local currency revenue increased 11.8% in the quarter. The Group experienced strong volume growth and higher pricing in both Food & Pharmaceutical Colors and Personal Care. Segment operating income was $30.7 million in the quarter compared to $26.6 million in last year’s comparable period, an increase of 15.3%. Adjusted local currency operating income increased 17.5% compared to the prior year’s first quarter. The higher operating income is primarily a result of the higher volumes and favorable pricing, partially offset by higher input costs. Foreign currency translation decreased both segment revenue and operating income by approximately 2% in the quarter. Segment operating income as a percent of revenue in the first quarter of 2022 rose to 20.7%.

 

Sensient now expects 2022 full year GAAP diluted earnings per share to grow at a high-teen growth rate compared to the Company’s 2021 reported GAAP diluted earnings per share of $2.81. The Company’s previous 2022 GAAP diluted earnings per share guidance was for a mid-teen growth rate. Our full year 2022 guidance does not include any material divestiture & other related costs, operational improvement plan costs, or results of divested businesses.

 

The Company now expects 2022 revenue to grow at a mid-to-high single-digit rate in local currency compared to the Company’s 2021 adjusted revenue. The Company’s previous 2022 revenue guidance was for a mid-single-digit growth rate in local currency. The Company now expects 2022 adjusted EBITDA and diluted earnings per share to grow at a high single- to double-digit rate in local currency compared to the Company’s 2021 adjusted EBITDA and the Company’s 2021 adjusted diluted earnings per share of $3.13. The Company’s previous guidance for 2022 adjusted EBITDA and diluted earnings per share was for a high single-digit growth rate in local currency.

 

The Company now expects earnings per share reported on a U.S. dollar basis to be impacted by approximately twelve cents of foreign currency headwinds based on current exchange rates.

 

The Company’s guidance is based upon current trends, current tax law, and the effects of COVID-19 to date. The full impacts of the ongoing COVID-19 pandemic remain uncertain and management will continue to monitor its impacts on our business.