Sensient Technologies Corporation reported consolidated revenue of $344.3 million in this year’s third quarter compared to $323.6 million in last year’s third quarter. Reported operating income in the third quarter of 2021 was $47.0 million compared to $41.2 million in the third quarter of 2020. Reported diluted earnings per share was 80 cents in the third quarter of 2021 compared to 78 cents in the third quarter of 2020. Foreign currency translation increased revenue by approximately 1% and was not material to earnings per share in the quarter.

 

The 2021 third quarter reported results include divestiture & other related costs and operational improvement plan costs, which in total decreased third quarter net earnings by $1.8 million ($0.04 per diluted share). The 2020 third quarter reported results include divestiture & other related costs and operational improvement plan costs, which decreased net earnings by $1.4 million ($0.03 per diluted share). The 2021 and 2020 third quarter results also include the operations of the divested product lines, which included $1.6 million of revenue and were not material to diluted earnings per share in the third quarter of 2021, and included $23.6 million of revenue and increased diluted earnings per share by $0.04 in the third quarter of 2020. 

 

The Flavors & Extracts Group reported third quarter revenue of $181.7 million compared to $182.9 million reported in the comparable period last year, a decrease of 0.7%, primarily due to the divestiture of the Fragrances product line in April 2021. Adjusted local currency revenue increased 11.6% in the quarter. The higher adjusted local currency revenue was primarily the result of favorable volume growth. Segment operating income was $25.2 million in the current quarter compared to $23.8 million reported in the comparable period last year, an increase of 5.5%. Adjusted local currency operating income increased 16.0% in the quarter. The Group’s higher profit was primarily a result of the favorable volume growth. The acquisition of Flavor Solutions, Inc. during the third quarter contributed $2.4 million of revenue and an immaterial amount of operating income to the Flavors & Extracts Group. Foreign currency translation increased both segment revenue and operating income by approximately 1% in the quarter.

 

The Color Group reported revenue of $139.2 million in the quarter compared to $116.4 million in last year’s comparable period, an increase of 19.6%. Adjusted local currency revenue increased 18.1% in the quarter. The Group experienced strong volume growth in Food & Pharmaceutical Colors and in Personal Care. Segment operating income was $27.3 million in the quarter compared to $23.6 million in last year’s comparable period, an increase of 15.7%. Adjusted local currency operating income increased 14.8% compared to the prior year’s third quarter. The higher operating income is primarily a result of the higher volumes. Foreign currency translation increased both segment revenue and operating income by approximately 2% in the quarter.

 

The Asia Pacific Group reported revenue of $33.4 million in the quarter compared to $30.7 million in last year’s comparable period, an increase of 8.8%. Adjusted local currency revenue increased 9.5% in the quarter. Segment operating income was $6.6 million in the quarter compared to $6.1 million in last year’s comparable quarter, an increase of 7.8%. Adjusted local currency operating income increased 10.5% in the quarter. The higher profit was primarily a result of the favorable volume growth. Foreign currency translation decreased segment revenue and operating income by approximately 1% and 2%, respectively, in the quarter.

 

Sensient is reconfirming its previously issued 2021 guidance for GAAP diluted earnings per share to grow at a mid-to-high single-digit growth rate compared to the Company’s 2020 reported GAAP diluted earnings per share of $2.59. Our full year 2021 guidance includes approximately 25 cents per share of estimated divestiture & other related costs, the results of the divested operations, and the operational improvement plan costs.

 

The Company now expects its 2021 adjusted local currency revenue to grow at a high single-digit rate. The Company’s previous 2021 guidance for adjusted local currency revenue was a mid-single-digit growth rate. The Company also now expects its 2021 adjusted local currency EBITDA and adjusted diluted earnings per share, on a local currency basis, to grow at a mid-to-high single-digit growth rate. The Company’s previous 2021 adjusted local currency EBITDA and adjusted diluted earnings per share called for a mid-single-digit growth rate.