Sensient Technologies Corp (NYSE:SXT)
$ 90.99 +10.85 (+13.54%) Market Cap: 3.86 Bil Enterprise Value: 4.47 Bil PE Ratio: 30.95 PB Ratio: 3.62 GF Score: 85/100
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Q4 2024 Sensient Technologies Corp Earnings Call Transcript

Feb 14, 2025 / 02:30PM GMT
Release Date Price: $71.23 (-7.49%)

Key Points

Positve
  • Sensient Technologies Corp (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 (SXT) anticipates continued growth opportunities in natural colors, driven by increasing consumer demand and regulatory shifts.
Negative
  • Foreign currency translation reduced EPS by approximately 1% in the fourth quarter of 2024.
  • The company faces potential headwinds from tariffs, which could impact pricing and profitability.
  • Sensient Technologies Corp (SXT) expects a foreign exchange headwind of approximately $0.10 to $0.15 in 2025.
  • The conversion from synthetic to natural colors may lead to some gross margin erosion due to higher raw material costs.
  • The first quarter of 2025 is expected to start slowly, with projected local currency revenue growth between 3% and 5%.
Operator

Good morning and welcome to the Sensient Technologies Corporation 2024 fourth quarter and year-end earnings conference call. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Mr. Tobin Tornehl. Please go ahead, sir.

Tobin Tornehl
Sensient Technologies Corp - Chief Financial Officer, Chief Accounting Officer, Vice President, Controller

Good morning. Welcome to the Sensient earnings call for the fourth quarter and full year of 2024. I'm Tobin Thornell, Vice President and Chief Financial Officer of Sensient Technologies Corporation. I'm joined today by Paul Manning, Sensient's Chairman, President, and Chief Executive Officer.

Earlier today, we released our 2024 fourth quarter and full year results. A copy of the earnings release and the slides we'll be using during today's call are available on the investor relations section of our website at sensient.com.

During our call today, we will reference certain non-GAAP financial measures which remove the impact of currency

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