Sensient Technologies Reports Results for the Quarter Ended June 30, 2018

Sensient Technologies reported earnings per share of 92 cents in the second quarter of 2018 compared to 69 cents in the second quarter of 2017. Revenue was $363 million in this year’s second quarter compared to $338.5 million in last year’s second quarter. Operating income was $52.2 million in the second quarter of 2018 and $44.4 million in last year’s second quarter.
 
For the six months ended June 30, 2018 and 2017, earnings per share were $1.81 and 99 cents, respectively. Revenue was $719.5 million for the first six months of 2018 and $679.9 million for the first six months of 2017. Operating income was $107.9 million and $68.4 million in the first six months of 2018 and 2017, respectively.
 
The Color Group reported revenue of $144.3 million in the quarter, an increase of approximately 9% over last year’s second quarter revenue of $132.9 million. Segment operating income increased approximately 7% to $31.1 million in the quarter from $29.1 million in last year’s comparable quarter. Foreign currency translation increased quarterly revenue and operating income by approximately 1% and 2%, respectively. The Group’s performance was driven by continued strong demand for cosmetics and natural food colors.
 
For the first six months of 2018, the Color Group reported revenue of $291.5 million compared to $267.0 million in the first six months of 2017, an increase of approximately 9%. Operating income increased by approximately 9% to $64.8 million in the first six months of 2018 from $59.3 million in the first six months of 2017. Foreign currency translation increased both revenue and operating income in the first six months of 2018 by approximately 4%.
 
The Flavors & Fragrances Group reported revenue of $198.7 million in the quarter, an increase of approximately 7% over last year’s second quarter revenue of $185.6 million. Segment operating income was $24.0 million in this year’s second quarter and $28.5 million in last year’s second quarter. Foreign currency translation increased revenue by approximately 2% in the quarter and had minimal impact on operating income in the quarter. The Group’s lower profit was a result of higher onion costs, lower onion pricing, lower volumes at the production site affected by last year’s plant consolidation, and ongoing market declines in several key dairy categories.
 
For the first six months of 2018, the Flavors & Fragrances Group reported revenue of $387.0 million compared to $372.4 million in the first six months of 2017, an increase of approximately 4%. Operating income was $49.3 million and $57.3 million for the first six months of 2018 and 2017, respectively.
 
The Asia Pacific Group reported revenue of $30.5 million in the current quarter, an increase of approximately 5% compared to $28.9 million in last year’s comparable quarter. Operating income increased by approximately 21% to $4.6 million in the current quarter compared to $3.8 million reported in last year’s quarter. Revenue for the first six months of 2018 was $60.8 million compared to $58.6 million in the first six months of 2017, an increase of approximately 4%. Operating income increased 6% in the first six months of 2018 to $9.5 million from $9.0 million reported in the first six months of 2017. Foreign currency translation increased revenue by approximately 3% and operating income by approximately 5% in first six months of 2018.
 
“Sensient delivered solid results in the second quarter, with revenue growth in each of the company’s reporting segments,” said Paul Manning, chairman, president and CEO of Sensient Technologies Corporation. “Color had another strong quarter driven by strong demand for cosmetic ingredients and natural food colors, and Flavors & Fragrances performance was in line with my expectations. I remain very optimistic about the company’s future.”