The company completed the acquisition of the natural colors business of GlobeNatural, a natural food and ingredient company based in Lima, Peru, in the first quarter. The natural colors of this business are used in a wide range of food and beverage applications and give Sensient expanded natural colors production capacity.
The Color Group reported revenue of $147.2 million in the quarter and $134.1 million in last year’s first quarter, an increase of approximately 10%. Segment operating income increased approximately 11% to $33.7 million in the quarter from $30.2 million in last year’s first quarter. The group’s strong performance was driven primarily by outstanding new wins in cosmetics and natural colors.
The Flavors & Fragrances Group reported revenue of $188.3 million in the quarter and $186.9 million in last year’s first quarter. Segment operating income decreased to $25.3 million in the quarter from $28.8 million in last year’s first quarter. The group’s lower profit was a result of higher onion costs, lower onion pricing, and higher fragrance raw material costs.
The Asia Pacific Group reported revenue of $30.3 million in the current quarter compared to $29.6 million in last year’s first quarter. Segment operating income decreased to $4.9 million in the quarter from $5.2 million in the comparable period last year.
“The Color Group had another strong quarter, led by cosmetics and food and beverage colors,” said Paul Manning, chairman, president and CEO of Sensient Technologies Corporation. “We are off to a strong start in the second quarter in the Color Group. Results in our Asia Pacific Group are also off to a strong start in the second quarter. Within Flavors & Fragrances, many of the businesses continue to perform well, and the completion of the restructuring program has created a strong foundation for growth. While we now expect the onion headwind to continue through the end of the third quarter, this is a short-term issue that will resolve itself this year. I remain very optimistic about the company’s future.”