Sensient Technologies reported a strong finish to 2024, with fourth-quarter consolidated revenue increasing 7.8% to $376.4 million compared to the prior year. Full-year 2024 revenue reached $1.557 billion, up 6.9% from the prior year. Diluted earnings per share (GAAP) for Q4 was $0.71, and $2.94 for the full year.
The Color Group delivered 14% local currency revenue growth in Q4 and 7.3% for the full year, driven by outstanding volume growth in all product lines. The Flavors & Extracts Group saw 3.4% local currency revenue growth in Q4 and 7.1% for the full year, benefiting from new sales wins. The Asia Pacific Group achieved exceptional Q4 local currency revenue growth of 25.2% and 13% for the full year, with strong performance across regions.
For 2025, Sensient projects consolidated local currency revenue to grow at a mid-single-digit rate, with low single-digit pricing and low to mid-single-digit volume growth. This is expected to translate into mid to high single-digit local currency adjusted EBITDA growth. The company anticipates high single-digit to double-digit local currency adjusted EPS growth for the year.
The Portfolio Optimization Plan is on track for completion by the end of 2025, expected to generate $8 million to $10 million in annual operating cost savings. Capital expenditures are projected to be between $70 million and $80 million in 2025, supporting internal growth opportunities. The company also noted its recent acquisition of Biolie, a French startup focused on natural color extraction.
Management highlighted the ongoing shift from synthetic to natural colors, noting the FDA's ban on Red 3 effective January 15, 2027. Sensient, with its comprehensive natural color portfolio, is well-positioned to capitalize on this trend, as natural color sales volumes can be up to 10 times greater than synthetic volumes. Natural colors currently represent approximately 60% of the Color Group's food and pharmaceutical revenue.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.