Sensient Technologies reported a strong third quarter for 2024, with consolidated revenue increasing by 7.9% to $392.6 million compared to the prior year. Operating income also saw a notable rise of 13.4% to $50.5 million. Diluted earnings per share (GAAP) for the quarter was $0.77, with adjusted diluted EPS reaching $0.80.
The Flavors & Extracts Group reported revenue of $203.3 million, an increase of $12.3 million, driven by higher volumes and pricing. The Color Group's revenue grew by $17.1 million to $162.1 million, also benefiting from increased volumes and pricing across all product lines. The Asia Pacific Group contributed $41.8 million in revenue, up $5.0 million, with growth across nearly all geographies.
Sensient reaffirmed its full-year 2024 guidance, projecting high single-digit local currency revenue growth and high single-digit local currency adjusted EBITDA growth. The company also anticipates mid-single-digit local currency adjusted EPS growth for the year. These projections reflect confidence in continued solid performance.
The company noted the FDA's ban on Red 3, effective January 15, 2027, which represents less than 0.5% of total company revenue. Sensient has a portfolio of replacement natural colors available to support customer conversions. This shift to natural colors presents a significant opportunity, as natural color sales volumes can be up to 10 times more than synthetic color sales volumes.
Sensient recently acquired Biolie, a small French startup specializing in natural color extraction, which will initially benefit its personal care product line. The company also reported capital expenditures of approximately $60 million in 2024, with plans to increase to $70 million to $80 million in 2025 to support future growth. Its leverage ratio improved to 2.3 at the end of 2024 from 2.6 at the end of 2023.
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