Sensient Technologies reported a solid start to 2025, with first-quarter consolidated revenue increasing 2.0% to $392.3 million compared to the prior year. Operating income grew by 8.3% to $53.5 million. Diluted earnings per share (GAAP) for the quarter was $0.81, with adjusted diluted EPS reaching $0.86.
The Color Group achieved revenue growth of 4.8% to $167.8 million, driven by broad-based increases across all product lines. Its operating income rose by 10.0% to $34.9 million, with an adjusted EBITDA margin of 24.4%, up 120 basis points. The Flavors & Extracts Group saw a modest revenue increase of 0.3% to $193.7 million, with higher volumes in core flavor lines offsetting declines in natural ingredients.
The Asia Pacific Group posted revenue of $41.9 million, up 4.0%, with growth across nearly all geographies. Its operating income increased by 7.6% to $9.4 million. Sensient reaffirmed its full-year 2025 guidance, projecting mid-single-digit local currency revenue growth and high single-digit to double-digit local currency adjusted EPS growth.
The company emphasized the significant opportunity in the synthetic to natural color conversion, particularly in the U.S. and Latin America, where its synthetic colors revenue for food and pharmaceutical markets is approximately $110 million. This conversion can result in a revenue factor of nearly 10-to-1 for natural colors. Natural colors continue to grow above the company's overall mid-term outlook.
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