8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

April 28, 2023

(Date of Report/Date of earliest event reported)

SENSIENT TECHNOLOGIES CORPORATION

(Exact name of registrant as specified in its charter)

Wisconsin	001-07626	39-0561070
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

777 East Wisconsin Avenue

Milwaukee, Wisconsin 53202-5304

(Address and zip code of principal executive offices)

(414) 271-6755

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.10 per share	SXT	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

Sensient Technologies Corporation (the “Company”) issued a press release on April 28, 2023, disclosing its results of operations for its quarter ended March 31, 2023, and its financial condition at that date. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 2.02 (including Exhibit 99.1) is intended to be furnished under Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.

Item 7.01 Regulation FD Disclosure.

On April 28, 2023, the Company also posted an updated investor presentation for its quarter ended March 31, 2023, on the “Investor Information” section of its website.  A copy of the investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information contained in this Item 7.01 (including Exhibit 99.2) is intended to be furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The following exhibits are furnished with this Current Report on Form 8-K:

EXHIBIT INDEX

Exhibit Number	Description
99.1	Sensient Technologies Corporation Earnings Press Release for the Quarter Ended March 31, 2023.
99.2	Sensient Technologies Corporation Investor Presentation – Q1 2023.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SENSIENT TECHNOLOGIES CORPORATION
By:	/s/ John J. Manning
Name:	John J. Manning
Title:	Senior Vice President, General Counsel, and Secretary
Date:	April 28, 2023

EX-99.1

Exhibit 99.1

Contact: Amy Agallar

(414) 347-3706

Sensient Technologies Corporation

Reports Results for the Quarter Ended March 31, 2023

MILWAUKEE— April 28, 2023 — Sensient Technologies Corporation (NYSE: SXT) reported consolidated revenue of $369.0 million in this year’s first quarter compared to $355.5 million in last year’s first quarter. Reported operating income in the first quarter of 2023 was $50.8 million compared to $52.8 million in the first quarter of 2022. Reported diluted earnings per share was 80 cents in the first quarter of 2023 compared to 88 cents in the first quarter of 2022. Foreign currency translation decreased revenue by approximately 1% and earnings per share by approximately 2% in the current quarter.

BUSINESS REVIEW

	Reported
Revenue	Quarter
Flavors & Extracts		-2.1	%
Color		8.6	%
Asia Pacific		9.9	%
Total Revenue		3.8	%

	Local Currency (1) Quarter
Revenue
Flavors & Extracts		-1.3	%
Color		10.0	%
Asia Pacific		14.6	%
Total Revenue		5.2	%
(1) Local currency percentage changes are described in more detail in the "Reconciliation of Non-GAAP Amounts" at the end of this release.

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Sensient Technologies Corporation	Page 2
Earnings Release – Quarter Ended March 31, 2023
April 28, 2023

The Flavors & Extracts Group reported first quarter revenue of $178.9 million compared to $182.7 million in last year’s first quarter, a decrease of 2.1%. Local currency revenue decreased 1.3% in the quarter. The Group’s revenue was negatively impacted by lower volumes, primarily due to customer destocking in certain product lines, partially offset by favorable pricing. Segment operating income was $22.2 million in the current quarter compared to $27.6 million reported in the comparable period last year, a decrease of 19.6%. Local currency operating income decreased 19.5% in the quarter. The lower operating income was primarily due to the lower volumes and higher input costs, partially offset by favorable pricing. Foreign currency translation decreased segment revenue by approximately 1% and was not material to segment operating income in the quarter.

The Color Group reported revenue of $161.2 million in the quarter compared to $148.4 million in last year’s first quarter, an increase of 8.6%. Local currency revenue increased 10.0% in the quarter. The Group benefited from higher pricing and higher volumes in the food and pharmaceutical product line, offset by lower volumes in the personal care product line, primarily due to customer destocking. Segment operating income was $31.9 million in the quarter compared to $30.7 million in last year’s comparable period, an increase of 4.0%. Local currency operating income increased 6.3% compared to the prior year’s first quarter. The higher operating income is primarily a result of the favorable pricing, partially offset by higher input costs. Foreign currency translation decreased segment revenue by approximately 1% and segment operating income by approximately 2% in the quarter.

The Asia Pacific Group reported revenue of $40.1 million in the quarter compared to $36.5 million in last year’s first quarter, an increase of 9.9%. Local currency revenue increased 14.6% in the quarter, primarily as a result of higher volumes and higher pricing. Segment operating income was $9.2 million in the quarter compared to $8.2 million in last year’s first quarter, an increase of 12.6%. Local currency operating income increased 18.0% in the quarter, primarily as a result of the higher volumes and pricing, partially offset by higher input costs. Foreign currency translation decreased segment revenue and operating income by approximately 5% in the quarter.

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Sensient Technologies Corporation	Page 3
Earnings Release – Quarter Ended March 31, 2023
April 28, 2023

Corporate & Other reported an operating loss of $12.5 million in the current quarter compared to $13.7 million in last year’s first quarter, a decrease of 8.7%, primarily due to lower performance-based compensation.

2023 OUTLOOK

Sensient is reconfirming its expectation for the 2023 full year GAAP diluted earnings per share to be flat to low-single digit growth compared to our 2022 reported GAAP diluted earnings per share of $3.34.

The Company continues to expect 2023 revenue to grow at a mid-single digit rate on a local currency basis compared to the Company’s 2022 revenue. The Company continues to expect 2023 diluted earnings per share to be flat to low-single digit growth on a local currency basis compared to the Company’s 2022 adjusted diluted earnings per share⁽²⁾ of $3.29. The Company continues to expect 2023 adjusted EBITDA⁽²⁾ to grow at a mid-to-high single digit rate on a local currency basis compared to the Company’s 2022 adjusted EBITDA⁽²⁾.

The Company expects its 2023 diluted earnings per share to be impacted by higher interest rates and a higher tax rate.  Based on current exchange rates, the Company expects foreign exchange rates to be modestly favorable for the full year.

The Company’s guidance is based on current conditions and economic and market trends in the markets in which the Company operates and is subject to various risks and uncertainties as described below.  We do not anticipate any divestiture related costs, operational improvement plan costs, or results of divested business in 2023 at this time.

⁽²⁾ See “Reconciliation of Non-GAAP Amounts” at the end of this release for more information.

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Sensient Technologies Corporation	Page 4
Earnings Release – Quarter Ended March 31, 2023
April 28, 2023

USE OF NON-GAAP FINANCIAL MEASURES

The Company’s non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include: currency movements, depreciation and amortization, divestiture and other related costs and income, and non-cash share-based compensation. These measures are provided to enhance the overall understanding of the Company’s performance when viewed together with the GAAP results. Refer to “Reconciliation of Non-GAAP Amounts” at the end of this release.

CONFERENCE CALL

The Company will host a conference call to discuss its 2023 first quarter financial results at 8:30 a.m. CDT on Friday, April 28, 2023. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company’s web site at www.sensient.com.

A replay of the call will be available one hour after the end of the conference call through May 5, 2023, by calling (877) 344-7529 and referring to conference identification number 5575502. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company’s web site at www.sensient.com on or after May 2, 2023.

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Sensient Technologies Corporation	Page 5
Earnings Release – Quarter Ended March 31, 2023
April 28, 2023

This release contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2023 Outlook” above. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: the Company’s ability to manage economic and capital market conditions and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies; the availability and cost of labor, logistics, and transportation; the impact and uncertainty created by the COVID-19 pandemic and efforts to manage it on the global economy, including, but not limited to, its effects on our employees, facilities, customers, and suppliers, governmental regulations and restrictions, and general economic conditions; the uncertain impacts of the ongoing conflict between Russia and Ukraine on our supply chain, input costs, including energy and transportation, and on general economic conditions; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences and changing technologies; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and operational improvement plan; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; currency exchange rate fluctuations; and other factors included in “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.

ABOUT SENSIENT TECHNOLOGIES

Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients.  Sensient uses advanced technologies and robust global supply chain capabilities to develop specialized solutions for food and beverages, as well as products that serve the pharmaceutical, nutraceutical, and personal care industries. Sensient’s customers range in size from small entrepreneurial businesses to major international manufacturers representing some of the world’s best-known brands.  Sensient is headquartered in Milwaukee, Wisconsin.

www.sensient.com

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Sensient Technologies Corporation	Page 6
(In thousands, except percentages and per share amounts)
(Unaudited)

Consolidated Statements of Earnings	Three Months Ended March 31,
	2023		2022		% Change
Revenue	$	369,006	$	355,521		3.8	%
Cost of products sold		244,343		230,675		5.9	%
Selling and administrative expenses		73,825		72,057		2.5	%
Operating income		50,838		52,789		(3.7	%)
Interest expense		6,002		2,993
Earnings before income taxes		44,836		49,796
Income taxes		11,185		12,725
Net earnings	$	33,651	$	37,071		(9.2	%)
Earnings per share of common stock:
Basic	$	0.80	$	0.89
Diluted	$	0.80	$	0.88
Average common shares outstanding:
Basic		41,970		41,865
Diluted		42,255		42,148

Results by Segment	Three Months Ended March 31,
	2023			2022			% Change
Revenue
Flavors & Extracts	$	178,852		$	182,727			(2.1	%)
Color		161,161			148,438			8.6	%
Asia Pacific		40,085			36,465			9.9	%
Intersegment elimination		(11,092	)		(12,109	)
Consolidated	$	369,006		$	355,521			3.8	%
Operating Income
Flavors & Extracts	$	22,180		$	27,579			(19.6	%)
Color		31,885			30,657			4.0	%
Asia Pacific		9,241			8,204			12.6	%
Corporate & Other		(12,468	)		(13,651	)
Consolidated	$	50,838		$	52,789			(3.7	%)

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Sensient Technologies Corporation	Page 7
(In thousands)
(Unaudited)

 

Consolidated Condensed Balance Sheets	March 31, 2023		December 31, 2022
Cash and cash equivalents	$	24,017	$	20,921
Trade accounts receivable		312,530		302,109
Inventories		573,706		564,110
Prepaid expenses and other current assets		49,639		47,640
Total Current Assets		959,892		934,780
Goodwill & intangible assets (net)		437,871		434,315
Property, plant, and equipment (net)		493,779		483,193
Other assets		131,185		129,326
Total Assets	$	2,022,727	$	1,981,614
Trade accounts payable	$	121,290	$	142,365
Short-term borrowings		24,849		20,373
Other current liabilities		88,512		109,415
Total Current Liabilities		234,651		272,153
Long-term debt		679,779		630,331
Accrued employee and retiree benefits		27,224		26,364
Other liabilities		52,852		53,168
Shareholders' Equity		1,028,221		999,598
Total Liabilities and Shareholders' Equity	$	2,022,727	$	1,981,614

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Sensient Technologies Corporation	Page 8
(In thousands, except per share amounts)
(Unaudited)

Consolidated Statements of Cash Flows
Three Months Ended March 31,
	2023			2022
Cash flows from operating activities:
Net earnings	$	33,651		$	37,071
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization		14,150			13,056
Share-based compensation expense		2,267			4,163
Net loss (gain) on assets		8			(48	)
Deferred income taxes		(2,351	)		4,211
Changes in operating assets and liabilities:
Trade accounts receivable		(7,142	)		(20,841	)
Inventories		(4,374	)		(11,901	)
Prepaid expenses and other assets		(2,062	)		(11,111	)
Trade accounts payable and other accrued expenses		(19,251	)		(10,267	)
Accrued salaries, wages, and withholdings		(21,187	)		(12,425	)
Income taxes		2,548			7,063
Other liabilities		698			137
Net cash used in operating activities		(3,045	)		(892	)
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(22,278	)		(12,736	)
Proceeds from sale of assets		1			89
Other investing activities		(602	)		434
Net cash used in investing activities		(22,879	)		(12,213	)
Cash flows from financing activities:
Proceeds from additional borrowings		50,827			40,099
Debt payments		(1,351	)		(6,275	)
Dividends paid		(17,255	)		(17,211	)
Other financing activities		(7,669	)		(1,679	)
Net cash provided by financing activities		24,552			14,934
Effect of exchange rate changes on cash and cash equivalents		4,468			4,606
Net increase in cash and cash equivalents		3,096			6,435
Cash and cash equivalents at beginning of period		20,921			25,740
Cash and cash equivalents at end of period	$	24,017		$	32,175
Supplemental Information
Three Months Ended March 31,		2023			2022
Dividends paid per share	$	0.41		$	0.41

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Sensient Technologies Corporation	Page 9
(In thousands, except percentages)
(Unaudited)

 

Reconciliation of Non-GAAP Amounts

The following table summarizes the percentage change in the 2023 results compared to the 2022 results for the corresponding periods.

	Three Months Ended March 31,
Revenue	Total			Foreign Exchange Rates			Local Currency
Flavors & Extracts		(2.1	%)		(0.8	%)		(1.3	%)
Color		8.6	%		(1.4	%)		10.0	%
Asia Pacific		9.9	%		(4.7	%)		14.6	%
Total Revenue		3.8	%		(1.4	%)		5.2	%
Operating Income
Flavors & Extracts		(19.6	%)		(0.1	%)		(19.5	%)
Color		4.0	%		(2.3	%)		6.3	%
Asia Pacific		12.6	%		(5.4	%)		18.0	%
Corporate & Other		(8.7	%)		(0.1	%)		(8.6	%)
Total Operating Income		(3.7	%)		(2.2	%)		(1.5	%)
Diluted Earnings Per Share		(9.1	%)		(2.3	%)		(6.8	%)
Adjusted EBITDA		(3.9	%)		(1.9	%)		(2.0	%)

The following table summarizes the reconciliations between Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2023 and 2022.

	Three Months Ended March 31,
	2023		2022		% Change
Operating income (GAAP)	$	50,838	$	52,789		(3.7	%)
Depreciation and amortization		14,150		13,056
Share-based compensation expense		2,267		4,163
Adjusted EBITDA	$	67,255	$	70,008		(3.9	%)

The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the trailing twelve months ended March 31, 2023 and 2022.

	March 31,
Debt	2023			2022
Short-term borrowings	$	24,849		$	7,475
Long-term debt		679,779			530,005
Credit Agreement adjustments(1)		(11,525	)		(18,590	)
Net Debt	$	693,103		$	518,890
Operating income (GAAP)	$	194,800		$	175,920
Depreciation and amortization		53,561			52,308
Share-based compensation expense		14,242			11,623
Other non-operating (gains) losses(2)		(3,359	)		8,544
Credit Adjusted EBITDA	$	259,244		$	248,395
Net Debt to Credit Adjusted EBITDA		2.7	x		2.1	x

⁽¹⁾ Adjustments include cash and cash equivalents, as described in the Company's Third Amended and Restated Credit Agreement (Credit Agreement), and certain letters of credit and hedge contracts.

⁽²⁾ Adjustments consist of certain financing transaction costs, certain non-financing interest items, and gains and losses related to certain non-cash, non-operating, and/or non-recurring items as described in the Credit Agreement.

The following table summarizes the reconciliation between Diluted Earnings Per Share (GAAP) and Adjusted Diluted Earnings Per Share for the twelve months ended December 31, 2022.

Twelve Months Ended December 31,
	2022
Diluted earnings per share (GAAP)	$	3.34
Divestiture & other related income, net of tax		(0.04	)
Adjusted diluted earnings per share	$	3.29

Note: Earnings per share calculations may not foot due to rounding differences.

We have included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable period-over-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this release and our SEC filings. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and we believe the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies. With respect to Net Debt to Credit Adjusted EBITDA, this represents our leverage ratio as calculated for purposes of compliance with covenants under our Credit Agreement.  In addition to use for these purposes, management utilizes this measure to assess leverage trends and may from time to time disclose it to investors to be used for these purposes.

EX-99.2

Exhibit 99.2

 First Quarter 2023  Investor Presentation 

 FORWARD-LOOKING STATEMENTS  2  This document contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws including under “2023 Financial Outlook” in this presentation. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: the Company’s ability to manage economic and capital market conditions and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies; the availability and cost of labor, logistics, and transportation; the impact and uncertainty created by the COVID-19 pandemic and efforts to manage it on the global economy, including, but not limited to, its effects on our employees, facilities, customers, and suppliers, governmental regulations and restrictions, and general economic conditions; the uncertain impacts of the ongoing conflict between Russia and Ukraine on our supply chain, input costs, including energy and transportation, and on general economic conditions; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences and changing technologies; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and operational improvement plan; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; currency exchange rate fluctuations; and other factors included in “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This presentation contains time-sensitive information that reflects management’s best analysis only as of the date of this presentation. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized. 

 NON-GAAP FINANCIAL MEASURES  2  Within this document, the Company reports certain non-GAAP financial measures, including: (1) percentage changes in revenue, operating income, diluted earnings per share, and adjusted EBITDA on a local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars), and (2) adjusted EBITDA (which excludes depreciation and amortization expense, and non-cash share based compensation expense). The Company has included each of these non-GAAP measures in order to provide additional information regarding the underlying operating results and comparable period-over-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this presentation and the Company’s SEC filings. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends. The Company believes this information can be beneficial to investors for these same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies. Refer to “Non-GAAP Financial Measures” at the end of this presentation for reconciliations and additional information. 

 Sensient Overview  2  Provider of customized solutions for food and beverage, pharmaceutical, and personal care customers  Global market leader offering an extensive portfolio of natural flavor and color technology platforms and solutions  Exceptional innovation & applications expertise with unique  ability to service global, regional, and local customers 

 Innovative Technologies Creating Unique Solutions  2  Applications expertise and solutions-based selling  High impact relative to cost  Technically-driven products that are difficult to replace Strong consumer trends  Opportunities to grow organically and through M&A 

 Focusing our portfolio and strengthening our commitment to the end markets  2  Investing in core focus areas of Flavors and Extracts, Natural Ingredients, Food and Pharmaceutical Colors, and Personal Care  Divested non-core product lines (inks, fragrances, and yogurt fruit prep product lines) in 2020 and 2021  Expanded flavor portfolio and strengthened technical solutions capabilities  through the acquisition of Flavor Solutions, Inc. in July 2021  Strengthened extensive natural color portfolio by acquiring Endemix, a vertically integrated natural color and extracts company, in October 2022 

 Natural solutions provider focused on consistent and sustainable supply chain  2  Provider of natural solutions to support health & wellness and clean label consumer trends  Robust agronomy program ensures responsible procurement and traceability of sustainable ingredients  Committed to delivering safe, authentic, high-quality natural  products through Sensient’s CertasureTM program 

 8  Global Revenue by Group  2022 Global Revenues include intercompany sales which are eliminated on a consolidated basis.  Color Group  2022 Revenue: $604M  Core Areas of Focus: Food and Pharmaceutical Colors and Personal Care  Flavors & Extracts Group  2022 Revenue: $738M  Core Areas of Focus: Natural Flavors, Extracts and Natural Ingredients  Asia Pacific Group  2022 Revenue: $144M  Core Areas of Focus: Flavors and Colors for food and beverage 

 9  Global market leader  Natural color innovator Excellent innovation &  applications expertise  Color Group 

 10  Color Overview  Food and  Pharmaceutical  73% of 2022 Segment Revenue  LC Revenue Change*  Q1 ’23 +16.2%  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts  Personal Care 27% of  2022 Segment Revenue  LC Revenue Q1 ’23  Change* • Demand for innovative products with multiple benefits (2.9%) • Product line includes dyes, pigments, formulation aides and  ingredients for color cosmetics, hair care, and skin care  2022 Revenue: $604M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. 

 10  Color Overview  Food and  Pharmaceutical  73% of 2022 Segment Revenue  LC Revenue Change*  Q1 ’23 +16.2%  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts   Personal Care   27% of 2022 Segment Revenue  2022 Revenue: $604M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.  LC Revenue Change*  Q1 ’23 (+2.9%)   Demand for innovative products with multiple benefits  Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care

10  Color Overview  Food and  Pharmaceutical  73% of 2022 Segment Revenue  LC Revenue Change*  Q1 ’23 +16.2%  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts   Personal Care   27% of 2022 Segment Revenue  2022 Revenue: $604M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.  LC Revenue Change*  Q1 ’23 (+2.9%)   Demand for innovative products with multiple benefits  Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care 

10  Color Overview  Food and  Pharmaceutical  73% of 2022 Segment Revenue  LC Revenue Change*  Q1 ’23 +16.2%  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts   Personal Care   27% of 2022 Segment Revenue  2022 Revenue: $604M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.  LC Revenue Change*  Q1 ’23 (+2.9%)   Demand for innovative products with multiple benefits  Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care 

 10  Color Overview  Food and  Pharmaceutical  73% of 2022 Segment Revenue  LC Revenue Change*  Q1 ’23 +16.2%  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts   Personal Care   27% of 2022 Segment Revenue  2022 Revenue: $604M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.  LC Revenue Change*  Q1 ’23 (+2.9%)   Demand for innovative products with multiple benefits  Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care 

 10  Color Overview  Food and  Pharmaceutical  73% of 2022 Segment Revenue  LC Revenue Change*  Q1 ’23 +16.2%  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts   Personal Care   27% of 2022 Segment Revenue  2022 Revenue: $604M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.  LC Revenue Change*  Q1 ’23 (+2.9%)   Demand for innovative products with multiple benefits  Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care 

 10  Color Overview  Food and  Pharmaceutical  73% of 2022 Segment Revenue  LC Revenue Change*  Q1 ’23 +16.2%  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts   Personal Care   27% of 2022 Segment Revenue  2022 Revenue: $604M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.  LC Revenue Change*  Q1 ’23 (+2.9%)   Demand for innovative products with multiple benefits  Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care 

 

 10  Color Overview  Food and  Pharmaceutical  73% of 2022 Segment Revenue  LC Revenue Change*  Q1 ’23 +16.2%  Market trend toward natural colors in food and beverage  Unique value proposition for Pharmaceutical customers includes colors, flavors, coatings, and extracts   Personal Care   27% of 2022 Segment Revenue  2022 Revenue: $604M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document.  LC Revenue Change*  Q1 ’23 (+2.9%)   Demand for innovative products with multiple benefits  Product line includes dyes, pigments, formulation aides and ingredients for color cosmetics, hair care, and skin care 

 

 11  Flavors & Extracts Group  Broad product offering  Unique ability to service global, regional, and local customers  Leading technology platforms Outstanding applications  expertise 

 12  Flavors & Extracts Overview  Flavors, Extracts, and Flavor Ingredients  67% of 2022 Segment Revenue  LC Revenue Change* Q1 ’23 (0.1%)  Opportunities for on trend products with extracts, taste modulation, and natural flavors  Natural  Ingredients  33% of 2022 Segment Revenue  LC Revenue Change* Q1 ’23 (3.8%)  Leading provider of dehydrated onion, garlic, and other products  2022 Revenue: $738M  *Local-currency (LC) revenue is a Non-GAAP metric, please see our GAAP to Non-GAAP Reconciliation at the end of this document. 

 13  Asia Pacific Group  Portfolio of food and beverage flavors and colors  R&D centers in key strategic markets to support local and regional customer base  Ability to deliver localized solutions and technology platforms 

 14  2022 revenue of $144 million and operating income of $29 million  Sensient’s sales of flavors and colors for Food and Pharmaceutical are  managed on a geographic basis and reported as a separate segment  Manufacturing capabilities in Australia, New Zealand, China, Japan, Philippines, Thailand, and India  Q1 2023 local currency revenue* and operating profit* improved 14.6% and 18.0%, respectively  *Local currency revenue and local currency operating profit are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document.  Asia Pacific Overview 

 15  2023 Q1 Segment Results  Flavors & Extracts Group first quarter revenue decreased due to lower volumes, partially offset by pricing actions. Lower volumes in the Group were primarily due to customer destocking. Operating income declined in the quarter primarily due to higher input costs and lower volumes, partially offset by pricing actions.  Asia Pacific Group first quarter revenue and operating income increased as a result of higher volumes and pricing actions across the Group.  Local Currency Operating Income*  Q1  Color  +6.3%  Flavors & Extracts  (19.5%)  Asia Pacific  +18.0%  Local Currency Revenue*  Local Currency* Commentary:  Q1  Color Group reported higher revenue in the quarter due to pricing  actions across the Group and volume growth in Food & Pharmaceutical, partially offset by lower Personal Care volumes. Operating income was up due to pricing actions across the Group and volume growth within Food & Pharmaceutical, partially offset by lower Personal Care volumes.  Color  +10.0%  Flavors & Extracts  (1.3%)  Asia Pacific  +14.6%  * Local-currency (LC) revenue and operating income are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 

 16  2023 Q1 Consolidated Results  Q1  Local Currency Revenue*  +5.2%  Local Currency Operating Income*  (1.5%)  Local Currency Diluted EPS*  (6.8%)  Local Currency Adjusted EBITDA*  (2.0%)  Q1 consolidated local currency revenue increased due to pricing actions across all groups and continued volume growth in Food and Pharmaceutical in the Color Group. These increases were partially offset by lower volumes in Personal Care in the Color Group and across the Flavor Group.  Q1 consolidated local currency operating income declined despite growth in the Colors and Asia Pacific Groups. Lower volumes and higher input costs contributed to the decline in operating income.  Q1 local currency diluted EPS declined as a result of the operating income headwinds and higher interest expense.  * Local-currency (LC) revenue, operating income, diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 

 Capital Allocation  rs  re  DOLLARS IN MILLIONS  $250  $200 $31  $150 $51  $87  $100 $57  $39  $50  $77 $62  $-  2018 2019  Share Repurchase  Prioritize ROI capital projects  $118 $14  $23 Maintain financial flexibility to pursue  $61  M&A  $79  $52  $67 Excess capital returned to shareholde  through dividend and opportunistic sha  $66 $69  $43 repurchases  2020 2021 2022  Acquisitions  Dividends  Debt Repayments  Capital Expenditure  s  17 

 2023 Financial Outlook  17  Metric  Guidance  Comments  Local Currency Revenue*  Mid-single digit growth  Adjusted Local Currency EBITDA*  Mid to high-single digit growth  Excludes the impact of share-based stock compensation  Diluted EPS (GAAP)  Flat to low-single digit growth  FX modestly favorable for the full year  Higher interest rates and a higher tax rate  Local Currency Diluted EPS*  Flat to low-single digit growth  The 2023 Local Currency Revenue, Diluted EPS, and adjusted EBITDA growth rates for 2023 are compared to 2022 Revenue, adjusted Diluted EPS, and adjusted EBITDA, respectively. Local currency Revenue, adjusted diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 

 Why Invest?  Strong competitive position  Defensible and ‘sticky’ business (& low portion of customer costs)  Global presence  Exposure to stable and growing markets Focused on improving returns and on growth  17 

 APPENDIX*  *Amounts in thousands, except percentages and per share amounts 

 ESG Information  Environmental  Sensient is committed to the principles of sound environmental stewardship and the responsible and sustainable use of energy and natural resources.  Long-term goals to reduce Energy, Water, and Hazardous Waste intensity  Seed-to-shelf program focused on strengthening a sustainable supply chain  Emphasis on implementing sustainability from the design stage.  Chemical Risk Strategy implemented to identify and reduce risk in our portfolio  Social  Sensient strives to conduct business in an ethical manner and to make a positive contribution to society through our product offerings and business activities.  Sensient’s Code of Conduct and Supplier Code of Conduct require strong ethical behavior, fair employment  practices, and strict human rights practices and product safety standards  Robust product, environmental, and raw material safety programs designed to exceed industry standards  Raw material traceability and sustainability programs  Support for our local communities through volunteerism, financial donations, sponsorships, and employee education opportunities  Governance  Sensient is committed to maintaining the highest standards of professional conduct and strong corporate governance practices through our comprehensive corporate governance framework.  Board comprised of a majority of independent directors with diverse and accomplished backgrounds  Committed to board diversity and refreshment, we were recognized by 50/50 Women on Boards for the eleventh year in a row and we have added eight new directors since 2014.  Robust Code of Conduct built on a foundation of ethics, safety and quality, and professionalism resulting in  ethical and lawful conduct of our business  25 

 Non-GAAP Financial Measures  25  Revenue   Total   Foreign  Exchange   Rates   Local   Currency   Flavors & Extracts  (2.1%)  (0.8%)  (1.3%)  Color  8.6%  (1.4%)  10.0%  Asia Pacific  9.9%  (4.7%)  14.6%  Total Revenue  3.8%  (1.4%)  5.2%  Operating Income  Flavors & Extracts  (19.6%)  (0.1%)  (19.5%)  Color  4.0%  (2.3%)  6.3%  Asia Pacific  12.6%  (5.4%)  18.0%  Corporate & Other  (8.7%)  (0.1%)  (8.6%)  Total Operating Income  (3.7%)  (2.2%)  (1.5%)  Diluted Earnings Per Share  (9.1%)  (2.3%)  (6.8%)  Adjusted EBITDA  (3.9%)  (1.9%)  (2.0%)  Three Months Ended March 31, 2023 

 Non-GAAP Financial Measures (Cont’d)  25  Revenue   Total   Foreign  Exchange   Rates    Local Currency   Flavors, Extracts and Flavor Ingredients  (1.3%)  (1.2%)  (0.1%)  Natural Ingredients  (3.9%)  (0.1%)  (3.8%)  Flavors & Extracts Group  (2.1%)  (0.8%)  (1.3%)  Food and Pharmaceutical  15.1%  (1.1%)  16.2%  Personal Care  (5.4%)  (2.5%)  (2.9%)  Color Group  8.6%  (1.4%)  10.0%  Asia Pacific Group  9.9%  (4.7%)  14.6%  Total revenue  3.8%  (1.4%)  5.2%  Three Months Ended March 31, 2023 

 Non-GAAP Financial Measures (Cont’d)  25   2023    2022    % Change   Operating income (GAAP)  $ 50,838  $ 52,789  (3.7%)  Depreciation and amortization  14,150  13,056  Share-based compensation expense   2,267    4,163   Adjusted EBITDA   $ 67,255    $ 70,008    (3.9%)    Three Months Ended March 31,  

 25 

XML

Document and Entity Information	Apr. 28, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 28, 2023
Entity File Number	001-07626
Entity Registrant Name	SENSIENT TECHNOLOGIES CORPORATION
Entity Central Index Key	0000310142
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-0561070
Entity Address, Address Line One	777 East Wisconsin Avenue
Entity Address, City or Town	Milwaukee
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53202-5304
City Area Code	414
Local Phone Number	271-6755
Title of 12(b) Security	Common stock, par value $0.10 per share
Trading Symbol	SXT
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false