Segment Information

6 Months Ended

Jun. 30, 2024

Segment Information [Abstract]

Segment Information

6. Segment Information

The Company evaluates performance based on operating income before share-based compensation; restructuring and other charges, including Portfolio Optimization Plan costs; interest expense; and income taxes (segment operating income). Total revenue and segment operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation.

The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. The Company’s three reportable segments are the Flavors & Extracts and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic basis. The Company’s Flavors & Extracts segment produces flavor, extracts, and essential oils products that impart a desired taste, texture, aroma, or other characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, such as colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and essential oils products in the Asia Pacific countries. The Company’s corporate expenses, share-based compensation, and restructuring and other charges, including Portfolio Optimization Plan costs, are included in the “Corporate & Other” category.

Operating results by segment for the periods presented are as follows:

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Corporate & Other			Consolidated
Three months ended June 30, 2024:
Revenue from external customers	$	202,020	$	162,925	$	38,580	$	-		$	403,525
Intersegment revenue		7,193		4,775		-		-			11,968
Total revenue	$	209,213	$	167,700	$	38,580	$	-		$	415,493
Operating income (loss)	$	26,209	$	31,502	$	7,880	$	(15,934	)	$	49,657
Interest expense		-		-		-		7,653			7,653
Earnings (loss) before income taxes	$	26,209	$	31,502	$	7,880	$	(23,587	)	$	42,004
Three months ended June 30, 2023:
Revenue from external customers	$	181,752	$	156,532	$	36,029	$	-		$	374,313
Intersegment revenue		6,532		3,931		-		-			10,463
Total revenue	$	188,284	$	160,463	$	36,029	$	-		$	384,776
Operating income (loss)	$	24,456	$	29,217	$	7,575	$	(9,657	)	$	51,591
Interest expense		-		-		-		6,352			6,352
Earnings (loss) before income taxes	$	24,456	$	29,217	$	7,575	$	(16,009	)	$	45,239

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Corporate & Other			Consolidated
Six months ended June 30, 2024:
Revenue from external customers	$	390,042	$	319,289	$	78,864	$	-		$	788,195
Intersegment revenue		12,263		8,436		22		-			20,721
Total revenue	$	402,305	$	327,725	$	78,886	$	-		$	808,916
Operating income (loss)	$	49,887	$	63,181	$	16,656	$	(30,661	)	$	99,063
Interest expense		-		-		-		14,698			14,698
Earnings (loss) before income taxes	$	49,887	$	63,181	$	16,656	$	(45,359	)	$	84,365
Six months ended June 30, 2023:
Revenue from external customers	$	353,724	$	313,481	$	76,114	$	-		$	743,319
Intersegment revenue		13,412		8,143		-		-			21,555
Total revenue	$	367,136	$	321,624	$	76,114	$	-		$	764,874
Operating income (loss)	$	46,636	$	61,102	$	16,816	$	(22,125	)	$	102,429
Interest expense		-		-		-		12,354			12,354
Earnings (loss) before income taxes	$	46,636	$	61,102	$	16,816	$	(34,479	)	$	90,075

Product Lines

(In thousands)	Flavors & Extracts			Color			Asia Pacific		Consolidated
Three months ended June 30, 2024:
Flavors, Extracts & Flavor Ingredients	$	134,749		$	-		$	-	$	134,749
Natural Ingredients		74,464			-			-		74,464
Food & Pharmaceutical Colors		-			125,327			-		125,327
Personal Care		-			42,373			-		42,373
Asia Pacific		-			-			38,580		38,580
Intersegment Revenue		(7,193	)		(4,775	)		-		(11,968	)
Total revenue from external customers	$	202,020		$	162,925		$	38,580	$	403,525
Three months ended June 30, 2023:
Flavors, Extracts & Flavor Ingredients	$	133,688		$	-		$	-	$	133,688
Natural Ingredients		54,596			-			-		54,596
Food & Pharmaceutical Colors		-			120,165			-		120,165
Personal Care		-			40,298			-		40,298
Asia Pacific		-			-			36,029		36,029
Intersegment Revenue		(6,532	)		(3,931	)		-		(10,463	)
Total revenue from external customers	$	181,752		$	156,532		$	36,029	$	374,313

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Six months ended June 30, 2024:
Flavors, Extracts & Flavor Ingredients	$	259,554		$	-		$	-		$	259,554
Natural Ingredients		142,751			-			-			142,751
Food & Pharmaceutical Colors		-			242,385			-			242,385
Personal Care		-			85,340			-			85,340
Asia Pacific		-			-			78,886			78,886
Intersegment Revenue		(12,263	)		(8,436	)		(22	)		(20,721	)
Total revenue from external customers	$	390,042		$	319,289		$	78,864		$	788,195
Six months ended June 30, 2023:
Flavors, Extracts & Flavor Ingredients	$	258,513		$	-		$	-		$	258,513
Natural Ingredients		108,623			-			-			108,623
Food & Pharmaceutical Colors		-			238,912			-			238,912
Personal Care		-			82,712			-			82,712
Asia Pacific		-			-			76,114			76,114
Intersegment Revenue		(13,412	)		(8,143	)		-			(21,555	)
Total revenue from external customers	$	353,724		$	313,481		$	76,114		$	743,319

Geographic Markets

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Three months ended June 30, 2024:
North America	$	156,650	$	82,535	$	82	$	239,267
Europe		32,064		45,825		60		77,949
Asia Pacific		5,103		15,648		37,017		57,768
Other		8,203		18,917		1,421		28,541
Total revenue from external customers	$	202,020	$	162,925	$	38,580	$	403,525
Three months ended June 30, 2023:
North America	$	137,135	$	77,554	$	62	$	214,751
Europe		31,867		44,397		24		76,288
Asia Pacific		6,290		16,308		35,394		57,992
Other		6,460		18,273		549		25,282
Total revenue from external customers	$	181,752	$	156,532	$	36,029	$	374,313

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Six months ended June 30, 2024:
North America	$	303,602	$	157,655	$	82	$	461,339
Europe		64,221		91,987		106		156,314
Asia Pacific		8,809		33,067		75,702		117,578
Other		13,410		36,580		2,974		52,964
Total revenue from external customers	$	390,042	$	319,289	$	78,864	$	788,195
Six months ended June 30, 2023:
North America	$	269,103	$	155,931	$	124	$	425,158
Europe		60,794		87,649		127		148,570
Asia Pacific		11,491		34,457		74,589		120,537
Other		12,336		35,444		1,274		49,054
Total revenue from external customers	$	353,724	$	313,481	$	76,114	$	743,319