SENSIENT TECHNOLOGIES Reports Second Quarter Earnings Results for FY2023
July 26, 2023
🌥️Earnings Overview
On July 21 2023, SENSIENT TECHNOLOGIES ($NYSE:SXT) announced their earnings results for the second quarter of FY2023, ending June 30 2023. Total revenue was reported to be USD 374.3 million, representing a 0.7% increase from the same period last year. Yet the net income for the quarter was USD 34.0 million, a 12.0% decrease compared to the same period last year.
Share Price
At market open, the stock opened at $64.3 and closed at $65.4, a decrease of 5.7% from its prior closing price of $69.4. SENSIENT TECHNOLOGIES provides flavors, colors, and fragrances to food, beverage, pharmaceutical, and cosmetic companies around the world. Despite the stock’s decline, analysts remain optimistic about the company’s potential and long-term prospects. They cite SENSIENT’s focus on product innovation, customer service, and sustainability as reasons for their optimism. The company also reported strong growth in its core business segments, with the Asia-Pacific region leading the way. This was largely due to the increasing demand for their flavors and fragrances from the food and beverage industry in the region.
As a result of their strong performance, SENSIENT TECHNOLOGIES raised their outlook for the third quarter of FY2023. The company believes that they are well-positioned to capitalize on growth opportunities in the near future. Overall, analysts remain positive on SENSIENT TECHNOLOGIES and believe that their stock will continue to perform well in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sensient Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 1.45k | 132.85 | 9.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sensient Technologies. More…
| Operations | Investing | Financing |
| 40.98 | -110.67 | 85.34 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sensient Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.05k | 991.95 | 24.34 |
Key Ratios Snapshot
Some of the financial key ratios for Sensient Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.5% | 23.7% | 13.2% |
| FCF Margin | ROE | ROA |
| -3.5% | 11.6% | 5.8% |
Analysis
If you’re looking to invest in SENSIENT TECHNOLOGIES, GoodWhale can provide you with insight into its financials. Our risk rating tool has given it a medium risk rating, taking into account both financial and business aspects. GoodWhale’s detailed analysis of the balance sheet and cashflow statement has also detected two risk warnings which might be important to consider before investing. If you become a registered user, you can access this information to help inform your decision making. More…
Peers
The competition among Sensient Technologies Corp, Vidhi Specialty Food Ingredients Ltd, Apple Flavor & Fragrance Group Co Ltd, and Symrise AG is intense. All four companies are leaders in the global market for flavors and fragrances. Each company has a strong portfolio of products and a long history of success.
– Vidhi Specialty Food Ingredients Ltd ($BSE:531717)
Vidhi Specialty Food Ingredients Ltd is an Indian company that manufactures food ingredients. The company has a market cap of 18.79B as of 2022 and a Return on Equity of 23.1%. Vidhi Specialty Food Ingredients Ltd’s products include food additives, emulsifiers, stabilizers, and flavors.
– Apple Flavor & Fragrance Group Co Ltd ($SHSE:603020)
Apple Flavor & Fragrance Group Co Ltd is a leading manufacturer of flavors and fragrances. The company has a market cap of 3.86B as of 2022 and a Return on Equity of 4.89%. The company’s products are used in a wide range of industries, including food and beverage, cosmetics, personal care, and home care.
– Symrise AG ($LTS:0G6T)
Symrise AG is a German manufacturer of flavors, fragrances, cosmetic active ingredients, and raw materials. As of 2022, Symrise AG has a market cap of 13.75B and a Return on Equity of 11.16%. The company manufactures and sells flavors, fragrances, cosmetic active ingredients, and raw materials to the food, beverage, fragrance, and cosmetics industries. Symrise AG has approximately 9,000 employees and operates in more than 100 countries.
Summary
Sensient Technologies recently announced their second quarter FY2023 earnings results on July 21, 2023. Total revenue for the period was up 0.7% from the same period in the previous year, though net income decreased 12.0%. Following the announcement, the stock price of Sensient Technologies was seen to decrease.
Analysts have noted that despite the increase in revenue, the decrease in net income could be a cause for concern for investors. As such, potential investors should proceed with caution and carry out thorough research before investing in Sensient Technologies.
