Sensient Technologies (SXT) Q2 2024 Earnings Report

Financial Performance Highlights: Q2 2024
- Revenue: $403.5 million (YoY increase of 7.8%, QoQ increase of 4.9%)
- Gross Profit: $130.7 million (Gross Margin: 32.4%)
- Operating Income: $49.7 million (YoY decrease of 3.75%, QoQ increase of 0.5%)
- Net Income: $30.9 million (YoY decrease of 9.1%, QoQ decrease of 0.03%)
- EPS: $0.73 (YoY decrease of 9.9%)
- Cash Flow from Operations: $59 million (up 14% YoY)
- Free Cash Flow: $31.992 million
Management pointed out that the rise in revenue was largely volume-driven, attributed to improved customer order trends and a return of stability post-destocking, reaffirming a strong localized focus and customer service capabilities. For the full year, adjusted EBITDA growth is also anticipated to stay mid- to high single digits.
The company’s current ratio stands at a healthy 4.16, indicating strong liquidity positions, while long-term debt significantly lowers its debt-to-equity ratio at 0.626, reflecting prudent financial management despite the costs associated with the portfolio optimization initiatives.