SXT - Earnings call transcript Q3 2020 | Sensient Technologies Corporation

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Operator

Good morning, and welcome to the Sensient Technologies Corporation 2020 Third Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Rolfs. Steve sir. ahead, go Please

Steve Rolfs

President earnings morning. I'm Financial like President Chief third Senior welcome by this Paul Steve of Sensient Rolfs, quarter Executive available our and Sensient's sensient.com. XXXX is Sensient's morning, now Officer our to would our Officer. of investor Vice we website I'm release Chairman, Manning, quarter Technologies joined of all financial the This morning and you Good call. Corporation. to I released on at third results. and Chief A copy presentation

should is of morning, like directly available in press encourage most will in non-GAAP call the these also responses Investor today, investors information make include in with from isolation comments everyone this to certain would our questions, website comments reconciliations accordance of performance which non-GAAP release. financial calculated of During that we a not measures, as the reporting reconciliation sensient.com or results our your we Information evaluate I morning. our We provide we the and review remind comparable this and the for may with be on additional reference connection with considered between at financial non-GAAP comparability in measures A information the These to results to investors in financial GAAP. financial substitute made GAAP improve measure company's to section including believe periods. forward-looking to financial statements.

our and of our return for and -- economic urge results. we could change year, analyze filings, Due a pandemic, XX-Q the and the changes to XX-K, you additional Fragrances read that created may you The now in Our including normal Flavors by segment. named forthcoming quarter divestitures materially, Extracts Please of timing activity. second the are lines. potentially differ our XX-Q most factors COVID-XX a action our attempts be remedial to third actual quarter governmental in announced and of uncertainties bear to group more our description We impact Sensient's updating particularly factors our view we’ve in and our of at product results our Flavors today. notable comments our made portfolio will financial these last the and mind segment that when is we the

our small notice use will You and food, changes lines. for the service pharmaceutical the product some care our we personal strengthens also some ability names to Sensient's focused of to portfolio markets.

these fruit divested will and product We inks preparations three yogurt as comparisons. fragrances, lines long impact to report our continue of the as product lines

from Now we will hear Paul.

Paul Manning

pleased Thanks, color revenue I’m very extract and Steve. group, pleased as earnings the food morning. I'm with that guidance our the business results expectations quarter in for in in as flavors overall and the and well pharmaceutical reported morning, year. Sensient profit growth this were line report our third our to and continued group. our Good with and

COVID-XX. strong. decline of year each well, business our Our as to Asia delivered have the and employees supply our and our COVID-XX the geographic adverse a on headwinds in continues in posted safe continues chain our group basis, America. Asia this pandemic, current we are for healthy, In open, remains our quarter. have midst see color on solid company. Latin ensured we of our we we business. that growth to the expect the market trends, time industry groups profit our And remains our personal to customers. be impact EPS of facilities negative Pacific The groups outlook in remain care the and the impact strong performed despite Europe Based of net I will on to foundation products a on deliver to the continue the makeup Pacific, Overall, also

sales delivery second led Our pandemic half to Furthermore, of and service, the year. time of customer has new XXXX revenue a certain continues, execution the has on high product on development first the focus from years new half during at companies over as wins slowed. this and level the product of

we of is the regaining divestitures. We I'm yogurt our during future have fruit to lower the pleased focused results is our second to that second the optimistic In the benefit and of should this quarter, future. quarter. customers. divestiture at sales on off the of divestiture coupled periods. sale lost year, XXXX. fragrances gaining business at focus and and in attrition And overall continue with in the inks announced share time three complete completed we This Last that the completed I'm This our third sale business we prep near say we in completed paying will

group's in straight personal local retaining rate, resulted divestiture in year, extracts businesses growth on improvement. these food, and the our overall As to business revenue the has of focus and growth, third profit three of is in win this adjusted resulted our attrition an The This an on quarter currency care. the on existing which growth decline progress based pleased a a sales I very quarter of flavors group margin revenue is XX% markets, which high growth has of and on This of I'm impressive group's mentioned last with continued execution, XX%. profit pharmaceutical, the focus allows the year. key rate. customer and with group us focus had and

groups reduction is overall the initiatives production the more from ongoing revenue Additionally, margin. and structure solutions on transitioning and restructuring the group's growth profit the the the in and its complimenting product to improvement portfolio cost focus value added of and

of up its natural extracts expertise supply high this business in reliable applications I improvement Long-term, also foods. the and has are seasoning flavor currency Flavors solutions had XX.X% XX% XXX snacks strong The to was local and it's in business. the of a another currency. the margin growth single-digit demand ingredients up factors and Overall, natural strong solid and quarter. Within basis ingredients technology nice growth result of and quality in foundation business to platform packaged clean enhancement, extracts flavors the and consistent extracts ingredients the flavors revenue with with in flavor quarter, a mid as group, quarter expect margin points had a leading This businesses of a sales profit its strong deliver and local for modulation operating for groups label the continued growth group. customers.

demand. in food also in strong portfolio to for color substantially to Asia of natural the the the continues product extracts group's result The functional to in for continues turning and market. consumer for COVID-XX digits Despite and Now nutraceuticals, support pharmaceutical personal positioned quarter. Revenue see the negative food the the continued The year. demand natural pharmaceutical be There's revenue was innovation interest are and on the to in in of well colors, care continues group demand low for for colors America, impacts this makeup growth as a be single colors. down down makeup to up and market. colors and and North solid Europe,

The XX% and for for and of color this the of months and COVID-XX with profit growth challenges pharmaceutical ongoing continue. first product anticipate had I to quarter. XXXX. in line cosmetics great uncertainty more X% profit than about restrictions, the quarter colors Food XX% increased a group's X the adjusted operating generating Given

COVID-XX. and quarter. Pacific and However, care basis this group performance. solid focused drag Similar colors, the to I as made technology makeup product on organization. production. increased continues on the group and in operating lower revenue execution building and extracts products be continue has as stronger good focused the flavors Long-term, normalizes and colors, points in customer profit care for color from the the our demand infrastructure expect well impacts demand XXX single-digit and has other driven groups personal once personal on this a pharmaceutical group's created of Asia mid food The been to sales and year. a from localizing margin Overall, We've service growth a group progress profit has

had group certain growth sales solid in During quarter, regions. the the

group this This positioned another quarter. in was for profit growth, with quarter first was this XXX the quarter The of improvement. quarter the Overall, XX% the basis third long-term other the The restrictions for as by mid anticipate revenue the growth. I'm resume high significantly sales of months impact COVID-XX that regions in many pleased to well I points of declines will growth strong strong XX% year. offset profit to X related groups our channels. approximately is operating margin results ease very the straight Pacific restrictions and group certain COVID-XX single-digit growth, group's up of XXXX. had Asia continue group increased and However, in government The profit

and the a and profit to pharmaceutical food within group color growth. flavors strong the year and very is group Our solid having have extract continues business revenue and great

Our is and service. Despite growth. Asia the quarter third exceptional do the additional the headwind, headwind of for details for this be about company. revenue a group Pacific results. for on our the you Sensient, COVID-XX portfolio excited Overall, growth continues Steve I'm with strength future well-positioned provide opportunities future our technologies to will customer now

Steve Rolfs

operational improvement items believe the you, of results and the related In also XXXX and the differences be results the this performance. for of plan. explaining company's to these and of adjusted This adjusted and Paul. a company's our performance. or how implemented will that the We results. divested picture XXXX impact operations be divestiture provides our Thank recently removal clearer between comments The my GAAP management to reviews costs, investors I our divested, operations morning, remove the reflects the

operational of $X to quarter, million to half company this During are estimated a of plan global The cost primarily of complete some The operations. to plan during $X cosmetic be company to approximately XXXX. initiated the our the manufacturing third first plan this expects consolidate million. the improvement

third earnings the operational share costs share these results divestitures or per are improvement was and related plan. cost per the GAAP in million of of $X.X Our $X.XX. related and other Included quarter costs the to $X.XX approximately diluted

revenue. to and divestiture, of of earnings of share per of of results results approximately million the represents which GAAP in our quarter. approximately divested revenue targeted addition, $X.XX approximately earnings quarter operations per include $XX.X $XX.X the quarter the from included operations In be the for year's earnings GAAP share approximately to million third this $X.XX Last related

increase in by currency approximately and increased quarter growth Consolidated these XX% was The Asia quarter, currency. of $XXX a an and nice was in currency. local income This color up local quarter income adjusted which $XX.X adjusted in in operating to group in income This across the structure items, flavors XX.X% million, combined growth in which the volume over of in currency. in Pacific XXXX. group flavors operating the up in growth these to consolidated XX.X% the increased pharmaceutical local food income businesses with currency business led operating was lower revenue operating million also the the in local in was XX% of a approximately XX.X% by X.X% in primarily result group, extracts compared result The the revenue income had overall growth of up is cost operating local local increase the and Excluding extracts explained earlier third XXXX. of company. the a the currency. third Paul in group, And was

$X.XX was $X.XX in earnings quarter third last quarter. this compared diluted year's adjusted third to per share year's Our in

is our has food approximately beginning million COVID on business personal reduced the discussed, we mentioned, The We’ve have the impact but impact the care and Paul mixed, our the of results headwind. negative $XX since the on is significant. in company's As been overall businesses impact by of pharmaceutical year. a debt as

our and through meet needs to lines. We credit liquidity have and operating cash adequate available financial flow

is an year. XXXX, first debt months to the Our months $XXX million first X.X in increase XX% Capital X EBITDA for of from million X to start X.X, XXXX. the $XX to in at operations compared of the $XX.X million XXXX Cash flow compared prior from year. first of of down was the X the were expenditures of months

because X first call, X% we Consistent cash adjusted we our and $XXX the level maybe non-cash last consolidated flow expect to of lower with increased free year. XXXX, communicated flat expense earnings of during XXXX. the in million of performance-based this our Our operating months income equity in to for what

our earnings now $X.XX share year previously are result $X.XX share. in XXXX current per rates. to of full higher The GAAP headwinds reconfirming based on planning a as to issued full per includes $X.XX guidance year exchange of rate of approximately rate, currency we opportunities. expected also compared also a which number Based XXXX lower current guidance We our was of a on trends, tax

divestiture We costs, reconfirming to $X.XX, excludes of divested impacts. year impacts foreign The $X.XX to full plan related fourth businesses operational currency in to of are or our minimal the per quarter. be be divested issued also currency which guidance foreign expects impact the improvement earnings and previously costs, adjusted the share company

mid our We are in expect growth to groups. guidance low also mid single-digit we single EBITDA maintaining growth. rates continue In to each of our adjusted of digits long-term conclusion, revenue

compensation stock-based have reset Our this and incentive year. other costs

this Going law. We do be years under tax of headwind up rate less should a to slightly for us. future expect trend forward, our current in

a a company's rate grow measure operating expect better As at believe the a better. result, performance mid this single-digit is metric of we EBITDA adjusted or and to

will down In terms continue in capital near-term. the allocation to we pay debt of our priorities,

shares. an Absent back have also We ability buy acquisition, evaluate we continue opportunities. to the acquisition to

be of our to X capital $XX million to $XX range XX a -- expect million to expenditures annually. We in

improvement and for care, activity call for to excipients, and your providing pharmaceutical on key the operational this now margin plan divestiture Thank questions. We'll foundation markets focus customer the allows morning. of while time you us open and our for Our future growth. food, our personal revenue

Operator

be the go Please Connelly Instructions] Stephens. from with question ahead. And first [Operator will Mark

Mark Connelly

Thank you.

BXC that. you've get say most supermarkets companies what the supermarkets clients past as talked in that questions we're prioritization? of have of and area, There's are about a common So that in in the are see we But reliable, not innovation. my seeing terms new that although food view is I benefits terms own deemphasizing of the to one of doing less in are they smaller

market I was just could a now. base, us of So right sense give you hoping your the that’s access impacting just customer how to the

Paul Manning

morning. Hey, Mark, good

U.S say different one many of would certainly channels the of our a subset this, that. is Supermarkets I So in them. supermarkets certainly customers that that is in there's deal

that But supermarkets many ones brands and grow. and supermarkets have bit one correct. see deemphasized many B is is a stores the But directionally could other that fraction yet European we comment do in other B I'm tell would areas small think of perhaps that's a companies, of what channel. some deal, your C of I of Your certain supermarket comment I is being think in the I continue probably you that you that channels, they directionally we that lot say, as to little about that that market, the Asia U.S see less correct. a C of less factor I like even specialty perhaps I than U.S., Certainly in a market. Pacific. sure but in in being that's a and pronounced the places And online, in, Latin America these channel, think online,

Mark Connelly

how hoping impact sense of little Asia, question, Thank last was little more of the helpful. That's just a that's I a jump give about you could Okay. and then one bit In queue. you. I'll a evolving. in you talked more And extensively us local the restrictions. quarter of

of what how produce You've supply. those you countries stays you and of Can the about within obviously in much manufacturing country? got local talk a Asia to in lot

Paul Manning

general country, we a are. in our where as So statement produce this customers

to on said, and even in tend fairly levels solid, to our there. China delivery so than have customers. a China be largely raw manufacturing to we produce do China, other products generate everything general better times continued really production that part supply -- our in service make to for of in don't chains end, although normal probably for And time into statement, material But we not the from we because localized. our in That bring fact footprint as Sensient operations

began materials and since to been of front you key to to really this having tell began been maintain We able lines And we've of customers. really markets out to and operations, certain months ago. from key this chain that accumulate good and that for really in so supply like raw our seven output we've I'd plus product in

or based in Asia, see tend may right see in is what broad little think As say lockdowns than opinion, the versus in a -- Europe say, my bit to Asia be about you lockdowns what we U.S., elsewhere. now you happening more

for on much boy look So, a or certain United for here. travel example, COVID of has list kind infections, but is we lockdowns the bad restricted at and are States pointed now and so are that the where Wisconsin right that you very

Asia, of You an go or are to some these less lockdowns about based. even they're individual state city, or and county broad more

with the as in it So our products. markets I experience our been think between difference the see that big has we

Asia nevertheless, they was well profit their exceptionally to growth. line growth So did some able on generate top really and

rest circling I nicely. we So though the many you the back do feel base, able pretty Even question, to chain. or very whether to capitalize Asia on But a sort through of locally, materials feel able raw supply it overcome produce having that pretty our I source we that very Nevertheless, raw well. very tell think that of materials about we still of kind of we came good are I the Americas we for just broad continue Sensient from been say, those supply to stockpiling good operations in, some would do this and your to we've about and Europe. think based

Mark Connelly

Thank the you. jump in Thank you, queue. I'll back

Operator

ahead. Heidi question come with And go Please from Vesterinen Exane. will the next

Heidi Vesterinen

Good have questions. morning. few I a

full-year The guidance first after one, why you have strong such quarter? upgraded not a

Paul Manning

be to too any certainly top at of that. at that necessarily I a each I I'm the above Heidi, quarter. say of period. even possibly being strong confident I Oh, granular would this, had of it's feel Sure, XX-day conservative? take three But results the very conservative. being really end We groups. I'll great I want Am sort range, it mean, of don't so being we that was out one. -- probably on

the and nicely. to deliver ultimately businesses to deliver are that continue to think I think going I very

You numbers. you flavor EBIT growth. saw colors food saw margin profit you the had each really very, the Not Asia to and the good numbers, they mention saw

good moving in I parts point, but at all year. in So into year feel moving the next there's and anticipate lockdowns, COVID, about feel tax, kept parts But there's may this to about year. we've them. them good whether additional it's hard rest of I the there be in guidance

very Some remove did We've guidance. to We companies been that. not. their committed

some short, And in a little maybe moving I'm maybe yes, there's parts, so, being but conservative.

Heidi Vesterinen

and by hear congratulations great number That's that. for to on way, flavors the spectacular. Thanks the

just nothing exceptional in there so like, you terms in So demand no, that in know or growth nature that growth. know, was And really segment, or don't of also focus confirm don't volume and price forward contribution what was I something one-off. one-off I flavor on that of to of There's the pull number? if

Paul Manning

flavors, into profit. the the translated to were yes, has very nicely we that certainly up well and digits operating So, double

see starting we an see we're referenced we where this So profit that beginning operating picture increasing to of the would I leverage at year as went.

terms any not In I to one-off. point of would one-off,

it's I pretty think the board. has demand been pretty solid well been across and the

restaurants. each the that for of struggling Certainly of or example, considerably, or and in categories our referenced whether where product The segments service S&I our any You matter. pockets script, there I quite based. quite good it's is demand look broad [ph] ingredients flavor for was are at quick really growth

I think hit that area. a hard that's been very

and some not them other product flavors you that the some But rebounding. doing see at doing like some then, quite some look the and are snacks things dairy of of and them in of well, categories, even categories You as seasonings well. sweet of course,

They I a wouldn't wins. good any of no, generate to one-off. lot So, point just

one flavor very it the was sell last attrition two was talked we've our And to kind was And our But good what year, high what we've had somewhat And was businesses of that through. optically way of attrition that I that obviously and know, sold we ultimately expect and that that year last the as we I lost you think of the in was that of down. legacy flushed of suppressing rates in that group. some about going win things fact our third. had lines very course, on. now product we I think is but largely

I think remove very we that headwind. strongly

if would our of that kind sustainability very flavors forward. you no, about think one single-digit it's a I results. suppose I if think can a there's you're got of -- timer to those And be in really that maybe good ultimately I And I revenue mid see the on getting one is distinction going So very, of GAAP away between at going flavor there's nice the moving But, point there and business that and to, kind those non-GAAP going I lines. I think real flavors. And we've future feel achievable. businesses

Heidi Vesterinen

much. queue. very you the Thank in I'll back get

Paul Manning

Thanks, Okay. Heidi.

Operator

go question you. is Ramgopal Sidoti. Thank ahead. Please our next from with And Mitra

Mitra Ramgopal

Yes. the believe for impact I net Hi, the $X.XX. COVID was about on good morning. half, of the taking EPS Thanks questions. in first

over a you get as the of and impact to it want to that rest XQ see in Just how the out sense playing year?

Steve Rolfs

-- So we on the then at don't and costs subjective this understand at we our looked where impact. looked we we negative exactly know goes direct looked also is and customers. that somewhat at sales the because every impact But with product

costs year-to-date, the close million. So are to $X probably direct

SG&A we're travel offset by However, an other type expenses. and seeing lower

So pronounced XX% quarter. top is line. really where negative on that the is certainly most we the line on cosmetic the in so is cost about and most our direct impact within see It the top impact, down color group the mitigates of where business the

down we terms result a EPS, it's have into that COVID. that probably year-to-date around were revenue what in believe of million in $X.XX. So as excess And really we of $XX of of converts the

Mitra Ramgopal

you're seeing look Okay. do improvement as improve event sort in that That's talked great. result the pandemic? going of was are you And COVID-XX probably with efficiencies? about the for you've in plan. the Or obviously, as that Thanks to something operational something there. Was of you a any that what was color to

Paul Manning

a interpretation. probably of it's Yes, matter

to a did who note may profit some and improvement the events of series the those be remove become over our were had some that facilities think consolidate I our to fixed story, Sensient the many company. of We of we for many newer have years, the designed of headwind. products capacity as we of folks last costs that our in plan restructuring number parts a they'll that, were to look to at high some legacy quite shrink tremendously ultimately -- of had

business. went any We about intuitively restructuring a that always at manager and some for programs. that to closely cost. you time lot I leverage we're see some fixed talking But that looking the And you of operating in to problem you volume impact those took have through is talk we to some he's linked fixed out the those very in And of a of Well, think and of the know facility. efforts. so cover And need obviously costs. plant volume cost a you

And applied in everywhere different world. company, always in parts the so we've philosophy, for we're opportunities really which of with the that looking

-- for so and And a different that business line matter.

doing work So work colors, and we're now. in some flavors, lot colors in done done work additional of there we've a there there

fixed have well. And to within so standardizing, automating the whether really or we've normal SG&A that So would closely mix us. it's processes for the we're is us not course certain costs. looking as efficiently to working The business of for been it's operate on really in But that I rounds as say, to as opportunities really blind possible. in been Mitra, tied be to

is XXX as to that with I would in XXXX. now up see another op able going margin I been able could move those produce. So Many see right the Asia times. also points. that story plus you op that's this who've into And to of are and to more -- margin. that get ladder. color There's a XX% folks And up going think on drive continue roughly that the op being we we're always think for starting to at note is flavors to I XX to company be you time some certainly XX% looking to lot now margin basis

in going I quite is the groups, So be and to I focus flavors. those here about feel think good

I of lot a kind the yes, so you, in has in been of course And the would activity short, But, Mitra. of flavors. things, tell normal in it's

Mitra Ramgopal

then side, was there to some area front? No, was Okay. on to changed looking has you personal really point one And expand wondering opportunities care, the experiencing COVID. into curious it, on were believe et softness But great. at an this some due if nice definitely care I it that's you're felt anything oral that just cetera. obviously you'd is be I

Paul Manning

well, It's refer of No, it outstanding driven a as the us. of care we, are profitable. very oftentimes years. as are cosmetics lot It's A lot technically generated business. to a over business It's personal is very an for profit required. applications

very it's market in a have world. We who extensive cosmetics who's of and deal customers, portfolio, right? the We a tremendous with tremendous the

like care. it's types you And doing are imagine, the you which, look oral oral quite care, that makeup, business as at those and body of care items, so things so, reference, Well, as not care, such as it's it's actually, can today, as care, you also wash skin hair but it's products, well. much more specifically personal

fewer teeth people this gum, nowadays find may are one lot You interesting, Mitra. and right. also chewing brushing A their

get to, although then care And is close get business lot the idea is makeup. the also shouldn't are hair of you person have but times, you market temporary here there's to close some COVID him our the right factors in playing of the mindful majority business be with next you care out. get business But that skin we've XX% hair So colors. than within we as have products. other have related And a you know, -- that more and cautious we of and we then are that you our

still to that Makeup category. diversify business. a continue is very going be we So to good

got other a lot we as But think headwinds cosmetics future. that continue of had and ease boot no, part opportunities come think in to see The our very very moving position It's are to And we this March, as this with strong a there outstanding very virus, business. we've dynamics we've that, in nice leadership vaccines to lapping I business. restrictions outstanding [ph]. a going I real think to a potentially return going much to it. negative find and be these to start of we're But forward. even suppress is an I

Mitra Ramgopal

of finally, past favorable there that’s in to of in from transitioning customers No, again, product natural, et shift readouts synthetic great. terms with some just more obviously, positive Okay. about COVID, talked believe as And then [indiscernible], you've a cetera. mix have I been the

other any are there term? be positive if you're wondering you seeing longer would think you that Just really for trends

Paul Manning

Well, mentioned I you think one.

very product longstanding which is been to a You in functional a whether a trend, product, very, that that nice even for colors, part to to a and has strong extracts for food be for continue mentioned design portfolio Natural be continues for flavors, us. ingredients product, But a I going over-the-counter a continues. company. pharmaceutical for which or the of natural think it's nutraceutical trend general, our very

talking do which You've probably about to contain a core returning not CPGs of noted some many ingredients. lot really of their natural brands,

world more lot of company, in I colors, temporary think because a continuing around extracts, I kind functional the see pipelines look this statement, that's ingredients. of a I activity natural of as of our at

projects generate B the be level markets but to right winning customers customers to successfully quite of able many headwinds company the continues may and small The the new a from very of we're different operate multinationals, And strong and wins, from a and you of here, told no to there at to hiatus accident. committed large product and because you're Steve, to right? launches continue kind about been the in pipelines new it's while company. lot we on continuing the seeing So be we've of be in product this C now is revenue launches

providing biggest are that and up very these won mission the the Our of and who the company, say, guys products world. in But are is some customers essential we've you cases, call to working. this only throughout employees guys committed are

in So They're we But many more products continue these suited now right to that, who we any I take that to way. products. take portfolio because advantage. where we And it's no fads ideally just to advantage can of tremendous do are trying customers are health by those long-term, have our trends advance are trends. think for a these means driven

Mitra Ramgopal

that’s for No, Okay. the Thanks taking great. questions.

Paul Manning

Okay. Thanks, Mitra.

Operator

Connelly [Operator from follow-up question Stephens. Please is ahead. Instructions] The go with Mark next a

Mark Connelly

you. Thank

give more. say, impact being a you two market of or restaurants sense have? with ends If normal than more this any recovery us year have you hoping the your I restaurant to of Just bit would opening next already of new so, during that this reduced the a at back little what for, a up was could operations capacities. scale you of

Paul Manning

love, of and simple would think talk those kind you portfolio. we restaurant, part service part --drive-throughs service, no. there's anyway. of the I portfolio, through mitigate being are about can interpretation you of standpoint. quick know certainly have ultimately vast a are They we oftentimes in When really brands the say, and our very of still things, from but I hurt. traditional that's that a our sit down doesn't But the a impacts that But constitute that restaurants,

chain is production of reconfiguration of to if continue, that. the were not or the address things the no. on need supply I sort side this answer do short any to to So Even food would anticipate

Mark Connelly

helpful. thinking if one the us you and we question. steady flow on about a swinging And Can be assuming I anything working that capital be financial That’s my assumptions. sort should there's bit do Okay. year, tell I have of how high cash in quarter next that just little a fourth recovery? was might

Steve Rolfs

Yes.

third flow operations. a cash in XX% we're results our a year-to-date, There's from good, up cash about flow are on quarter. of dip in bit little So, the

deferrals. on One were there payment things a the tax of going there, of number

of not included, countries lot in strong well. some in as other in quarter catch the did our place of to year was a federal And had incensing then half [ph] up were tax then first payments really in And did their make sales lines. the very the quarter. third and So product the certain in that companies not throughout

so think element a bit of a on And little I there's receivables. timing

lot -- in So there extracts of was this in made quarter, of little a bit two it's if in inventories But bringing year. really group a down digits dip and those flavors nice double progress the our still up primarily a year-to-date. just items. it's We've again,

look think taking out about year-over-year. divestitures, normalized a days we're at you on our XX if So basis down the I

make made of flavors additional lot year. But we've -- and have we in last over can think we I improvement the we really a colors. improvement in some can

smaller incremental maybe more, for look improvement would year. I So next

Mark Connelly

helpful. you. super Thank That's

Operator

Please Please Heidi And our Perhaps next go end. it's Vesterinen Heidi. Exane. line question and is your on ahead. proceed, with also a your is follow-up, from muted

Heidi Vesterinen

about Sorry that. that. Thanks for

colors sold that So was Chr. Can with business please? recently EBITDA. saw business you explain Hansen's we colors Thank beverage Hansen, for nearly Chr. XXx you. food how your and compares

Paul Manning

ownership, is competitor. to they're I to a and competitor, under continue their new Well, I be I great going think a great think think Hansen Chr.

say guess that's So, that. about yes, I I'd what

Operator

the over are Thank back further this company to any time, there as conference turn I you. remarks for At the like closing to questions. would no

Steve Rolfs

Goodbye. Thank for you very much, time Okay. will this everyone. call this our Thank for you quarter. morning. your conclude That

Operator

Thank you joining much you. presentation. for very today's the concludes call. That Thank

You may you. Thank disconnect. now

Sensient Technologies (SXT) 16 Oct 202020 Q3 Earnings call transcript