SXT - Earnings call transcript Q2 2021 | Sensient Technologies Corporation

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Operator

Good morning, and welcome to the Sensient Technologies Corporation 2021 Second Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will an opportunity to ask questions. [Operator Instruction] 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

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

like may connection our investors include also review everyone comments remind the calculated measures with and in to make accordance today, comments our press your believe reconciliation related we and differences including comparable operations XXXX company's encourage the of performance. results evaluates During improve adjusted adjusted This be should between comparability information impact from reporting or operational is morning. our of made GAAP. we not additional with also financial costs, reconciliations costs GAAP to forward-looking management responses questions, plan. We removal for reflects with call financial available investors as will the between a measures These results. divested, and explaining and most of would our to these GAAP the performance and for financial financial release. to results considered the our provides the these improvement evaluate this divestiture-related the company's that this non-GAAP how in XXXX operations the periods. A information I We remove the of substitute results to be the results impact and items the statements. non-GAAP isolation the in directly to in morning, The reviews of

additional read of more analyze could these may to timing uncertainties activity. impact at normal forthcoming financial attempts by our of return our our actual and of you factors COVID-XX that remedial the filings you action, a particularly the in of description We mind created urge bear materially, today. view comments SEC pandemic, previous potentially a Our when results Please differ Sensient's and factors in the XX-Q for governmental economic results.

Now from Paul hear we'll Manning.

Paul Manning

morning. operating we solid our Each profit Thanks, Steve. Good and released delivered operating quarter of adjusted the results. in morning, revenue This second growth groups and adjusted our quarter.

revenue & adjusted Flavors currency growth. had another quarter, adjusted Our local operating outstanding Group growth reporting XX% Extract X% currency profit and local

Group's adjusted Care growth Our Personal Color X% contributing revenue currency growth. local profit and the X% currency adjusted business to local rebounded substantially,

Asia-Pacific had basis, another On strong mid-single-digit adjusted first EBITDA quarter, adjusted local local currency reported operating growth. the X% half consolidated for local pleased our portfolio of quarter. shelf completed and label acquisition business and our aligns and technologies. grow with it to number life acquisition our for this This company to This Solutions. platforms flavor clean year. extenders taste a in the our with and growth currency expands Last we technology growth I'm growth of called adjusted second Flavor a XX% savory results we adjusted the of continue brings consolidated profit value-added delivering modulations, flavors, for currency flavors. the revenue XX% and goal revenue and over a week, quarter

as that to continue activity We're of product future companies our of strategic group, bellwethers to will these In and in-person also markets, return in-person and of We food, within initiatives activity and new core care. seeing sales to development they continue increase good other pipeline, and sales each in opportunities pharmaceutical visits support continue strong increased look anticipate customer at personal are our sample excipients launches. be to many our that and we acquisition wins, our work. lines product visits

of call, quarter an matters. costs, are first but We're in geographic raw the we year. increase varied continues in the food regions also seeing including to we through certain the to As COVID-XX manage an these and lines. costs COVID-XX world, impact growth. Despite mentioned these chain material increase colors certain flavor product to encountering continue our product remain challenges, and expect and impacts we the robust for input throughout to supply during and see lines elevated continue remainder our transportation of

company rebound discussed I in across pharma, As see year. to call, anticipate XXXX second our this improvements tough more quarter. I'm Care Overall, business In to continue to begun our Personal last the lines. our quarterly pleased expected we the headwinds the in product nutraceutical recent to during Personal and due with Care has and half of second in comparables our the pharmaceutical improve the and which growth business, in strongly

on group achieved top group the outstanding revenue Turning currency year's of second quarter and local with Flavors strong to quarter. & the results. is growth growth Group the in had This adjusted Extract adjusted another X% local currency growth. quarter last profit XX%

During generated the quarter, Flavors second & Group growth product almost in Extract lines. all the strong

robust benefiting group's value-added operating profit margin adjusted quarter. focus solutions. transition and customer XX increased product last to year's second service the continued sales points compared from The are a We quarter basis a and more in to

ice both Flavors profit basis basis product its and is this sales & in improvement Noteworthy within XXX and as well XX grow Group capabilities. product margin a continues This track point the We of the are on U.S. result to operating integrated application point product Europe to cream strong line our Extract line. to to achieve year.

future I'm We optimistic to its growth product line, continue invest in and prospects. this about

having also a is technologies service. as its of business and exceptional customer grow opportunities Savory result sales to new strong an and continues win flavor business This outstanding year. Our

as its customer almost good quarter. recent all strong maintain up in this Group to the and Care geographies in natural service mid-single had is had business local was to consumer quarter. pharmaceutical strong and and The the Europe The continuing business Personal and in revenue the have had positioned we currency Personal as to Revenue on X% growth demand well digits both and expect and currency Color in has year it pharmaceuticals Colors local adjusted in strong Revenue Our exceptional market, Latin on benefited from sales delivering platforms, and in America, experienced positions areas Savory up the future. synthetic for food capitalize us The in our colors colors improvement technology the adjusted focus while within Care. Food food growth X% profit group well digits for business softer was group's execution double line growth. rebound quarter, the in which an markets and and The I a success product seen quarters. business.

anticipate our continued in As are the we noted quarterly the business and this during last year within half into recovery of year. a improvement call, next seeing second and

currency model, wins growth. group margin and XX% in is The to the As and of of quarter delivered strong utilization growth good I This profit foundation each half profit compete Asia-Pacific volume robust customer local We revenue growth improvement and almost Care to new we our year. customers. our of our growth platforms. are The delivered activity, growth with customer Personal the recent our within optimistic growth adjusted people providing regions. to return technology drive and adjusted XX% a and service, Group about our social other direct in, our first sales all business. local continues focus a of to continue divestiture another improvements be activities, service travel platform markets chosen operating group's technology are our growth. and The result on for The revenue currency the have result

We remain opportunities winning very sales new our sales and are pipelines healthy.

well this on guidance. the or we and guidance end of are currently track year operating full We at top for our above are

Group over to high Color margin margin long I deliver deliver to revenue Asia-Pacific continue operating to Extracts Group profit expect growth over the to improvement growth growth at to to & to basis annual XX%. I the revenue operating revenue I Over mid-single term, the XXX future. foreseeable mid-single-digit points along single-digit with deliver also above term. an and Flavors XX long expect expect the profit And or mid-single-digit

business. second details We continue about very and of you the remain will with to the our Steve future results. the provide additional on quarter optimistic year now

Steve Rolfs

Paul. Thank you,

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

last GAAP year's results second per accumulated divested of In the of addition, million included of per and approximately or year's a gain our of the $X other related within and these included related earnings million, the other share. divestiture costs, Last of results to to quarter share quarter GAAP cost which related currency $X.X this include foreign approximately increased translation divestiture-related were $X.XX the operations. earnings of the business net quarter as of reclassification $X.XX or sale Inks a costs. the revenue, by combination second The result items

In to related earnings million of the product share addition, approximately an quarter earnings revenue second our $XX.X divested in XXXX net of GAAP include amount lines. the immaterial of per and

revenue was Excluding an million, second increase items, currency X.X% local in $XXX.X XXXX. compared the these consolidated adjusted of quarter of to

and X.X% for was EBITDA quarter. up the for the X% local was adjusted our local Our currency quarter, approximately currency up EPS adjusted

capital of of in down Our resulting primarily sales cash XXXX cash in second increase quarter activity in was in second flow the current fund an the quarter. operations our to to due the use working quarter, from the and

While capital optimizing our we growth, our are remain currently continue investments focused in forecasted we to inventory positions levels. on our support strategic making to working

be we In around terms to expenditures, to our capital of for year. expect spend million $XX the continue

bought of we million quarter, back approximately $XX company second the During stock.

acquisition actively potential earlier, As we we stated Paul acquisitions. and last are Flavor of other week, completed Solutions reviewing the

leaving Our our support our our debt-to-adjusted company our and current Based a prudent continue will we now law, previously dividend down on well current EPS, and acquisitions, position to strategy. to local leverage share potential payout. from EBITDA repurchases X.X% times in be adjusted the in reconfirming The EBITDA, sheet is capital GAAP guidance. trends approach as year X ratio balance adjusted tax are EPS, as allocation currency a issued to solid our ago,

stated earlier, are this the As we believe of near we operating top Paul guidance. end do

Our guidance single-digit mid- GAAP high of growth $X.XX. calls reported our for to to EPS EPS GAAP compared XXXX

EPS XXXX from rate low is our to last expect mid-single-digit local previous to mid-single-digit This tax rate. our law, grow XX% tax divested approximately we the for adjusted Based of expect operational $X.XX. XXXX. and a an for costs, XXXX adjusted calls basis, guidance current plan divestiture-related the adjusted for of year our our Our for XXXX corporate compared growth includes to $X.XX guidance mid-single-digit year the adjusted on EPS growth currency be a XXXX. On improvement up rate at full of months impact our currency now We approximately to local the guidance of businesses. of revenue costs, X for

to We grow currency continue to expect a adjusted mid-single-digit at rate. EBITDA our local

Given to current to the provides of EPS, underlying currency related growth. in EBITDA measure continue proposals business our local reliable believe that changes instead a more for adjusted we tax law, corporate metric, our

Our approximately $X.XX reported by currency, include exchange impact your earnings our for due rates, Thank the this to we expect of benefit year. morning. results you based the on time for to and current currency

We the questions. call will for now open

Operator

ahead. Our go Please question from [Operator Instructions] first comes Ghansham with Baird. Panjabi

Ghansham Panjabi

Yes.

and So the A raw just the kind world, in scarcity, U.S., half of weather cycle the mobility talked have Asia. in including Coast as increase back of there's on of material in context, an an event of seeing lockdowns certain West on. extreme year, about through we parts in companies some so we're lot the the

what us So seeing of X the then a cycle at sort material point segments your also, volumes you standpoint? from on outlook raw raw as update this the the a, year? into on are for of we half updated the of side, And back can inflation you materials sort on,

Paul Manning

groups. for the each back very back in I good looks your -- question, the for first So think half us the half of

cases, continue as good and in very I certainly, far are continuing. folks items Fundamentals to whether are customer well, well. geographies there they activity. certain that remain see We -- others. more cases, need pandemic But a use there think they to in see good, open of than we are care personal that all to launches many business drink, eat, not, or there's our need product

strong fact ability but material, go the QX is in good. solid about growth point very -- up, very I for year. good a has back of there's So costs in volume-related. I I about To think your certainly be that good into in can feel costs QX growth to the the most but have we The that going rate. a of been a markets sufficient trend about is that the of look to input each us, half input and the mid-single-digit feel our here of very our activity hallmark price raw business Volumes always those market.

And take vast reformulate the costs, in even our cover cases, margins, in the some of may pricing the tended operated cover in perhaps so majority has how take and our can products. fact, cases, we the we But has and over pricing company we can years. to be and

tell wouldn't From right from now lot of any nature. glycol, other we're in are that oil, be those our our I -- point and I different permanent. and believe what history. things standpoint, some really coconut So any in there's very increases obvious this a propylene, don't of you this and soy, in would

bit these little up. are the more there's mean. than some with in But with have I normal, to to certainly, they're businesses again, transportation. but abnormal -- respect costs think contend of back a input coming But things always will inflation regress these to

So we formula very, from the half. company good a confident about for in an forward. issue I we as inflation standpoint, the very And back not feel this use believe is we move I and that feel very pricing do

Ghansham Panjabi

and contribution on that more just back my question substantial, it Slide X%, on Care color, mean, looking currency Why just X%. wasn't operating at And adjusted revenues, the XX, local margins. looking coming Personal just up given just second income, is for you? then I plus

Paul Manning

Yes.

Personal A more have one question. year. factors Care about should So go of back that really There down that's last The the of half volumes leverage a as just for big the we into great is there. been be operating the year. couple

as getting without the little even into lower speak, hitting as accounting can we see the a QX. gobbledygook, that So you of of maybe we at bit but point plants, just were utilized kind inflection end

half a a the get bigger the little the Personal gap then up input effective, the year. of Care uplift going into of growth being we to our see you'll pricing, back as a line we timing oftentimes much pricing and from between there. as in profit through there's And So the costs bit go

normally But in that So Personal less maybe then, be X But tell that the or impact is can pretty the might the cleanly and you project point than have utilized just Care there I out X. that plants bigger in. of the get compressed even you XX% margin see and on into would a Group bit as the the to we us operating Color will QX quite QX, beyond driving for the course, that rest OP better the and of leverage year, margin. carrying

Operator

Please The next Stephens. question go is Connelly ahead. from Mark with

Mark Connelly

Paul, can a and bit relative development normal to can -- saying. customers little little you are talk a product you what about talk bit

seeing on back mention introducing But You products. still we're new like did increased sampling. categories the service holding food

back? later the So early feels maybe us sort you help of of that could sort it's and stage, like coming understand how

Paul Manning

Yes.

total in see were So you the about general comment. Europe, the same. like would in U.S., If places the the that XXXX, XXXX number I were of number to total of launches to launches compare

also XXXX, like products products X of So companies X in of launched launched they in number number XXXX. if

whatever dynamic you of is There who that And a disproportionate really saw the customers, launches I launches from and folks. those than larger, group type local were want, coming the there customers more so the is and the of customers. that multinational making launches, and what regional from of changed what a, we call B more C number

universal Many see XXXX. XXXX. the them indications to folks U.S., But with more of parts get I employees the in we probably the was open their certainly, activity, But customers other of companies see there's and products. to as of coming that very, mean, more access that biggest improving in intents we increased the of we and much would their improvement So launch for improving that activity that last the us. year as dynamic tell very and at multinationals continued to It coming in hard Asia-Pacific at into that as launch for that's of develop for is we of some are many that to largest or Europe, well. labs been to at there's these many activity there, certainly dynamic in there's I play see more all China certainly back activity. -- you But there. were parts we do business, home. pretty nearly customers see purposes improving into

for So as it the we stages, if other a parts faced maybe much of that COVID template the in a much at you expect continuum, good as of world. see to early look and could as China what provides in

Mark Connelly

impact products are there? a concerned worry creating And that second to the more on we about just That's you The natural have Do question. extremes your mentioned, weather about Ghansham dehydrate whether business? helpful. volatility

Paul Manning

moves weather Well, cycles. in

we've to respond so that had And business. decades that in to for

you little And you it's where so less. a company, yield is have bit times sometimes any sometimes and expect, like what the a agricultural it's little bit more,

the early are for And crops of indications this yields. in terms good year's so

we so, a And in area. grow fairly broad yes,

conditions in just So some while be be there where growing, drought-like other parts may may we're fine.

so point where as there. business enough diversified the for as for we're growing this where for that many of would contract I at with either big our there bells other we parts our ringing base working think footprint a or natural big, extracts, diversified And example, we're growing reason. years of or much I for is again, talk growing growers, say, has business, having our very about not any And alarm this for strategy be colors, part been a the

that we we're the prepared really I really against could again, there think safeguard could footprint face. the catastrophic event And it. think I for well biggest is factor So any weather very

Mark Connelly

the Last that this quarter a couple unusual of about like squeeze or Is in half? there one on anything I with quick we Sure. for thinking quarter, the could had that Steve. cash flow should be impacts a incentives. If for second we just

Steve Rolfs

No.

if because sales, So incentive the a look last see in year. with is you're early little right, of particularly is rising partly receivables. just quarter this at payments in it of year-to-date, But cash flow, you usage, the main down year impact working in versus the you our the bit capital

So they're Care sales declining. Personal This increasing. were year, last year,

I other the the is call for any that factor. the of rest than main year. to And things that out So have don't

Operator

is ahead. from Your next BNP. question Vesterinen Exane go with Please Heidi

Heidi Vesterinen

Which That's segment top or is or question guidance. by first question. the First on both? And this? upgraded your is driving this price, volume, line driven

Paul Manning

Okay.

tell the pretty it the others it's until that seeing now, say been little there point of a impact fair We're this suggest at would volume. because natural get seeing as Up is But that and recovery into I good you, to number. half, bit than Personal very in higher first was year. price would price We're going that's built broad-based. So in Care Personal growth it's in be be we flavors, that I a into colors. top to the going Care. amount in of probably would there's second it's I line. the to volume be going half little really driving

Heidi Vesterinen

Care, might pre-pandemic into you the each you seeing we do And region? please? Can view in region, Personal get sound you're on each back about so in to when digging you have very a what talk levels upbeat on outlook. And

Paul Manning

So been kind yes, regions cycles. in the have interesting very of

in Europe, strongest hair North and color The America. X. right we're Europe we North now in in strong We're and a and We talk really America, it We very -- up seeing Latin cosmetics America. care. very, recovery recovery Asia, have into seen break is and seeing

for last very been those factor a They us. had pretty for think I year. a outstanding steady regions. throughout an has year care factor -- been has strong America growing Latin skin

now activity. driven so bit slowdown really seeing And COVID by little of the a a lot we're

well the able, So were even we had region there. manage that were alive to though and we was really very very, and COVID through well. in XXXX, strong And able, in a year customers our very

our those the on populations. from of to customers COVID on starting more we're impacts Now see

again, hope the better back better half much be largely last we XXXX. what's Care, country. is back storms Latin to going depending going growth And depends got plants. of in the so -- tapered but a COVID Europe net-net, for take they go go weather for little have overall, year. place topsy and down it to the again. their I a could Asia and on the overall, I now away in the year. should half really, half did okay to we've of be utilization up, year. driving a then some Personal come what in mean, for lot will of little pretty is they'll the growth a sort again, in bit will as They short But good of a the took But But lockdowns really outcomes may the can then away Asia, the moment. kind America, and has into a they they'll is North of Asia. that's think be get outsized could off back answer, And lockdowns it ups a Latin the America it of America and downs be in position and we're I that here position then But resume that come back, in lead very they'll Asia, of And through on lot good be in bit. on Asia curvy a second and little they

drive of leverage we're top growth. don't in line going You're lot having this nice growth going of Group. line group natural as also to the And feed discount better growth very out coming going Color well, see I to continue the to to a colors which want bottom and that for the operating to that's as is the well. But

Heidi Vesterinen

we some the color and give a when Could flavors, nice at And parts? flavor then X very extracts ingredients, growth. final on double-digit one, look as you

Paul Manning

Sure.

we're digits, doing very Flavors there. traditional savory, beverage, up has flavors, and your -- traditional double more in or you're very, most right, well So regions, sweet, less

of part We our line. product to emphasize continue that

high red sheet looking like the kind up. were I'm our then And S&I, of hat, we were right mid-single-digit looks digits. single more from about looking Our within growth. like me, It at ingredients

high put you're capitalize as on, we forward. customers good going to So growth sell and I the us are can so work a the But a a very, lot moving got do. single-digit across that, we're more there's we've very board. growth overall, feel to more category to, pretty lot There about that of good lot prospects in wins gathering from their

Operator

Instructions] [Operator Please next with ahead. Mitra question The from is Sidoti. Ramgopal go

Mitra Ramgopal

the so I had side. terms you we terms First, if difficult seen people kind just think the returning market wondering sort follow little faster that is some the more outlook or that that. know delta Care for of still a feel very bullish of might do of on I this et you've recovering a like is And upbeat surge a up of Personal business to I want there. back one you're far? already in have has thing to I'm very a time, places upbeat that the with prolong variant than concern even And if in office, situation, cetera, just in of

Paul Manning

Well, variant a a I feel world and products, this opened of I I or we've critical to out there enough mean, that governments changes these parts commentary public think But I with of opening XXXX, other think lot countries, consumers in any may at get a of how policy look respond want don't you the I are using COVID. -- about drive as mass will good in But into the or about other business. that is now to customers kind of that that bottomed big yes, Really, really delta that. open parts growth.

of -- Now bit there. you're at a Asia a is a little bit getting it's of what

market, they look in continue. XXXX. direction of half look Asia. maybe But good the and launch first pointing requests, activity, we seen all that our good back in that and North we at my come that pipeline, think is And impact go, to are of have that I As can going specifically customer and as at momentum half, sample the lockdowns in as Americas, certainly Europe opinion, we more America,

so I'm sitting here seeing of world. way July XX, And kind as today that's I'm the on the

as We continue diversify product to line this well.

very, care, historically, was bath- skin may care, over and diversified more really had products. our cosmetics. very a even of color You that care, into But shower-type part we portfolio recall time, oral strong hair we've

And so because during weren't being example. did them diversify I product socializing actually and Those on well for they outside, think the somebody to skin business. incumbent lines, we continue quite care, some of XXXX

would that tell is as I'm to half those as it be you good think I all So I for reasons, going is. back the thinking

September. here in I got As like of it for it a It look and looks looks Mitch, daily it now, can good tell I August, you I sit right sales for and good. front right good well, me. July, good looks for looks and It

So what in yes, is. is so seeing gets numbers and the that's customers' activity what -- confidence the very well founded looking at the

Mitra Ramgopal

as I some just earlier, relates not Okay. chain think No, demand And mentioned example, but the have companies then communicated, as it is this supply to you great. challenges the issue. that's for

sort a terms the product shortage in of the to getting getting out product. of just Just to or move trips

Just on end? of if have any you those your issues wondering

Paul Manning

Yes. Okay.

sorry, whether to hard in easy -- expect paper. in But place. the get stuff little a one. tough a of you question friction hey, times And is chains supply and goods. I working or came is the yes, listen, right not our it's we our running you're was that the on call deliver broken carriers, think hard just are part you folks business. bit lot And the reading to our the to supply overall the I your and the you're in got of a to who it's times, plants your deliver managers -- on get managing So or chain. goods But stuff, It's

last of And lot our part expectations we has lot a focus our faltered. a we so a year, delivery meeting our and customers' and winning expectation not why big on-time year. around It's are and won this

ways we say, let's that so lot with we In And that In you supply additional cases, through expect our of other to to stock. expectations. we manage that. chain manage there's customers' your just cases, safety -- meet your can some businesses do a

it's sure, But you those. out those people to recruit. positions there so, have what, about Recruiters whether that's -- it's And know you why overcome recruit of are And as we're tell environment. to any read there. any And hard shortages. you we plant know I you're to leadership any very if recruiter, a be overcoming would employees. you going to that a if those or And you're labor our what? easy, we tough Well, have good and you're well. good to expectations produce manager, And able as able the going in be environment. you're are in And

and have they We expectations, high them. meet very

And feel good navigate it our with we us, it's about through a ability the of for office, shipping inflation, it's whatever we lot employees, whether from may dedicated whether operate so work I and be, results. challenges, to it's about

And of so I and locations our all think that business our culture permeates lines. of all

And our goods know And is practice. so of employees to the the excuses. time that a you customers. deliver example expectation perfect the putting is No this into

Mitra Ramgopal

the you a then great. that's And just finally, No, little more provide Flavor acquisition. Solutions maybe on could if Okay. color

saw more that front you, being Now technology on with for the Flavor even appetite driven going more we and with divestitures Solutions. if it's the like behind to be pretty aggressive much

Paul Manning

like about extend Yes. is we revenue. there's some -- our to a Flavor technology platforms. It lot about It's $XX in of things us of Solutions helps million it.

has in before technology. world flavor every a in no said the there's many times lock these on modulation calls, case that I've As company

mean X for So good really flavor but drink it application. example, sweetness particular have works this may a enhancement sweet-related in every company that doesn't for

is the company. list ability what makes to technologies really and of good have expansive And so an complementary a you solutions flavor

a We there. Flavor only it's adds the flavor to really relationships. have capabilities have case. reaction and nice They the have customers, access not to library flavors. that's very They very oftentimes Solutions that simply customer good companies think our of big so just good And

to And years, products some up too. to so very Flavor customer relationships deliver able good and Solutions they're them, built has the over good really

cultural connection. like issues. And integrate we So without a very that a always we couple something headache can and cultural of we of said, reasons I've strong as There's lot a why want them. of course,

very managing first, very, we see clear both much are flavor of importance those sensing very and the the solutions. we and our think and customers in I putting importance things of see

the multiples, box about should be I good very make reasonable. and those about of that for them on so can business each build you expectations can the them and checks upon in past want also flavor you integrate And have. purchased I've said it think acquisitions. feel we and We reasonable one I to They solutions. your very,

financially later a and that year. And and sure, got company. interested we're But in maybe rush doesn't of we're the to strategically talk that more about forward, the to then not or to we'll going looking so sense have I've for not things do in again, make we're pipeline businesses going anything

to maintain to going things we're future. some talk have as about we other there. So our move may discipline sure, the we But into

Mitra Ramgopal

No, I Okay. before [indiscernible]. great. Great that's congrats box. And go, the on

Steve Rolfs

the on Congratulations box.

Paul Manning

on you. TV. I had enjoyed I Thank watching but them can't say Yes. do that, to I much with

Mitra Ramgopal

go. it. enjoy There you to nice It's

Operator

Advisors. HighTower with Ferst Leigh from is question Please ahead. next go The

Leigh Ferst

with concerned inflation. I understand understand or margins? would the target and I chain that ingredient have about protect point along that's moving on But supply you price where your any price of right in question pass you inflation and pass the not usually get you I now. a form is can a there could price, follow-up any

Paul Manning

XXX% not are in you lands place the going products of with. happy customers that that tell of Yes, both to I'm to parties XXX%

alternative a overall, using. another I an And to the what we going performance to formulate That think the a of what's the what so in of we're cases, confidence we've in market, is actually some think happening certainly to the seeing case. in good our I we're got to something formulate that. seeing with that's been hallmark be I -- going years. think business But born We've ability Again, of our have has here. can pricing different, great spot with deal land been over

going there to I material to us one think our don't that's raw going bring be problem. to there's knees. a company that's anything So out to There's really this no

diversified And provides so raw that's pretty broad-based you a level feature of highly great the ingredient which have in also base, face inflation. these material supply businesses another some of yet of is insulation

now. about as manage through ability we're before we've short, I concerns our don't these many this through in and have to of through managing any So just managed this,

Leigh Ferst

of already? markets complementary environment? is something any there's that the terms the give deal competition us for what or what acquisition, you're in new? products into And they're end to doing also, their Or can you more end more insight if there And right Is acquisitions now?

Paul Manning

Sure.

Solutions, in modulation. the a -- technology technologies think Flavor I the complementary of taste speaking realm lot about of mean, the So I

have using you things help much sensation that without actually being salty sweetness salt without much for that as sugar, as you help So have example, used.

enhancement flavors platform. example, would they for provide some yes, to, our So savory

be acquire a you to may So be example an companies, would processes, for yes. we're be time lead With lot In the could I some you. relationship that all. then respect that mean, there cases, over in but horizon forge or that interested of auction to companies, on companies are acquisition. that something could an in, other a you not other

then an without because through the you acquisition. get dynamics license need of just may going You what you

sale, you wouldn't less more is folks years buy Not really And for a was there just Many to whatsoever it's is of contrary and it others But generations, companies of matter standpoint. price. that, who it's matter a company selling. family it's many at that interest is now the a that a financial win-win a to so on that owned tell interested to no have selling any from seller than are anybody a and case. then of whether every are timing a many ago. company I or of believe some It's couple a in a competitive any they for matter in

to businesses yes, respect the wouldn't types last a Maybe the have time that, are about say of unique I year. place what So just on anything opinion I others with different there's looking we that for seen this in have at. that's necessarily but

Operator

over further time. this turn to no conference the remarks. company will questions closing are I the at for any back There

Steve Rolfs

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

Operator

Thank has concluded. you conference now The for attending today's presentation.

You may now disconnect.

Sensient Technologies (SXT) 23 Jul 212021 Q2 Earnings call transcript