SXT - Earnings call transcript Q2 2022 | Sensient Technologies Corporation

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Operator

Good morning and welcome to the Sensient Technologies Corporation 2022 Second Quarter Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Steve Rolfs. Please go ahead, sir.

Stephen Rolfs

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

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

that our our first previous of when you XX-K, including filings. expressed forthcoming our of read Our impact for Sensient's these including in a and may may factors implied set to a comments those analyze range results. you SEC those our to SEC factors We mind from financial today. actual XX-Q or bear quarter filings, potentially urge XX-Q factors, wide additional Please due could be our description that in forth differ materially results our

Now, Paul we'll Manning. hear from

Paul Manning

growth Good great Thanks, quarter with line expectations outstanding with morning good This occurred had almost and all revenue of in Company. across afternoon. businesses We was of Steve. our single-digit quarter this quarter EBITDA adjusted XX%. achieved and and revenue group second the to our our reporting growth profit straight high operating in a We exceeded each consolidated and currency eighth growth growth. local our mid

year performance XXXX. year follows Our in we this had great a

result delivery. product a sales Our top-line execution, of is growth technical focus direct on support our and

pipeline. continue already expand sales to deliver level of working to strong We sales our while a wins high

our And We we have positioned proven portfolio, growth supplier reliable to to for our with be well are exceptional and customers. in technical support a future. product the continued robust

of cost delays As along input materials, we've experiencing actions a input delays. and we're addressing increases labor, raw higher our we by prior the costs including and are logistical We're pricing addressing still discussed transportation, maintaining inventory in logistical with calls, position. on energy the

this of about a and of throughout cost the a concern Company. continue recession. sales as the chain is is We to well supply uncertainty healthy, into as engaged our future XXXX. these remained XXXX actively and we economy, sample the optimistic There and expect challenges global lot year balance about customer remain I our customers. strong, potential activity our our higher Despite the of patterns and uncertainty, in order with remain

and the of increase. profit The pharma spectacular its Group result growth. growth portfolio a the local delivered revenue income impact growth and second wins revenue business well in driven growth have second the A double-digit -- the local the the currency I currency currency performed second positioned in customer rebound of Group Care Colors and very price future profit portion local and operating XX%. food quarter. operating Personal and well high believe adjusted natural a The service. double-digit quarter sales results. delivered Pharmaceutical continues as Turning the XX% was single-digit into Personal well business and was currency to revenue in double-digit operating had delivered margin XX% growth. in by on Group local increase year. high-level operating Color revenue a adjusted color to currency both The quarter. from currency of Operating focus a is first Food for quarter. Business local double-digit profit has its and profit businesses of the COVID-XX. half our Care new local innovative business Group's The

the operating XX%. current an the is now Group half, years The the or diversification business for We line is product double-digit to care, Color are part deliver track year focused on this in and categories business focused key provides market. on in and continued building growth to and profit safety into first also foundation growth as outstanding growth on above the and this stock rebound the as of growth margin body revenue for an well With is to projected a at come. other support as skin

XXXX. called guidance for mid previous to high single-digit revenue Our growth in

currency term, digit the growth. profit Extracts and local currency Group Over margin or quarter, delivering profit XX% deliver better This adjusted mid-single currency the adjusted local another revenue above mid-single X% Color and strong revenue quarter revenue had growth. and Flavors local digit growth is of ninth XX%. consecutive also adjusted operating to an I long Group operating the growth or at expect

well Ingredients. basis and as as local had Ingredients, year. currency in of Ingredients in Extracts another operating and pricing Our this a profit nice quarter was XX.X%, primarily pricing adjusted Flavor prior business quarter the the favorable result Natural volume up growth growth revenue XXX Extracts delivering margin was The growth. higher revenue double-digit in points Group Flavors, and Flavor versus Flavors

as a in progresses. As onion basis a margin point first pricing revenue half basis the we great the operating of half to we last margin and improvement. profit supply growth Previously, underway points high-single-digit in actions. profit the operating expect XX% the is few product to year is value-added Ingredients result year. of improvement Extracts was up margin the our the positioned result estimated first business a harvest XXXX wins, currently a the revenue of to volume as during year. do quarter. for growth a now XX The a of XXX onion recent The has as the onion group's in of XXX I more profit well and deliver the past restructuring operating we group's for growth The and a lower on structure of cost had had XXXX, mid focus future. this headwind expect Group new mentioned activities overall Overall, improvement await sales crop. Natural pricing high as approximately group's calls, and that the group Flavors more and a Group solutions, and faced the single-digit divestiture

from adjusted fifth new continues profit regions. a local and and Group in the quarter the growth second operating double-digit is XX.X%. revenue driven on next an couple the Group we for revenue quarter Asia level expect the growth Flavors growth revenue price growth. A XX XXX in term, and double-digit made XXX years. Pacific, of high improvement high of and currency portion XX% digit of local operating operating achieve wins Group's basis quarter points margin Extracts year. increase deliver of In its deliver profit the The grew capital revenue region. the group technical have growth. all the long to was delivered margin The in by I The consecutive the achieved consecutive Group sales The operating a profit investments for adjusted its sixth revenue to Over currency XX% almost group of now on double-digit and revenue currency benefiting and to double-digits Group track The mid-single the to is by still points mid-single-digit of to rose basis, profit local increase. to Asia-Pacific growth adjusted annually

called to high XXXX. mid in revenue Our a previous growth single-digit for guidance

long continue revenue term, to I deliver mid-single the expect growth. Over digit the Group to

high natural beverage color ingredients by fueled our Company. wins is a across of cream span solutions, offerings flavors. of level new the flavor including These growth categories product and range Our specialty conversions, ice plans sales new wins and natural

Our focus on technologies new these support sales component wins. critical of is and technical a product

had Our foundation into for ability our XXXX new so the the customers great products to our growth and now develop far. We've to a great help future. is

of and details the provide potentially exceed and about are track will guidance. business. our well remain now Steve year on quarter full on meet future optimistic additional with the I to We our results. year the second you

Stephen Rolfs

Thank Sensient's quarter you, was per second diluted GAAP share $X.XX. earnings Paul.

As any the I approximately and plan quarter results have divestiture quarter XXXX. Last year's of GAAP do opening not our results for second results operational $X.XX per in year's our GAAP adjustments costs, included second share. by to second remarks, we last mentioned improvement which quarter decreased

our the GAAP divested and approximately revenue included in results earnings of to XXXX, the addition, million of of costs quarter $X.X In related share per of second $X.XX the operations.

of quarter in EPS XXXX second the adjusted Our $X.XX. was

XXXX our consolidated grew in the XX.X% adjusted in to in million. local quarter items results, Excluding $XXX.X by these second of our currency revenue XXXX

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

rates $X.XX share exchange decreased quarter. currency the adjusted approximately by per second Foreign earnings in

investments quarter. in reason lower for We which our operations is the continue position, from the inventory in strategic make cash to our flow main

safety We challenges and to and we to demand Capital million experiencing continue the expenditures second stock continue. support were chain ensure are to positions inventory energy $XX.X we as for have in high the appropriate quarter. invest supply

capital $XX expenditures to near be to this continue our expect We year. million

Our X.X. is adjusted EBITDA debt to

long-standing positioned our spend, to attractive balance and expenditure capital sheet our remains support dividend. Our well M&A

to material growth Regarding plan our of are be anticipate On XXXX. to any a we divestiture-related GAAP reported improvement basis, not guidance XXXX currency revenue. to guidance this XXXX compared EPS operational adjusted EPS up guidance, compared an we at single in adjusted increase our XXXX GAAP our our high-teen rate costs raising revenue costs At do in time, digits our are local high we reported to or $X.XX. maintaining

to single-digit mid for called high guidance revenue currency. growth local in previous Our

and high EBITDA adjusted XXXX a local in EPS single both call growth guidance to Our double-digit currency. for

our of approximately our to versus XXXX and in the half higher be the year. expect XXXX be also second expense full tax to for rate We interest XX%

however, the we end headwind of full approximately of year a impacts in mentioned do is the $X.XX $X.XX now of at reported for operating this months Paul had above expect the for expected $X.XX full the for year six headwind local months adjusted six just exchange approximately rates, we for Thank Previously Based be This the our exchange believe XXXX. today. of for I on guidance. participating GAAP or you of by a rates year results, last headwind. the the are we provided of currency of we earlier, current year the change impacted to this As top XXXX. currency and call not currency on guidance the $X.XX last and

open will call the now for questions. We

Operator

Thank you.

We the from go first Robert question-and-answer Please be from And Ghansham question session. [Operator now will the ahead. W. begin will Baird. Instructions] Panjabi

Ghansham Panjabi

Yes. Good everyone. morning, Thank you.

Paul Manning

Ghansham. morning, Good

Ghansham Panjabi

Good morning.

digits And Color it given during of onwards just segment, Comparisons extent for as relates some double what volumes, us Extracts. broadly, can How and also in Color elasticity, relates think to the a back I so quarter. very get rebound development? XQ sort it inflation just not conversations your as and of give The then bit product difficult year? in global so a you starting of for level on. seen to and of as maybe embedding the volumes segment customers to obviously going were half Flavors in you're to has terms consumers more that new just your has Paul, strong manifested more but sense of exhibit the you with the are a to second the that up into in well Just the which

Paul Manning

the the we the volume expect to in -- for Group. So half your first first part be half up of in question, second Color the

broad-based dimensions. last I the each done half quite the lot our of on has colors, certainly and success we've businesses care natural is of year had colors, think synthetic very different at a of well personal this year first

getting that And so kind back were volume. last to that that is about we we continue COVID, feel grow segment, at now of very, just which very of into that the can noteworthy cosmetics, that It's couple I've we since confident makeup COVID. the for to years going talked the level

we to wins we're logic gives grow, generating Natural as the of you well. volume and that apply to can grow to our groups that the there continue give me volume. can Colors ongoing our continues So course, in of then much me can confidence success that that confidence And this other

as right, you're As a launches the far there's well as consumer certainly downturn in product indisputably XXXX. for concerned, been global is new

XXXX-XXXX, measured essentially new we in is flat serving. product to product the we're overall reductions XXXX. of series again XXXX this it new during As were we measure really that launches launches been first in the markets as

So a categories. number across -- broad-based that's different and of

has is successful carefully. pricing very we very, pipeline I and something that is until definitely so think been But -- very commercial very, would The staffing And our now. watch very, up that And strong. effective very good. I you that our tell that very is our

deal I've this so, we're going trend. continue got And confidence yes, a to of that great

look which it it's front also I sales to they daily for the have we're pricing and also taken, generating. volume at be from we've not right here I that continue growth me that above that and of As our and over only beyond quite is the but QX strong in

Ghansham Panjabi

lost and very as natural -- is related as you that Extracts, the business to And you. or mean are that at to of point Got XQ relates as year? XQ maybe quarter also your How that then availability tracking the that it of mean Or how specific the Flavors That's higher? can inflation, some us improves? or it? helpful. back And do for tracking reverting issues does is in you then sort prior, just during onions, cost to to the that update that half see revert you ingredients you're lost business just the embedded and expectations you with

Paul Manning

Okay.

going is quarters we kind a preview had of be year. series for The a into So, of successful bit were there. little yes, we sold a going XXXX obviously to of in half than success. the that that. is we I a we could this underway. We in you as of certainly, There XXXX SNI thought first call customers. wins first, few suppose And that more catastrophic sell that continue the constraint then harvest volume sort of got with to

good. looking think I things are

half to that as in we So in of certainly improve year. situation the SNI expect previewed we the back

attrition business I and of the fact. rates businesses tell quite year you in in I half I our necessarily throughout first wouldn't I the each can So for we year, lost would and our low, in that are of say that half the think rates look attrition at SNI first of our this

into volume nice us, as So market comes to salable and generate very, to lot volume I feel crop out get in Asia-Pacific, wins is that very a very, to large for going state from, of good regions. in be a we in and a the get other year, very as have as that different for a there the very new we're this into year end There U.S., XXXX. the certainly of we still SNI us

With what lot get yields Ghansham. So with that expect I see get we crop think ensuring a inflation good to in of good I approach respect And you field. regardless prospects to of have business. long-term respect correctly, comment, a one I the what that forward generate very managing we moving any that understood if we to in may to

have it intend run pricing? have short I there really see in the continue and is, think seen are seeing is, certain in I So to I at, although to do you're unabated it with categories. we moderate the answer seen still continue positive it inflation others. I we getting we think

think not inflation think optimistic manage we But say approaching I is optimistic, the can't very lot lot lose like we of go pricing, that do so to this I go you of peak close been net-net, made. just a business and a that least take though, pricing I There may in lot I'm with to we'll with pricing a a customers. to that of inbound if terms are be we the raw just it's and pricing guys on comment, because you're can our say, on of And communication have easy take this. just very, materials. continue on we thing of you haphazardly not going topic, at exceptions incorrectly irritate customers you execute, is and you an lot guys, to a

And so moving that to itself use situation use continue feel to confident an I improved manifest And it's going economic continue that year-over-year. we're needed in there I that a to very think as to is forward. process going we

Ghansham Panjabi

Very Thank thorough. Okay. you so much.

Paul Manning

Ghansham. Thanks, Okay.

Operator

Heidi question from next Exane Paribas. ahead. be will The Vesterinen go BNP Please from

Heidi Vesterinen

morning. Good

Paul Manning

Heidi. Hello,

Heidi Vesterinen

didn't you First such -- constant question. sound QX a you profit guidance upgrade very talked your already first wondering lot strong a I'm after optimistic. you currency And and why half? bit about a

So worries is the there you? first That's question. why Thanks. something that the caution,

Paul Manning

profit that's our range about up way And is guidance be growth. single think broad as -- go to could a high that is guess think XX% described double-digit. the I there I I So to that double-digits. all could certainly, a

digits. I expandable So is that, double the dimension but digit. a to lower-end confident to very certainly feel be about there very continues high-single

a little when for single single-digit you and aware I'm new low that of. I into think the bit in digit, to rates, describe, double analogy into there double you it the get when into such high share, you is digit get mid-single that digits, single gets whereas have growth no difficult

very within achieving I feel So about about feel really I potentially is, we our short double-digit growth. profit. the good the high-single good of answer high guess to probability really

I very very, feel would levels digit, think I we tell you it's that show that our confidence. to good within double communicate so that. But maybe about would And harder

Heidi Vesterinen

It the than sounds range. more actually, it's last like because obvious say, not a you it's double-digit same term, the you're quarter broad-broad optimistic as but in

And follow-up that's on pricing and maybe inflation. to earlier then helpful. question Okay, on the

think Is what's it still on I is so time last thinking mid-single said your you current the digit, points? mid-single assumption those two digit? had

Paul Manning

think I'm again of here and cost you goods sold. we I as looking do by raise, on it's, yes, this go by region

about basis basis on sold. goods we of the revenue, talk about we the So costs pricing of of cost talk on

single and a price high that mentioned to I bit single. and example, for more little of that high be So costs Colors sort would like mid had a on double-digit QX year-to-date is a increase was input that single-digit high to

So the I gone were it's a mid-single digit probably across since think touch, up kind we more quarter last where the of Board.

it's if the Now to like in would each necessitate, kind our play increase more of which working on are margin the groups. think very of costs, to were increase single-digit ensure even I input where of average, maintain, on high you high Group's we are Each single-digit impressive levels. profit that we improve I not say, one out. price gross in operating pricing one by up margins saw And a

think basis nice I make XXX to in going be I plus margin. and OP very as again points Flavors in be Flavors would category be that up XX so wouldn't into that in think is in XX go that And anticipate but a improvement that color though to that we QX, continues and I can Asia-Pacific

of of couple So year, as their of achieving we feel each really that in this the certainly that have years. good they last improvement chances about

expect a costs the I of Heidi, very, little gotten we I'm bit I go. much. these And peak the greater. hoping this it's have costs think where is the of yes, think input to So, sort input could probably very in short,

Heidi Vesterinen

a the And I on to before final it next person. you. Thank maybe one, pass

up not how anything or the I double-digit, right? a in achieve you that like should As conversion of? was the at can that? So So think again you is growing there explain rates, market were double-digit we big Color, volumes specific be aware project?

Paul Manning

are a The the The may majority or categories volume be right. you're track unit Well, down nowadays, categories a down dollars. actually up basis sales in that majority on market basis. of of vast we on whereas is

really executed a they're well. that approach their So We have environment, very well They're customers focused increase disciplined think and pipeline in and they focused a double-digit go yes, and on still to negative synthetic have it's really customers Colors selling. volume they even a commercially, their also do very wins, to lot around that been service. we're to meaningful important there world. very think been able of of customers, customer to so some the Yes, I colors. focused conversions meaningful we've and on capitalize They've been

has execution their think been I yes, so, outstanding. absolutely And

Heidi Vesterinen

I'll you. back get line. Thank in

Paul Manning

thanks, Okay, Heidi.

Operator

is go question Sidoti. Ramgopal next Please Mitra the ahead. And from with

Mitra Ramgopal

for Yes, the hi, questions. taking good and morning thanks

Paul Manning

Mitra. Hi

Mitra Ramgopal

just success because had implemented I'm for curious, pricing. just input pricing walking curious you've but to to just follow-up obviously just wanted you've increases potentially agreed away, Hi. if had offset on customers higher great costs, to concessions? they

Paul Manning

been The very understand, successful. of is customer I increase and you Yes, line. necessary and be that why the his what think, we've product your still implement need can that definition success overall, can in input can you is successful that customer

our perfectly, compared but insight, you like a finished lot you're going the to and to level and Colors food think said is when have to lot, ingredients. compared that's I customer's cost business, otherwise necessary impactful a for not customer are said some don't Sensient it leading products cost a product. you going fundamentally finished you at business. flexibility, finished situation the to that Instead, but to don't think so losing ingredients other it's because product, degree of start a that more work and gives find ingredients plainly, formulation of the Flavors I it's they're necessary drivers economic to some cost other look the very us again, your companies

what's is arrogant there to it, go You you an face, your take got happening. this with in

not seeing. face of lose if commodities information for at pricing certainly some actually term, going don't some of but de-escalate in the the to environments some provide cases at you that and today, longer it to lose you you're point already don't it some in that lose some You may of you going deflationary

be to very lot effort situation. time we've to And send on out, type so takes I only it of very is successful just this work our groups, and, close go of a a dynamic customers you this, a your think is everything very and got takes of it we've not that taken letter done very, hey approach. very, in each a because should pricing lot of that So

Mitra Ramgopal

on Thanks. you helpful. Or lot part segment, It's Is et then diversifying Color lot how curious, terms of And care, of was talked be about of the care, very That's achieving it it. too? body of a I to skin a would cetera. that going M&A that. In categories you organic? products developed be

Stephen Rolfs

Well, is be for be I to to now, effort stemming The now, suppose. successful with. it of it's fact new the lot that out largely from for for answer there continue inorganic are is customers with. could out there lot customers we there the is, both and right There of been a a can what that here us grow

so we types are We can regulatory-friendly to they products group be where good in market. the program our performance-driven product a the customers interesting very adding introduction continued in of new that arm have successful

And think in continue the largely so, from I to -- for the to organic time going Personal be is Care effort the being. time

think but M&A a only in Personal Care, certain -- This I organic has short general cycle in an I move anticipate be it's there's markets not effort. long been these to multiple, going the we'll reasonable had be right, cycles. largely cycle. personal inorganic, food there's maybe But a ingredients for market changes, see, in within a bigger term, become picture. As Perhaps the that would can in where part care, for a things of

Mitra Ramgopal

year you Solutions. And That's more Flavor then on since one so just Okay. M&A. Thanks. been great. or broadly acquired a It's

it pipeline, valuations M&A given relates of are seeing? terms in curious we're volatile and opportunities seeing maybe the environment Just as what to the you

Paul Manning

priced sort On guess, find if be a half, can really be rewarded logically invest great and find and relationship right I for grow are type rewarded that with one they've coin, with of there can that's built establish and can in you Well, of and of that good halves business their you company you asset that a that win-win can Well, two one. a further. reasonably they then where company, great a the Mitra.

very of FSI year. of These several last I a we have was in -- so good example are the for pipeline. And these think that us

of Now a too. carved there's added and picture. part is then nowadays. businesses to applying air These opinion, rather in that and a of another overpay for lines business easy coin, being is mysteriously bit thin a a little very creating to in out are where opinion, which, situation my generous where, of bottom different a my EBITDA it's multiple

fundamentals Things sort that the fairly valuations and our in And We perhaps and to But and our of fundamentals invest I and accordingly. good rates rising fits. a bit we portfolio so less there a to think our that of some revenue with there's technically of that that maybe I think there's driven knitting. I can to straightforward. in interest that much are are return little our profit out future, stick of think could into -- We in still that We're can kind we future. stick focused. fit make but cultural there very are

a threshold. so high And that's

to right. And we -- it want so get but

I think that. our do investors, us to would our like shareholders

my too, think and employees me together I can like that to acquire can would grow seamless we that, have integrate, a do we transition. something actually that

got think long the that right I've set But a for that's I there. So criteria term. it's of criteria the tough

Mitra Ramgopal

that's No, the Thanks taking for great. questions. again

Paul Manning

Thanks, Okay. Mitra.

Operator

go Boldhaven. next from from The David Please Green question Instructions] is [Operator ahead.

David Green

Paul. Hi, Steve. Hi,

Paul Manning

Hello, David.

StephenRolfs

David. Hi,

David Green

it. Much me. couple from appreciate A

points. Is And give the us had been like? it that some -- XXX on kind headwind looks about of side, was talked wondering basis quarter? now supply. F&E in that terms headwind headwind specifically, any what indication And can of diminished? might the have you in an color what QX about sort I the of second was headwinds slightly just On QX onion for onion you in from memory, the

Paul Manning

Yes. say look Extract, ingredients SNI. call Flavors we flavors, and I of would what flavor traditional the you the and -- kind at the

Group. very Extracts discussed pieces of sort growth. and are Flavor those had Flavours that and Ingredients we three volume pie Flavors The of had revenue, So the in nice the and Extracts the

piece, well. from headwind I a the again, of mentioned did stemming overall I factors And think we quite mentioned, volume timing SNI earlier. group. as bit for the they that there was the The crop the and the little of

here products, growth. think see XXXX. would that strong improving a robust continued I the in the Having more volume on we second and line very for into overall improves Flavors and the I then of top situation half So think front Group picture

kind of XXXX, that's ride I nicely a of of we crop much first XXXX. in half, first in a versus the which into it's So obviously, then think, -- would more ultimately, first half very the half improving, favorable be XXXX, position half second

So nice that tailwind that you'd -- as potential year. be for in about them next thinking theory, a

David Green

sort of might in color any second from specifically? the been any that that quarter S&I have on so And headwind

Paul Manning

mean No, the I enjoyed it catastrophic success last year on run beyond we to for waiting guess. God it's really what nothing onion, I and I his with said. headwind just a generated course from growing

David Green

sort for half. the moving thank you. right, the parts just understand I'm to guess trying I second All of

the obviously In And so you're half your of what of for terms in full then you've top terms first guidance constant XX.X%. is the delivered line high for single-digit in growth, year. currency

that? the a implies fairly a So that for little in and conservative? any does to half? uncertain obviously deceleration reason it's bit just be significant second the conditions what So Or need

Paul Manning

some QX. of kind you I Well, think give on early reads I

pretty look July, of here September, groups. look things good I across at each the As August, again

for we'll read another no or two, in get about an So better I guess on week QX. even my confidence there's QX. in waning

So no, in in think tremendous anything I diminishment the second there's a half. don't

Colors, of a half. second there's nice in year's described, Certainly, the very growth the that put along to volume I think place Group, continue. situation But The digits the going very will with the very high the Asia, in to digits pricing growth second I Yes, again, numbers some amount really it's a I in we'll be last Flavor pricing there. universe their with of volume as improving half. our pricing. modest think volume think double-digit again I double nice single And improvements. we in continued out lap great big

we double to folks raise why digit? want hung don't division. Like big that raise digits have do profit really we get And versus on double really guidance. up How I didn't so don't I medium,

great good be very, So really let's think going the happy. feel you're feel about and half, about just very back I back say half, I to the we

David Green

a Thank if very couple can. of you. more questions, I quick just And

Paul Manning

Sure.

David Green

strong terms Any Thanks more Color obviously on specifically or any very a new lot. specifically drivers in other had of as a wins you of sort those that specifics? there. and quarter color out pharmaceuticals again, cosmetics and called

Paul Manning

Yes.

me that Group broad-based The bit. a So let correct little showed growth. just Color

you're colors, whether colors, foods, story. natural growth with and So had And Personal that we're food talking group of et we synthetic we had broad the then, which well, coloring broad-based tells talking products, about food course, growth. pharma, we Care, cetera. colors geographies, that across colors,

for of growth right, nicely the I wins, across set each very we're customers, But there's very, for from our from there's growth Colors, the of little up yes, great that pricing. momentum the good So new across going a XXXX think a that yes, sure. coming board for new And customers, think very momentum back groups. bit very, in that's XXXX, existing of and into good into I company half lot again, in

David Green

on, for you just any I I very then it cosmetics question are are find mean final to pre-COVID the just that to was interesting other interested is was there mentioned the me of parts below? out if that now business still back And levels. that was

Paul Manning

half of -- big revenue cosmetics, the our about personal and care even of it the really part piece, was is segment, the the business. No. legacy that It COVID was of makeup kind lasting was but one just within which

COVID Personal other the balance and seen the then Care Flavors, of business. the have favorably. as few you've exceedingly think weathered the I years Colors over last businesses,

one. So think only that's no, I the

David Green

Many Perfect. thanks.

Paul Manning

Okay. Thanks, David.

Operator

and further any Ladies to gentlemen, remarks. for the time. questions turn over there back are no I closing conference the at this will company

Stephen Rolfs

the some very some second those people Thank and please models the those for the of you mind as towards end the would quickly. comments I ask, year, repeat just update much, everyone. keep I'll of half Okay. in script guidance, your regarding made I

full XX%. at I to year, tax we expense. rate the interest be our commented For expect about on

above down the half do raising of we prior the the So but in prior year, the in year half the rates, by versus interest first be level expect with million. will second year, the $X expense was interest year, expense of about

expense familiar $XX to of then course, Most on people about finish the was, foreign And the I last So interest at are exchange. million. of we the made year comment expect on strengthening the with dollar.

So we now a expect had $X.XX previously expected a we $X.XX headwind. headwind,

the $X.XX falls year. in really half all incremental the that headwind So of second

in our just That those everyone we keep ask time concludes three thank your And mind. this would things people, I for morning. the so call. And

Operator

has conference Thank The you. now for you Thank concluded. attending.

disconnect now your lines. may You

Sensient Technologies (SXT) 22 Jul 222022 Q2 Earnings call transcript