SXT - Earnings call transcript Q3 2024 | Sensient Technologies Corporation

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Operator

Good morning, and welcome to the Sensient Technologies Corporation 2024 Third Quarter Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. Tobin Tornehl. sir. ahead, go Please

Tobin Tornehl

by to I'm call and today, Tobin Sensient joined Officer our Welcome and Investor Chairman, call quarter Executive today's sensient.com. Chief quarter Chief the website of of today I'm Corporation. XXXX. Tornehl, Technologies are on Manning, the Sensient's morning. Sensient's XXXX, Officer. Earlier section for President results. earnings third Financial Paul Good Vice the of of at during copy we be and release using released Relations our earnings the third A slides we'll available President

information and filings. we items During and believe our plan the performance. company's of results call financial reference between the today, movements, removal company's impact provides the will evaluate other and the the reflects items additional also which of evaluates reviews This cost with investors We how currency comparability measures, company's to remove as improves these optimization management the non-GAAP reporting noted of portfolio performance certain company's and the of operations periods. in

today. not most considered financial is Non-GAAP reconciliation in should slides. and with to available these non-GAAP with our investors A review a to calculated in be financial reconciliations GAAP connection results in accordance GAAP. or isolation comments of measures press release financial substitute directly financial make comparable for the from information in we measures We encourage the

forward-looking responses to your like that I'd also include call, made remind everyone statements. to this comments questions, may during including

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

slide quarterly call, deck. our to We'll we that available referenced last slide deck during be introduced we is that will start a X This referring on will our of As deck be also call. Slide today's on website. through

we'll Paul hear Now from Manning.

Paul Manning

morning in of quarter. increase Good contributing driven third good with reported This revenue X% was approximately Tobin. and low strong afternoon. single growth the primarily currency revenue local Thanks, volume Sensient price digits.

adjusted XXXX. the local quarter from The of up adjusted consolidated up Our margin XX.X%, the quarter currency quarter. third was EBITDA third year's company's for third was basis EBITDA XX XX% points prior

growth sales execution, new the strong of our each of of customer improvement America end destocking customer and groups, With to growth across EBITDA the North in groups, Europe. continue to the sales and of on level focus fourth the and our stabilization in resumption be of quarter. The the end expect across continued our demand to volume volume high revenue we due is wins

new sales to Our on remain win needs group development each sales and pipelines their customers regions. our support in rates focused is expanding working robust with of and product Each our launches. new

and volume local The and X% growth third Color points lines. revenue Slide EBITDA growth. profit is growth up XX% product versus group's solid quarter care group's local and XX%. We operating The X. local currency XX.X%, currency approximately now year-to-date XX% third Group had saw both was quarter, excellent pharmaceutical quarter. increase local The up in year's prior revenue delivering and Turning an to basis is XXX an currency of food personal currency the profit margin operating the

colors, exceptional the to sales growth volume remainder customer innovative and particularly of group benefiting the We continue year. is service. expect The wins, new from natural its throughout this strong in products

Group. is few last in operating strong leverage the see our during the discussed and main Color we now of expected we calls, the As volume driver

expect we leverage third quarter local relationship profit group's be this expect the between and growth to in results. the fourth quarter, to fourth currency in similar the We to quarter and continue operating revenue the

expected I to revenue single-digit For to now I currency year, deliver group high Color expect the the high the single-digit growth. Group to mid- Previously, growth. deliver local

approximately Slide Turning Flavors Extracts The prior focus strong revenue continues profit new versus sales delivering up year-to-date local a on third XX% benefit group is from local to growth local currency its had quarter, its revenue profit basis customer local operating X. up the and margin execution up currency was to currency & quarter. XX.X%, third wins, year's sales innovative offerings X% service. and group's The Group XX operating and The its X%. group's growth. currency and is strong points The product EBITDA X% quarter

product flavor which in extracts ingredient flavors, and operating the reported lines growth solid improvement. group's contributed leverage volume to The the quarter,

the to the expect We be in revenue currency group's results. operating quarter this and expect in leverage quarter, local the and we between to the continue fourth fourth quarter third to growth relationship similar profit

high Flavors expect I a growth. single-digit local expected For Previously, revenue to Group the the mid- to now deliver Group year, to single-digit currency Flavors deliver I growth. high the

continues EBITDA Slide is line The with and of group currency XX% a a XX.X%, all currency revenue is is The have approximately The quarter. Group wins. profit local local operating currency third sales up to to solid up in and margin experience X% high Pacific X. regions growth operating profit group's turning level reported Asia of year-to-date growth in The currency year. continues revenue new growth prior Now local which reported third to strong the group X%. XX% quarter local and in

the and the Asia the operating profit year a at group well, group least very of for currency what Pacific XXXX. least growth in The I to growth. in the in the expect have group for revenue deliver fourth revenue group local third expect to deliver Pacific is quarter, Asia expect finish single-digit strong high XXXX. quarter the performing I I delivered at to full and

puts revenue and local single-digit high back performance Sensient's adjusted challenging currency Turning local on XXXX track EBITDA. goals mid-single-digit long-term XXXX, our us to growth Slide currency with X. of After

In mid- currency growth deliver to previously XXXX, to EBITDA local revenue expect both single-digit and high local and we single-digit growth. adjusted EBITDA. adjusted expected currency high deliver to consolidated now revenue We for

also to the reason EPS of higher We mid-single-digit and interest for deliver because growth. currency adjusted The taxes primarily expense. mid-single-digit growth higher expect local is EPS adjusted

ahead Looking our to revenue rate. to grow XXXX, we expect mid-single-digit local a at currency

We lower result and expect a a interest rate debt on environment. decrease expected expense as our repayment in our of a focus interest

be to expect flat our rate at also We tax XX%. approximately relatively

quarter, be businesses. helpful we to do As new within thought began technologies would we our last few it a highlight to

a our XX. Slide to of couple We've Turning highlighted technologies. flavor

the called technology and bakery novel to savory bursts desired degrades for products. flavor that allows these can and SensaMelts maintain flavor SensaMelts. production challenging into flavor savory performance known of The conditions, end and incorporate first overcome challenging manufacturing conditions, extend and profile. is technology life which products a profile our are the Bakery and customers is color. color SensaMelts their product typically shelf

others end website. be product. label creaminess markets. benefits products juiciness Trueboost of is and a is clean and the can to feel our products to customers' Trueboost continuing reduce the customers' all mouth found our these second the It and of natural boldness portfolio sugar technologies supports technology like efforts flavors highlight. end a our overall that and enhance of More across to at by information we'd on and of salt, provides amplify imparting

optimistic the of the our XXXX growth strategy operate opportunities the and result about we're markets experiencing chosen direct the excited is remain to in. we Overall, implementation our within and and I I'm our of growth business. groups of the a future of opportunities have from the about each

on the Tobin will details now third additional quarter with provide you results.

Tobin Tornehl

the Paul. for the explaining results our of XXXX, between The we moved comments you, management portfolio cost these clear the the my believe non-GAAP In produces picture results performance also morning, of I'll the reviews and adjusted and reflects operations this performance. costs or Thank investors. removal adjusted company's optimization results. company's a We be how our differences plan. for GAAP This the of

was quarter. in in of XXXX in costs, $XXX.X Slide quarter plan $XX.X of quarter the income comparable quarter the million the portfolio we $X.XX portfolio the optimization share. In per of the compared compared $XX of in includes income year's in quarter fourth was million million XXXX, $XXX.X third Sensient's income million revenue last to approximately incurred of XXXX $X.X year. $XX.X Turning third Operating third to million to period million last is of optimization plan Operating XXXX which third of XX. costs.

incurred $X.X So year, million far approximately of this we've costs. additional

quarter increase of Excluding the adjusted year $XX.X XX.X% portfolio the in $XX.X the XXXX income plan, third of in the to compared million was local prior an of currency. period, cost in million operating optimization

XX.X% year-to-date comparable Local in to period in and rate company's the third up currency period. quarter EBITDA was third adjusted for adjusted up in tax the The of of XX.X% quarter XX.X% XXXX. X.X% of the XXXX consolidated the XXXX, compared was

currency Foreign by in approximately $X.XX reduced XXXX. EPS translation of third the quarter

flow Cash September of $XXX XX. September year-to-date XX, was Slide million were to ended from year's X Capital $XX the up XXXX. comparable last compared XX, as XX% Turning period. to XXXX, months million operations expenditures for

million $XX million our expect be for between year. and to We capital expenditures $XX the

credit Our debt is to net adjusted EBITDA X.X.

debt for future Overall, rate With our reducing well interest on our levels positioned the we interest and remain investments. high sheet continued expense. our focused balance environment, remains

Turning to Slide XX.

growth increased As year. adjusted revenue rate grow to Paul currency local our have EBITDA to we and the single-digit local high XXXX currency noted, a for

the interest expense. year be interest up to our We continue expense for compared expect our XXXX to year million approximately $X full to

We XX.X% expect rate XXXX our XX% be compared around full in to tax XXXX. adjusted to year

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

currency a grow currency at to fourth the grow local single-digit EBITDA for growth implies rate. high-teen our this is What to and that expect to a revenue adjusted we our high quarter local rate,

we be interest fourth be tax approximately around expect million, adjusted We and expense XX%. our our quarter $X to rate to expect

We low currency grow adjusted at local to rate expect a fourth quarter. XX% in EPS our the growth

share we be $X.XX our In considering per $X.XX GAAP EPS in per GAAP earnings continue between expect to to share. and our XXXX,

$X.XX portfolio approximately Our includes GAAP EPS optimization plan of costs.

up open Thank in participating for call you call We'll today. questions. the now for the

Operator

from W. first Ghansham Panjabi The & question with Instructions] Robert Baird [Operator comes Co.

Matthew Krueger

sitting is This Krueger Ghansham. in Matt for

the a to to on question, kind Obviously, focus market volume due destocking move bit a forward? due you the following By can volume lack washout what the volume portion we really the first the my you is the segment, was as for of performance was break feel growth comparisons of sustainable So growth quarter. volumes of year-over-year the what strong. to I on of of quite wanted basis your portion out normalization end versus

Paul Manning

Okay.

if X overall, low the of revenue kind look -- up X, QX, we being So single-digit you company, price were at X% level. type for

figure volume you X%, overall. So X% about

color volume. Pacific mid-single-digit more a having it Now like with having varies double-digit bit double-digit volume, Asia and flavors volume

question the sure, answer there's number a to here. so factors And explicitly, of

we then, as North years kind market, me last heard terms and X% flattish, about volume end the was our of the So volume. market, you of the of up end of Europe market, customers X%, by in for and measure Asia vary the talk Pacific maybe things was X% LatAm. course, the couple down of to American

our at of North more product So now America, volume market customers look flat. all as selling amongst their we in the like is

So X% still America. our headwind X% is we in to have fairly in market North Europe don't consistent. that biggest

the it I destocking. that, So was figure of maybe a portion no

I So That where from last this even destocking in little running to reprofiled will was a high single-digit the impact, was think the groups think bit cases, anywhere mid and I differences year. obviously. come It in low headwinds. some is it more, out

QX. of peak QX. Flavors And last colors the so at the was year not destocking destocking year as largely last much was

got You has faster lot destocking of a kind did. of recall way of their colors their that out flavors than

like guidance, kind long-term look accordance and this of made your what the from we low single to net-net, be question, balance in to up with mid-single-digit into XXXX, does volume. anticipate to guiding pricing be our we're revenue the future? where So

say, points market, of the Asia of and in very volume new strongly our regions. which very, So strong destocking, a each and on to nice wins. the had new in majority to mid in low wins, continue to Pac flavors happening couple a of color. growth be But the not are specifically QX, as in colors Asia the Pacific the particularly in our We in uptick largely

wins from having while wins. headwind. level have that yes, and not of that confidence growth is having again, stemming is not new favorable that is growth some this comparisons we the I projections. the can market volume keep mid-single-digit the last why 'XX So and nicely to translate and up destock, large, By new should This of that support year and into

Matthew Krueger

bit. That's And that great. kind building That's very of on a helpful. little

expected or expectation productivity kind variances maybe you provide be or we have as can the You that to XXXX volumes from you any in long-term the already mentioned to line notable bridge initiatives try high-level XXXX with or variances target. other us expect other ongoing guide that there kind of contribution you for of estimates? any that Are to

Paul Manning

Yes.

that right expect nice to for operating I I XXXX, just the expectations continue not we single-digit gave with those pricing, as get and think volume, maybe this leverage, you low now. to to about year's levels yes, weaker QX. think from last is weaker XXXX, you part -- seeing But recovery think what's to you're I going feed that. into This in as QX,

I execution, the First and our strength for important wins. it to as of metric a the our be high, I as That as levels, continue strength the revenue. company. track service percentage strength kind product foremost, of true of of rate new us most the with rates, of the a our new to of starts is win it's is fundamentally very always governance we which think, barometer very, of low mid-teens all That the technologies, strength see strategy,

going in that's to, So I think, earnest. continue

And potentially play of a so that XXXX. differently to expect the little out we couple bit in variances

just market, mean, bit that's lot, market number would down X%, it the a America. North I'm in little would Europe the not asking though, and X%, love flat I a it's of be So I for one, when headwind. a just if

LatAm markets So hear be X of would these growth you we it's my largely China, it potentially solid, China, but as And past, North largest strong expectation would has for perhaps and in is as to course, There Europe, been flat. us. it's see the Asia. our market of as be of upside markets in America in and as still strong out in talk growth the growth much not still

I a be So think that positive. will

can't time of things that talking so It's saw CPG our get lot products you many very number takes our of our around during companies like, even heard part they right? be rationalization, companies product the many can of we on and SKU the small we a SKU drives customers, COVID, XXX, rationalization, a revenue." about commissioned forget complex. programs of core One "Hey, which shelf, And

would in on but be could like seen that have my in And that the across of touch in I SKU around a XXXX, to point is upside. initiatives and could of rates of so if lot I these one. But I'd I discontinuations believe, market businesses, some we bit, that, a a we say rationalization, that and that to think the think crystal most another ball XXXX moderate in discontinuation foggy little little XXXX, subside could that our of

point portfolio track your on the optimization, we there. about To remain

that's very, I well. very think to go going

strong very, have program. to expect very We from savings that

on we recall, $X of you estimated track there. We million $XX remain to As million savings.

the right cost side million related. vast again, that $XX on that, We're about charges. the majority expect that ballpark with, noncash being We of the still of of in

is of those, of So XXXX. that timing the some

XXXX. is that Some of

is of XXXX. Some that

further I in growth. give projections operating leverage profit and to improvements operating our our So think certainly that credence would

thing But guys, looks and have And to why. big tax growth is the interest. Why that hey, folks there's is That's and words, question the think I that good EPS X the translating looks good. not the profit EBITDA growth? and like,

are why you why to And that the QX, through. and we're at those growth interest, headwinds X% like, EPS and in it EPS, and look you're getting XX% tax is growth so flow biggest OP and single not

start QX. to of here us you'll some see So that lapping in

heard substantially growth EPS. estimate Tobin on higher You rates

be we tax, that headwind a expect XXXX. to And in so not

interest headwind that's through saw important there. And flow an So a you EPS. rates, to

interest. EPS the about year the order in around somewhere for of $X.XX headwind of terms that's think magnitude I

So be less be think Fed. I'd also that, could a possibly will the like headwind and from not a slight and tailwind that actions with to debt potentially

would, some those So for I'm we late at point, are of as we that reasonably October, the in XXXX. sitting this here could variances project

Operator

The with next BNP. Tang from question Nicola comes

Ming Tang

wins. new there comments your on up picking maybe First, on

trying I a bit the with Is revenue, reformulate? it I'll you wins first look there. about this? stop and and think pretty Can impressive. new customers? you talk looking into what's as confidence we is you a giving to momentum one. percentage mentioned mid-teens penetration low are understand a as who of what's customers little That's what's driving driving this which bit to it Just to XXXX. Is

Paul Manning

Okay.

very I our and Great much those of but it's ability part it's ideas. think So the here program really company. are on great, the implement execute in ideas to

each with working of Doing job. being what understanding need. leadership part done who business force supporting nice sales they your really units customers, to really in a responsive and them has our So are folks success. big them, The these our a driving the sales it's of job, and really,

I the note tell you And deal would driven that execution of sales which put exceedingly colors, new ability I lot this launch of about the very at -- new We line I'll been related there two, of a so I strong really year. think has natural our to launches. our service first And one XX% containing that had product good well. Number discuss here. of would products success and customers is that has some growth rate has very, to of colors. natural a a typically

So part think that it. is I of big a

is to chose emphasize. market of we the some So that

and But in perspective, natural just give fact, we're colors up more double XX% some you on digits color QX. to we up natural growth, in of than were

is a contain plants a that the we've volumes launches natural by and of program, capital outstanding of strong activity invest But kind new business of natural strong our driver. been market. the large, types development performance bring product just new and and customers program, in products conversion the to and to that colors, a would market. invested very built we this new lot strong that's supply really they really really some continue A So expect in with activity. There big have launch we where in great share a lion's of chain from a in coming robust color

a market, right of over think and quite frankly. it's I a have growth very the complex to probably And that of we're lot seeing XX investments last invested XX the made be to now it. fully So you the we've fruits many in really of are years,

So think very important. I that's

the Group base with level customer big brands. think we're we partial part and the Flavor has piece, and regional well. emphasize the established service to in think And as continue and able the customer the success to a our execution of local them I bring I of level from start-ups innovation been selection to more part of but

most work the Flavors and products very have products support formulation and We and didn't flavors. selling hard constitute They most selling more on focus cases, they those focus same in identify we emphasize technically we a nearly driven to portfolio. related can on the we today that do really Years where the successful applications are to from ago, generally of and lot that, our in the of entire defensible very types have we rely business. be on flavors.

driver. So big I another that's been think

markets really were industrial chosen, in a So We right? of really a combination we've completed of our and we it's actions restructuring pharma the those got personal on and care. food, lot out after honed businesses of

products course, off strong sales part as big then, of of deploy the we're The execution. So types technology that's and with natural I colors and led particular. and to And a very in flavors it. able of

Many drive So the top other factors, come those would that mind. success. but to sort that things of I really be would think that X these are

Ming Tang

That's great.

personal a Second wanted ask bit to one, about I care.

beauty in personal China. or a as any bit? you care of slowdown know slowdown little whether in particularly care something pretty risk? see but your I'm North you industry, just the ahead that think larger do some Or I was signs see business? I last slowdown in think quarter, to and a it trying like was a of players America of strong wondering in the a the I flagging that's fears been in have players

Paul Manning

personal very strong good Yes. We've makeup really Well, done here fragrance have personal certain again, segments A certainly right also ingredients within we've personal know, business, we're so very, the well. a within been wash, there. you quite that doing care, have quite we've very, in Body now. which had I would market, which, a Skin well has care, nice very fit with. within think sales of say products I that care well number category. is emphasized we and as of care lot year. our our doing We

other So where markets where I significant care timing say personal lags. would have our and this, we above the serve, of are the any we can are customers of

this care of been shelf these flexibility for customers. It stems a us personal the changes a from products. of there's provides of the for life level our lot in of Some But and market.

north about many, Something now years many of is XX% probably number that like And ago, through like of more was market X%. that transacted e-commerce.

there's other a been there. are low as a that There's change -- lot of growth that changes brands well. utilize has lot contract of market and in been manufacturers the the So influencers that brands driven capital-intensive in

industry. There's just the world, brands, not large multinationals throughout want brands, driving call them. that it's a to whatever influencer upstart indies, supporting of third-party you manufacturers really lot So

are some customers also doing And there's who are so, while struggle who quite there right plenty market the a may of who well. bit little having yes, are in now, a be

maybe and driven to continue and I it's little regions perform, again, higher mostly of going think level the the not to driven level. confidence having a the volume, of of you ahead a XX%. don't then, there, the we customers, these And selection to really good products. certainly, expectation. bit implementation mostly sales other in sustainable XXXX, by look or execution force that course, And mid very maybe think that so about very regions, amongst some by as a that in single have high long-term digit, realistic I a that's But to we're

Ming Tang

the on way It's your them actually in which last question, articulating into segue is nice slides. my targets. long-term for quite Thanks

key the division, the of terms single-digit help then the by on here from -- through us talk yes, you upside Is us in EBITDA parts? more a can Flavors Just revenue, your side? does On digits, ambitions of where perspective? and terms that by in high division? remind rate, the and the EBITDA, can the you just of you levers the remind growth moving And us the it see mid-single most Extract margin

Paul Manning

Yes.

the good is is the that. a X used I operating clearly, across above has digit average mid-single So that groups. Asia mean Pacific think I been

So have yes, little of there. colors, higher higher within But may bit course, Certainly, end a look the of a of to that's they smaller flavor. even portfolio. of range, as a you certain opportunity the part natural they're on also certain of that, going at above possibly be personal things segments that like care, segments

would getting of below into I the posted pretty year, sort go as we bit without we that that. we'll across you good And XX mid-single So the groups where little where during gray above be a here, along keep course shades would of a say, are the proxy. digit we were of

but be manufacturing -- way production the from other and standpoint an and a it the going very But of be that sensitive declines, around sales leverage, costs emphasizing is get respect have very, to that question to SG&A volume on outsized maintaining of an can that works strong the costs from costs emphasizing of right? to stemming very been a I your out EBITDA, product products a yes, control too, very, mix, think and businesses where can not letting impact and we have and really, and we're types the standpoint. With lot volumes from that focus on the

that, it's cost -- So our it relatively necessarily good volume launch and consistent comes offer nice expense when with having although R&D consistent when managing it's on at we those is a in very that in look mitigation, and should to scrutiny strong being steady, don't a operating us innovation, focus have that same and leverage. production investing little closely. a SG&A, Tobin's as bit the thinking different get Again,

flavors. So opportunity that be biggest nicely. to through uplift continues flow continue to should The margin very leverage

and improvement industry-leading a The see accounts. is quite I Asia there. think we you're by nice Pacific as going EBITDA, even some quite competitive and in to robust, profile colors possibly

to And well. there contribute So we're there mix. then our of to and we've flavors, biggest is continue course, optimization the to that's just focus opportunity got portfolio product as our going going on

Operator

David question Instructions] from [Operator Our Green next Boldhaven. with comes

David Green

A couple of quick questions.

starting Just off colors. on

natural as sort a area colors of of mentioned growth. You've strong

there big driver? being anything else you'd out So a call within colors is as

Paul Manning

Sure. Yes.

that think same QX. in our big not care significant will once our a business cosmetic force driver, even as I I again, as food for bigger our was the business. it driving was do personal in business, some here think, the color And although fairly success There QX.

we're whether make carved care personal about position that or So talking skin up, there. a hair, nice we've out

by need care innovation work of We regulatory end And good products. that in lot in market. of the I constant again, expectations personal our think really have driven that innovation whether a there's market, performance for drives the consumer or changes. Regulatory

attributes large a where growth again, many and same flavors coatings. future. technology deploy. the has and we're is selling that part, able the but here, as excipients, That we're a nice piece But as to also and pharmaceutical certainly picture we of look the is smaller colors, to pharma food as Now colors of not

a to color back that. as of to tended very don't yes, We broad-based industrial is again, I level So profitable. be go used And businesses defensible, have success. to, like those not we which

have a and were up The strike kind or you moat. like such on They dried alligators that moat think term to good moat. the the something. I didn't of was use

it's It's of that feel in as good there a care personal food we portfolio. well really piece with those. got about rid pharma So and and we of

David Green

Or be this been And last quarter? Are destock the is the we just you on the and on destock, headwind are I out. now? know any in the the colors last -- fully through there was still will

Paul Manning

the No, over for is No. colors. destock

maybe bit in destocking little it the But year. the Europe, in was might large, personal less been thankfully. for more beginning fact, QX. of and or In There in a in the have over by care that's past,

David Green

And one. color margins EBIT here, XX.X% right not but in quick QX? were I've sure got the a if in Great. I'm numbers

Tobin Tornehl

EBITDA was margin XX.X%. for color in QX

David Green

apologize. I there, number wrong the got I've Sorry,

Paul Manning

David. said. -- though, was for if you EBIT EBIT EBITDA, XX.X% you're That's that asking

David Green

Yes.

So the EBIT.

below for was actually, EBIT which your margin actually QX, was XX.X% XX.X%. which was So QX,

the the So actually was colors strength more? improve given within wondering, why I just EBIT top margin line didn't in

Paul Manning

was Well, XX.X%. year EBIT last

that that. point conclusion So I a improvement, draw short yes, wouldn't the basis XXX much was XX.X%. a of touch from of But

we on XX% EBITDA, quite expectations, figure as you down for EBIT. that the robust. it's I of think, think you yes, write on be And the kind approaching year EBITDA. I see for can will long-term But

David Green

reason specifically? QX that was just Yes. can, Great. if a A I on & Extracts, Flavors sequential QX. for couple from Any more, deceleration

Paul Manning

here. Well, were I are the business. these Not the we -- mean, Let's quarters there no. there's all same. up. is mean in see Yes, seasonality I

And seasonality factors sell ice much stronger may there's of lot a in as don't. beginning where Beverage many ice not historically. eat January. the the lot folks cream of cream, be so Most there's year in more folks you a as launches

that more So have anything you else. seasonality natural of than just kind

would the that, customer. mix Beyond sale particular with customer it or a of timing from just win the of product a really be the a

equal wouldn't that. not all quarters. are take These again, So away I from much

by far the next across Now back are traditionally, each of you being then many, go X quarters quarter lightest years, QX strongest QX the traditionally groups. the many and and if generally being QX with

and personal care vary food So that businesses. ingredient by may

But competitors most something of is a we of that food seasonality general see industry. different mix do. may customers in the than Some have think I in you'd

David Green

EBITDA the -- XXXX single-digit growth. for couple final high The guidance the obviously, questions. of adjusted Then just of

Given you've and made tax. about the comments costs interest

obviously, digit? expect high single EPS than the higher should growth, we So an

Paul Manning

$X.X In digit look it interest now, a was it 'XX, In we're to expect you about down. QX, to Well, mid-single revenue about QX, right looking do when standpoint. more at We be million. favorable. go from expect we at

about $X down be better better standpoint. interest interest million. expect hopefully, in from a go rate And to our environment, 'XX to we expect that We with,

So to And leverage about was we'll year. your then about a get to $X.XX headwind, a -- rate, point, which not little be expect there. this -- is our we or tax X%

as we're be I I I going kind look leverage above when think this you So that bottom were more mean, be I -- you you're high to than at from don't the don't indicating. don't you think of we'll line, standpoint get year, but getting as will think

David Green

just Okay. And balance the sheet. final question, on sorry, the is

great X.Xx. a of now done to job, obviously, You've deleveraging

of You quarter targeting give about where of you us broadly? then where such generated of sort next the do options for about feel year? to for might be I any cash And lot to need for mean, just what's the of expectations thinking right more might buybacks? where share be terms a thinking start in as Could be leverage for well. you -- end a the the in as business, you you

Tobin Tornehl

you're Yes. right. exactly No,

at So our now. about improved. leverage has X.X We're

really down has debt, that pay now. year headwind experiencing So our focus we're our expense and lower right been to the interest that this

So we're at X.X.

and I kind move from we low just next think as we standpoint, of the with I that what rolling into expense lower everything year. interest mentioned on forward Xs, expect

think, acquisitions that I So barring back start low else from any potentials anything standpoint. we'll Xs, standpoint, at from then to buying on or shares XXXX, look that in

a $XX we our to be should dividend of I CapEx a capital think our year. $XX that's would million. million range forward, $XX the then roughly million to year, you kind around $XX around good look our as anticipate to $XX this proxy we when million move million at be I is and And think we is

Paul Manning

I'd think And We're I fad little on David. to [ a ] Yes. bit add still that, inventory.

net we cash some be flow. the think positive, I obviously, a do work So there. more will can That

come as we probably they to together all probably that we'll back as a been And we've to so numbers in XXXX. drive saying, position and about would good it's down think reasonably these buy be but that you safe to in how debt, continue say

philosophical debt. your dividend, and maintain think would cash you buy CapEx one your with be your to I that excess pay approach after of back you my

be you're gave for be the what if you. it conceptually of magnitude, would order is the looking on would cash those Tobin just whatever other inputs that So excess based

Operator

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

Tobin Tornehl

Okay. Thank you.

Before I'd the fourth we end today, for some like quarter our some expectations. just call items to and recap

a at and high adjusted grow to expect rate, to grow our revenue rate. single-digit currency EBITDA we growth currency local local our the high-teen expect We

corporate adjusted Interest quarter expense and to expense rate fourth our be $X to be third around similar approximately expect our XX%. adjusted also the to We to tax million quarter. be

low growth currency EPS expect rate result, at the our in a a grow local adjusted to As fourth XX% quarter. we

today. call So again. thank concludes That you our

any Thank have follow-up the company. questions, If you please contact you.

Operator

The conference has concluded.

You now disconnect. may

Sensient Technologies (SXT) 25 Oct 242024 Q3 Earnings call transcript