QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended:
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
|
to
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
Registrant’s telephone number, including area code:
|
(
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
Accelerated Filer ☐
|
Non-Accelerated Filer ☐
|
Smaller Reporting Company
|
Emerging Growth Company
|
Class
|
Outstanding at July 22, 2025
|
|
Common Stock, par value $0.10 per share
|
|
Page No.
|
|||
PART I. FINANCIAL INFORMATION:
|
|||
Item 1.
|
Financial Statements:
|
||
|
|||
1
|
|||
2
|
|||
|
|||
3
|
|||
4 |
|||
|
|||
5
|
|||
6
|
|||
Item 2.
|
15 |
||
|
|
||
Item 3.
|
21
|
||
Item 4.
|
21
|
||
PART II. OTHER INFORMATION:
|
|||
Item 1.
|
21
|
||
Item 1A.
|
21
|
||
Item 2.
|
21
|
||
Item 5.
|
21
|
||
Item 6.
|
21
|
||
22
|
|||
23
|
PART I. |
FINANCIAL INFORMATION
|
ITEM 1. |
FINANCIAL STATEMENTS
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
2025
|
2024
|
2025
|
2024
|
|||||||||||||
Revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of products sold
|
|
|
|
|
||||||||||||
Selling and administrative expenses
|
|
|
|
|
||||||||||||
Operating income
|
|
|
|
|
||||||||||||
Interest expense
|
|
|
|
|
||||||||||||
Earnings before income taxes
|
|
|
|
|
||||||||||||
Income taxes
|
|
|
|
|
||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
|
|
|
|
||||||||||||
Diluted
|
|
|
|
|
||||||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Dividends declared per common share
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
2025
|
2024
|
2025
|
2024
|
|||||||||||||
Comprehensive income
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30,
2025
(Unaudited)
|
December 31,
2024
|
|||||||
Assets |
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Trade accounts receivable
|
|
|
||||||
Inventories
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Fixed assets held for sale
|
||||||||
Total current assets
|
|
|
||||||
Other assets
|
|
|
||||||
Deferred tax assets
|
|
|
||||||
Intangible assets, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Property, Plant, and Equipment:
|
||||||||
Land
|
|
|
||||||
Buildings
|
|
|
||||||
Machinery and equipment
|
|
|
||||||
Construction in progress
|
|
|
||||||
|
|
|||||||
Less accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and Shareholders’
Equity
|
||||||||
Current Liabilities:
|
||||||||
Trade accounts payable
|
$
|
|
$
|
|
||||
Accrued salaries, wages, and withholdings from employees
|
|
|
||||||
Other accrued expenses
|
|
|
||||||
Income taxes
|
|
|
||||||
Short-term borrowings
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Deferred tax liabilities
|
|
|
||||||
Other liabilities
|
|
|
||||||
Accrued employee and retiree benefits
|
|
|
||||||
Long-term debt
|
|
|
||||||
Shareholders’ Equity:
|
||||||||
Common stock
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Earnings reinvested in the business
|
|
|
||||||
Treasury stock, at cost
|
(
|
)
|
(
|
)
|
||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Six Months
Ended June 30, |
||||||||
2025
|
2024
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
|
$
|
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Share-based compensation expense
|
|
|
||||||
Net loss (gain) on assets
|
|
(
|
)
|
|||||
Portfolio Optimization Plan costs
|
||||||||
Deferred income taxes
|
|
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Trade accounts receivable
|
(
|
)
|
(
|
)
|
||||
Inventories
|
(
|
)
|
|
|||||
Prepaid expenses and other assets
|
(
|
)
|
(
|
)
|
||||
Accounts payable and other accrued expenses
|
(
|
)
|
(
|
)
|
||||
Accrued salaries, wages, and withholdings from employees
|
(
|
)
|
|
|||||
Income taxes
|
(
|
)
|
(
|
)
|
||||
Other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant, and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of assets
|
|
|
||||||
Acquisition of new business
|
( |
) | ||||||
Other investing activities
|
|
(
|
)
|
|||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
|
|
||||||
Debt payments
|
(
|
)
|
(
|
)
|
||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Other financing activities
|
(
|
)
|
(
|
)
|
||||
Net cash provided by (used in) financing activities
|
|
(
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
|
(
|
)
|
|||||
Net increase in cash and cash equivalents
|
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
Three Months Ended June
30, 2025
|
Common
Stock
|
Additional
Paid-In
Capital |
Earnings
Reinvested
in the
Business |
Treasury Stock
|
Accumulated
Other
Comprehensive
Income (Loss) |
Total
Equity
|
||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balances at March 31, 2025
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive income
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting
|
( |
) | ( |
) | ||||||||||||||||||||||||
Other
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Balances at June 30, 2025
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Three Months Ended June 30, 2024
|
||||||||||||||||||||||||||||
Balances at March 31, 2024
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
|
|
|
-
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting | ( |
) | ( |
) | ||||||||||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Balances at June 30, 2024
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Six Months Ended June 30, 2025
|
||||||||||||||||||||||||||||
Balances at December 31, 2024
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive income
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Benefit plans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Other
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||
Balances at June 30, 2025
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Six Months Ended June 30, 2024
|
||||||||||||||||||||||||||||
Balances at December 31, 2023
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
|
|
|
-
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Benefit plans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Other
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||
Balances at June 30, 2024
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
1.
|
Accounting Policies
|
2.
|
Acquisition
|
3.
|
Portfolio Optimization Plan
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Corporate
& Other
|
Consolidated
|
||||||||||||
Non-cash impairment charges – Selling and administrative expenses
|
$ | $ | $ | $ | ||||||||||||
Non-cash charges – Cost of products sold
|
||||||||||||||||
Employee separation – Selling and administrative expenses
|
|
|
|
|||||||||||||
Other production costs – Cost of products sold
|
||||||||||||||||
Other costs – Selling and administrative expenses(1)
|
|
|
|
|||||||||||||
Total
|
$
|
|
$
|
|
$ |
$
|
|
|
(1) | |
(In thousands)
|
Flavors &
Extracts
|
Color
|
Corporate
& Other
|
Consolidated
|
||||||||||||
Non-cash impairment charges – Selling and administrative expenses
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Non-cash charges – Cost of products sold
|
|
|
|
|
||||||||||||
Employee separation – Selling and administrative expenses
|
|
|
|
|
||||||||||||
Other production costs – Cost of products sold
|
||||||||||||||||
Other costs – Selling and administrative expenses(1)
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
|
(1) | Other costs include professional services, decommissioning costs, and other related costs. |
(In thousands)
|
Flavors &
Extracts
|
Color |
Corporate
& Other
|
Consolidated |
||||||||||||
Non-cash impairment
charges – Selling and administrative expenses
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Non-cash charges –
Cost of products sold
|
|
(
|
)
|
|
|
|||||||||||
Employee separation –
Selling and administrative expenses
|
|
|
|
|
||||||||||||
Other production
costs – Cost of products sold
|
|
|
|
|
||||||||||||
Other costs – Selling and administrative expenses(1)
|
|
|
(
|
)
|
|
|||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|
(1) |
(In thousands) |
Flavors &
Extracts
|
Color |
Corporate
& Other
|
Consolidated | ||||||||||||
Non-cash impairment charges – Selling and administrative expenses
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Non-cash charges – Cost of products sold
|
|
(
|
)
|
|
|
|||||||||||
Employee separation – Selling and administrative expenses
|
|
|
|
|
||||||||||||
Other production costs – Cost of products sold
|
|
|
|
|
||||||||||||
Other costs – Selling and administrative
expenses(1)
|
|
|
(
|
)
|
|
|||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
Other costs include professional services, decommissioning costs, accelerated depreciation, accelerated lease costs, and other related costs.
|
4.
|
Trade Accounts Receivable
|
(In thousands)
Three Months Ended June 30, 2025
|
Allowance for
Doubtful Accounts
|
|||
Balance at
March 31, 2025
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
(
|
)
|
||
Translation and
other activity
|
|
|||
Balance at June
30, 2025
|
$
|
|
(In thousands)
Three Months Ended June 30, 2024
|
Allowance for
Doubtful Accounts
|
|||
Balance at March 31, 2024
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
(
|
)
|
||
Translation and
other activity
|
(
|
)
|
||
Balance at June
30, 2024
|
$
|
|
(In thousands)
Six
Months Ended June 30, 2025
|
Allowance for
Doubtful Accounts
|
|||
Balance at
December 31, 2024
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
(
|
)
|
||
Translation and
other activity
|
|
|||
Balance at June
30, 2025
|
$
|
|
(In thousands)
Six
Months Ended June 30, 2024
|
Allowance for
Doubtful Accounts
|
|||
Balance at
December 31, 2023
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
( |
) | ||
Translation and
other activity
|
( |
) | ||
Balance at June
30, 2024
|
$ |
5. |
Inventories
|
6. |
Debt
|
7. |
Fair Value
|
8. |
Segment Information
|
(In thousands) |
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
Three months ended June 30, 2025:
|
||||||||||||||||||||
Total segment revenue
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
Intersegment revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||
Consolidated revenue from external customers
|
|
|
|
|
|
|||||||||||||||
Cost of products sold
|
|
|
|
|
|
|||||||||||||||
Selling and administrative expense
|
|
|
|
|
|
|||||||||||||||
Operating income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Interest expense
|
|
|||||||||||||||||||
Earnings before income taxes
|
$ |
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|||||||||||||||
Capital expenditures
|
|
|
|
|
|
|||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
|||||||||||||||
Three months ended June 30, 2024:
|
||||||||||||||||||||
Total segment revenue
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
Intersegment revenue
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||
Consolidated revenue from external customers
|
|
|
|
|
|
|||||||||||||||
Cost of products sold
|
|
|
|
|
|
|||||||||||||||
Selling and administrative expense
|
|
|
|
|
|
|||||||||||||||
Operating income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Interest expense
|
|
|||||||||||||||||||
Earnings before income taxes
|
$ |
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|||||||||||||||
Capital expenditures
|
|
|
|
|
|
|||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
Six months ended June 30, 2025:
|
||||||||||||||||||||
Total segment revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||
Consolidated revenue from external customers
|
|
|
|
|
|
|||||||||||||||
Cost of products sold
|
|
|
|
|
|
|||||||||||||||
Selling and administrative expense
|
|
|
|
|
|
|||||||||||||||
Operating income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Interest expense
|
|
|||||||||||||||||||
Earnings before income taxes
|
$
|
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|||||||||||||||
Capital expenditures
|
|
|
|
|
|
|||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
|||||||||||||||
Six months ended June 30, 2024:
|
||||||||||||||||||||
Total segment revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||
Consolidated revenue from external customers
|
|
|
|
|
|
|||||||||||||||
Cost of products sold
|
|
|
|
|
|
|||||||||||||||
Selling and administrative expense
|
|
|
|
|
|
|||||||||||||||
Operating income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Interest expense
|
|
|||||||||||||||||||
Earnings before income taxes
|
$
|
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|||||||||||||||
Capital expenditures
|
|
|
|
|
|
|||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Three months ended June 30, 2025:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Natural
Ingredients
|
|
|
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
|
|
|
|
||||||||||||
Personal Care
|
|
|
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Three months ended June 30, 2024:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Natural
Ingredients
|
|
|
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
|
|
|
|
||||||||||||
Personal Care
|
|
|
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Six months ended June 30,
2025:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Natural
Ingredients
|
|
|
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
|
|
|
|
||||||||||||
Personal Care
|
|
|
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Six months ended June 30, 2024:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Natural
Ingredients
|
|
|
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
|
|
|
|
||||||||||||
Personal Care
|
|
|
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Three months ended June 30, 2025:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Three months ended June 30, 2024:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Six months ended June 30,
2025:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Six months ended June 30,
2024:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
9.
|
Retirement Plans
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2025
|
2024
|
2025
|
2024
|
||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest cost
|
|
|
|
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Recognized actuarial gain
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total defined benefit expense
|
$
|
|
$
|
|
$
|
|
$
|
|
10. |
Derivative Instruments and Hedging
Activity
|
11. |
Income Taxes
|
12. |
Accumulated Other Comprehensive Income
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at December 31, 2024
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Other comprehensive income before
reclassifications
|
|
|
|
|
||||||||||||
Amounts reclassified from OCI
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balances at June 30, 2025
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at March 31, 2025
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive income before
reclassifications
|
|
|
|
|
||||||||||||
Amounts reclassified from OCI
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balances at June 30, 2025
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at December 31, 2023
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive loss before
reclassifications
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Amounts reclassified from OCI
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balances at June 30, 2024
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at March 31, 2024
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive loss before
reclassifications
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Amounts reclassified from OCI
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balances at June 30, 2024
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|
(1) |
13. |
Commitments and Contingencies
|
14. |
Subsequent Event
|
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
(In thousands, except per share amounts)
|
2025
|
2024
|
% Change
|
2025
|
2024
|
% Change
|
||||||||||||||||||
Operating Income (GAAP)
|
$
|
57,706
|
$
|
49,657
|
16.2
|
%
|
$
|
111,236
|
$
|
99,063
|
12.3
|
%
|
||||||||||||
Portfolio Optimization Plan costs – Cost of
products sold
|
1,789
|
207
|
3,603
|
314
|
||||||||||||||||||||
Portfolio Optimization Plan costs – Selling
and administrative expenses
|
1,550
|
1,545
|
2,600
|
4,250
|
||||||||||||||||||||
Adjusted operating income
|
$
|
61,045
|
$
|
51,409
|
18.7
|
%
|
$
|
117,439
|
$
|
103,627
|
13.3
|
%
|
||||||||||||
Net Earnings (GAAP)
|
$
|
37,587
|
$
|
30,932
|
21.5
|
%
|
$
|
72,049
|
$
|
61,872
|
16.4
|
%
|
||||||||||||
Portfolio Optimization Plan costs, before tax
|
3,339
|
1,752
|
6,203
|
4,564
|
||||||||||||||||||||
Tax impact of Portfolio Optimization Plan
costs(1)
|
(815
|
)
|
(214
|
)
|
(1,517
|
)
|
(569
|
)
|
||||||||||||||||
Adjusted net earnings
|
$
|
40,111
|
$
|
32,470
|
23.5
|
%
|
$
|
76,735
|
$
|
65,867
|
16.5
|
%
|
||||||||||||
Diluted earnings per share (GAAP)
|
$
|
0.88
|
$
|
0.73
|
20.5
|
%
|
$
|
1.69
|
$
|
1.46
|
15.8
|
%
|
||||||||||||
Portfolio Optimization Plan costs, net of tax
|
0.06
|
0.04
|
0.11
|
0.09
|
||||||||||||||||||||
Adjusted diluted earnings per share
|
$
|
0.94
|
$
|
0.77
|
22.1
|
%
|
$
|
1.80
|
$
|
1.56
|
15.4
|
%
|
||||||||||||
Operating Income (GAAP)
|
$
|
57,706
|
$
|
49,657
|
16.2
|
%
|
$
|
111,236
|
99,063
|
12.3
|
%
|
|||||||||||||
Depreciation and amortization
|
15,260
|
15,016
|
30,334
|
29,725
|
||||||||||||||||||||
Share-based compensation expense
|
3,739
|
2,916
|
6,639
|
4,911
|
||||||||||||||||||||
Portfolio Optimization Plan costs, before tax
|
3,339
|
1,752
|
6,203
|
4,564
|
||||||||||||||||||||
Adjusted EBITDA
|
$
|
80,044
|
$
|
69,341
|
15.4
|
%
|
$
|
154,412
|
$
|
138,263
|
11.7
|
%
|
Three Months Ended June 30, 2025
|
Six Months Ended June 30, 2025
|
|||||||||||||||||||||||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Adjustments(1)
|
Adjusted
Local
Currency
|
Total
|
Foreign
Exchange
Rates
|
Adjustments(1)
|
Adjusted
Local
Currency
|
||||||||||||||||||||||||
Flavors & Extracts
|
(2.8
|
%)
|
0.4
|
%
|
N/A
|
(3.2
|
%)
|
(1.3
|
%)
|
(0.4
|
%)
|
N/A
|
(0.9
|
%)
|
||||||||||||||||||
Color
|
6.9
|
%
|
0.3
|
%
|
N/A
|
6.6
|
%
|
5.9
|
%
|
(1.5
|
%)
|
N/A
|
7.4
|
%
|
||||||||||||||||||
Asia Pacific
|
10.8
|
%
|
3.2
|
%
|
N/A
|
7.6
|
%
|
7.3
|
%
|
1.1
|
%
|
N/A
|
6.2
|
%
|
||||||||||||||||||
Total Revenue
|
2.7
|
%
|
0.6
|
%
|
N/A
|
2.1
|
%
|
2.3
|
%
|
(0.8
|
%)
|
N/A
|
3.1
|
%
|
||||||||||||||||||
Operating Income
|
||||||||||||||||||||||||||||||||
Flavors & Extracts
|
8.8
|
%
|
0.2
|
%
|
0.0
|
%
|
8.6
|
%
|
7.2
|
%
|
(0.3
|
%)
|
0.0
|
%
|
7.5
|
%
|
||||||||||||||||
Color
|
23.6
|
%
|
1.5
|
%
|
0.0
|
%
|
22.1
|
%
|
16.8
|
%
|
(1.0
|
%)
|
0.0
|
%
|
17.8
|
%
|
||||||||||||||||
Asia Pacific
|
13.5
|
%
|
5.5
|
%
|
0.0
|
%
|
8.0
|
%
|
10.4
|
%
|
2.9
|
%
|
0.0
|
%
|
7.5
|
%
|
||||||||||||||||
Corporate & Other
|
17.1
|
%
|
0.0
|
%
|
9.0
|
%
|
8.1
|
%
|
12.3
|
%
|
0.0
|
%
|
4.2
|
%
|
8.1
|
%
|
||||||||||||||||
Total Operating Income
|
16.2
|
%
|
1.9
|
%
|
(2.6
|
%)
|
16.9
|
%
|
12.3
|
%
|
(0.3
|
%)
|
(1.0
|
%)
|
13.6
|
%
|
||||||||||||||||
Diluted Earnings per Share
|
20.5
|
%
|
1.3
|
%
|
(1.6
|
%)
|
20.8
|
%
|
15.8
|
%
|
0.0
|
%
|
(0.2
|
%)
|
16.0
|
%
|
||||||||||||||||
Adjusted EBITDA
|
15.4
|
%
|
1.3
|
%
|
N/A
|
14.1
|
%
|
11.7
|
%
|
(0.4
|
%)
|
N/A
|
12.1
|
%
|
(1) |
Adjustments consist of Portfolio Optimization Plan costs.
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
PART II.
|
OTHER INFORMATION
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 5. |
OTHER INFORMATION
|
ITEM 6. |
EXHIBITS
|
Exhibit
|
Description
|
Incorporated by Reference From
|
Filed Herewith
|
||
Fourth Amended and Restated Credit Agreement dated as of June 13, 2025
|
Exhibit 10.1 to Current Report on Form 8-K filed June 18, 2025 (Commission File No. 1-7626)
|
||||
Amendment No. 2 to Loan Agreement, dated as of June 13, 2025, between Sensient Technologies Corporation and PNC Bank, National Association.
|
Exhibit 10.2 to Current Report on Form 8-K filed June 18, 2025 (Commission File No. 1-7626)
|
||||
Amendment No. 12 to Receivables Purchase Agreement, dated as of June 30, 2025, among Sensient Receivables LLC, Sensient Technologies Corporation, and Wells Fargo Bank, National Association
|
Exhibit 10.1 to Current Report on Form 8-K filed July 1, 2025 (Commission File No. 1-7626)
|
||||
Certifications of the Company’s Chairman, President & Chief Executive Officer and Vice President & Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act
|
X
|
||||
Certifications of the Company’s Chairman, President & Chief Executive Officer and Vice President & Chief Financial Officer pursuant to 18 United States Code § 1350
|
X
|
||||
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
|
X
|
|||
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
X
|
|||
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
X
|
|||
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
X
|
|||
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
X | |||
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
X | |||
104 |
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
X |
SENSIENT TECHNOLOGIES CORPORATION
|
||||
Date:
|
August 5, 2025
|
By:
|
/s/ John J. Manning
|
|
John J. Manning, Senior Vice
|
||||
President, General Counsel & |
||||
Secretary | ||||
Date:
|
August 5, 2025
|
By:
|
/s/ Tobin Tornehl
|
|
Tobin Tornehl, Vice President &
|
||||
Chief Financial Officer |