Rise in EU flavour sales for Sensient

Sensient Technologies Corporation, US manufacturer of colours, flavours and fragrances, reports boost in second quarter revenue, up 9.3 per cent for same period last year.

Revenue reached $261.9 million (€233.6m) in the second quarter ended 30 June 2003, up from $239.6 million reported in the second quarter of 2002.

Meanwhile revenue for the six months ended June 30, 2003 was stronger at 9.8 per cent, climbing to $497 million, up from $452.7 million in last year's first half.

Diluted earnings per share were up 4.5 per cent to 46 cents in the second quarter versus 44 cents per share in the comparable quarter in 2002. Diluted earnings per share for the first six months increased 11.3 per cent, to 89 cents compared to 80 cents for the six months ended 30 June 2002.

"In a less than robust environment, we are not only protecting our business base but also improving our market position,"​ said Kenneth P. Manning, chairman, president and CEO of Sensient Technologies corporation.​

Adding that the company has reported its seventh consecutive quarterly increase in revenues and diluted earnings per share.

Higher sales in Canada and Europe helped drive revenue up for the Flavours & Fragrances group. Revenue rose 4.6 per cent to $154.2 million in the second quarter ended June 30, 2003, compared to $147.4 million for last year's second quarter.

But lower demand in Mexico and unfavorable margins in Spain offset the significant profitability improvements Europe sending operating income down to $22.3 million from $23.7 million in last year's comparable quarter.

Higher sales in the European food colour segment and double-digit sales increases in Technical Colours boosted the Colour Group's quarterly revenue which rose to $101.5 million in the second quarter of 2003, up 16.3 per cent from $87.2 million in the previous year's quarter.

Operating income also increased by 5.2 per cent to $21.6 million compared to $20.6 million in last year's second quarter. The company said this was a result of higher sales, but added that gains were reduced by investments to grow the business and in new product development.

During the six months ended 30 June 2003, revenue and operating income increased 17.1 per cent and 9.1 per cent, respectively, from the same period in 2002.

The flavours company remained upbeat for the rest of 2003, expecting diluted earnings per share to be in the range of $1.83 to $1.86, while diluted earnings per share for third quarter 2003 are expected to be approximately 47 cents.