Sensient Technologies Corporation (SXT) has reported 63.13 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $31.35 million, or $0.70 a share in the quarter, compared with $19.22 million, or $0.43 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35.56 million, or $0.80 a share compared with $32.14 million or $0.71 a share, a year ago. Revenue during the quarter went down marginally by 2.64 percent to $330.24 million from $339.20 million in the previous year period. Gross margin for the quarter expanded 282 basis points over the previous year period to 34.09 percent. Total expenses were 86.90 percent of quarterly revenues, down from 90.68 percent for the same period last year. This has led to an improvement of 379 basis points in operating margin to 13.10 percent.
Operating income for the quarter was $43.27 million, compared with $31.61 million in the previous year period.
However, the adjusted operating income for the quarter stood at $49.48 million compared to $46.67 million in the prior year period. At the same time, adjusted operating margin improved 122 basis points in the quarter to 14.98 percent from 13.76 percent in the last year period.
"I am very pleased with the Company performance in 2016," said Paul Manning, chairman, president and chief executive officer of Sensient Technologies Corporation. "The Color Group had an outstanding year delivering solid profit and revenue growth, led by strong performances from the Cosmetics and Food Colors businesses. The Flavors and Fragrances Group performed very well and improved its operating margin by at least 100 basis points in each of the last three quarters, and Asia Pacific also delivered solid profit and revenue growth for the year. It was a very successful year for Sensient and our shareholders, and I am optimistic about the future."
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.76 to $2.86. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3.45 to $3.55 on adjusted basis.
Operating cash flow improves significantlySensient Technologies Corporation has generated cash of $222.48 million from operating activities during the year, up 73.75 percent or $94.43 million, when compared with the last year. The company has spent $75.20 million cash to meet investing activities during the year as against cash outgo of $75.79 million in the last year. It has incurred net capital expenditure of $74.96 million on net basis during the year, up 11.84 percent or $7.93 million from year ago.
The company has spent $127.97 million cash to carry out financing activities during the year as against cash outgo of $50.13 million in the last year period.
Cash and cash equivalents stood at $25.86 million as on Dec. 31, 2016, up 115.60 percent or $13.87 million from $12 million on Dec. 31, 2015.
Debt comes down marginally
Sensient Technologies Corporation has recorded a decline in total debt over the last one year. It stood at $603.36 million as on Dec. 31, 2016, down 4.86 percent or $30.80 million from $634.16 million on Dec. 31, 2015. Total debt was 36.18 percent of total assets as on Dec. 31, 2016, compared with 37.05 percent on Dec. 31, 2015. Debt to equity ratio was at 0.72 as on Dec. 31, 2016, down from 0.75 as on Dec. 31, 2015. Interest coverage ratio improved to 10.06 for the quarter from 6.83 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
