Sensient Technologies Corp (NYSE:SXT) Q3 2020 Earnings Conference Call - Final Transcript

Oct 16, 2020 • 09:30 am ET

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Sensient Technologies Corp (NYSE:SXT) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning and welcome to the Sensient Technologies Corporation 2020 Third Quarter Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

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

Executive
Stephen J. Rolfs

Good morning. I'm Steve Rolfs, Senior Vice President and Chief Financial Officer of Sensient Technologies Corporation. I would like to welcome all of you to Sensient's third quarter earnings call. I'm joined this morning by Paul Manning, Sensient's Chairman, President and Chief Executive Officer. This morning, we released our 2020 third quarter financial results. A copy of the release and our investor presentation is now available on our website at sensient.com.

During our call today, we will reference certain non-GAAP financial measures, which we believe provide investors with additional information to evaluate the Company's performance and improve the comparability of results between reporting periods. These non-GAAP financial results should not be considered in isolation from or as a substitute for financial information calculated in accordance with GAAP. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is available on the Investor Information section of our website at sensient.com and in our press release. We encourage investors to review these reconciliations in connection with the comments we make this morning.

I would also like to remind everyone that comments made this morning, including responses to your questions, may include forward-looking statements. Our actual results may differ materially, particularly in view of the uncertainties created by the COVID-19 pandemic, governmental attempts at remedial action and the timing of a return of more normal economic activity. We urge you to read Sensient's filings, including our 10-K, our second quarter 10-Q and our forthcoming third quarter 10-Q for a description of additional factors that could potentially impact our financial results. Please bear these factors in mind when you analyze our comments today.

Due to changes we have made to our portfolio and the divestitures we announced last year, we are updating our group and product lines. The most notable change is that our flavors and fragrances segment will now be named the flavors and extracts segment. You will also notice some small changes to the names we use for some of our product lines. Sensient's focused portfolio strengthens our ability to service the food, pharmaceutical and personal care markets. We will continue to report the three divested product lines of fragrances, yogurt fruit preparations and inks as long as these product lines impact our comparisons.

Now we'll hear from Paul.

Executive
Paul Manning

Thanks, Steve. Good morning. Sensient reported third quarter earnings this morning. And I'm pleased to report that results were in line with our expectations and our overall guidance for the year. I'm very pleased with the continued revenue and profit growth in our flavors and extract group as well as our food and pharmaceutical business in the color group. Our Asia Pacific group also posted solid profit growth in the quarter.

Overall, each