Sensient sees 2023 EPS down high single digits vs. 2022

Sensient now expects 2023 full year GAAP diluted earnings per share to be down high single digits compared to our 2022 reported GAAP diluted earnings per share of $3.34 and also on a local currency basis compared to our 2022 adjusted diluted earnings per share of $3.29. The Company’s previous 2023 full year GAAP diluted earnings per share guidance was for a flat to low single-digit growth rate compared to our 2022 reported GAAP diluted earnings per share and on a local currency basis compared to our 2022 adjusted diluted earnings per share. The Company continues to expect 2023 revenue to grow at a mid-single-digit rate on a local currency basis compared to the Company’s 2022 revenue. The Company now expects 2023 adjusted EBITDA to be down mid-single digits on a local currency basis compared to the Company’s 2022 adjusted EBITDA. The Company’s previous 2023 adjusted EBITDA guidance was to grow at a mid-to high single-digit rate on a local currency basis compared to the Company’s 2022 adjusted EBITDA. The Company expects its 2023 diluted earnings per share to be impacted by higher interest rates and a higher tax rate. Based on current exchange rates, the Company expects foreign exchange rates to be modestly favorable for the full year. The Company’s guidance is based on current conditions and economic and market trends in the markets in which the Company operates and is subject to various risks and uncertainties as described below. We do not anticipate any divestiture related costs, operational improvement plan costs, or results of divested business in 2023 at this time.