Form 8-K - Current report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

September 21, 2023

(Date of Report/Date of earliest event reported)

SENSIENT TECHNOLOGIES CORPORATION

(Exact name of registrant as specified in its charter)

Wisconsin	001-07626	39-0561070
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

777 East Wisconsin Avenue

Milwaukee, Wisconsin 53202-5304

(Address and zip code of principal executive offices)

(414) 271-6755

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.10 per share	SXT	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01

Regulation FD Disclosure.

On September 21, 2023, Sensient Technologies Corporation (the “Company”) posted an updated investor presentation under “Events & Presentations” on the Investor Information section of the Company’s website. A copy of the investor presentation is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 7.01 (including Exhibit 99.1) is intended to be furnished under Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01

Financial Statements and Exhibits.

(d)

Exhibits. The following exhibits are furnished with this Current Report on Form 8-K:

EXHIBIT INDEX

Exhibit Number	Description
99.1	Sensient Technologies Corporation Investor Presentation – September 21, 2023.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SENSIENT TECHNOLOGIES CORPORATION

	By:	/s/ John J. Manning

	Name:	John J. Manning

	Title:	Senior Vice President, General Counsel, and Secretary

	Date:	September 21, 2023

Exhibit 99.1

Sensient Technologies Corporation

Forward Looking Statements This document contains statements that may constitute “forward-looking statements” within the meaning of Federal securities laws. Such forward- looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following: the Company’s ability to manage economic and capital market conditions and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies; the availability and cost of labor, logistics, and transportation; the impact and uncertainty created by the COVID-19 pandemic and efforts to manage it on the global economy, including, but not limited to, its effects on our employees, facilities, customers, and suppliers, governmental regulations and restrictions, and general economic conditions; the uncertain impacts of the ongoing conflict between Russia and Ukraine on our supply chain, input costs, including energy and transportation, and on general economic conditions; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences and changing technologies; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and operational improvement plan; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; currency exchange rate fluctuations; and other factors included in “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This presentation contains time-sensitive information that reflects management’s best analysis only as of the date of this presentation. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized. 2 The content of this document remains the intellectual property of Sensient (2023). All rights reserved.

Non-GAAP Financial Measures Within this document, the Company reports certain non-GAAP financial measures, including: (1) revenue, operating income, and diluted earnings per share on an adjusted local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars, divestiture & other related costs and income, the results of the divested product lines, and restructuring and other costs, which include operational improvement plan costs and income), (2) adjusted local currency results by segment (which exclude divestiture & other related costs and income, operational improvement plan costs and income, and the results of the divested operations), (3) percentage changes in revenue, operating income, diluted earnings per share, and EBITDA on an adjusted local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars, divestiture & other related costs and income, the results of the divested product lines, and restructuring and other costs, which include operational improvement plan costs and income), and (4) adjusted EBITDA (which excludes depreciation and amortization expense, non- cash share based compensation expense, the results of the divested product lines, divestiture & other related costs, and operational improvement plan costs and income). The Company has included each of these non-GAAP measures in order to provide additional information regarding the underlying operating results and comparable period-over-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this presentation and the Company’s SEC filings. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends. The Company believes this information can be beneficial to investors for these same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies. Refer to “Non-GAAP Financial Measures” at the end of this presentation for reconciliations and additional information. 3

Sensient Tech nologies: Lev el 1 Company Confidential Sensient Overview

Leading global manufacturer and marketer of colors, flavors, and other specialty ingredients Using advanced technologies and robust global supply chain capabilities to develop specialized solutions Flavors & Extracts 2022 Revenue: $738M Flavors Extracts Taste Technologies Natural Ingredients BioNutrients Essential Oils Colors 2022 Revenue: $604M Food & Beverage Pharmaceutical Cosmetics Industrial Asia Pacific 2022 Revenue: $144M Flavors & Colors for food and beverage 2022 Global Revenues include intercompany sales which are eliminated on a consolidated basis. 5

Global Footprint - A Global Strategic Advantage 6 Colors Sites Flavors Sites APAC Sites Global Headquarters Milwaukee, WI, USA

2022 Financial Results Color Group +15.0% +15.1% Flavors & Extracts Group +5.8% +10.3% Asia Pacific Group +14.4% +22.5% Consolidated +9.7% +12.5% Local Currency Adjusted EBITDA* +12.8% Local Currency Adjusted Diluted EPS* +9.9% Local Currency Adjusted Revenue* Local Currency Adjusted Operating Income* *Local-currency (LC) adjusted revenue, adjusted operating income, adjusted diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 7

2023 Q2 YTD Financial Results Local Currency Revenue* Local Currency Operating Income* Color Group +5.7% (0.7%) Flavors & Extracts Group (1.4%) (19.3%) Asia Pacific Group +6.9% +9.7% Consolidated +2.6% (4.4%) Local Currency Adjusted EBITDA* (4.4%) Local Currency Diluted EPS* (10.0%) *Local-currency (LC) revenue, operating income, diluted EPS, and adjusted EBITDA are Non-GAAP metrics. Please see our GAAP to Non-GAAP Reconciliation at the end of this document. 8

2023 Industry Trends New Wins & Product Launches Expect volume declines related to destocking to continue to moderate as the year progresses Energy, growing costs, and certain commodity costs remain elevated; however, the supply chain has become less volatile Adjustments to cover inflation-driven costs have been significant across the value chain; however, moving forward price adjustments are expected to be more targeted as inflationary increases lessen New win rate remains strong and there is positive momentum in product launch activity Inflation Pricing Destocking 9

Macro Trends to Watch 4 Pet Category Surge Consumers are trying new products more often. Elevated visual and taste experiences dominate their preferences while shopping and consuming the product. The rate of new product launches suffered recently; however, long term consumer trends suggest rise in new launches by both consumer and store brand. Natural and organic products are top decision- making criteria. Clean label message is resonating and continues to get attention. Pet ownership is rising, and consumers continue to spend on their pets. Category humanization is leading to a push for specialization of products to meet the demands of the pets and their owners. The importance of physical and mental health is on the rise. Consumers are seeking products with functional benefits and eliminating unhealthy ingredients such as Salt and Sugar from their diets. 2 Speed to Market 5 Health & Wellness 3 Clean Label 1 Approachable Indulgence 10

Sensient Tech nologies: Lev el 1 Company Confidential Sensient Color Group

Color Group End Market Segments Overview Makeup Skin Care Fragrance Personal Care Hair Beverage Dairy Bakery Grocery Confection Pet Personal Care 2022 Revenue $165M OTC Nutraceutical Rx Color Group Segment 2022 Revenue $604M Food & Pharmaceutical 2022 Revenue $439M 12 2022 Revenues include intercompany sales which are eliminated on a consolidated basis.

Sensient Tech nologies: Lev el 1 Company Confidential Sensient Food Colors

Sensient Food Colors The leading global food color house Customer base is across all major food market segments 14

Food Colors Strategic Pillars Sensient enables food and beverage manufacturers to benefit from the full potential of food color. We know how to refine the best color ingredients nature has to offer, make them perform well in food and beverages, and delight our customers with exceptional service. Advanced Natural Color Innovation Customer- Centric Application Support Service Excellence Leading Food Safety Program Key Market and Color Insights 14

Sensient Food Colors – Expertise Across the Value Chain APPLICATION EXPERTISE 14

Sensient Food Colors Natural Color Journey We are growing capabilities and capacity through a combination of R&D investments, acquisitions, capital investments, and agronomy development. Early 2010’s Expansion Natural Color Expansion Phase 1 – Globally 2023 Expansion Natural Color Expansion Phase 2 – Globally Germany 14

Sensient Food Colors Innovation Platforms Natural Blue Marine Blue Coloring Food Dispersions ‚Ultra Clean‘ Coloring Foods 14

Sensient Tech nologies: Lev el 1 Company Confidential Market Trends & Dynamics

Market Size Expected to Continue to Grow 20 Natural color market is expected to grow at a mid-single digit rate Natural color requires higher usage rate versus synthetic Natural color adoption outside of Europe will continue to drive market growth Consumer and regulatory trends contribute to ongoing market expansion $1,623 $587 $263 $222 Natural/CF Synthetic Nature Identical TiO2 $0 $500 $1,000 $1,500 $2,000 2022 Millions of US Dollars Source: Sensient internal estimates

Consumer Demand For ‘Less Artificial’ is Evergreen Trend 22

80% of New Product Launches Use Natural Colors % of Food & Drink Product Launches Using Natural Color in 2022 % Increase from 2014 to 2022 22

TiO2 is under scrutiny globally Consumer interest in better plant-based proteins remains Pet humanization driving conversion to natural colors Transition to natural colors is global Europe is undergoing a transition to coloring foods Market potential is 2x the size of the current TiO2 market Products require high color usage to meet expectations Market for color in pet is expected to more than double next 5 years Growth in natural color market is expected to grow MSD+ over next decade Mature natural color market still should grow MSD Growth Opportunities for Sensient Food & Beverage 23 Source: Market growth rates are based on Sensient internal estimates

Sensient Tech nologies: Lev el 1 Company Confidential Sensient Personal Care

Sensient Personal Care Applications Across all beauty applications Face Care Body Care Sun Care Make-up Hair Colour Hair Care Fragrance 25 Oral Care Personal Care

CSR program Run the Innovation Digitalization Regulatory Application Global trains on time support production Lead Driven by natural Use of digital Experts are at capabilities transparency and Service trends and tools to the forefront of Regional traceability excellence regulatory seamlessly new global expertise Close to changes connect with our regulation close to customer’s customers changes customers production sites 25 Sensient Personal Care Market Strategy Value Proposition

Color protection Solubilizer Surface treatment Biobased pigment Natural colors Many fragrance and personal care color protectors are blacklisted by our customers Market potential for color protectors is expected to expand Customers are starting to ban PEG polymer Products require higher usage to meet expectations Sustainable and traceable & easy dispersibility in water/oil Market for ingredients with traceability is expected to continue to grow Anticipate transition to natural colors in lipstick Growth in natural color market over next decade Combine our 3 areas of expertise; Natural colors, solubilizers, and color protection First ready to use stable natural dye Growth Opportunities for Sensient Personal Care 25

Sensient Tech nologies: Lev el 1 Company Confidential Sensient Flavors & Extracts Group

It’s a matter of TASTE 29 We partner with our customers to create delicious and visually appealing food and beverages with our team of experts and portfolio of solutions How Sensient Wins – Our Value Proposition Industry leading customer service KPIs, from samples and document turnaround, to OTIF and commercialization Fully formulate product, improving customer speed to market Product performance with great-tasting flavors, flavor ingredients, extracts and technologies Best in class marketing collaboration

We are a supplier of flavors, extracts, flavor ingredients, and technologies that meets the highest quality and service our customers demand. We are an agile organization and offer scalable capabilities in food & beverage categories. Sensient Flavors & Extracts Group Sweet Flavors & Extracts Inclusions Sauces/Variegates Functional Ingredients Taste Technologies 30 Beverage Flavors & Extracts Functional Ingredients Taste Technologies Savory Flavors & Extracts Taste defining Hydrolyzed Vegetable Protein’s (HVP) Yeast Extracts (YE) Functional Ingredients Taste Technologies Natural Ingredient Onion Garlic Parsley Chilies Varietals Organic Versions Taste Technologies (Roasted & Toasted) BioNutrient Tailored nutritional blends for Human, Animal & Plant health

Capital Investment Strategy 31 2014-2019 Phase I and Phase II 2020 2021 2022 2023 Restructuring Phases I & II: Consolidated and upgraded flavor production & technical sites Created US & Singapore Innovation Hubs Savory Flavors Capacity Expansion Divested Fruit Prep Business Acquisitions Flavor Solutions Inc. New Mexico Chile Products US Sweet Flavors & Inclusion Expansion Asia Pac Flavor Production Expansion European Flavor & Compounding Automation European Specialty Inclusion Line Divested Aroma Chemical Business Investment in Automation Expansion of US Research Center

Getting Aroma, Sight, and Taste Right! Better taste and visual appeal Project work designed around end use product Complete end to end product development, from consumer insights to final prototype Experienced team lead by IFT Certified Foods Scientist Internal and external paneling capabilities Fully equipped sensory laboratory Multiple advanced methodologies Collaboration Onsite Equipment Reactors Spray Dryer Retort Lab and pilot scale equipment Fully equipped commercial kitchen Scale Up We Support Customers from Conception to Launch 32 Innovation Hub R&D Lab Sensory Multiple iterations in just days to increase customer speed to market Rapid bench formulation for F&B categories Preliminary nutrition & ingredient statements Consumer Insight and Trends led ideations. Extensive cumulative technical expertise in the Food industry Support with flavor matches, ingredient substitution, preference, masking Experts in complete color and flavor systems Deep knowledge of end- use markets

Sensient Flavors & Extracts Technology Platforms 33 BOOSTING Mask Undesirable Notes Add Characteristic Notes Boost Product Performance TECHNOLOGY SOLUTIONS ADDING Taste defining technologies and ingredients bring something new to enhance product performance. MASKING Technologies to help mask off notes that impact product performance. Help restore key aspects of product enjoyment, or enhance missing taste elements such as mouthfeel, juiciness, umami, sweetness, and salt.

End Market Segment and Growth Areas 34 Beverages One of the most dynamic flavor forward categories with low barrier to entry and diverse products Ice Cream & Novelties Globally, one of the largest segments with consistent growth and high product churn Bakery Category driven by routines and habits is looking for innovation and taste differentiation Plant-Based This product segment is the future and its success will depend on solving taste and texture likeability challenges Sauces, Dips & Dressings These products are a preferred way to bring taste variety to a meal at home or at a QSR Soups A staple comfort food with a vast variety of taste options driven by texture and ingredient choices Meat Maintaining juiciness and moisture continuously presents a challenge Salt & Sugar Reduction Wellness trend is driving change across entire F&B, presenting taste challenges in many of the products

Sensient Tech nologies: Lev el 1 Company Confidential Appendix* *Amounts in thousands, except percentages and per share amounts

Non-GAAP Financial Measures Year Ended December 31, Adjusted Adjusted 2022 Adjustments* 2022 2021 Adjustments* 2021 Revenue Flavors & Extracts $ 738,003 $ - $ 738,003 $ 739,427 $ (27,837) $ 711,590 Color 604,017 - 604,017 545,270 (2,080) 543,190 Asia Pacific 143,581 - 143,581 135,348 (295) 135,053 Intersegment elimination (48,562) - (48,562) (39,781) 150 (39,631) Consolidated $1,437,039 $ - $ 1,437,039 $1,380,264 $ (30,062) $ 1,350,202 Operating Income Flavors & Extracts $ 105,424 $ - $ 105,424 $ 98,660 $ (2,368) $ 96,292 Color 114,619 - 114,619 103,575 575 104,150 Asia Pacific 29,492 - 29,492 26,330 (87) 26,243 Corporate & Other (52,784) (2,532) (55,316) (58,537) 12,243 (46,294) Consolidated $ 196,751 $ (2,532) $ 194,219 $ 170,028 $ 10,363 $ 180,391 * For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, adjustments consist of the results of the divested product lines, divestiture & other related costs and income, and 2021 operational improvement plan costs and income. 40

Non-GAAP Financial Measures 40 Diluted earnings per share (GAAP) Divestiture & other related (income) costs, net of tax Results of operations of the divested product lines, net of tax Operational improvement plan income, net of tax Adjusted diluted earnings per share $ 3.34 $ (0.04) - 2.81 18.9% 0.38 (0.03) - (0.03) $ 3.29 $ 3.13 5.1% Year Ended December 31, 2022 2021 % Change Operating income (GAAP) Depreciation and amortization Depreciation and amortization, divested product lines Share-based compensation expense Divestiture & other related (income) costs, before tax Results of operations of the divested product lines, before tax Operational improvement plan income, before tax Adjusted EBITDA $ 196,751 52,467 - 16,138 (2,532) - $ 170,028 15.7% 52,051 (146) 9,573 14,138 (1,880) - (1,895) $ 262,824 $ 241,869 8.7% Year Ended December 31, 2022 2021 % Change

Non-GAAP Financial Measures 40 Revenue Total Foreign Exchange Rates Adjustments* Adjusted Local Currency Flavors & Extracts (0.2%) (2.2%) (3.8%) 5.8% Color 10.8% (3.8%) (0.4%) 15.0% Asia Pacific 6.1% (8.0%) (0.3%) 14.4% Total Revenue 4.1% (3.4%) (2.2%) 9.7% Operating Income Flavors & Extracts 6.9% (0.9%) (2.5%) 10.3% Color 10.7% (5.1%) 0.7% 15.1% Asia Pacific 12.0% (10.1%) (0.4%) 22.5% Corporate & Other (9.8%) 0.0% (29.4%) 19.6% Total Operating Income 15.7% (5.2%) 8.4% 12.5% Diluted Earnings Per Share 18.9% (5.3%) 14.3% 9.9% Adjusted EBITDA 8.7% (4.1%) N/A 12.8% Year Ended December 31, 2022 * For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income, Diluted Earnings per Share, and Adjusted EBITDA, adjustments consist of the results of the divested product lines, divestiture & other related costs and income, and 2021 operational improvement plan costs and income.

Non-GAAP Financial Measures 40 2023 2022 % Change Operating income (GAAP) $ 102,429 $ 108,033 (5.2%) Depreciation and amortization 28,590 26,180 Share-based compensation expense 4,766 8,691 Adjusted EBITDA $ 135,785 $ 142,904 (5.0%) Six Months Ended June 30,

Non-GAAP Financial Measures 40 Revenue Total Exchange Rates Local Currency Flavors & Extracts (1.3%) 0.1% (1.4%) Color 5.6% (0.1%) 5.7% Asia Pacific 3.1% (3.8%) 6.9% Total Revenue 2.2% (0.4%) 2.6% Operating Income Flavors & Extracts (19.0%) 0.3% (19.3%) Color (1.2%) (0.5%) (0.7%) Asia Pacific 5.6% (4.1%) 9.7% Corporate & Other (19.0%) 0.0% (19.0%) Total Operating Income (5.2%) (0.8%) (4.4%) Diluted Earnings Per Share (11.1%) (1.1%) (10.0%) Adjusted EBITDA (5.0%) (0.6%) (4.4%) Six Months Ended June 30, 2023 Foreign

Document and Entity Information	Sep. 21, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Sep. 21, 2023
Entity File Number	001-07626
Entity Registrant Name	SENSIENT TECHNOLOGIES CORP
Entity Central Index Key	0000310142
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-0561070
Entity Address, Address Line One	777 EAST WISCONSIN AVENUE
Entity Address, City or Town	MILWAUKEE
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53202-5304
City Area Code	414
Local Phone Number	271-6755
Title of 12(b) Security	Common stock, par value $0.10 per share
Trading Symbol	SXT
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false