Color for cosmetics helps boost Sensient results
cosmetic products, has reported a significant increase in both its
sales revenue and its net profits on the back of strong activity in
both the US and China markets.
The company said that sales revenue for the third quarter ending in September was up 9.5 per cent to $280.9, compared to the corresponding quarter in 2005. Meanwhile net profit was up a healthy 20.2 per cent, to $16.97m.
Revenue for the nine month period was up 7.1 per cent to $826.0m, while net profit for the period was up 19.2 per cent to $51m.
The company also said that third quarter cash flow provided by operating activities increased 13.7 per cent, to $37.2 million, while total debt as of September 30, 2006, was $528 million, a reduction of $21 million in the quarter.
"This marks Sensient's third consecutive quarter of double-digit earnings increases," said Kenneth Manning, CEO of Sensient Technologies. "Our businesses are showing excellent results with the Flavors & Fragrances Group again reporting record quarterly revenues and operating profits.
"We are on track for an outstanding year and I expect the company's strong performance to continue into next year. In recognition of the company's improved results, the board of directors has voted to increase our quarterly dividend."
The company, which also supplies the global food, beverage and pharmaceutical industries, said that sales for its flavors & fragrances division grew 11.1 per cent, to $189.6 million in the quarter ended September 30, 2006, compared to $170.6 million in last year's third quarter.
The performance of this division was said to have benefited from strong demand and improved pricing, particularly in the US market, while fragrance sales in China were also earmarked as showing an increase.
Flavors & fragrances divsion revenue in the quarter benefited from strong demand and improved pricing, particularly in the United States. Flavor sales in China and sales within the fragrances product line were also up. Quarterly profit was boosted by higher sales, favorable product mix and the Company's cost reduction program. The company, which is also a leading supplier of high purity colors to the global cosmetic industry, said that its color division revenue increased 6.1 per cent to $87.1 million from last year's comparable quarter.
Although the company supplies a wide number of industries with color - including speciality inks - it earmarked the supply of colors to the cosmetic industry as being the most significant area of growth.
Looking ahead to the rest of the 2006 financial year the company says that its strong performance in the first nine months of the year give it reason to believe that it will finish the year ahead of expectations, with earnings per share guidance up from $1.38 - $1.42, to $1.40 - $1.43.
