Sensient Technologies Corp (NYSE:SXT) Q2 2023 Earnings Conference Call July 21, 2023 9:30 AM ET

Corporate Participants

Stephen Rolfs - Senior Vice President and Chief Financial Officer

Paul Manning - Chairman, Chief Executive Officer and President

Conference Call Participants

Ghansham Panjabi - Baird

David Green - Boldhaven

Operator

Good morning and welcome to the Sensient Technologies Corporation 2023 Second Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded.

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

Stephen Rolfs

Good morning. Welcome to Sensient's earnings call for the second quarter of 2023. I'm Steve Rolfs, Senior Vice President and Chief Financial Officer of Sensient Technologies Corporation. I am joined today by Paul Manning, Sensient's Chairman, President and Chief Executive Officer. Earlier today, we released our 2023 second quarter results. A copy of the release and our investor presentation is available on our website at sensient.com.

During our call today, we will reference certain non-GAAP financial measures which remove the impact of currency movements and other items as noted in the company's filings. We believe the removal of these items provides investors with additional information to evaluate the company's performance and improves the comparability of results between reporting periods. This also reflects how management reviews and evaluates the company's operations and performance.

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 measures is available in our press release. We encourage investors to review these reconciliations in connection with the comments we make today.

I would also like to remind everyone that comments made during this call including responses to your questions, may include forward-looking statements. Our actual results may differ materially from those that may be expressed or implied due to a wide range of factors, including those set forth in our SEC filings. We urge you to read Sensient's previous SEC filings including our 10-K and our forthcoming 10-Q for a description of additional factors that could potentially impact our financial results. Please keep these factors in mind when you analyze our comments today.

Now we'll hear from Paul Manning.

Paul Manning

Thanks, Steve. Good morning and good afternoon.

Sensient's local currency revenue this quarter was in line with last year's second quarter revenue. Our adjusted local currency EBITDA and operating income are each down about 7% largely due to the continued impacts of destocking globally, and declines in volumes on many consumer product categories, primarily in North America and Latin America. As we have been discussing, we anticipated the volume declines due to destocking to continue throughout the second quarter.