Sensient Technologies Corporation (NYSE:SXT) Q3 2023 Earnings Conference Call October 20, 2023 9:00 AM ET

Company Participants

Paul Manning - Chairman of the Board, President and Chief Executive Officer

Stephen Rolfs - Senior Vice President and Chief Financial Officer

Conference Call Participants

Ghansham Panjabi - Robert W. Baird

Joan Lim - BNP Paribas

David Green - Boldhaven

Operator

Good morning. And welcome to the Sensient Technologies Corporation 2023 Third Quarter Earnings Conference Call. [Operator Instructions] Please also note today’s event is being recorded.

And at this time, I would now like to turn the floor over to Steve Rolfs. Sir, please go ahead.

Stephen Rolfs

Thank you. Good morning. Welcome to Sensient's earnings call for the third quarter of 2023. I'm Steve Rolfs, Senior Vice President and Chief Financial Officer of Sensient Technologies Corporation. I'm joined today by Paul Manning, Sensient's Chairman, President and Chief Executive Officer.

Earlier today, we released our 2023 third quarter financial 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 filing. 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 can potentially impact our financial results. Please keep these factors in mind when you analyze our comments today.

Now you will hear from Paul Manning.

Paul Manning

Thanks, Steve. Good morning and good afternoon. Before turning to our results, I'd like to provide an update on the market conditions during the third quarter. As predicted, customer destocking continued throughout the quarter, who is most pronounced in the Color Group with gradual improvement in the Flavors Group. We continue to see lower volumes across many of our market categories in the Americas with a moderate improvement in Europe. We think these outcomes with respect to destocking and lower volumes are consistent with the broad based volume declines in efforts to reduce inventory at most of our CPG customers.