Company: SXT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001140361-25-005084
Chunk: 41

Company: SENSIENT TECHNOLOGIES CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 41
---
over. See Note 11, Income Taxes, in
            the Notes to Consolidated Financial Statements included in this report for additional information.

                 2024

                2023

                Rate before Portfolio Optimization Plan and discrete items

                25.2

                %

                25.5

                %

                Portfolio Optimization Plan impact

                0.3

                %

                4.7

                %

                Discrete items

                (2.1

                %)

                (2.1

                %)

                Reported effective tax rate

                23.4

                %

                28.1

                %

The 2025 effective income tax rate is estimated to be between 24% and 26%.

Portfolio Optimization Plan

During the fourth quarter of 2023, the Board of Directors of the Company approved a plan to undertake an effort to optimize certain production facilities and improve efficiencies within the Company (Portfolio
          Optimization Plan). As part of the Portfolio Optimization Plan, in the Flavors & Extracts segment, the Company evaluated the closure of its manufacturing facility in Felinfach, Wales, United Kingdom, the closure of its sales office in
          Granada, Spain, and the centralization and elimination of certain selling and administrative positions. In addition, in the Color segment, the Company evaluated the closure of a manufacturing facility in Delta, British Columbia, Canada, the
          closure of a sales office in Argentina, and centralizing and eliminating certain production positions and selling and administrative positions. The Company reports all costs associated with the Portfolio Optimization Plan in the Corporate &
          Other segment.

The Company’s Felinfach site will continue to operate until all production activities have successfully transferred to other locations, and then will be closed. The Company has substantially completed all
          other actions contemplated under the Portfolio Optimization Plan in accordance with local laws.

See Note 15, Portfolio Optimization Plan, in the Notes to Consolidated Financial Statements included in this
          report for additional information.

NON-GAAP FINANCIAL MEASURES

Within the following tables, the Company reports certain non-GAAP financial measures, including: (1) adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which exclude restructuring
          and other costs, including the Portfolio Optimization Plan costs, (2) percentage changes in 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 and restructuring and other costs