Sensient Technologies Corporation reported in its financial results for the first quarter of 2008 that profits have been further boosted by pricing and currency conditions.
The food flavor and colors company reported "record" revenues of $307.4mn, which it indicates is up 7.8 percent from Q1 2007.
A low US dollar against other key currencies has favored some exporting businesses. The rise in food prices, while adversely straining consumers and some manufactures, has benefited some ingredients firms such as Sensient.
The Wisconsin-based ingredients company reported that its operating income rose by 15.8 percent.
"For the first quarter, we reported record revenue and our ninth consecutive quarter of strong earnings growth," said Kenneth Manning, Sensient chairman and CEO. "We see favorable pricing and growth in several key product lines, and we expect our strong performance to continue throughout the year."
Meanwhile, cash provided by operating activities in the three months ended March 31, rose to $9.7mn, compared to $5.1mn in the same period in 2007.
Sensient is a leading global supplier of flavors, fragrances and colors for use in food and beverage, as well as supplying other industries, including pharmaceuticals and personal care.
The Flavors & Fragrances Group reported revenue for the first quarter increased 8.1 percent to $195.2mn, compared to $180.5mn in the same period of the previous year. Operating income was also up 13.2 percent to $28.8 million, compared to $25.4 million for the first quarter of 2007.
The firm indicated revenue for this group was bolstered by favorable foreign currency translation as well as pricing. It said the group's European operations were particularly profitable over the quarter.
Sensient's color division also reported improved revenue on the basis of favorable foreign currency translation and improved pricing.
The color group's revenue increased 6.8 percent in the first quarter over the same quarter in the previous year, reaching $102.8mn.
Quarterly operating income for the division rose 8.1 percent over the same period.