Leading supplier of flavors fragrances and colors, Sensient Technologies, has reported solid sales figures and high profit levels in its third quarter.
The Wisconsin-based ingredients company, which has experienced seven consecutive quarters of sales and profit growth, posted total sales of $294.3m for the three months ending September, 30, up 4.8 percent from the same period last year.
Operating profit rose 13.7 percent to $38.1m as operating margins widened to 13 percent from 11.9 percent in the third quarter of 2006.
Sales in the flavors and fragrances division grew four percent to $197.2m and operating profit increased 8.9 percent to $29.9m
The company said improved pricing, favorable foreign currency translation and increased operating efficiency contributed to higher sales and profits.
The firm's Flavors & Fragrances Group reported increased revenue for the third quarter of 4 percent to $197.2m. Operating income was up almost 9 percent to $29.9m.
A hike in its prices contributed to the improved results in this division, together with favorable foreign currency translation, and improvements in operating efficiencies.
As for the rest of the year, the company expects to continue in its current form, with sales growth of over seven percent.
Sensient CEO Kenneth Manning was upbeat about the company's results and its future prospects.
"This quarter all our groups reported higher revenue and profits," said Manning. "We are well positioned for future growth."
To aid the development of the company he said: "We will continue to invest in new technology and geographic expansion opportunities.
"New product development will continue to be one of our priorities."
Sensient also announced that Neil Cracknel would be taking over as vice president and deputy group executive of the flavors and fragrances division.
Manning said Cracknel had played a significant role in the company's success in his previous position as president of dehydrated flavors.