Sensient Technologies Corp (SXT) 2024 Q2 法說會逐字稿

Good morning and welcome to the Sensient Technologies Corporation 2024 second-quarter earnings conference call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 Sensient Technologies Corporation 2024 年第二季財報電話會議。（操作員說明）請注意，正在記錄此事件。

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

現在我想將會議交給托賓·托內爾先生。請繼續，先生。

Good morning. Welcome to Sensient's earnings call for the second quarter of 2024. I'm Tobin Tornehl, 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.

早安.歡迎參加 Sensient 2024 年第二季財報電話會議。我是 Tobin Tornehl，Sensient Technologies 公司的副總裁兼財務長。今天與我一起出席的還有 Sensient 董事長、總裁兼執行長 Paul Manning。

Earlier today, we released our 2024 second-quarter results. A copy of the earnings release and slides we will be using during today's call are available on the Investor Relations section of our website at sensient.com. For those of you that joined us by webcast today, you will note that this quarter, we are introducing a slide deck with our presentation. If you joined our conference call by telephone and would like to follow along, you can find a copy of the prepared slides on our website.

今天早些時候，我們發布了 2024 年第二季業績。我們將在今天的電話會議中使用的收益發布和幻燈片的副本可在我們網站 sensient.com 的投資者關係部分獲取。對於今天透過網路廣播加入我們的人，您會注意到本季我們將在簡報中引入幻燈片。如果您透過電話加入我們的電話會議並願意跟進，您可以在我們的網站上找到已準備好的投影片的副本。

During our call today, we will reference certain non-GAAP financial measures, which remove the impact of currency movements, costs of the company's portfolio optimization plan, 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.

在今天的電話會議中，我們將參考某些非公認會計原則財務指標，這些指標消除了貨幣變動、公司投資組合優化計劃的成本以及公司文件中指出的其他項目的影響。我們認為，刪除這些項目可以為投資者提供額外的資訊來評估公司的業績，並提高報告期間之間結果的可比性。

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 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.

這也反映了管理層如何審查和評估公司的營運和績效。非 GAAP 財務表現不應孤立於或取代根據 GAAP 計算的財務資訊。我們的新聞稿中提供了非公認會計原則財務指標與最直接可比較的公認會計原則財務指標的調節表。我們鼓勵投資者結合我們今天發表的評論來審查這些調節表。

I'd 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.

我還想提醒大家，在這次電話會議中發表的評論，包括對您的問題的答复，可能包含前瞻性陳述。由於多種因素（包括我們在 SEC 文件中列出的因素），我們的實際結果可能與明示或暗示的結果有重大差異。我們強烈建議您閱讀 Sensient 先前向 SEC 提交的文件，包括我們的 10-K 和即將發布的 10-Q，以了解可能影響我們財務表現的其他因素的描述。當您今天分析我們的評論時，請記住這些因素。

Now we'll hear from Paul Manning.

現在我們來聽聽保羅曼寧的發言。

Thanks, Tobin. Good morning and good afternoon. During our call today, we will be introducing a new slide deck that we will reference throughout today's discussion. The slide deck is available on our website. We hope that you find the deck a helpful addition to our presentation.

謝謝，托賓。早安，下午好。在今天的電話會議中，我們將介紹一個新的幻燈片，我們將在今天的討論中引用它。幻燈片可在我們的網站上找到。我們希望您發現該簡報對我們的簡報有所幫助。

Starting on slide 5, Sensient's local currency revenue increased by more than 8% in the second quarter. This revenue increase was mostly volume driven, with price contributing about 1%. As expected, the positive customer order trends from the first quarter continued to build into the second quarter. Each of our groups contributed to the volume growth and improved operating profit.

從幻燈片 5 開始，Sensient 的本幣收入在第二季度增長了 8% 以上。這一收入成長主要是由銷售驅動的，其中價格貢獻了約 1%。正如預期的那樣，第一季積極的客戶訂單趨勢繼續延續到第二季​​。我們的每個團隊都為銷量成長和營業利潤提高做出了貢獻。

The volume improvement is due to our strong new sales wins across each of our groups, our focus on our sales execution, and more stable market dynamics post destocking. Our sales pipelines remain robust in each of our regions. Each group is focused on expanding new sales win rates and working with our customers to support their development needs and new product launches.

銷售的改善是由於我們每個集團都取得了強勁的新銷售業績、我們對銷售執行的關注以及去庫存後市場動態更加穩定。我們每個地區的銷售管道都保持強勁。每個小組都專注於擴大新的銷售獲勝率，並與我們的客戶合作，支持他們的開發需求和新產品發布。

Our consolidated local currency adjusted EBITDA was up 2% for the second quarter of 2024 and is up 2% through June 30. As mentioned during our last few calls, with the resumption of volume growth, we expect operating profit improvement to accelerate in the back half of the year. We are also focused on maintaining and improving our cost structure.

2024 年第二季我們的合併本地貨幣調整後 EBITDA 成長了 2%，截至 6 月 30 日成長了 2%。正如我們在最近幾次電話會議中提到的，隨著銷售成長的恢復，我們預計下半年營業利潤將加速改善。我們也致力於維持和改善我們的成本結構。

Now turning to slide 6, flavors and extracts group had another solid quarter, delivering 11% local currency revenue growth and more than 7% local currency operating profit growth. For the first six months of 2024, the flavors group local currency revenue is up 9%, and local currency operating profit is up approximately 7%. The group continued to benefit from its strong new sales win rate, innovative product offerings, and its focus on sales execution and customer service.

現在轉向幻燈片 6，香料和提取物集團又一個強勁的季度，實現了 11% 的本地貨幣收入增長和超過 7% 的本地貨幣營業利潤增長。2024 年前六個月，口味集團本國貨幣收入成長 9%，本國貨幣營業利潤成長約 7%。該集團繼續受益於其強勁的新銷售獲勝率、創新產品供應以及對銷售執行和客戶服務的關注。

Similar to the first quarter, the group benefited from particularly strong volume growth in its Natural Ingredients product line. The Natural Ingredients product line continues to be impacted by elevated costs in certain agricultural ingredients and raw materials. These elevated costs have impacted our operating leverage for the flavors group in the first half of the year. But as these costs moderate, we expect improved operating leverage.

與第一季類似，該集團受益於其天然成分產品線銷售特別強勁的成長。天然成分產品線持續受到某些農業成分和原材料成本上漲的影響。這些成本上升影響了我們今年上半年口味集團的營運槓桿。但隨著這些成本的下降，我們預期營運槓桿將會提高。

I'm now raising our guidance for the flavors and extracts group and expect the group to deliver mid- to high-single-digit local currency revenue growth for the year. I previously expected the group to deliver at least mid single-digit local currency revenue growth in 2024.

我現在正在提高對香料和萃取物集團的指導，並預計該集團今年將實現中高個位數的本地貨幣收入成長。我此前預計該集團將在 2024 年實現至少中個位數的當地貨幣收入成長。

Turning to slide 7, the color group delivered 5% local currency revenue growth and 9% local currency operating profit growth in the second quarter. As expected, customer order patterns improved during the quarter, and we expect continued improvement in the back half of the year.

轉向幻燈片 7，色彩集團第二季度實現了 5% 的本幣收入增長和 9% 的本幣營業利潤增長。正如預期的那樣，本季客戶訂單模式有所改善，我們預計下半年將繼續改善。

We saw volume growth in all product lines. The group is benefiting from its strong new sales wins, innovative products, and exceptional customer service. I expect this volume growth will continue to improve throughout 2024.

我們看到所有產品線的銷售量都在成長。該集團正受益於強勁的新銷售業績、創新產品和卓越的客戶服務。我預計這一銷量成長將在 2024 年繼續改善。

The color group's operating income improved during the quarter, and I expect this trend to accelerate as the year progresses. I'm now raising our guidance for the color group and expect the group to deliver mid- to high-single-digit local currency revenue growth in 2024. I previously expected the group to deliver mid-single-digit local currency revenue growth in 2024.

色彩集團的營業收入在本季有所改善，我預計這一趨勢將隨著今年的進展而加速。我現在正在提高對色彩組的指導，並預計該組將在 2024 年實現中高個位數的本幣收入增長。我之前預計該集團將在 2024 年實現中個位數的本幣收入成長。

Turning to slide 8, the Asia Pacific group reported 11% local currency revenue growth and 9% local currency operating profit growth in the second quarter. The group continues to experience solid growth in most regions and an increase in new sales wins. Customer order patterns continue to normalize, and the group is well positioned for growth.

轉向投影片 8，該亞太集團公佈第二季本幣營收成長 11%，本幣營業利潤成長 9%。該集團在大多數地區繼續穩健成長，新銷售業績也有所增加。客戶訂單模式繼續正常化，該集團已做好成長準備。

I'm now raising our guidance for the Asia Pacific group, and I expect it to deliver high-single-digit local currency revenue growth in 2024. I previously expected the group to deliver mid-single-digit revenue growth in 2024.

我現在正在提高對亞太地區集團的指導，我預計該集團將在 2024 年實現高個位數的本幣收入成長。我之前預計該集團將在 2024 年實現中個位數的收入成長。

Turning to slide 9, the portfolio optimization plan that we initiated in the fourth quarter of 2023 is progressing as expected. Once fully implemented by the end of 2025, we expect to generate annual cost savings of $8 million to $10 million. We are carefully managing this process to ensure we meet our customers' needs and to minimize the disruption to the business.

轉向投影片 9，我們在 2023 年第四季啟動的投資組合優化計畫正在按預期進展。一旦在 2025 年底全面實施，我們預計每年可節省 800 萬至 1,000 萬美元的成本。我們正在仔細管理此流程，以確保滿足客戶的需求並盡量減少對業務的干擾。

On the capital allocation front, we continue to focus on strategically managing our inventory positions. We have reduced our inventory balance by approximately $45 million in the first half of the year, and we will work to continually improve our inventory position. We will use any excess cash to reduce our debt in an effort to alleviate the higher interest rate headwinds.

在資本配置方面，我們繼續專注於策略性管理我們的庫存部位。今年上半年我們的庫存餘額減少了約 4500 萬美元，我們將努力持續改善我們的庫存狀況。我們將利用多餘的現金來減少債務，以緩解利率上升的不利影響。

We expect improved financial results in 2024, including growth in sales volume, local currency revenue, and local currency adjusted EBITDA. Based on the volume growth for the first six months of 2024, we are raising our guidance for 2024 and now expect to deliver, on a consolidated basis, mid- to high-single-digit local currency revenue growth and mid- to high-single-digit local currency adjusted EBITDA growth.

我們預計 2024 年的財務表現將有所改善，包括銷售量、本國貨幣收入和本幣調整後 EBITDA 的成長。根據 2024 年前六個月的銷售成長，我們上調了 2024 年的指導，現在預計在綜合基礎上實現中高個位數的本幣收入增長和中高個位數的本幣收入增長。增長為- 位數。

We previously expected mid-single-digit local currency growth in both revenue and adjusted EBITDA. We are also raising our local currency adjusted EPS. We now expect our local currency adjusted EPS to grow at a mid-single-digit rate in 2024. Our previous guidance called for a low to mid-single-digit growth rate in 2024.

我們先前預期營收和調整後 EBITDA 均將以當地貨幣計算實現中個位數成長。我們也提高了當地貨幣調整後的每股盈餘。我們現在預計 2024 年以當地貨幣調整後的每股盈餘將以中個位數成長。我們先前的指引要求 2024 年成長率為低至中個位數。

The growth we are experiencing is a direct result of our strategy and the markets we have chosen to operate in. We will continue to invest in our innovative product offerings as we focus on sales execution and growing our business. I'm excited about the growth opportunities within each of the groups, and I remain optimistic about 2024 and the future of our business.

我們所經歷的成長是我們的策略和我們選擇經營的市場的直接結果。我們將繼續投資我們的創新產品，專注於銷售執行和發展我們的業務。我對每個集團內部的成長機會感到興奮，並對 2024 年和我們業務的未來保持樂觀。

Turning to slide 10, before turning the call over to Tobin, I'd like to highlight some of our more innovative product offerings. Currently, the market faces a number of regulatory challenges in many parts of the world. One example we have discussed in our previous call is the changing regulatory environment around titanium dioxide and Red 3.

前往投影片 10，在將電話轉給 Tobin 之前，我想強調我們提供的一些更具創新性的產品。目前，市場在世界許多地區面臨許多監管挑戰。我們在之前的電話會議中討論過的一個例子是圍繞著二氧化鈦和 Red 3 不斷變化的監管環境。

Titanium dioxide is a widely available, cost-effective ingredient that works well in many applications, and it's been used by our customers for decades. It is extremely challenging to swap out of a product. It requires customized applications to achieve the same degree of effectiveness. Red 3 is a synthetic color dye commonly used in candy and beverages. It too has been used for many food applications for decades.

二氧化鈦是一種廣泛使用、經濟高效的成分，在許多應用中效果良好，我們的客戶已使用它數十年。更換產品非常具有挑戰性。它需要定制的應用程式才能達到相同程度的有效性。Red 3 是一種合成彩色染料，常用於糖果和飲料。幾十年來，它也被用於許多食品應用。

Both are facing bans in the US market. Due to our proactive innovation efforts, we are well positioned to offer a range of high-performing alternatives for both to our customers. Innovation will continue to be a strong emphasis across our company, and we will continue to build our product portfolio in advance of any future regulatory changes.

兩者都面臨美國市場的禁令。由於我們積極主動的創新努力，我們有能力為客戶提供一系列高效能的替代方案。創新將繼續成為我們公司的重點，我們將在未來任何監管變化之前繼續建立我們的產品組合。

Tobin will now provide you with additional details on the second-quarter results.

托賓現在將為您提供有關第二季度業績的更多詳細資訊。

Thank you, Paul. In my comments this morning, I'll be explaining the differences between our GAAP results and our non-GAAP or adjusted results. The adjusted results for 2024 removed the cost of the portfolio optimization plan. We believe that the removal of these costs produces a clearer picture of the company's performance for investors. This also reflects how management reviews the company's operations and performance.

謝謝你，保羅。在今天早上的評論中，我將解釋我們的 GAAP 結果與非 GAAP 或調整後的結果之間的差異。2024年的調整後結果消除了投資組合最佳化計畫的成本。我們相信，消除這些成本可以讓投資人更清楚地了解公司的表現。這也反映了管理層如何審查公司的營運和績效。

Now turning to slide 12, Sensient's revenue was $403.5 million in the second quarter of 2024 compared to $374.3 million in last year's second quarter. Operating income was $49.7 million in the second quarter of 2024 compared to $51.6 million of income in the comparable period last year.

現在轉向投影片 12，Sensient 2024 年第二季的營收為 4.035 億美元，而去年第二季為 3.743 億美元。2024 年第二季的營業收入為 4,970 萬美元，而去年同期的收入為 5,160 萬美元。

Operating income in the second quarter of 2024 includes $1.8 million of portfolio optimization plan costs, which is approximately $0.04 per share. In 2023, we incurred $28 million of portfolio optimization planning costs. So far this year, we have incurred approximately $4.6 million of additional costs.

2024 年第二季的營業收入包括 180 萬美元的投資組合最佳化計畫成本，約每股 0.04 美元。2023 年，我們產生了 2,800 萬美元的投資組合最佳化規劃成本。今年到目前為止，我們已產生約 460 萬美元的額外成本。

Excluding the costs of the portfolio optimization plan, adjusted operating income was $51.4 million in the second quarter of 2024 compared to $51.6 million in the prior-year period. A significant impact for this year's operating income was an increase in performance-based compensation compared to the low value recorded in 2023.

不包括投資組合優化計畫的成本，2024 年第二季調整後營業收入為 5,140 萬美元，而去年同期為 5,160 萬美元。與 2023 年錄得的低值相比，基於績效的薪酬有所增加，這對今年的營業收入產生了重大影響。

The company's consolidated adjusted tax rate was 25.8% in the second quarter of 2024 compared to 24.8% in the comparable period of '23. Local currency adjusted EBITDA was up 2.3% in the second quarter of 2024 and up 2.2% for the first six months of 2024. Foreign currency translation reduced EPS by approximately $0.02 in the second quarter of 2024.

該公司2024年第二季的綜合調整後稅率為25.8%，而2023年同期為24.8%。以當地貨幣調整後的 EBITDA 在 2024 年第二季度增長了 2.3%，在 2024 年前六個月增長了 2.2%。外幣折算使 2024 年第二季每股收益減少約 0.02 美元。

Now turning to slide 13, cash flow from operations was $59 million for the first six months of 2024, up 14% compared to last year's comparable period. Capital expenditures were $23 million for the first six months of 2024. We expect our capital expenditures to be between $65 million and $70 million for the year.

現在轉向投影片 13，2024 年前六個月的營運現金流為 5,900 萬美元，比去年同期成長 14%。2024 年前 6 個月的資本支出為 2,300 萬美元。我們預計今年的資本支出將在 6,500 萬美元至 7,000 萬美元之間。

Our net debt to credit-adjusted EBITDA is 2.6. With the continued high interest rate environment, we are focused on reducing our debt levels and our interest expense. Overall, our balance sheet remains well positioned for future investments.

我們的淨債務與信用調整後 EBITDA 比率為 2.6。在持續的高利率環境下，我們專注於降低債務水準和利息支出。整體而言，我們的資產負債表仍然適合未來投資。

Turning to slide 14, regarding our 2024 guidance, we are raising our guidance and now expect our 2024 local currency revenue and local currency adjusted EBITDA to be at mid to high single digits. This is an increase from our previous guidance, which I called for a mid-single-digit growth rate in 2024 for both local currency revenue and local currency adjusted EBITDA growth.

轉向幻燈片 14，關於我們的 2024 年指導，我們正在提高指導，現在預計我們 2024 年的本幣收入和本幣調整後 EBITDA 將達到中高個位數。這比我們之前的指導方針有所提高，我之前的指導方針是到 2024 年本幣收入和本幣調整後 EBITDA 增長均達到中個位數增長率。

We continue to expect our interest expense to increase this year compared to our 2023 full-year interest expense. And we expect our 2024 full-year adjusted tax rate to be around 25%. We are also raising our guidance for local currency adjusted EPS to grow at a mid-single-digit rate in 2024. Our previous guidance called for a low- to mid-single-digit rate -- growth rate in 2024.

與 2023 年全年利息支出相比，我們仍然預計今年的利息支出將會增加。我們預計 2024 年全年調整後稅率將在 25% 左右。我們也提高了對當地貨幣調整後每股收益 2024 年中個位數成長的指引。我們先前的指導意見要求 2024 年增長率為低至中個位數。

As Paul mentioned, we are experiencing solid volume growth in certain businesses and expect this to broaden and strengthen in the second half of the year. The volume growth will proceed our operating profit growth, and we expect improved operating leverage in the second half of the year.

正如保羅所提到的，我們在某些​​業務中正在經歷穩健的銷售成長，並預計這種成長將在今年下半年擴大和加強。銷售成長將帶動我們營業利潤的成長，我們預計下半年營業槓桿將有所改善。

Considering our GAAP earnings per share in 2024, we now expect approximately $0.18 of portfolio optimization planning costs. We previously expected approximately $0.15 of costs. We still expect our overall cost for the portfolio optimization plan to be approximately $40 million. We now expect our GAAP EPS to be between $2.77 and $2.87 compared to our 2023 GAAP EPS of $2.21. We previously expected our GAAP EPS to be approximately $2.80 to $2.90.

考慮到我們 2024 年的 GAAP 每股收益，我們現在預計投資組合優化規劃成本約為 0.18 美元。我們之前預計成本約為 0.15 美元。我們仍然預計投資組合優化計劃的總成本約為 4000 萬美元。我們現在預計 GAAP 每股收益將在 2.77 美元至 2.87 美元之間，而 2023 年 GAAP 每股收益為 2.21 美元。我們先前預期 GAAP 每股收益約為 2.80 美元至 2.90 美元。

Thank you for participating in the call today. We'll now open the call for questions.

感謝您參加今天的電話會議。我們現在開始提問。

(Operator Instructions) Ghansham Panjabi, Baird.

（操作員說明）Ghansham Panjabi，Baird。

Hi. Good morning, everyone. This is Matt Krueger on for Ghansham Panjabi.

你好。大家早安。我是 Ghansham Panjabi 的 Matt Krueger。

Good morning, Ghansham.

早安，甘沙姆。

Sorry, it's just Matt.

抱歉，這只是馬特。

Hey, Matt.

嘿，馬特。

Paul and Tobin, I just wanted to touch on some of the new business wins across the portfolio. Can you provide some added detail on where you're winning business along with a characterization of the customer promotional activity or innovation activity that might play into some of these business wins?

保羅和托賓，我只想談談整個投資組合中的一些新業務勝利。您能否提供一些有關您在哪些方面贏得業務的更多詳細信息，以及可能有助於其中一些業務贏得的客戶促銷活動或創新活動的特徵？

And just for some added detail, if volumes grew in the high-single-digit range on an overall basis, what did the new business wins contribute volumetrically during the quarter versus just a normal rebound from prior destocking or normal business growth?

就一些額外的細節而言，如果總體銷量在高個位數範圍內增長，那麼與之前去庫存或正常業務增長的正常反彈相比，新業務在本季度的銷量貢獻是什麼？

Okay, I'm just noting your questions here. Okay, so the first one on new wins. The new wins are very much broad based. So at the macro level, very strong win rates in each of the groups: flavors, colors, and Asia Pacific. Breaking that down by product segments, we had a particularly strong growth in natural colors, not only organically, but from the standpoint of new wins.

好的，我只是在這裡記錄您的問題。好的，所以第一個新的獲勝。新的勝利基礎非常廣泛。因此，從宏觀層面來看，每組的獲勝率都非常高：口味、顏色和亞太地區。以產品細分來看，我們在天然色素方面的成長尤其強勁，不僅是有機成長，而且從新勝利的角度來看。

The vast majority of products being launched throughout the world contain natural colors. And we have a very, very broad-based commercial enterprise there that enables us to capture lots of those. So we had really, really good new wins in natural colors.

世界各地推出的絕大多數產品都含有天然色素。我們在那裡有一個非常非常廣泛的商業企業，使我們能夠捕獲很多這樣的東西。所以我們在自然色彩方面取得了非常非常好的新勝利。

We had very good new wins in personal care, a lot of good trends coming out of COVID. You recall, as we went into COVID, there was a lot of reduction in the makeup category, but there's been a real resurgence in makeup in the last few years so that we are above the levels that we experienced going into COVID.

我們在個人護理領域取得了非常好的新勝利，新冠疫情帶來了許多好的趨勢。您還記得，當我們進入新冠疫情時，化妝品類別大幅減少，但在過去幾年裡，化妝品確實出現了復甦，因此我們的水平高於新冠疫情期間所經歷的水平。

So we had very good wins in personal care, a lot of that derived from natural ingredients that we've utilized there, but a lot of high-performing products to get in the makeup category, but as well in hair and skin. But principally, in makeup were a lot of the new wins there.

因此，我們在個人護理領域取得了非常好的勝利，其中許多都來自我們在那裡使用的天然成分，但在化妝品類別以及頭髮和皮膚領域也有很多高性能產品。但主要是在化妝方面有很多新的勝利。

We had very good new wins in the natural ingredients business, as you've heard me note in the prepared comments. A lot of that's being driven by the availability. We invested very heavily in having a larger crop so that we could have product available, and I think that's paying dividends for us.

正如您在準備好的評論中所聽到的那樣，我們在天然成分業務中取得了非常好的新勝利。其中很大一部分是由可用性驅動的。我們投入了大量資金來擴大產量，以便我們能夠提供產品，我認為這為我們帶來了紅利。

Then of course, traditional flavors, we continue to generate very good wins in a number of categories. Most notably for the first half of the year, we'll be in beverage and sweet areas, bakery, and beverage in a number of the subcategories of beverage.

當然，在傳統口味方面，我們繼續在許多類別中取得非常好的勝利。最值得注意的是，今年上半年，我們將涉足飲料和甜食領域、麵包店和飲料的許多子類別。

So the wins are very, very broad based, and they're across a whole range of different customers too, from startups to locals and regionals, where, of course, as you know, we spend a lot of our commercial time. But we also were able to generate very good wins at large multinationals and branded customers as well.

因此，勝利的基礎非常非常廣泛，而且也涵蓋了各種不同的客戶，從新創公司到當地人和地區，當然，正如你所知，我們在這些地方花費了大量的商業時間。但我們也能夠在大型跨國公司和品牌客戶中贏得非常好的勝利。

So I feel very, very good about the win rate. And again, as we discuss internally and we talk externally, no matter what's going on in the world, are there a lot of new launches or not, is the economy down or not, you've got to continue to win new projects. You can always win new projects.

所以我對勝率感覺非常非常好。再說一次，正如我們在內部和外部討論的那樣，無論世界上正在發生什麼，是否有很多新項目推出，經濟是否下滑，你都必須繼續贏得新項目。您總是能贏得新項目。

There's always things being launched, there's always disruptions in the market, and there's always new customers coming online. So it's a matter of really focusing the organization on that metric around winning new business, existing customers, and new customers. So I feel very, very good there.

總是會有新的東西推出，總是會有市場的混亂，總是會有新的客戶湧入網路。因此，關鍵是讓組織真正專注於圍繞贏得新業務、現有客戶和新客戶的指標。所以我在那裡感覺非常非常好。

With respect to your second question on promotions and overall business activity, you see promotions in brands, you see it at the retailer level, you see it in a lot of different places. And so certainly, that may be driving a portion of the volume. I will note for you that we went through about a 2-, 2.5-year period where in the US, the market volume was effectively down over -- about 8 to 10 quarters. Europe, it was close to that, maybe up about 1 percentage point.

關於你關於促銷和整體商業活動的第二個問題，你會看到品牌的促銷活動，你會在零售商層面看到它，你會在很多不同的地方看到它。當然，這可能會推動部分銷售的成長。我要向您指出的是，我們經歷了大約 2、2.5 年的時間，在美國，市場容量實際上下降了大約 8 到 10 個季度。歐洲，接近這個數字，可能上升了約 1 個百分點。

What we experienced in Q2 and Q1 was actually a flat market from a volume standpoint in both Europe and North America where we have fairly good data to support that. The promotions are in fact correcting some of the underlying volume in the market, and that's a positive. I think as I said once before, the market doesn't necessarily have to be growing. If it could just not be down, that would be a very nice boost to the business.

從歐洲和北美的成交量角度來看，我們在第二季和第一季經歷的市場實際上是一個平淡的市場，我們有相當好的數據來支持這一點。事實上，促銷活動正在糾正市場中的一些潛在交易量，這是正面的。我認為正如我之前說過的，市場不一定要成長。如果它不能下降，那將對業務產生非常好的推動作用。

Now your third question about how much of the volume -- since the volume was quite significant, particularly in flavors, how much of that was driven by new wins? In flavors, I would say the vast majority of it. I don't have that specific calculation for you. We can get that for you. But directionally, in flavors, the majority of those new wins drove the volume.

現在你的第三個問題是銷量有多少——因為銷量相當大，特別是在口味方面，其中有多少是由新的勝利推動的？在口味方面，我想說的是絕大多數。我沒有具體的計算方法給你。我們可以為您找到。但從方向來看，在口味方面，大多數新的勝利都推動了銷售。

In color, we had probably a little bit more of a combination of the new wins and then plus some correction and underlining growth in the markets. We had very good growth rates -- very good growth coming out of a number of our customers, again, at this local and regional type level.

在顏色方面，我們可能更多地結合了新的勝利，然後再加上一些調整和強調市場的成長。我們的成長率非常高——我們的許多客戶在本地和區域類型層面上也取得了非常好的成長。

So yes, we'd have to get back to you about a specific figure. But if you say that in color, about 4% was volume. If I had to guess, so I'll guess, I would say probably half to three-quarters is generated from new wins. The other was a continuation of growth from wins we achieved in the previous year or just the underlying growth of that customer.

所以，是的，我們必須就具體數字回覆您。但如果以顏色來說，大約 4% 是體積。如果我必須猜測，那麼我會猜測，我會說可能有一半到四分之三是由新的勝利產生的。另一個是我們去年取得的勝利的持續成長，或只是該客戶的潛在成長。

In flavor, where we had about 9%, 10% volume growth, I would say three-quarters or better that was new win driven. And then in Asia, where we were also up quite substantially on revenue, 11%, that's probably more like color, a mix of new wins, and organic growth.

在口味方面，我們的銷量成長了大約 9%、10%，我想說四分之三或更好，這是新的勝利驅動的。然後在亞洲，我們的收入也大幅成長了 11%，這可能更像是色彩、新勝利和有機成長的結合。

A lot of the markets in Asia still have pretty good organic growth. People talk quite a bit about China and how somehow the end is near. Well, we don't quite see that, and we continue to have pretty good results in the food and personal care business in China. But also, we see good volume growth in other parts of the region as well.

亞洲許多市場仍然有相當好的有機成長。人們經常談論中國以及世界末日如何臨近。嗯，我們不太看到這一點，但我們在中國的食品和個人護理業務上仍然取得了不錯的成績。而且，我們也看到該地區其他地區的銷售也出現了良好的成長。

That's terrific color. Thank you. Thank you, Paul. And then if I could sneak one more in about the cost side of things, so you talked about how higher agricultural and other costs are weighing on the operating leverage across the flavors an extracts segment, given the investments that have been made there.

那是很棒的顏色。謝謝。謝謝你，保羅。然後，如果我可以再談談成本方面的問題，那麼您談到了農業和其他成本的上升如何影響口味和提取物細分市場的營運槓桿，考慮到在那裡進行的投資。

What should we expect from this segment as the year progresses from kind of an operating leverage perspective and a margin perspective? When do the higher agricultural costs roll off? And when can we get to a more normalized level there?

從營運槓桿角度和利潤率角度來看，隨著今年的進展，我們應該對該細分市場有何期望？較高的農業成本何時會下降？我們什麼時候才能達到更正常化的水平？

Yes. Well, I think the crop that we're selling right now is if it's not the most expensive in the history of the business, it's pretty close to it. And so since we're selling at increased volume at that peak cost position, that's clearly driving a lot of that impact you see here in Q1 and Q2.

是的。嗯，我認為我們現在出售的作物即使不是該行業歷史上最昂貴的，也已經非常接近了。因此，由於我們在最高成本位置的銷售增加，這顯然對您在第一季和第二季看到的影響產生了很大影響。

So as new crops come in, in the back half of this year, we're optimistic that we can get some relief there. And so what that would spell is that in Q3, you'd have probably not too dissimilar from Q1 and Q2. You're not going to see that perfectly mathematically derived operating leverage that you would expect to see from good revenue growth.

因此，隨著今年下半年新作物的上市，我們樂觀地認為我們可以在那裡得到一些緩解。因此，這意味著在第三季度，您可能與第一季和第二季沒有太大不同。您不會看到您期望從良好的收入成長中看到的完美數學推導出的營運槓桿。

But as I think as we turn the corner into Q4 and then certainly into next year, you'll see that more resounding operating leverage from this very good volume growth, very good new wins. And so Q3 will be -- we would project fairly similar. Maybe we're a little bit more even between revenue and profit. But I think as we get into Q4 and beyond, you'll see more of that traditional leverage that we would generate in the business.

但我認為，當我們進入第四季度，然後肯定進入明年時，你會看到這種非常好的銷售成長和非常好的新勝利帶來了更響亮的營運槓桿。因此，我們預計第三季將非常相似。也許我們在收入和利潤之間會更加平衡一些。但我認為，當我們進入第四季度及以後，您會看到我們在業務中產生的更多傳統槓桿。

Great. That's super helpful. That's it for me. Thank you very much.

偉大的。這非常有幫助。對我來說就是這樣。非常感謝。

Okay. Thanks, Matt.

好的。謝謝，馬特。

Nicola Tang, BNP Paribas Exane.

Nicola Tang，法國巴黎銀行 Exane。

Thanks, everyone. Hi.

謝謝大家。你好。

Hi, Nicola.

嗨，尼古拉。

Hi. Sticking to, I guess, the same topic on the natural ingredient side, it looks like for the division, flavors and extracts overall, it was -- the growth was really driven by natural ingredients. I think last quarter, you said that this was a little bit exceptional, but it seems to have continued again this quarter. So can you help us understand the dynamics and your expectations for the rest of the year around growth in natural ingredients?

你好。我想，在天然成分方面，堅持同樣的主題，看起來整個部門、香料和萃取物的成長確實是由天然成分推動的。我認為上個季度，您說這種情況有點特殊，但本季這種情況似乎又繼續了。那麼您能否幫助我們了解天然成分成長的動態以及您對今年剩餘時間的預期？

And then I suppose on the other side of that, it looks like the flavors and extracts business was still pretty slow in terms of organic growth. I know last quarter, I think I asked something similar and you said one quarter doesn't kind of give you an indication of exactly what's going on in the market. But could you help us to understand why you're still underperforming sort of larger flavor and fragrance peers on the flavors side? Thanks. That's the first one, anyway.

然後我想另一方面，香料和萃取物業務的有機成長仍然相當緩慢。我知道上個季度，我想我問過類似的問題，你說一個季度並不能告訴你市場到底發生了什麼事。但您能否幫助我們理解為什麼您在口味上的表現仍然不如大型香精香料同行？謝謝。無論如何，這是第一個。

Sure. So you're absolutely right. Last quarter, I said SNI had a very, very large sales growth. And you're right, I said that would happen again here in Q2. So that's essentially what we saw is outside growth in SNI for the quarter.

當然。所以你是完全正確的。上個季度，我說過 SNI 的銷售額成長非常非常大。你是對的，我說過這種情況會在第二季再次發生。這基本上就是我們看到的本季 SNI 的外部成長。

As we get into the back half and we start kind of lapping those highs, you'll see the revenue contribution from SNI be less than it has been here in the first half. So I think there will be a little bit of math associated with that one.

當我們進入後半段並開始刷新這些高點時，您會發現 SNI 的收入貢獻低於上半年。所以我認為會有一些與此相關的數學知識。

With respect to flavors, a lot of this is always timing of launches and seasonality of launches. As I look back 2019, 2020, 2021, 2022, and into 2023, you could see that Sensient has actually exceeded the market and just about any competitor that I can name here from that five- to six-year timeframe.

就口味而言，很大程度上取決於發布的時間和發布的季節性。當我回顧2019 年、2020 年、2021 年、2022 年和2023 年時，您可以看到Sensient 實際上已經超越了市場，並且幾乎超越了我在此五到六年時間範圍內列出的任何競爭對手。

So yes, you're right. Certain pockets of Q1 or Q2, flavors was -- we were in more of the low single digit on traditional flavors. But I have no reason to be concerned with that. The wins continue to be good, and we would expect to see, as we get into the remainder of this year, a more balanced contribution between SNI and traditional flavors as we're describing that one.

所以是的，你是對的。第一季或第二季的某些口味是－我們在傳統口味上處於較低的個位數。但我沒有理由擔心這一點。勝利仍然不錯，隨著我們進入今年剩餘時間，我們預計會看到 SNI 和傳統口味之間的貢獻更加平衡，正如我們所描述的那樣。

All right, thanks. And then a second one, just a more general question on operating leverage. Again, I think you've been quite clear that it's more a back-half-weighted story in terms of the lag. But I was just wondering why we didn't actually see any improvement sequentially in terms of margins in Q2 versus Q1, just bearing in mind that volumes have improved. Do you have some of the costs, or you have the portfolio profitability plan coming through as well?

好的，謝謝。然後是第二個問題，只是一個關於營運槓桿的更普遍的問題。再說一次，我認為你已經很清楚，就滯後而言，這更像是一個後半加權的故事。但我只是想知道為什麼我們實際上沒有看到第二季度與第一季的利潤率有任何改善，只是記住銷量有所改善。您是否有一些成本，或者您也有投資組合獲利計劃？

Yes, so I guess the simple answer would be inventory. The more -- let me give you a little bit more perspective on that. So as you look at flavors in the first half, you're seeing, yes, good revenue and operating profit that is not growing at that rate or in excess of that rate, what we would -- as you're describing -- we would describe as operating leverage.

是的，所以我想簡單的答案就是庫存。更多的是——讓我給你更多一點對此的看法。因此，當你觀察上半年的口味時，你會看到，是的，良好的收入和營業利潤並沒有以這個速度或超過這個速度增長，我們會——正如你所描述的——我們將描述為經營槓桿。

And again, that goes back to the agricultural costs that we are selling through. And so that begins to naturally moderate with new crops as the year progresses, as we sell off that more expensive inventory. The operating leverage doesn't speak to any sort of problem in terms of customer access or wins or anything more than -- we have a very, very high agricultural input cost situation right now. It's just a matter of selling through these and moving on to the next year's crop.

再說一次，這又回到了我們銷售的農業成本。因此，隨著時間的推移，隨著新作物的出現，隨著我們出售更昂貴的庫存，這種情況開始自然放緩。營運槓桿並不能說明客戶訪問或獲勝等方面的任何問題——我們現在的農業投入成本狀況非常非常高。這只是透過出售這些作物並繼續種植明年的作物的問題。

If we didn't have any inventory, I guess we'd already be there. But as we sell through that inventory, and as I noted to Matt before, you'll start to see more of that clean leverage. If you go over to the color group, where we didn't have the same set of input costs as we did in flavors, I noted on the last call that color would be kind of flat in Q1. But in Q2, you'd begin to see that leverage, and we did, 5% and 9%.

如果我們沒有任何庫存，我想我們已經在那裡了。但當我們銷售完這些庫存時，正如我之前向馬特指出的那樣，您將開始看到更多的乾淨槓桿。如果你轉到顏色組，我們沒有與口味相同的輸入成本，我在上次通話中指出，第一季的顏色會持平。但在第二季度，你會開始看到這種槓桿率，我們確實做到了，分別是 5% 和 9%。

And then we also hinted at this in the prepared script. As we get into the back half, you'll see that leverage become even better, and I'd like to think substantially better. So I think you'll see that play out very, very nicely in color. And then Asia continues to drive very, very good top line as well and very good profit. So we'll continue to see good things out of that.

然後我們在準備好的劇本中也暗示了這一點。當我們進入後半部分時，你會發現槓桿變得更好，我想考慮得更好。所以我想你會看到它在色彩上表現得非常非常漂亮。然後亞洲也繼續推動非常非常好的營收和非常好的利潤。因此，我們將繼續從中看到好的一面。

But yes, I think the leverage is really a function of the input cost and the inventory position. It's just really the math associated with it is why you're seeing the sequential improvement. But because of the SNI crop year and when we cut over to different types of input costs, that's why you're seeing that lag.

但是，是的，我認為槓桿實際上是投入成本和庫存狀況的函數。這實際上是與之相關的數學原理，這就是您看到連續改進的原因。但由於 SNI 作物年份以及當我們切換到不同類型的投入成本時，這就是您看到這種滯後的原因。

So the lag with Q1 and Q2, as I had indicated that it would be, Q3 will have a little bit more of an evenly matched revenue and profit growth rate. And then again, I think you'll see it as we get into Q4. You'll see an even better dynamic between revenue and profit.

因此，正如我所指出的，第一季和第二季的滯後，第三季的營收和獲利成長率將更加均衡。再說一遍，我想當我們進入第四季時你就會看到這一點。您將看到收入和利潤之間更好的動態變化。

All right, thanks. And then maybe just the final one on APAC. It seems like you saw pretty good growth in the quarter. I think, last quarter, you were still talking about destocking. But is it fair to say that destocking is now done in APAC?

好的，謝謝。然後也許是亞太地區的最後一場。看來您在本季看到了相當不錯的成長。我想，上個季度，你們還在談論去庫存。但可以說亞太地區目前已完成去庫存工作嗎？

Yes. I was a little bit concerned in Q2, so I'll have to apologize that they did much better than I thought they were going to. But yes, I think the net-net is I think we could say that the de-stocking, the order timing dynamics that we were concerned with really didn't play out, and I have no reason to believe that they would in Q3 or Q4.

是的。我在第二季有點擔心，所以我必須道歉，他們的表現比我想像的要好得多。但是，是的，我認為淨網是我認為我們可以說我們關心的去庫存、訂單時間動態確實沒有發揮作用，我沒有理由相信他們會在第三季或Q4。

Okay, thank you.

好的，謝謝。

(Operator Instructions) David Green, Boldhaven.

（操作員說明）David Green，Boldhaven。

Hi, Paul. Hi, Tobin.

嗨，保羅。嗨，托賓。

Good morning, David.

早安，大衛。

Hello.

你好。

Yes, I guess a few questions. Without sort of wanting to, I guess, labor the point in terms of operating leverage within F&E, we saw a sort of 500-basis-point sequential improvement in constant currency revenue growth.

是的，我想有幾個問題。我想，我們不想在 F&E 內部的營運槓桿方面強調這一點，但我們看到了貨幣收入持續成長連續 500 個基點的改善。

But obviously, we only saw around 20 basis points improvement in margin. Even with that sort of input cost headwind, it just feels like a very, very large delta there. Is there anything else other than those input costs that is impacting the operating leverage?

但顯然，我們只看到利潤率提高了約 20 個基點。即使存在這種投入成本的逆風，它仍然感覺像是一個非常非常大的三角洲。除了這些投入成本之外，還有其他因素影響營運槓桿嗎？

Short answer is no, but maybe Tobin can give a more complex answer here to that one. But I don't think there is one.

簡短的回答是否定的，但也許托賓可以對此給出一個更複雜的答案。但我認為沒有。

No, no. There's really not playing into it. I mean, they're running at a higher rate from a performance-based compensation compared to last year. But other than that, it's really the higher cost in our Natural Ingredients product line.

不，不。實在是沒戲了。我的意思是，與去年相比，他們基於績效的薪酬的運行速度更高。但除此之外，我們的天然成分產品線的成本確實較高。

I guess second question is, is it sort of fair to say now that we are pretty much through all of the destock headwinds across the different segments?

我想第二個問題是，現在我們幾乎已經度過了不同細分市場的所有去庫存逆風，這樣說是否公平？

Yes. One-word answers are encouraged, David, and it makes the easy transcript read.

是的。大衛，我們鼓勵用一個字來回答，這樣抄本就很容易閱讀。

There we go. And I guess, sort of separately, obviously, it feels like you're firing on all cylinders across most areas. But are there any other segments that are still growing more slowly or underperforming at the moment?

我們開始吧。我想，顯然，在某種程度上，感覺就像你在大多數區域全力以赴。但目前是否還有其他領域成長緩慢或表現不佳？

Well, I think I noted some of the highlighted wins in the first set of questions around natural colors and personal care, and so we continue to feel very, very good about that. We certainly want to see an uptick in the flavor numbers, which I already hinted you will see that in the back half here as well.

嗯，我想我注意到了第一組有關自然色彩和個人護理的問題中一些突出的勝利，所以我們仍然對此感覺非常非常好。我們當然希望看到口味數字的上升，我已經暗示過你也會在這裡的後半部看到這一點。

But no, I think the dynamics are good from the standpoint of our customers that we sell to and the types of projects we're working on. The pipelines look very, very good. One of the big things that's going on right now is the amount of new product launches that are taking place. And new product launches can be defined in a lot of different ways, and they're all sort of under this umbrella of innovation.

但不，我認為從我們的銷售客戶和我們正在進行的專案類型的角度來看，動態是好的。管道看起來非常非常好。目前正在發生的一件大事就是大量新產品的發布。新產品的發布可以用很多不同的方式來定義，它們都在創新的保護傘下。

And so when we talk about new products, there are things like new packaging. There are -- there's more of the safe innovation, what we would call a line extension. And then there's the kind of the new-to-the-world products. And one of the dynamics we've been seeing here in 2024 is quite a reduction in actual new product launches in food and beverage.

因此，當我們談論新產品時，就會涉及到新包裝等內容。還有更多的安全創新，我們稱之為產品線延伸。還有一種新產品。我們在 2024 年看到的動態之一是食品和飲料領域實際新產品發布量大幅減少。

So in fact, in some cases, these are quite low for US, for Europe. And a lot of what's driving that, we think, is just a return of normalcy in the supply chain, customers, some of which are working quite extensively on reformulations and consolidations.

事實上，在某些情況下，這些對美國和歐洲來說相當低。我們認為，推動這一趨勢的許多因素只是供應鏈、客戶恢復正常，其中一些客戶正在廣泛致力於重新配製和整合。

And so the one metric that we pay very, very close attention to is what is the degree of new-to-the-world products being launched? And are we getting the lion's share of those? And so that would be a dynamic that we continue to focus very, very strongly on to make sure that we are very closely aligned to those customers that are launching.

因此，我們非常非常密切關注的一個指標是推出的新產品的程度如何？我們是否得到了其中的大部分？因此，這將是我們繼續非常非常關注的動態，以確保我們與那些正在推出的客戶非常緊密地保持一致。

Sure, the line extensions are good, but those new-to-the-world products are also very, very important. Most of that activity is largely driven from these local regional, what we traditionally call the B and C customers. And so that's our commercial strategy of lining up with those customers very, very closely. I think it's definitely paying off, and it's enabling us to weather this downturn in the Americas, in Europe, with respect to new-to-the-world product launches.

當然，產品線的延伸固然很好，但那些新產品也非常非常重要。大部分的活動主要是由這些當地區域（我們傳統上稱為 B 和 C 客戶）所推動。這就是我們與這些客戶非常非常密切合作的商業策略。我認為這絕對是有回報的，它使我們能夠經受住美洲、歐洲在新產品發布方面的低迷期。

Right. And then Paul, just to sort of understand in terms of within your sort of mix, what -- how much would be new-to-the-world products versus line extensions and repackaging?

正確的。然後，保羅，我想了解一下，在您的組合中，新產品與產品線延伸和重新包裝相比，有多少是新產品？

Well, it's funny. I was just reading this Mintel report just the other day. If you look at about the first five months of 2024, new-to-the-world products is about -- is less than a third of all launches in the Americas to 29%, if I could quote Mintel here, which is a rather low level. If you look at food specifically, because that 29% encapsulates food, beverage, personal care, beauty, health, et cetera, more specifically around food, it's more like about 26% of all market launches are new-to-the-world products.

嗯，這很有趣。前幾天我剛讀到了英敏特的這份報告。如果你看看2024 年前5 個月，你會發現，全球新產品的佔比還不到美洲所有發布產品的三分之一，達到29%（如果我可以在這裡引用Mintel 的話），這是一個相當大的數字。如果你具體看一下食品，因為 29% 包含食品、飲料、個人護理、美容、健康等，更具體地說是食品，那麼所有市場推出的產品中大約有 26% 是新產品。

And so I don't have that at my fingertips, what percentage of our wins would be derived from these new-to-the-world versus line extensions. Those can be a little bit tricky even for some of these marketing surveys to define.

所以我不知道我們的勝利有多少百分比是來自於這些新產品與產品線延伸。即使對於其中一些行銷調查來說，定義這些也可能有點棘手。

But I wouldn't be surprised if our wins followed that same type of pattern. Maybe a quarter of them represented new-to-the-world products, and then the other three-quarters were line extensions and other safe innovation type moves.

但如果我們的勝利遵循同樣的模式，我不會感到驚訝。也許其中四分之一代表了新產品，然後另外四分之三是產品線延伸和其他安全創新類型的舉措。

And just a couple of quick ones, if that's okay. I think earnings season so far within your end markets, in terms of customers, have been still pretty negative about the world. Certainly, there's been some pretty pervasive trends along down trading. Just sort of interested in -- the backdrop you're painting seems to be much more constructive or certainly more constructive. And I just wanted to get a feel for why you think that might be.

如果可以的話，就幾個快速的。我認為到目前為止，就客戶而言，終端市場的財報季對世界仍然相當負面。當然，下跌交易中存在一些相當普遍的趨勢。只是有點感興趣——你正在畫的背景似乎更有建設性，或者肯定更有建設性。我只是想了解一下你認為的原因。

We've got a pretty diversified customer base all around the world. And we've not been totally dependent on any one type of customer in any one of our markets. And so we employ a fairly large sales force to help us to do that, some customers who are very focused on innovation, whereas others may be very focused on just -- let's hold the line and let's just secure what we already sell today and make sure it's on the shelves.

我們在世界各地擁有相當多元化的客戶群。我們並沒有完全依賴任何一個市場中的任何一種類型的客戶。因此，我們僱用了一支相當大的銷售隊伍來幫助我們做到這一點，有些客戶非常專注於創新，而其他客戶可能非常專注於——讓我們堅守陣地，讓我們確保我們今天已經銷售的產品和製造的產品。

I think because we're so very well represented and we have very, very good access in the vast majority of our businesses that that really allows us to focus on those bigger opportunities within that realm. So I think we have very high expectations for our salespeople. We have very high expectations for our general managers. And you've got to find ways to grow your business and to grow your business profitably.

我認為，因為我們的代表性非常好，而且我們在絕大多數業務中擁有非常非常好的管道，這確實使我們能夠專注於該領域內的更大機會。所以我認為我們對銷售人員抱有很高的期望。我們對總經理抱有很高的期望。您必須找到發展業務並實現盈利的方法。

I guess one final question for Tobin. The OpEx came in quite a lot higher for the quarter. And I think you said part of that was the stock-based compensation. And I think that was about $4 million. I'm just trying to understand how that kind of phases for the rest of the year. And is there any -- do we kind of get any of that back year on year as we go through the year?

我想問托賓最後一個問題。本季的營運支出要高得多。我想你說過其中一部分是基於股票的薪酬。我認為這大約是 400 萬美元。我只是想了解今年剩下的時間裡這個階段的情況如何。在我們經歷這一年的過程中，我們是否能逐年得到這些資訊？

And the same question as well for the corporate and other line. which I think was around $6 million higher if you adjust to the optimization cost. So again, just to give us a bit of a feel for whether there's any kind of front-loading of corporate and other costs that might be lower going forward.

對於公司和其他線路也有同樣的問題。如果您調整最佳化成本，我認為大約會增加 600 萬美元。再說一遍，只是為了讓我們了解是否有任何形式的前期企業成本和其他成本可能會降低。

That's a great question. It's a very important question, and we want to make sure that everybody understands it. So you're getting at a very, very important element of the cost and the leverage piece that you see at the macro level for the company. So number one, Sensient is a pay-for-performance business. So when you perform, you're paid. If you don't perform financially, you don't get paid.

這是一個很好的問題。這是一個非常重要的問題，我們希望確保每個人都能理解它。因此，您正在了解公司宏觀層面上非常非常重要的成本要素和槓桿部分。第一，Sensient 是一家按績效付費的企業。所以當你表演時，你就會得到報酬。如果你在財務上沒有表現，你就不會得到報酬。

So we don't offer incentives. Tobin shows up on time every day for work. He does not get a bonus for that. If Tobin does some other highly subjective thing that really doesn't necessarily translate into financial results, he doesn't get anything for that. He gets a pat on the back from me, but no additional financial incentive for that.

所以我們不提供激勵措施。托賓每天準時上班。他沒有因此獲得獎金。如果托賓做了其他一些高度主觀的事情，而這些事情確實不一定會轉化為財務結果，那麼他就不會得到任何東西。他得到了我的鼓勵，但沒有額外的經濟獎勵。

And so for that reason, when you come into a year like 2023, where there's essentially a once-in-a-generation de-stocking effort in the food and personal care businesses, it has a tremendous impact, such that people effectively get no annual incentive bonus out of that from me on down within the organization.

出於這個原因，當你進入像 2023 年這樣的一年時，食品和個人護理行業基本上會進行一代人一次的去庫存努力，這會產生巨大的影響，人們實際上不會得到任何好處。每年的激勵獎金都是從我在組織內部往下拿出來的。

Now as you get into 2024, you have a step up, right? We're back on track. We're back on track with good revenue. As I've noted, operating leverage will continue to improve as the year goes on. But then that pay for performance becomes, in this case, a substantial headwind because it was effectively zero last year. So that's the macro philosophical view of this one. Now Tobin can give us more of the details.

現在，當你進入 2024 年時，你會更上一層樓，對嗎？我們又回到正軌了。我們已經重回正軌，收入良好。正如我所指出的，隨著時間的推移，營運槓桿將繼續改善。但在這種情況下，績效工資變成了一個巨大的阻力，因為去年它實際上為零。這就是這個的宏觀哲學觀點。現在托賓可以向我們提供更多細節。

Yes, and just to touch on what Paul talked about, so last year, 2023 was a very low base for our annual incentive compensation in our three-year performance stock. The annual performance compensation is within our flavor group, color group, and Asia group from that standpoint. So we're running much higher this year.

是的，只是為了觸及保羅所說的內容，所以去年，2023 年是我們三年績效股票中年度激勵薪酬的一個非常低的基數。從這個角度來看，年度績效薪酬屬於我們的風味組、色素組和亞洲組。所以我們今年的業績要高很多。

Within corporate and other, it's the same thing. We're running much higher from that standpoint. And I would say for corporate and other, it's about $0.04 to $0.05 during the quarter impact. Now as we kind of move forward through the rest of the year, we will be running higher than last year, but they will be more evened out.

在公司內部和其他內部，情況是一樣的。從這個角度來看，我們的水平要高得多。我想說，對於企業和其他企業來說，在本季影響期間，價格約為 0.04 至 0.05 美元。現在，隨著今年剩餘時間的推進，我們的運行速度將高於去年，但它們將更加平衡。

Okay, so less of a headwind than the $0.04 to $0.05 for the second half?

好吧，那麼下半年的阻力比 0.04 美元到 0.05 美元要小嗎？

Yes. I would say it is still going to be elevated, so we're still going to have elevated costs from that standpoint. But I think Q2 is a little slightly more than what I would anticipate as we kind of roll forward through the remainder of the --

是的。我想說它仍然會升高，所以從這個角度來看我們的成本仍然會升高。但我認為第二季的情況比我預期的要稍微多一些，因為我們正在推進剩餘的時間--

(Multiple speakers) Sorry. And the stock-based comp, in terms of what kind of headwind do you think that would have represented in terms of sense for this quarter?

（多個發言者） 抱歉。至於以股票為基礎的比較，您認為這對本季來說意味著什麼樣的逆風？

What I quoted was altogether, so our annual sense was the stock-based comp. I didn't split them apart.

我引用的是完全的，所以我們的年度意義是基於股票的比較。我沒有把他們分開。

Right, perfect. Thank you. Thanks very much.

沒錯，完美。謝謝。非常感謝。

You're welcome.

不客氣。

Okay. Thanks, David.

好的。謝謝，大衛。

There are no further questions at this time. This concludes your question-and-answer session. I would like to turn the conference back over to the company for any closing remarks.

目前沒有其他問題。您的問答環節到此結束。我想將會議轉回公司進行閉幕致詞。

Okay. That concludes our call today. Thank you, everyone, for joining. If you have any follow-up questions, please feel free to contact the company. Have a great day.

好的。我們今天的電話會議到此結束。謝謝大家的加入。如果您有任何後續問題，請隨時與公司聯絡。祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。