Sensient Technologies Corporation (SXT)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	189,319	123,910	179,928	1,066,720	1,030,900
Revenue	US$ in thousands	1,557,370	1,430,740	1,422,220	1,367,390	1,317,440
Gross profit margin		12.16%	8.66%	12.65%	78.01%	78.25%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $189,319K ÷ $1,557,370K
= 12.16%

The gross profit margin of Sensient Technologies Corporation has exhibited some fluctuations over the years based on the provided data.

In December 31, 2020, the gross profit margin stood at a robust 78.25%, indicating that the company was able to efficiently manage its production costs and generate a high level of gross profit relative to its revenue.

By December 31, 2021, the gross profit margin slightly decreased to 78.01%, indicating a minor decline in the company's ability to maintain its profitability at the gross level.

A significant decline in the gross profit margin was observed by December 31, 2022, dropping to 12.65%. This sharp decrease suggests a substantial increase in production costs relative to the revenue generated, potentially impacting the company's overall profitability.

The trend continued in December 31, 2023, with the gross profit margin falling even further to 8.66%. This indicates a continued struggle in managing production costs efficiently, which could raise concerns about the company's operational performance.

However, there was a slight improvement by December 31, 2024, with the gross profit margin increasing to 12.16%. While this uptick is positive, the margin is still significantly lower compared to the levels seen in previous years.

In conclusion, Sensient Technologies Corporation has experienced fluctuations in its gross profit margin over the years, with a notable decline in more recent periods. This suggests potential challenges in managing production costs effectively and maintaining profitability at the gross level. Further analysis of the company's cost structure and pricing strategies may be warranted to address these concerns.