Sensient Technologies Corporation (NYSE:SXT) Q2 2023 Earnings Call Transcript

So, the first year when you saw those input costs go up, we still had the lower cost and crop. So we benefited from that. But now you kind of — it’s not so fun on this end of the equation, where you’ve got to deal with previously elevated costs that have impacted your inputs. But Steve, you want to add some additional color there?

Stephen Rolfs: Yes. I think you hit on a lot of it. So this quarter, our costs are higher than they were in the second quarter of last year. We’re certainly seeing improvement and relief in a lot of areas, energy would be one of them. But keep in mind that a lot of times we will have forward contracts for energy. And so it could have been that we were partially hedged last year, and now if we’re hedged, we’re hedged at a higher rate. So there’s a little bit of a delay in that respect. And then as Paul said, was some of the agricultural inputs that are harvested maybe just once a year, you can see a delayed impact because those were grown under inflationary environment and are just coming out of the ground now.

Operator: There are no further questions at this time. I would now like to turn the conference back to the company for any closing remarks.

Stephen Rolfs: Okay. So thank you very much for joining us this morning. That will conclude our remarks today. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation and you may now disconnect.