FORWARD-LOOKING STATEMENTS



This report contains forward-looking statements that reflect management's
current assumptions and estimates of future economic circumstances, industry
conditions, Company performance, and financial results. Forward-looking
statements include statements in the future tense, statements referring to any
period after September 30, 2021, and statements including the terms "expect,"
"believe," "anticipate," and other similar terms that express expectations as to
future events or conditions. The Private Securities Litigation Reform Act of
1995 provides a safe harbor for such forward-looking statements. Such
forward-looking statements are not guarantees of future performance and involve
known and unknown risks, uncertainties, and other factors that could cause
actual events to differ materially from those expressed in the forward-looking
statements. A variety of factors could cause the Company's actual results and
experience to differ materially from the anticipated results. These factors and
assumptions include, among others, the impact and uncertainty created by the
ongoing COVID-19 pandemic, including, but not limited to, its effects on our
employees, facilities, customers, and suppliers, the availability and cost of
energy, raw materials, and other supplies, the availability of logistics and
transportation, governmental regulations and restrictions, and general economic
conditions; the pace and nature of new product introductions by the Company and
the Company's customers; the Company's ability to anticipate and respond to
changing consumer preferences and changing technologies; the Company's ability
to successfully implement its growth strategies; the outcome of the Company's
various productivity-improvement and cost-reduction efforts, acquisition and
divestiture activities, and operational improvement plan; the effectiveness of
the Company's past restructuring activities; changes in costs of raw materials,
including energy; industry, regulatory, legal, and economic factors related to
the Company's domestic and international business; the effects of tariffs, trade
barriers, and disputes; growth in markets for products in which the Company
competes; industry and customer acceptance of price increases; actions by
competitors; currency exchange rate fluctuations; and the matters discussed
under Item 1A of the Company's Annual Report on Form 10-K for the year ended
December 31, 2020, as updated below under Part II, Item 1A. Except to the extent
required by applicable law, the Company does not undertake to publicly update or
revise its forward-looking statements even if experience or future changes make
it clear that any projected results expressed or implied therein will not be
realized.

OVERVIEW

Revenue
Revenue was $344.3 million and $323.6 million for the three months ended
September 30, 2021 and 2020, respectively. Revenue was $1.0 billion and $997.3
million for the nine months ended September 30, 2021 and 2020, respectively. For
the three and nine months ended September 30, 2021, the impact of foreign
exchange rates increased consolidated revenue by approximately 1% and 3%,
respectively.

Gross Margin The Company's gross margin was 33.4% and 32.7% for the three months ended September 30, 2021 and 2020, respectively. The increase in gross margin was primarily due to higher Color segment volumes.

The Company's gross margin was 32.9% and 32.1% for the nine months ended September 30, 2021 and 2020, respectively. The increase in gross margin was primarily due to higher Flavor & Extracts segment volumes and the impact of the divestiture & other related costs in the prior year period.



Selling and Administrative Expenses
Selling and administrative expense as a percent of revenue was 19.8% and 19.9%
for the three months ended September 30, 2021 and 2020, respectively. Selling
and administrative expense as a percent of revenue was 20.5% and 20.2% for the
nine months ended September 30, 2021 and 2020, respectively.

Selling and administrative expenses included divestiture & other related costs
and operational improvement plan costs and income totaling $0.7 million and
$11.5 million for the three and nine months ended September 30, 2021,
respectively, and $2.9 million and $11.3 million for the three and nine months
ended September 30, 2020, respectively.

Operating Income
Operating income was $47.0 million and $41.2 million for the three months ended
September 30, 2021 and 2020, respectively. Operating margins were 13.6% and
12.7% for the three months ended September 30, 2021 and 2020, respectively. The
increase in operating margin is primarily due to lower operational improvement
plan and divestiture & other related costs, which decreased operating margins by
20 and 90 basis points for the three months ended September 30, 2021 and 2020,
respectively.

                                       19

--------------------------------------------------------------------------------

Index


Operating income was $129.6 million and $117.8 million for the nine months ended
September 30, 2021 and 2020, respectively. Operating margins were 12.5% and
11.8% for the nine months ended September 30, 2021 and 2020, respectively. The
increase in operating margins was primarily due to an increase in margins in the
Flavors & Extracts segment and the net impact of lower divestiture & other
related costs and operational improvement plan income. The net impact of
divestiture & other related costs offset by operational improvement plan income,
decreased operating margins by 110 and 130 basis points for the nine months
ended September 30, 2021 and 2020, respectively.

Interest Expense
Interest expense was $3.0 million and $3.5 million for the three months ended
September 30, 2021 and 2020, respectively, and $9.8 million and $11.4 million
for the nine months ended September 30, 2021 and 2020, respectively. For the
three and nine months ended September 30, 2021, the decrease in expense compared
to the prior year comparable period was primarily due to the decrease in the
average debt outstanding.

Income Taxes
The effective income tax rates for the three months ended September 30, 2021 and
2020, were 22.8% and 12.6%, respectively. For the nine months ended September
30, 2021 and 2020, the effective income tax rates were 23.6% and 20.8%,
respectively. The effective tax rates for the three and nine months ended
September 30, 2021 and 2020 were both impacted by changes in valuation
allowances, changes in estimates associated with the finalization of prior year
foreign tax items, changes in deferred tax assets and liabilities due to newly
enacted tax rates, audit settlements, and the mix of foreign earnings. The three
and nine months ended September 30, 2020, were also impacted by a change in a
reserve for an uncertain tax position.

Divestitures


In October 2019, the Company announced its intent to divest its inks, fragrances
(excluding its essential oils product line), and yogurt fruit preparations
product lines. The divesting and exit of these three product lines does not meet
the criteria to be presented as a discontinued operation on the Consolidated
Statements of Earnings.

On June 30, 2020, the Company completed the sale of its inks product line. In
2021 and 2020, the Company received $0.5 million and $11.6 million of net cash,
respectively, as part of the sale.

On September 18, 2020, the Company completed the sale of its yogurt fruit
preparations product line for $1.0 million. The sale included an earnout based
on future performance, which could result in additional cash consideration for
the Company.

On April 1, 2021, the Company completed the sale of its fragrances product line
(excluding its essential oils product line) for $36.3 million of net cash. As a
result of the completion of the sale, the Company recorded a non-cash net loss
of $11.3 million, for the nine months ended September 30, 2021, primarily
related to the reclassification of accumulated foreign currency translation and
related items from Accumulated Other Comprehensive Loss to Selling and
Administrative Expenses in the Consolidated Statements of Earnings.

Acquisition


On July 15, 2021, the Company acquired substantially all of the assets of Flavor
Solutions, Inc., a flavors business located in New Jersey. The purchase price of
this acquisition was $14.9 million in cash with approximately $1.0 million of
such amount being held back by the Company for 12 months in order to satisfy
post-closing indemnification claims that may arise. This business is now part of
the Flavors & Extracts segment.

Operational Improvement Plan
During the third quarter of 2020, the Company approved an operational
improvement plan (Operational Improvement Plan) to consolidate manufacturing
facilities and improve efficiencies within the Company. As part of the
Operational Improvement Plan, the Company is combining its New Jersey cosmetics
manufacturing facility in the Personal Care product line of the Color segment
into its existing Color segment facility in Missouri. In addition, the Company
is centralizing certain Flavors & Extracts segment support functions in Europe
into one location. In the Asia Pacific segment, the Company incurred costs in
connection with the elimination of certain selling and administrative positions.
The Company reports all costs associated with the Operational Improvement Plan
in Corporate & Other.

During the second quarter of 2021, the Company received cash proceeds, net of
associated expenses, in connection with the termination of a New Jersey office
and laboratory space lease. The terminated lease was originally executed in
November 2020 as part of the Operational Improvement Plan; however, the landlord
for the property requested to terminate the lease prior to the end of its term
and compensated the Company as part of a negotiated resolution for that
termination.

                                       20

--------------------------------------------------------------------------------

Index


In the three and nine months ended September 30, 2021, the Company recorded
costs of $0.5 million and income of $2.0 million, respectively, related to the
Operational Improvement Plan. The income in the nine month period primarily
related to the gain associated with the terminated New Jersey lease. In both the
three and nine months ended September 30, 2020, the Company recorded costs of
$2.6 million, primarily related to employee separation expenses.

COVID-19

COVID-19 has adversely affected, and is expected to continue to adversely affect, most of the world, including through widespread illness, quarantines, factory shutdowns, and travel and transportation disruptions. While the Company's financial position remains strong, the Company has seen several financial and operational impacts from the pandemic as of this filing.



For the three and nine months ended September 30, 2021, demand for many of the
Company's products remained strong, especially in product lines that serve the
food and beverage markets. There has been continued softer demand in other
product lines the Company serves, particularly in the cosmetics product line and
some product lines that supply the quick service restaurant segment due to
continued widespread restaurant capacity and other operating restrictions. While
COVID-19 appears to have initially contributed to demand for food-related
products and dampened demand for personal care related products, it is difficult
to quantify the continuing and future impact of COVID-19 on demand for the
Company's products.

During the first quarter of 2020, the Company had a production facility in China
and a production facility in India that were required to temporarily suspend
operations. In addition, during the fourth quarter of 2020, the Company had a
production facility in China that was required to temporarily suspend
operations. All of the Company's production facilities are open and operating as
of this filing, but the Company continues to monitor developments and
regulations in regions where its production facilities are located. The Company
also continues to monitor supply chains and has increased inventory in certain
key raw materials and fast moving finished goods. Supply chains and logistics
operations have been adversely impacted during the pandemic, but the Company did
not experience any significant supply disruptions related to COVID-19 during the
three and nine months ended September 30, 2021.

As of September 30, 2021, the Company continues to be in compliance with its
financial loan covenants and does not anticipate any non-compliance in the
future. COVID-19 has not adversely impacted the Company's capital or financial
resources. Furthermore, the Company expects its forecasted cash flows from
operations and its available debt capacity will be able to meet future cash
requirements for operations, capital expenditures, contractual maturities on
long-term debt, stock repurchases, and dividend payments.

The Company continues to monitor its trade accounts receivables for potential
collection issues and has not identified any significant concerns as of this
filing. The Company will continue to monitor cash collections and review trade
receivable aging to identify any deterioration in quality.

The Company continues to believe its internal controls over financial reporting
and its disclosure controls and procedures are effective to ensure their design
and operation continue to be effective as some employees outside the United
States periodically perform tasks from alternative work locations. Internal
audit continues to perform their audit procedures as planned, though some audit
procedures are performed remotely for locations outside the United States where
it is not reasonably possible to perform audit procedures in-person.

Overall, governmental and social responses to the COVID-19 pandemic continue to
evolve. In particular, there continues to be uncertainty related to the timing
and extent of vaccination programs, especially outside of the U.S., as well as
the impacts of new COVID-19 variants, and we expect that the situation will
remain dynamic and difficult to predict for the foreseeable future. There can be
no assurance that our experience to date with respect to facility operations,
customer demand, the availability of supplies and transportation, and other
factors impacting our results and financial condition will be predictive of the
ongoing impacts in the short or long term. Even as stay-home orders and
quarantines are being lifted in most areas, it is difficult to predict how
economic conditions and changes in customer and consumer behavior may impact our
results over the longer term. As a result of any of the foregoing, our results
or financial condition could be adversely impacted and the impacts could be
material.

                                       21

--------------------------------------------------------------------------------

Index

NON-GAAP FINANCIAL MEASURES



Within the following tables, the Company reports certain non-GAAP financial
measures, including: (1) adjusted revenue, adjusted operating income, adjusted
net earnings, and adjusted diluted earnings per share, which exclude the results
of the divested product lines, the divestiture & other related costs, and the
operational improvement plan costs and income, and (2) percentage changes in
revenue, operating income, and diluted earnings per share on an adjusted local
currency basis, which eliminate the effects that result from translating its
international operations into U.S. dollars, the results of divested product
lines, the divestiture & other related costs or income, and the operational
improvement plan costs or income.

The Company has included each of these non-GAAP measures in order to provide
additional information regarding our underlying operating results and comparable
year-over-year performance. Such information is supplemental to information
presented in accordance with GAAP and is not intended to represent a
presentation in accordance with GAAP. These non-GAAP measures should not be
considered in isolation. Rather, they should be considered together with GAAP
measures and the rest of the information included in this report. Management
internally reviews each of these non-GAAP measures to evaluate performance on a
comparative period-to-period basis and to gain additional insight into
underlying operating and performance trends, and the Company believes the
information can be beneficial to investors for the same purposes. These non-GAAP
measures may not be comparable to similarly titled measures used by other
companies.

                               Three Months Ended September 30,                  Nine Months Ended September 30,
(In thousands, except       2021               2020          % Change           2021             2020         % Change
per share amounts)
Revenue (GAAP)          $    344,287       $    323,566            6.4 %   $    1,039,816      $ 997,333            4.3 %
Revenue of the
divested product
lines                         (1,622 )          (23,588 )                         (29,399 )      (88,390 )
Adjusted revenue        $    342,665       $    299,978           14.2 %   $    1,010,417      $ 908,943           11.2 %

Operating Income
(GAAP)                  $     46,958       $     41,155           14.1 %   $      129,608      $ 117,841           10.0 %
Divestiture & other
related costs
(income) - Cost of
products sold                      -               (148 )                              28          1,791
Divestiture & other
related costs  -
Selling and
administrative
expenses                         241                312                            13,473          8,689
Operating loss
(income) of the
divested product
lines                             70             (2,449 )                          (2,398 )       (4,165 )
Operational
improvement plan -
Cost of products sold              -                 35                                 -             35
Operational
improvement plan -
Selling and
administrative
expenses (income)                483              2,606                            (2,010 )        2,606
Adjusted operating
income                  $     47,752       $     41,511           15.0 %   $      138,701      $ 126,797            9.4 %

Net Earnings (GAAP)     $     33,912       $     32,910            3.0 %   $       91,516      $  84,303            8.6 %
Divestiture & other
related costs, before
tax                              241                164                            13,501         10,480
Tax impact of
divestiture & other
related costs                  1,179               (787 )                             283         (1,212 )
Net loss (earnings)
of the divested
product lines, before
tax                               70             (2,449 )                          (2,398 )       (4,165 )
Tax impact of the
divested product
lines                            (18 )              655                               590          1,155
Operational
improvement plan
costs (income),
before tax                       483              2,641                            (2,010 )        2,641
Tax impact of
operational
improvement plan                (115 )             (656 )                              44           (656 )
Adjusted net earnings   $     35,752       $     32,478           10.1 %   $      101,526      $  92,546            9.7 %

Diluted earnings per
share (GAAP)            $       0.80       $       0.78            2.6 %   $         2.16      $    1.99            8.5 %
Divestiture & other
related costs
(income), net of tax            0.03              (0.01 )                            0.33           0.22
Results of operations
of the divested
product lines, net of
tax                                -              (0.04 )                           (0.04 )        (0.07 )
Operational
improvement plan
costs (income), net
of tax                          0.01               0.05                             (0.05 )         0.05
Adjusted diluted
earnings per share      $       0.85       $       0.77           10.4 %   $         2.40      $    2.19            9.6 %



                                       22

--------------------------------------------------------------------------------

Index


Divestiture & other related costs are discussed under "Divestitures" above and
Note 2, Divestitures, in the Notes to the Consolidated Condensed Financial
Statements included in this report. The Operational Improvement Plan is
discussed under "Operational Improvement Plan" above and Note 3, Operational
Improvement Plan, in the Notes to the Consolidated Condensed Financial
Statements included in this report.

Note: Earnings per share calculations may not foot due to rounding differences.



The following table summarizes the percentage change for the results of the
three and nine months ended September 30, 2021, compared to the results for the
three and nine months ended September 30, 2020, in the respective financial
measures.

                                                 Three Months Ended September 30, 2021                                              Nine Months Ended September 30, 2021
                                                Foreign Exchange                             Adjusted Local                       Foreign Exchange                             Adjusted Local
Revenue                         Total                Rates              Adjustments(1)          Currency           Total               Rates              Adjustments(1)          Currency
Flavors & Extracts                  (0.7 %)                  1.1 %                (13.4 %)             11.6 %           1.6 %                  2.4 %                (10.7 %)              9.9 %
Color                               19.6 %                   1.9 %                 (0.4 %)             18.1 %           7.1 %                  3.2 %                 (3.4 %)              7.3 %
Asia Pacific                         8.8 %                  (0.5 %)                (0.2 %)              9.5 %          11.8 %                  3.6 %                 (0.2 %)              8.4 %
Total Revenue                        6.4 %                   1.2 %                 (7.8 %)             13.0 %           4.3 %                  2.8 %                 (7.1 %)              8.6 %

Operating Income
Flavors & Extracts                   5.5 %                   0.6 %                (11.1 %)             16.0 %          13.7 %                  1.9 %                 (4.9 %)             16.7 %
Color                               15.7 %                   1.8 %                 (0.9 %)             14.8 %           5.3 %                  3.5 %                  0.8 %               1.0 %
Asia Pacific                         7.8 %                  (2.3 %)                (0.4 %)             10.5 %          19.4 %                 (0.7 %)                (0.3 %)             20.4 %
Corporate & Other                   (2.5 %)                  0.0 %                (21.0 %)             18.5 %          11.1 %                  0.0 %                (11.0 %)             22.1 %
Total Operating Income              14.1 %                   1.1 %                 (0.9 %)             13.9 %          10.0 %                  3.2 %                  0.3 %               6.5 %
Diluted Earnings per Share           2.6 %                   0.0 %                 (6.5 %)              9.1 %           8.5 %                  3.0 %                 (1.3 %)              6.8 %

(1) For Revenue, adjustments consist of revenues of the divested product lines.

For Operating Income and Diluted Earnings per Share, adjustments consist of

the results of the divested product lines, divestiture & other related costs,

and operational improvement plan costs and income.

Note: Refer to table above for a reconciliation of these non-GAAP measures.

SEGMENT INFORMATION



The Company determines its operating segments based on information utilized by
its chief operating decision maker to allocate resources and assess performance.
Segment performance is evaluated on operating income before any applicable
divestiture & other related costs, share-based compensation, acquisition,
restructuring including the operational improvement plan, and other costs (which
are reported in Corporate & Other), interest expense, and income taxes.

The Company's reportable segments consist of the Flavors & Extracts, Color, and Asia Pacific segments.



Flavors & Extracts
Flavors & Extracts segment revenue was $181.7 million and $182.9 million for the
three months ended September 30, 2021 and 2020, respectively, a decrease of
approximately 1%. Foreign exchange rates increased segment revenue by
approximately 1%. The decrease was a result of higher revenue in Flavors,
Extracts & Flavor Ingredients, and Natural Ingredients, which was more than
offset by lower revenue due to the divestitures of Yogurt Fruit Preparations on
September 18, 2020, and Fragrances on April 1, 2021. The higher revenue in
Flavors, Extracts & Flavor Ingredients was primarily due to higher volumes and
the favorable impact of the Flavors Solutions, Inc. acquisition. The higher
revenue in Natural Ingredients was primarily due to higher volumes. Higher
selling prices also contributed to the higher revenue in both Flavors, Extracts
& Flavor Ingredients and Natural Ingredients.

                                       23

--------------------------------------------------------------------------------

Index


Flavors & Extracts segment revenue was $562.0 million and $553.0 million for the
nine months ended September 30, 2021 and 2020, respectively, an increase of
approximately 2%. Foreign exchange rates increased segment revenue by
approximately 2%. The increase was a result of higher revenue in Flavors,
Extracts & Flavor Ingredients, and Natural Ingredients, which was partially
offset by lower revenue due to the divestitures of Yogurt Fruit Preparations on
September 18, 2020, and Fragrances on April 1, 2021. The higher revenue in
Flavors, Extracts & Flavor Ingredients was primarily due to higher volumes, the
favorable impact of the Flavors Solutions, Inc. acquisition, and the favorable
impact of exchange rates. The higher revenue in Natural Ingredients was
primarily due to higher volumes. Higher selling prices also contributed to the
higher revenue in both Flavors, Extracts & Flavor Ingredients and Natural
Ingredients.

Flavors & Extracts segment operating income was $25.2 million and $23.8 million
for the three months ended September 30, 2021 and 2020, respectively, an
increase of approximately 6%. Foreign exchange rates increased segment operating
income by approximately 1%. The increase was primarily a result of higher
segment operating income in Flavors, Extracts & Flavor Ingredients and Natural
Ingredients, partially offset by lower segment operating income due to the
divestiture of Fragrances on April 1, 2021. The higher segment operating income
in Flavors, Extracts & Flavor Ingredients and Natural Ingredients was primarily
a result of higher volumes, which were partially offset by higher raw material
costs. Higher selling prices also contributed to the higher segment operating
income in Flavors, Extracts & Flavor Ingredients and Natural Ingredients.
Segment operating income as a percent of revenue was 13.9% in the current
quarter compared to 13.0% in the prior year's comparable quarter.

Flavors & Extracts segment operating income was $76.7 million and $67.5 million
for the nine months ended September 30, 2021 and 2020, respectively, an increase
of approximately 14%. Foreign exchange rates increased segment operating income
by approximately 2%. The increase was a result of higher segment operating
income in Flavors, Extracts & Flavor Ingredients and Natural Ingredients,
partially offset by lower segment operating income due to the divestiture of
Fragrances on April 1, 2021. The higher segment operating income in Flavors,
Extracts & Flavor Ingredients was primarily a result of higher volumes, lower
manufacturing and other costs, and the favorable impact of foreign exchange
rates, partially offset by higher raw material costs. The higher segment
operating income in Natural Ingredients was primarily a result of higher
volumes, which were partially offset by higher raw material costs. Higher
selling prices also contributed to the higher segment operating income in
Natural Ingredients. Segment operating income as a percent of revenue was 13.7%
in the current nine month period compared to 12.2% in the prior year's
comparable nine month period.

Color


Segment revenue for the Color segment was $139.2 million and $116.4 million for
the three months ended September 30, 2021 and 2020, respectively, an increase of
approximately 20%. Foreign exchange rates increased segment revenue by
approximately 2%. The increase was a result of higher segment revenue in Food &
Pharmaceutical Colors and Personal Care. The increase in Food & Pharmaceutical
Colors was primarily due to higher volumes and the favorable impact of foreign
exchange rates. Higher selling prices also contributed to the higher revenue in
Food & Pharmaceutical Colors. The increase in Personal Care was due to higher
volumes and the favorable impact of foreign exchange rates.

Segment revenue for the Color segment was $408.2 million and $381.2 million for
the nine months ended September 30, 2021 and 2020, respectively, an increase of
approximately 7%. Foreign exchange rates increased segment revenue by
approximately 3%. The increase was a result of higher segment revenue in Food &
Pharmaceutical Colors and Personal Care, partially offset by lower revenue due
to the divestiture of Inks on June 30, 2020. The increase in Food &
Pharmaceutical Colors was primarily due to higher volumes and the favorable
impact of foreign exchange rates. Higher selling prices also contributed to the
higher revenue in Food & Pharmaceutical Colors. The increase in Personal Care
was due to higher volumes and the favorable impact of foreign exchange rates.

Segment operating income for the Color segment was $27.3 million and $23.6
million for the three months ended September 30, 2021 and 2020, respectively, an
increase of approximately 16%. Foreign exchange rates increased segment
operating income by approximately 2%. The increase in segment operating income
was a result of higher segment operating income in Food & Pharmaceutical Colors
and Personal Care. The increase in Food & Pharmaceutical Colors was primarily
due to higher volumes, partially offset by higher manufacturing and other costs.
Higher selling prices also contributed to the higher segment operating income in
Food & Pharmaceutical Colors. The increase in Personal Care was primarily due to
higher volumes. Segment operating income as a percent of revenue was 19.6% in
the current quarter and 20.2% in the prior year's comparable quarter.

Segment operating income for the Color segment was $79.5 million and $75.5
million for the nine months ended September 30, 2021 and 2020, respectively, an
increase of approximately 5%. Foreign exchange rates increased segment operating
income by approximately 4%. The increase was a result of higher segment
operating income in Food & Pharmaceutical Colors and the favorable impact of the
Inks divestiture on June 30, 2020. Segment operating income as a percent of
revenue was 19.5% in the current nine month period and 19.8% in the prior year's
comparable period.

                                       24

--------------------------------------------------------------------------------

Index

Asia Pacific
Segment revenue for the Asia Pacific segment was $33.4 million and $30.7 million
for the three months ended September 30, 2021 and 2020, respectively, an
increase of approximately 9%. The increase was primarily a result of higher
volumes. Foreign exchange rates decreased segment revenue by approximately 1%.

Segment revenue for the Asia Pacific segment was $99.6 million and $89.1 million
for the nine months ended September 30, 2021 and 2020, respectively, an increase
of approximately 12%. The increase was a result of higher volumes and the
favorable impact of foreign exchange rates, which increased segment revenue by
approximately 4%.

Segment operating income for the Asia Pacific segment was $6.6 million and $6.1
million for the three months ended September 30, 2021 and 2020, respectively, an
increase of approximately 8%. The increase was primarily a result of higher
volumes, partially offset by higher manufacturing and other costs. Foreign
exchange rates decreased segment operating income by approximately 2%. Segment
operating income as a percent of revenue was 19.7% in the current quarter and
19.9% in the prior year's comparable quarter.

Segment operating income for the Asia Pacific segment was $19.1 million and
$16.0 million for the nine months ended September 30, 2021 and 2020,
respectively, an increase of approximately 19%. The increase was primarily a
result of higher volumes, partially offset by higher manufacturing and other
costs. Foreign exchange rates decreased segment operating income by
approximately 1%. Segment operating income as a percent of revenue was 19.2% in
the current nine month period and 18.0% in the prior year's comparable period.

Corporate & Other
The Corporate & Other operating expense was $12.1 million and $12.4 million for
the three months ended September 30, 2021 and 2020, respectively. The lower
operating expense for the three months ended September 30, 2021, was primarily
due to lower operational improvement plan expenses, partially offset by higher
performance-based compensation.

The Corporate & Other operating expense was $45.7 million and $41.1 million for
the nine months ended September 30, 2021 and 2020, respectively. The higher
operating expense for the nine months ended September 30, 2021, was primarily
due to higher performance-based compensation, partially offset by the net
favorable impact of lower divestiture & other related expenses and operational
improvement plan expenses and income in the current nine month period.

LIQUIDITY AND FINANCIAL CONDITION



Financial Condition
The Company's financial position remains strong. The Company is in compliance
with its loan covenants calculated in accordance with applicable agreements as
of September 30, 2021. The Company expects its cash flow from operations and its
existing debt capacity can be used to meet anticipated future cash requirements
for operations, capital expenditures, dividend payments, acquisitions, and stock
repurchases. The impact of inflation on both the Company's financial position
and its results of operations has been minimal and is not expected to
significantly affect 2021 results.

Cash Flows from Operating Activities
Net cash provided by operating activities was $116.1 million and $142.9 million
for the nine months ended September 30, 2021 and 2020, respectively. The
decrease in net cash provided by operating activities was primarily due to the
change in cash used in working capital during the nine months ended September
30, 2021, compared to the nine months ended September 30, 2020.

Cash Flows from Investing Activities
Net cash used in investing activities was $13.1 million and $15.8 million during
the nine months ended September 30, 2021 and 2020, respectively. During the nine
months ended September 30, 2021 and 2020, the Company received cash proceeds of
$36.8 million and $12.2 million, respectively, related to the Company's
divestiture activities. In the nine months ended September 30, 2021, the Company
paid $13.9 million for the acquisition of Flavor Solutions, Inc., while in the
nine months ended September 30, 2020, the Company received $4.6 million related
to the redemption of miscellaneous investments. Capital expenditures were $37.6
million and $34.0 million during the nine months ended September 30, 2021 and
2020, respectively.

Cash Flows from Financing Activities
Net cash used in financing activities was $93.5 million and $117.8 million for
the nine months ended September 30, 2021 and 2020, respectively. Net debt
decreased by $11.9 million and $67.9 million for the nine months ended September
30, 2021 and 2020, respectively. For purposes of the cash flow statement, net
changes in debt exclude the impact of foreign exchange rates. The Company
repurchased shares of its common stock for $31.5 million during the nine months
ended September 30, 2021. There were no repurchases of shares of the Company's
common stock in the comparable prior year's period. Dividends of $49.5 million,
or $1.17 per share, were paid during both the nine months ended September 30,
2021 and 2020.

                                       25

--------------------------------------------------------------------------------

Index

CRITICAL ACCOUNTING POLICIES

There have been no material changes in the Company's critical accounting policies during the quarter ended September 30, 2021. For additional information about critical accounting policies, refer to "Critical Accounting Policies" under Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

© Edgar Online, source Glimpses