Good morning, and welcome to the Sensient T echnologies Corporation 2022 Second Quarter Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing your star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Steve Rolfs. Please go ahead, sir. Good morning. Welcome to Sensient's Second Quarter Earnings Call. I'm Steve Rolfs, Senior Vice President and Chief Financial Officer of Sensient Technologies Corporation. I am joined today by Paul Manning, Sensient's Chairman, President, and Chief Executive Officer. Earlier today, we released our 2022 second quarter financial results. A copy of the release and our investor presentation is available on our website at sensient.com. During our call today, we will be explaining the differences between our GAAP results and our adjusted results. We did not make any adjustments to our GAAP results for 2022. The adjusted results for 2021 removed the impact of the divestiture-related costs, the results of the operations divested, and the impact of the cost and income related to our operational improvement plan. 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. This also reflects how management reviews and evaluates the company's operations and performance. These non-GAAP financial results should not be considered in isolation from or as a substitute for financial information calculated in accordance with GAAP. A reconciliation of the 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. I would 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, our first quarter 10-Q, and our forthcoming 10-Q, for a description of additional factors that could potentially impact our financial results. Please bear these factors in mind when you analyze our comments today. Now we'll hear from Paul Manning. Thanks, Steve. Good morning and good afternoon. We had a great second quarter with each group reporting outstanding revenue and operating profit growth. This growth was in line with our expectations and occurred in almost all of our businesses across the company. We achieved our eighth straight quarter of mid to high single-digit revenue growth, and our consolidated adjusted local currency EBITDA growth this quarter exceeded 25%. Our performance this year follows a great year we had in 2021. Our top line growth is a direct result of our focus on sales execution, technical support, and product delivery. We continue to deliver a high level of sales wins while working to expand our already strong sales pipeline. We have proven to be a reliable supplier to our customers. With our exceptional technical support and robust product portfolio, we are well positioned for continued growth in the future. As we've discussed on prior calls, we're still experiencing increases in our input costs, including raw materials, transportation, energy, and labor, along with logistical delays. We're addressing the input costs with pricing actions, and we are addressing the logistical delays by maintaining a higher inventory position. We expect these higher costs and supply chain challenges to continue throughout 2022 and into 2023. There's a lot of uncertainty in the global economy as well as the concern about a potential recession. Despite this uncertainty, our sales order patterns remain strong, our customer sample activity is healthy, and we remain actively engaged with our customers. I remain optimistic about the balance of the year and the future of our company. Turning to our group results. The Color Group had a spectacular second quarter. The group delivered 22% adjusted local currency revenue growth and 24% adjusted local currency operating profit growth. Operating profit margin in the second quarter was 20%. Food and pharmaceutical colors and personal care both delivered double-digit local currency revenue and double-digit local currency operating income growth in the quarter. A portion of the group's revenue increase was driven by a high single-digit price increase. The food and pharma businesses have performed very well in the first half of the year. Business has a high level of new sales wins as a result of its innovative natural color portfolio and its focus on customer service. I believe the business is well positioned for future growth. Personal care business delivered double-digit local currency revenue and double-digit local currency operating profit growth in the second quarter. The business continues to rebound well from the impact of COVID-19. We are focused on building safety stock to support this rebound and the projected growth in this market. The business is focused on continued product line diversification into skin and body care, as well as other categories, is a key part of the business's current growth and also provides the foundation for growth in years to come. With an outstanding first half, the Color Group is now on track for the year to deliver double-digit revenue growth and an operating profit margin at or above 20%. Our previous guidance called for mid to high single-digit revenue growth in 2022. Over the long term, I expect the Color Group to deliver mid single-digit revenue growth and an operating profit margin at or above 20%. The Flavors & Extracts Group also had another strong quarter, delivering 9% adjusted local currency revenue growth and 24% adjusted local currency operating profit growth. This is the ninth consecutive quarter of mid-single-digit or better adjusted local currency revenue growth. Our operating profit margin this quarter was 15.9%, up 210 basis points versus the prior year. The higher adjusted local currency revenue growth in the group was primarily a result of volume growth and pricing in flavors, extracts and flavor ingredients, as well as favorable pricing in natural ingredients. Flavors, extracts and flavor ingredients business had another nice quarter, delivering double-digit revenue growth. As mentioned during our last few calls, the natural ingredients business has faced a volume headwind in the first half of 2022 as we await the new onion crop. The 2022 onion harvest is currently underway and we do expect improvement in the supply of onion as the year progresses. Overall, the group's pricing was up 10% for the quarter. The Flavors & Extracts Group had a great first half of the year. I now expect the group to deliver high single-digit revenue growth and operating profit margin improvement of approximately 100 basis points this year. Previously, we had estimated a mid to high single-digit revenue growth and a 50 to 100 basis point operating profit margin improvement. The growth in the group's operating profit margin is a result of more sales wins, a focus on more value-added product solutions, a lower overall cost structure as a result of the group's past restructuring and divestiture activities, and recent pricing actions. The group is well positioned for the future. Over the long term, I still expect the Flavors & Extracts Group to deliver mid single-digit revenue growth and operating profit margin improvement of 50-100 basis points annually for the next couple of years. In Asia Pacific, on an adjusted local currency basis, the group achieved its fifth consecutive quarter of high to double-digit revenue growth and its sixth consecutive quarter of double-digit operating profit growth. The Asia Pacific Group delivered 23% adjusted local currency revenue growth and 43% adjusted local currency operating profit growth. The operating profit margin in the second quarter rose 280 points to 20.7%. The group grew revenue by double digits in almost all regions. A portion of the group's revenue increase was driven by a mid single-digit price increase. The group continues to achieve a high level of new sales wins and is benefiting from the capital and technical investments we have made in the region. The group is now on track to deliver double-digit revenue growth for the year. Our previous guidance called for a mid to high single-digit revenue growth in 2022. Over the long term, I continue to expect the group to deliver mid single-digit revenue growth. Our growth is fueled by our high level of new sales wins across the company. These new wins span a range of product categories and offerings, including natural color conversions, ice cream flavor solutions, specialty natural ingredient blends, and beverage flavors. Our focus on product technologies and technical support is a critical component of these new sales wins. Our ability to help our customers develop great new products is the foundation for our growth now and into the future. We've had a great 2022 so far. We are well on track to meet and potentially exceed our full year guidance. I remain optimistic about the year and the future of our business. Steve will now provide you with additional details on the second quarter results. Thank you, Paul. Sensient's second quarter GAAP diluted earnings per share was $0.92. As I mentioned in our opening remarks, we do not have any adjustments to our GAAP results for the second quarter of 2022. Last year's second quarter GAAP results included divestiture and operational improvement plan costs, which decreased last year's second quarter results by approximately $0.16 per share. In addition, our GAAP earnings per share in the second quarter of 2021 included approximately $2.2 million of revenue and $0.01 of costs related to the results of the divested operations. Our Adjusted EPS in the second quarter of 2021 was $0.79. Excluding these items in our 2021 results, our consolidated adjusted revenue in the second quarter of 2022 grew by 14.9% in local currency to $371.7 million. Our adjusted local currency EBITDA was up 26.7% for the quarter, and our adjusted local currency EPS was up 21.5% for the quarter. Foreign currency exchange rates decreased adjusted earnings per share by approximately $0.04 in the second quarter. We continue to make strategic investments in our inventory position, which is the main reason for our lower cash flow from operations in the quarter. We continue to invest in inventory to support the high demand we are experiencing and to ensure we have appropriate safety stock positions as supply chain and energy challenges continue. Capital expenditures were $19.7 million for the second quarter. We continue to expect our capital expenditures to be near $90 million this year. Our debt to Adjusted EBITDA is 2.0. Our balance sheet remains well positioned to support our capital expenditure spend, attractive M&A, and our long-standing dividend. Regarding our 2022 guidance, we are maintaining our reported GAAP EPS guidance to increase at a high teens growth rate compared to our 2021 reported GAAP EPS of $2.81. At this time, we do not anticipate any material divestiture related costs or operational improvement plan costs in 2022. On an adjusted basis, we are raising our revenue guidance to be up high single digits in local currency compared to our 2021 Adjusted revenue. Our previous revenue guidance called for mid to high single-digit growth in local currency. Our 2022 Adjusted EBITDA and EPS guidance both call for high single to double-digit growth in local currency. We also expect our interest expense to be higher in the second half of 2022 versus 2021, and our tax rate to be approximately 24% for the full year. As Paul Manning mentioned earlier, we do believe we are operating at or above the top end of this guidance. Based on current exchange rates, we now expect currency to be a headwind of approximately $0.17 for the last six months of the year and $0.23 for the full year of 2022. Previously, we had expected a headwind of approximately $0.06 for the last six months of the year and $0.12 for the full year of 2022. This change in exchange rates impacts our reported GAAP results. However, the local currency adjusted guidance I just provided is not impacted by this currency headwind. Thank you for participating on the call today. We will now open the call for questions. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question will be from Ghansham Panjabi from Robert W. Baird. Please go ahead. Yeah, thank you. Good morning, everyone. Morning, Ghansham. Good morning. Just in terms of the color segment, you know, which has obviously seen a very strong rebound in volumes, I think you were up well into the double digits in the second quarter. You know, comparisons are gonna get a little bit more difficult 3Q onwards. Can you give us a sense as to what you're embedding for volumes in that segment during the back half of the year? Just more broadly, Paul, maybe for not just color, but also flavors and extracts. You know, the global consumer is starting to exhibit some level of elasticity, just given the extent of inflation and so on. You know, how has that sort of manifested as it relates to your conversations with your customers as it relates to new product development? For the first part of your question, we expect volume to be up in the second half in the Color Group. I think the success we've had certainly the first half of this year and last year is very broad-based. Natural colors, synthetic colors, personal care. Each of our businesses has done quite well on a lot of different dimensions. We feel very confident that we can continue to grow that volume. It's noteworthy that cosmetics, the makeup segment, which I've talked about for the last couple of years since COVID, that is just now kind of getting back to the level that we were going into COVID. That gives me confidence that the volume can continue to grow. Our ongoing success in natural colors and our wins that we're generating there continues to give me confidence that we can grow volume. Of course, you know, you can apply much of this logic to the other groups as well. As far as the global consumer is concerned, you're right. There's certainly been indisputably a downturn in new product launches for 2022. As we measured it during 2020, 2021, new product launches overall were essentially flat to 2019. 2022, again, as we measure this, has really been the first series of reductions in new product launches in the markets that we're serving. That's broad-based across a number of different categories. I think that that is definitely something that we watch very carefully. I would tell you that our pipeline is very, very strong. Our commercial staffing is very, very good, and our pricing has been very, very effective and successful up until now. Yeah, I've got a great deal of confidence that we're gonna continue this trend. You know, as I look over here at our daily sales for Q3. Which I have right in front of me, and they continued to be quite strong. Not only is it from the pricing that we've taken, but it's also above and beyond that, the volume growth that we're also generating. Gotcha. No, that's very helpful. Then in Flavors & Extracts, you know, the issues with natural ingredients specific to onions. Does that mean revert at some point as availability improves? Or is that, you know, the business that you lost during 2Q and maybe the quarter prior, is that just lost business or do you see that sort of mean reverting higher? Then related to that, as it relates to cost inflation, can you just update us as to how you're tracking it? How you tracked in 2Q and also your embedded expectations for the back half of the year. Okay. Yeah, in SNI, we had kind of previewed for a few quarters that the first, certainly the first half of this year, there was going to be a little bit of a volume constraint there. We sold more than we thought we were gonna sell in 2021, sort of a catastrophic success, I suppose you could call that. Then as we got into 2022, that obviously continued that successful series of wins with customers. The harvest is underway. I think things are looking good. We certainly expect that situation in SNI as we previewed to improve in the back half of the year. I wouldn't necessarily say we lost business in the first half of the year. I think that I can look at our attrition rates throughout each of our businesses and in SNI for the first half of this year, and I would tell you that our attrition rates are quite low, in fact. I feel very, very good as that volume comes to be in a sellable state for us about the crop volume that we're gonna have a very nice SNI year as we get into the end of this year, and certainly as we get into 2023. There's still a very, very large market out there for us to generate new wins from in the U.S., in Asia Pacific, and a lot of different regions. I see a lot of good long-term prospects in that business. I think we have a very good approach to managing that crop moving forward with respect to ensuring that we get what we expect to get, regardless of what yields may generate in any one field. With respect to the inflation comment, if I understood you correctly, Ghansham, I think you're really getting at, are we still seeing it and do we intend to continue with pricing? I think the short answer is we continue to see inflation, although the positive there is I have seen it moderate in certain categories. I have seen it run unabated in others. I think net-net, though, I'm optimistic that we may be approaching a peak in terms of the inbound inflation, at least on, say, raw materials. There's a lot of exceptions to that comment I just made. I think we're optimistic we can continue to manage that with pricing. We have been very, very close with our customers on this and a lot of communication on the topic. Pricing is not an easy thing to execute. It's not like you say, "Well, just go take pricing, guys." You can't just go take pricing, guys, because if you do this incorrectly and haphazardly, you're gonna lose a lot of business and you're gonna irritate a lot of customers. There is a process that we use that I think we're gonna continue to use as needed moving forward. I feel very confident that it's gonna continue to manifest itself in an improved economic situation year- over- year. Okay. Very thorough. Thank you so much. Okay. Thanks, Ghansham. The next question will be from Heidi Vesterinen from Exane BNP Paribas. Please go ahead. Good morning. Hello, Heidi. First question, I'm wondering why you didn't upgrade your constant currency profit guidance after such a strong first half. You talked a lot, you know, a bit about Q3 already, and you sound very optimistic. Why the caution? Is there something that worries you? That's the first question. Thanks. I think our profit guidance is high single-digit to double-digit. Certainly there's a broad range that could be described as double-digit. I guess that could go all the way up to about 90% growth. The lower end continues to be high single-digits. I feel very confident about that. Certainly there is a very expandable dimension to double-digit. I think when you get into the double-digits, it gets a little bit difficult to describe. Whereas you have low single-digit, mid-single-digit, and high single-digit for single-digit growth rates. When you get into double-digit, there's no such analogy that I'm aware of. I guess the short answer is we feel really good about profit. I feel really good about our probability of achieving within the high single-digit to potentially very high double-digit growth. I think maybe it's harder to show levels within double-digit that would communicate our confidence. I would tell you that we feel very, very good about that. It sounds like you're more optimistic than last quarter, actually. It's just, it's not obvious in the double-digit because it's the same term. But yeah, as you say, it's a broad range. Okay. That's helpful. And then maybe to follow up on the earlier question on pricing and inflation. I think last time you had said the assumption is mid-single-digit. So what's your current thinking on those two points? Is it still mid-single-digit? I think it's as you go by, as I'm looking here by region, and again, we do this on cost of goods sold. We talk about pricing on the basis of revenue, we talk about costs on the basis of cost of goods sold. For example, I mentioned that Colors had sort of a mid to high single-digit price increase, and that was on high single to double-digit input costs. That would be a Q2. Year- to- date, it's a little bit more like high single. I think it's probably gone up a touch since the last quarter, where we were more kind of mid-single digit across the board. Now it's more like, I'd say on average, high single-digit increase in input costs, which would necessitate where we are on pricing kind of a high single-digit price increase to ensure we are working to maintain, if not even improve our gross margin in each one of the groups. I think you saw that play out. Each one of the groups operating profit margins were up by very impressive levels. I would think that, you know, as we go into Q3, I wouldn't anticipate Flavors is gonna be up 210 basis points again. I think though that Color can be in that 20 and Asia Pacific can be in that 20-plus category. Flavors continues to make a very nice improvement in that OP margin. We certainly feel really good about their chances of achieving that improvement this year as they have in each of the last couple years. Yeah, I think in short, Heidi, it's probably the input costs have gotten a little bit greater. I think this is very much, I'm hoping, the sort of peak of where we could expect these input costs to go. Thank you. Maybe a final one before I pass on to the next person. In Colors, I think the volumes were up double digits. Can you explain again how you achieved that if the market is not growing at double-digit rates, right? Was there like a big conversion project or anything specific that we should be aware of? Well, you're right. The market is actually down in the vast majority of categories nowadays. Whereas categories may be up on a sales dollars, the majority that we track are down on a unit basis or a volume basis. Yeah, even in that negative environment, Colors executed a double-digit volume increase. Well, they do really well. They're really focused commercially. They're very focused on their customers and their pipeline. They have a very disciplined approach to selling. We still think it's important to go to customers. We're very focused on customers, customer service. Yeah, there have been some meaningful conversions of synthetic colors. There've also been a lot of meaningful wins that I think we've been able to capitalize around the world. Yeah, I think their execution has been absolutely outstanding. Thank you. I'll get back in line. Okay. Thanks, Heidi. The next question is from Mitra Ramgopal with Sidoti. Please go ahead. Yes. Hi, good morning, and thanks for taking the questions. Hi, Mitra. Hi. Just wanted to follow up for us on pricing. Just curious, obviously you've had a great success implementing increases to offset higher input costs, but just curious if, say, you've had customers potentially walking away because they just agreed to pricing concessions. Yeah. I think overall we've been very successful. The definition of success is that you can implement what you need to implement, and the customer can understand why that increase was necessary, and your customer can still be successful in his product line. I think fundamentally, the economic insight when you look at the food ingredients business, companies like Sensient, is that our products are very impactful to the customer's finished formulation and his finished product, but they're not the leading cost drivers of his finished product. Said more plainly, colors don't necessarily cost a lot compared to other ingredients. Flavors don't necessarily cost a lot compared to other ingredients. I think that gives us some level and some degree of flexibility. Again, you have to find a situation that's gonna work for your customer because you said it perfectly. Otherwise, you're gonna start losing business. If you go there with an arrogant in your face, "You gotta take it. This is what's happening," you don't provide any information, you may not lose it today, but you're gonna lose it at some point. You're certainly gonna lose it longer term if you don't deescalate some of that pricing in the face of some deflationary environments for some of the commodities that in some cases actually we're already seeing. Pricing is a very dynamic situation, and you've gotta be very, very close to your customers on this. This isn't something you just go send a letter and, "Hey, everything should work out." It takes a lot of time. It takes a lot of effort. I think we've done that very, very successfully in each of our groups 'cause we've taken that type of approach. Yeah, no, that's very helpful. Thanks. On the Color segment, you talked about diversifying into some other categories, skin care, body care, etc. Just curious, in terms of how you plan on achieving that. Is it gonna be products developed organically or M&A be a part of that too? Well, I suppose the answer is it could be both. For right now, for the here and now, what it's been is largely an organic effort stemming from the fact that there's a lot of customers out there that we can continue to be successful with. There are a lot of new customers out there for us to grow with. We have a continued very good new product introduction program in the group, where we are adding interesting performance-driven, regulatory friendly types of products to arm our customers so that they can be successful in the market. I think largely the effort in personal care is going to continue to be organic for the time being. As the M&A market changes, we'll see, right? These markets move in cycles. This has been a long cycle. Perhaps there's a cycle where certain things, not only within personal care, but in food ingredients in general, can be had for a reasonable multiple. Inorganic maybe become a bigger part of that picture. I think for the short term in personal care, I would anticipate it's largely gonna be an organic effort. Okay. No, that's great. Thanks. Just more broadly on M&A, it's been a year or so since you acquired Flavor Solutions. Just curious in terms of the M&A pipeline, what are you seeing as it relates to maybe valuations and opportunities given the volatile environment we're seeing? Well, you know, I guess there's sort of two halves of that coin, Mitra. On one half, if you can find the right type of company, establish a good relationship with that company and really find a win-win where they can be rewarded for their great business that they build, and you can be rewarded with a reasonably and logically priced asset that you can then grow and invest in further, well, that's a great one. I think FSI was a very good example of that for us last year. We have several of these in the pipeline. Now, there's another part of that coin too, which in my opinion is a little bit of a different picture. These are businesses where EBITDA is being carved out of thin air and added, mysteriously to bottom lines, and then applying a rather generous multiple, creating a situation where, in my opinion, it's very easy to overpay for a business nowadays. I think with interest rates rising and perhaps a return to fundamentals in our future, I could think there maybe there's a little bit less of that in our future. I still think there's some of that out there. We are very much focused. We're kind of fairly straightforward. We stick to our knitting. We stick to the fundamentals and revenue and profit and sort of make valuations accordingly. Things that are technically driven that can fit into our portfolio, that we can invest in, that are good cultural fits. That's a high threshold. We wanna get it right. I think our investors, our shareholders would like us to do that. I think my employees would like me to do that too, that we can actually acquire something that we can integrate, grow together and have a seamless transition. It's a tough set of criteria that I've got there, but I think that's the right criteria for the long term. You know, that's great. Thanks again for taking the questions. Okay. Thanks, Mitra. Once again, if you have a question, please press star then one. The next question is from David Green from Boldhaven. Please go ahead. Hi, Steve. Hi, Paul. Hello, David. Hi, David. Yeah, a couple from me. Much appreciated. On the FNE side, you had talked about the headwinds in terms of onion supply. From memory, the headwind in Q1 was about 500 basis points. I was just wondering for Q2 specifically, what that headwind now looks like. Is it sort of slightly diminished? Any indication you can give us or color on what kind of headwind that might have been in the second quarter? Yes, I would say Flavors & Extracts. You kind of look at what we call the traditional flavors, the flavor ingredients and SNI. Those are sort of the three pieces of the pie that we discuss in the Flavors & Extracts Group. The Flavors & Extracts and flavor ingredients had very nice revenue, had volume growth. I think they did quite well. The SNI piece, as we mentioned, was overall the little bit of the volume headwind there for the group. Again, stemming from the timing of the crop and the factors that I mentioned earlier. I think that picture improves here in the second half of 2022. Having more product, I think we would then see overall for the flavors group an improving situation on the volume front and a continued very strong and robust top line growth. Ultimately it's kind of a first half, second half improving to then ride very nicely into 2023. We would be in a much more favorable crop position in the first half of 2023, obviously, versus the first half of 2022. In theory, you'd be thinking about that as a potential nice tailwind for them next year. Any color on that headwind that might have been in the second quarter from that SNI specifically? No, nothing beyond what I said. I mean, it's really a headwind generated from the catastrophic success we enjoyed last year with it and just kinda waiting for God to run his course on growing onion, I guess. Great, thank you. I guess I'm just sort of trying to understand the moving parts for the second half. In terms of what you've delivered in the first half in terms of constant currency growth, so your 11.6%, and then your guidance is obviously for high single digit top line for the full year. What's that? That obviously implies a fairly significant deceleration in the second half. Any reason for that or it's just uncertain conditions and the need to be a little bit conservative? Well, I think you know I kinda give you some early reads on Q3. As I look here again at July, August, September, things look pretty good across each of the groups. There's no waning in my confidence for Q3. I guess in about another week or two, we'll get an even better read on Q4. No, I don't think there's a tremendous diminishment in anything in the second half. I think our pricing will continue. Certainly we'll lap some of the pricing, the modest amount that we put in place last year, second half. I think with the volume situation improving in the flavor group, as I described, the continued very nice volume growth in colors, the very nice volume growth in Asia, along again with their pricing improvements. Yeah, I think it's gonna be a really great second half. Again, high single digits and double digits. There's a very big universe of double-digit numbers out there. So, you know, I don't want folks to get hung up on why didn't we raise profit guidance. How do I raise double digits? Like really big double digits versus medium? We don't really have that division. Let's just say we feel really good about the back half. I feel great about the back half. I think you're gonna be very, very happy. Thank you. Just a couple more very quick questions if I can. Sure. Thanks a lot. Color obviously had a very strong quarter again, and you specifically called out pharmaceuticals and cosmetics as drivers there. Any more sort of color on those specifically in terms of, you know, is that new wins or any other specifics? Yeah. Let me just correct that a little bit. The Color Group showed broad-based growth. We're talking food colors and whether you're talking about natural colors, synthetic colors, coloring foods, we had broad growth. Personal care, we had broad-based growth across products, geographies, et cetera. Of course, pharma, which we group with the food colors, well, that tells that story. Yeah, very, very good growth across the board from new wins, growth in existing customers, new customers, a little bit of that coming from pricing. Yeah, there's great momentum in colors, that's for sure. Again, I think that we're set up very, very nicely for the back half. And into 2023, right? I think there's a lot of good momentum going into 2023 for the company across each of our groups. I mean, you mentioned that was very interesting that the cosmetics is now back to pre-COVID levels. I was just interested to find out if there are any other parts of the business that are still below. No, it was and even within cosmetics, it was just the makeup segment, which all right, is about half the revenue of that personal care piece. But that was really the one big kinda COVID lasting legacy part of our business. I think the other businesses, as you've seen over the last few years, have weathered COVID exceedingly favorably, flavors, colors, and then the balance of the personal care business. No, I think that's the only one. Perfect. Many thanks. Okay. Thanks, David. Ladies and gentlemen, there are no further questions at this time. I will turn the conference back over to the company for any closing remarks. Okay, thank you very much, everyone. I made some comments towards the end of the script, regarding some guidance, and I would ask as people, you know, update your models for the second half of the year, please keep those in mind. I'll just repeat those quickly. You know, for the full year, we expect our tax rate to be at about 24%. I commented on interest expense. In the first half of the year, interest expense was down versus prior year, but with the rising rates in the second half of the year, we do expect interest expense will be above the prior year level by about $3 million. We expect to finish the year on interest expense at about $15 million. Then the last comment I made was, of course, on foreign exchange. Most people are familiar with the strengthening of the dollar. We had previously expected a $0.12 headwind. We now expect a $0.23 headwind. That incremental $0.11 headwind really all falls in the second half of the year. I would just ask that people keep those three things in mind. I thank everyone for your time this morning. That concludes our call. Thank you. The conference has now concluded. Thank you for attending. You may now disconnect your lines.