Croda International Plc recently shared updates on its sales performance for the third quarter of 2024, covering the three months ending on September 30, 2024. During this period, the company reported group sales of £407 million, showing a 5% increase compared to the previous year and an 8% growth at constant currency rates. This positive performance has led to the company maintaining its adjusted profit before tax (PBT) outlook for the fiscal year 2024, with a range of £260 million to £280 million at constant currency rates.
Despite the strong sales growth, Croda International anticipates an adverse impact of approximately £14 million on its full-year PBT due to currency translation effects. To address its financial needs, the company successfully refinanced its Revolving Credit Facility with a new 5-year £630 million multi-currency facility.
Breaking down the group’s performance by division, Consumer Care saw a 5% increase in reported sales compared to the previous year, with a 7% growth in constant currency sales. This growth was attributed to higher sales volumes driven by stabilized demand and customer regains. The Fragrances & Flavours and Home Care segments performed well, while there was lower demand from multinational Beauty customers.
In the Life Sciences division, reported sales increased by 3% year-on-year, with a 6% growth in constant currency sales. Sales in Crop Protection and Seed Enhancement showed improvement, benefiting from stable customer inventories and demand. The Pharma segment experienced growth in the lipids business but is still waiting for a recovery in sales for consumer health applications.
Industrial Specialties reported a 14% growth in sales compared to the previous year, with a 16% increase in constant currency sales, primarily driven by higher sales volumes.
Steve Foots, the CEO of Croda International, commented on the company’s third-quarter performance, highlighting the positive momentum in Fragrances and Flavours within the Consumer Care division and improved sales in the agriculture businesses of Life Sciences. Despite the challenges posed by the trading environment, the company remains focused on executing its strategy, controlling costs, and maintaining capital discipline.
Croda International’s outlook for the full year 2024 is based on average exchange rates from 2023, with the US Dollar and Euro representing a significant portion of the company’s currency exposure. The company estimates that a one cent movement in the Dollar or Euro could impact adjusted operating profit by £1 million annually.
Investors and stakeholders can look forward to Croda International’s financial results for the full year 2024, which are scheduled to be released on February 25, 2025. Keep an eye out for further updates on the company’s performance and financial health.