Ongoing tough trading environment for chemicals business
Chemicals giant, Croda International, has reported group sales of £407m, up 5% compared to the prior year, in an update on its sales performance for the three months ended 30 September 2024.
The East Yorkshire-based business adds that its FY24 outlook remains unchanged – it expects an adjusted profit before tax range of £260m to £280m at constant currency.
Croda also says that it has refinanced its revolving credit facility with a new five-year £630m facility.
Steve Foots, chief executive officer, said: “Our third quarter sales performance reflects ongoing momentum in our Fragrances and Flavours business within Consumer Care and improved sales in our agriculture businesses in Life Sciences.
“While we are benefiting from more stable customer inventories and demand in key markets and geographies, the overall trading environment remains challenging.
“We continue to focus on strengthening the group through delivering our strategy combined with tight cost control and capital discipline.”
The business notes that Sterling strengthened further in the third quarter. It estimates the adverse impact of currency translation on full year group adjusted profit before tax to be about £14m – assuming 30 September 2024 exchange rates for the remainder of the year.
Croda says it will report its financial results for the full year 2024 on 25 February 2025.
