Croda Consumer Care unit grows healthily; guidance unchanged

(Alliance News) - Croda International PLC on Thursday left its annual guidance unchanged, as it reported third-quarter sales growth amid a "challenging market environment".

The Yorkshire-based speciality chemicals maker said sales in the three months to September 30 improved 4.4% on-year to GBP424.7 million from GBP406.6 million.

At constant currency, they improved 6.5%.

Notably, Consumer Care sales rose 5.9% on-year to GBP241.6 million from GBP228.1 million a year ago. They were up 8.1% at constant currency.

"As anticipated, customer demand in Q3 was similar to Q2, with sequential sales ahead in a more challenging market environment," Croda said. In the first half, sales rose 4.9% on a reported basis and 7.3% at constant currency.

Croda said US tariffs "contributed to volatility" in the third quarter.

"We expect the more challenging trading environment and low order book visibility to continue for the remainder of the year. In line with previous years, absolute sales in Q4 are likely to be seasonally lower than in the first three quarters as customers typically manage their working capital into the year end. Despite this, the combination of good year-to-date sales growth and delivery of anticipated cost savings means that our full year 2025 outlook is unchanged," it added.

Croda still expects GBP265 million to GBP295 million in adjusted pretax profit at constant currency in 2025. Adjusted pretax profit on a constant currency basis was GBP273.1 million in 2024.

Croda shares were 3.0% higher at 2,751.10 pence each on Thursday morning in London.

By Tom Budszus, Alliance News slot editor

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