(Alliance News) - Croda International PLC on Monday cut full-year profit guidance after reporting that weaker customer demand and destocking has hurt sales.
The Yorkshire, England-based chemicals firm said adjusted pretax profit for 2023 is now forecasted to be between GBP300 million and GBP320 million, down from GBP370 million to GBP400 million. This would be down by as much as 40% from GBP496.1 million in 2022.
"Customers have continued to reduce their ingredient inventories in consumer care, crop and industrial end markets, due to a combination of destocking and a weaker demand environment," Croda explained.
This has resulted in "depressed" sales volumes and an overall weaker than originally anticipated performance in the third quarter of the year.
The company added that there are "no indications of a rebound" in the final quarter of its financial year.
Looking ahead, Croda said: "Several cost measures have been implemented since June this year to protect profitability. Actions include tighter budgetary control of fixed costs and optimising production through plant shutdowns and reduced shift patterns, at the same time as increasing sales activity to meet ongoing customer demand for innovation."
Shares in Croda were down 6.0% at 4,509.00 pence each in London on Monday morning. The stock is down 33% over the past 12 months.
By Sabrina Penty, Alliance News reporter
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Croda International (CRDA)