Croda International Regulatory News (CRDA)

Press Release 

11 November 2024

Third quarter 2024 sales update

Performance in line with expectations and FY24 outlook unchanged

Croda International Plc ("Croda" or the "Group") today provides an update on its sales performance in the third quarter of 2024 (the three months ended 30 September 2024).

· Group sales of £407m, up 5% versus the prior year and up 8% at constant currency

· FY24 outlook unchanged: adjusted profit before tax (PBT) range of £260m-£280m at constant currency

· Adverse impact of currency translation on FY24 PBT expected to be approximately £14m 

· Refinanced Revolving Credit Facility with a new 5-year £630m facility

Group performance

Third quarter 2024 sales increased to £407m, up 5% on a reported basis on the prior year and up 8% in constant currency. Overall Group results were in line with expectations benefitting from more stable volume demand in key markets and continuing cost control actions.

As previously disclosed, for full year 2024 we still expect Group adjusted profit before tax to be between £260m and £280m at constant currency. Sterling strengthened further in the third quarter, and we estimate the adverse impact of currency translation on full year Group adjusted profit before tax to be approximately £14m assuming 30 September 2024 exchange rates for the remainder of the year.

Effective 25 October 2024, we successfully refinanced our bank Revolving Credit Facility with a new 5-year £630m multi-currency facility.

Consumer Care

Reported sales in Consumer Care were up 5% versus the prior year whilst constant currency sales grew by 7%, driven by higher sales volumes as demand stabilised and ongoing customer regains were realised. 

Consumer Care sales in the quarter were in line with our expectations. We saw ongoing momentum in Fragrances & Flavours and Home Care, as well as good demand from local customers in Beauty, but lower demand from multi-national Beauty customers compared to the previous quarter.

Life Sciences

Reported sales in Life Sciences were up 3% versus the prior year whilst constant currency sales grew by 6%.

Sales were higher in both Crop Protection and Seed Enhancement, with increased sales volumes benefitting from more stable customer inventories and demand.

In Pharma, the lipids business continues to grow as customer pipelines for next generation drugs continue to expand, however sales for consumer health applications are yet to see a recovery.

Industrial Specialties

Reported sales in Industrial Specialties grew by 14% versus the prior year whilst constant currency sales grew by 16% driven by higher sales volumes.

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. Whilst we are benefitting 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." 

Currency translation

Constant currency expectations are based on the Group's average exchange rates through 2023 which were US$1.243 and €1.149. The US Dollar and the Euro represent approximately 65% of the Group's currency translation exposure. We estimate that the average annual currency translation impact on adjusted operating profit is £1m per Dollar cent movement per annum and £1m per Euro cent movement per annum.

Croda will report financial results for full year 2024 on 25 February 2025. 

For enquiries contact

Investors: David Bishop, Croda +44 7823 874428 Reece De Gruchy, Croda +44 7826 548908

Press: Charlie Armitstead, FTI Consulting +44 7703 330269

2023 and 2024 quarterly sales performance

*Life Sciences and Group sales exclude £48m of lipid sales for CV19 vaccine applications in Q4 2023. They are excluded from this growth calculation to give a more informative comparator to the underlying business, as no CV19 lipid sales are expected in 2024.

Constant currency definition

Constant currency results reflect current year performance for existing business translated at the prior year's average exchange rates. For constant currency sales, local currency sales are translated into the most relevant functional currency of the destination country of sale (for example, sales in Latin America are primarily made in US Dollars, which is therefore used as the functional currency). Sales in functional currency are then translated into Sterling using the prior year's average rates for the corresponding period.