Croda International PLC

Latest Results (24.12.2024):

Consumer Care Sales Growth

In the third quarter of 2023, Croda International PLC reported that Consumer Care sales were up by 5% compared to the previous year. When adjusted for constant currency, sales grew by 7%, driven by higher sales volumes as demand stabilized and customer regains were realized. The company noted ongoing momentum in Fragrances & Flavours and Home Care, with good demand from local Beauty customers, although there was lower demand from multinational Beauty customers compared to the previous quarter.

Life Sciences Sales Increase

For the third quarter of 2023, Croda International PLC's Life Sciences segment saw reported sales increase by 3% year-over-year, with a 6% growth in constant currency terms. The growth was attributed to higher sales in both Crop Protection and Seed Enhancement, supported by more stable customer inventories and demand. The Pharma sector, particularly the lipids business, continued to grow as customer pipelines for next-generation drugs expanded, although sales for consumer health applications have not yet recovered.

Industrial Specialties Performance

During the third quarter of 2023, Croda International PLC's Industrial Specialties segment experienced a 14% increase in reported sales compared to the previous year, with a 16% growth in constant currency. This growth was primarily driven by higher sales volumes. The company highlighted the ongoing momentum in this segment as a positive contributor to their overall sales performance.

Currency Translation Impact

Croda International PLC's financial results for the third quarter of 2023 were influenced by currency translation, with the US Dollar and Euro representing approximately 65% of the Group’s currency exposure. The company estimated that the average annual currency translation impact on adjusted operating profit is £1 million per Dollar cent movement per annum and £1 million per Euro cent movement per annum. Constant currency expectations were based on the Group’s average exchange rates through 2023.

Outlook and Strategy

Steve Foots, Chief Executive Officer of Croda International PLC, commented on the third quarter of 2023 sales performance, noting the ongoing momentum in the Fragrances and Flavours business within Consumer Care and improved sales in agriculture businesses in Life Sciences. Despite benefiting from more stable customer inventories and demand in key markets, the overall trading environment remains challenging. The company continues to focus on strengthening the Group through strategic delivery, tight cost control, and capital discipline.