Croda cuts full-year profit outlook

30th Jul 2024 08:27

(Sharecast News) - Chemicals company Croda cut its full-year profit outlook on Tuesday as it pointed to a weaker-than-expected performance in life sciences, with continued destocking in crop protection and consumer health.

The company now expects adjusted pre-tax profit of between £260m and £280m in full year 2024, down from previous guidance of £260m to £300m.

In the six months to 30 June, adjusted pre-tax profit fell 27% to £127.3m, while sales declined 7.4% to £815.9m.

Croda highlighted weaker-than-expected sales in the life sciences segment, impacted by lower crop protection demand.

"We are encouraged by first half performance in consumer care, key strategic pharma platforms and industrial specialties, with improving operating margins driven by higher sales volumes, price discipline and robust cost control," it said.

"However, with a weaker-than-anticipated performance in life sciences due to continued destocking in crop protection and consumer health, and no signs of an immediate recovery in crop Protection, we now expect group adjusted profit before tax to be between £260m and £280m in full year 2024 at constant currency."

At 0825 BST, the shares were down 5% at 3,899p.