Croda: Yorkshire chemicals firm sees jump in sales despite 'challenging environment'

Croda said, however, that it expects the adverse impact of currency translation on its 2024 profit before tax to be approximately £14m.

The group said it expects adjusted profit before tax to fall between £260m and £280m for the full year 2024. The figure is unchanged from the firm’s previous announcement.

Croda said that it estimates the average annual impact of currency translation to be £1m per Dollar cent movement per annum and £1m per Euro cent movement per annum.

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."

The group’s sales also rose eight per cent at a constant currency basis. Its constant currency expectations are based on the group's average exchange rates through 2023 which were $1.243 and €1.149. The US Dollar and the Euro represent approximately 65 per cent of the Group's currency translation exposure.

In its Consumer Care department, Croda reported a five per cent uplift in sales on the year prior, with constant currency sales growing seven per cent.

The group said this was driven by higher sales volumes as demand stabilised and ongoing customer regains were realised.

The firm saw lower demand from multinational beauty customers compared to the previous quarter.

In its Life Sciences arm, Croda reported a three per cent rise in sales, or a six per cent rise on a constant currency basis.

It said more stable customer inventories and demand had driven increased sales volumes in the department.

The company also saw a 14 per cent increase in sales in its Industrial Specialities department, with constant currency sales growth of 16 per cent.

Croda also announced that it had refinanced its revolving credit facility with a new five-year £630 facility.

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