Speciality chemicals firm Croda (LSE: CDRA) reported a significant 70% plunge in pre-tax profit to £236.3 million in 2023, citing weaker sales of £1.69 billion (down 19%) and a challenging economic climate.
CEO Steve Foots highlighted the impact of “prolonged destocking and a weaker macro environment” on their performance.
All segments except Pharmaceuticals (up 3%) and Seed Enhancement (up 9%) witnessed sales declines, with Consumer Care, Beauty Care, and Crop Protection experiencing dips of 1%, 11%, and 19% respectively.
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Croda now anticipates adjusted pre-tax profit in 2024 to range between £260 million and £300 million, potentially lower than 2023. However, the company expects mid to high single-digit sales growth in 2024, excluding Covid-19 lipid sales, driven by higher sales volumes.
Despite the profit decline, Croda maintained its commitment to shareholders by raising the dividend by 0.9% to 109p per share. However, investors remained cautious, with Croda shares dropping 2.6% during late Tuesday morning trading.
