Croda International Shares Jump Following Q3 Sales Growth

Croda International (LON: CRDA) shares jumped Monday after it announced its sales for the third quarter of 2024 increased by 5% compared to the same period last year.

The specialty chemicals company's positive performance, driven by stable demand in key markets and effective cost control measures, has led to a 5% increase in the company's share price.

The company's Consumer Care segment saw a 5% increase in sales, driven by higher volumes in Fragrances & Flavors and Home Care.

However, the Beauty segment experienced lower demand from multinational customers compared to the previous quarter.

The company said Life Sciences sales increased by 3%, with growth in both Crop Protection and Seed Enhancement. In addition, the Pharma segment continued to grow, but sales for consumer health applications remain sluggish and are “yet to see a recovery.”

Industrial Specialties was the strongest performer, with sales increasing by 14%. This growth was said to have been driven by higher sales volumes across the board.

Despite the positive sales performance, Croda expects currency translation to have a negative impact on full-year adjusted profit before tax of approximately £14 million.

To mitigate this, the FTSE 100 company said it has successfully refinanced its Revolving Credit Facility with a new 5-year £630 million facility.

Steve Foots, Chief Executive Officer of Croda, commented, “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.”

Croda will report its full-year financial results on February 25, 2025.