Croda issues profit warning as demand dips

Croda issues profit warning as demand dips

THE WHAT? Croda has warned that it expects profits and margins to fall over the course of the year as demand dwindles across its two of its core businesses: crop protection and industrial specialties. Shares dipped 2 percent in response to the news.

THE DETAILS According to a report published by Reuters, the ingredients suppler forecast a pre-tax profit of between £260 million and £300 million for FY2024, versus FY2023’s £308.8 million.

THE WHY? CEO Steve Foots told Reuters that Croda was ‘cautiously optimistic’ about a recovery in demand in its Consumer Care Unit but destocking was expected to continue in Crop Protection and Industrial Specialties. “If you look at our Consumer Care business, which is our largest business, you know, we’re effectively… well towards the end of destocking there. Most of our big customers are now back to normal there.”