REG - Croda International - Trading update

Croda InternationalAnnouncement

09/06/2023 07:00

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RNS Number : 2354C  Croda International PLC  09 June 2023

9 June 2023

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No 596/2014 (as it forms part of Retained EU
Law as defined in the European Union (Withdrawal) Act 2018).

 

Croda International Plc

 

Trading update

 

Croda International Plc ('Croda' or 'the Group') today provides an update on
trading for the period ending 31 May 2023.

 

In Consumer Care, whilst sales volumes are up compared to the final quarter of
2022, they remain down double-digit percentage compared with the same period
last year as a result of customer destocking continuing through the second
quarter. Price increases implemented in 2022 and favourable foreign exchange
rates so far in 2023 have helped to offset this impact, with revenues broadly
flat versus the first five months of 2022. However, principally due to the
lower sales volumes, operating profit margin has remained at a similar level
to the second half of 2022.

 

In Life Sciences, Crop Protection started the year well, but the business is
now experiencing rapid customer destocking, which was a factor originally
expected to materialise more gradually later in the year. Life Sciences'
operating profit margin is being negatively impacted by adverse mix in the
year to date including lower sales for Covid-19 applications in the Pharma
business. Shipments of lipid systems to our principal Covid vaccine customers
are expected to occur as planned in the second half of 2023.

 

As a result of these factors, the Group generated £143m profit before tax in
the first five months of the year, supported by minimal net finance costs.
With customer destocking in consumer and industrial end-markets now expected
to continue into the second half year and momentum moderating in Crop
Protection, full year 2023 Group profit before tax is now expected to be
between £370m and £400m.

 

Croda will report half year results for the six months to 30 June on 25 July
2023.

 

The person responsible for making this announcement is Louisa Burdett, Chief
Financial Officer.

 

Further information:

 

There will be a conference call for covering analysts at 0800 BST this morning
with dial-in details below. Participants are encouraged to dial in early as
they will need to register with the moderator.

·      Operator Assisted Dial-In:

·      United Kingdom (Local): +44 20 3936 2999

·      United Kingdom (Toll-Free): +44 800 358 1035

·      Global Dial-In Numbers

·      Access Code: 360297

 

For enquiries contact:

 

 Investors:  David Bishop, Croda          +44 7823 874428
 Press:      Charlie Armitstead, Teneo    +44 7703 330269

 

 

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