Specialty chemicals company Croda has announced a decrease in its first-half pretax profit, attributed to customers reducing inventory levels. The company reported a pro forma sales drop of 6%. Despite the challenges, Croda has implemented cost measures to protect profitability and maintains its guidance for the year.
- Pretax profit for the six months ended June 30, 2023, was £128.7 million compared to £636.5 million in the same period last year.
- Adjusted pretax profit, which excludes exceptional and other one-off items, amounted to £174.3 million compared to £288.8 million in the previous year.
- Revenue declined from £1.13 billion to £880.9 million for the year-prior period. A consensus estimate from three analysts projected revenue at £907.3 million.
- The FTSE 100-listed group declared an interim dividend of 47.0 pence per share, maintaining the same level as the previous year. This decision reflects confidence in Croda’s future performance.
- Despite the challenging market conditions, the company remains optimistic. It expects adjusted pretax profit for 2023 to range between £370 million and £400 million.
- Croda plans to leverage its strong balance sheet to sustain ongoing investment in its repositioned portfolio, focusing on fast-growing niches with the aim of creating significant future value.