- Croda International
- 11 November 2024 07:43:53
Source: Sharecast
The US dollar and the euro represent 65% of the group's currency translation exposure, with a one cent movement per annum in either currency translating to a £1m impact on adjusted operating profits, Croda said.
As such, a strengthening of sterling over the third quarter is now expected to have a £14m negative impact on full-year profits, assuming the same exchange rates as of 30 September. Back in July, the company guided to a £5m adverse impact from currency movements.
Nevertheless, adjusted pre-tax profit is still expected to be between £260m and £280m at constant currency, down from £308.8m in 2023.
In the third quarter, group sales rose by 5% to £407m, with results in line with expectations due to more stable volume demand in key markets.
Nevertheless, chief executive Steve Foots said the overtrading environment "remains challenging".
Sales in the consumer care division, which account for over half of group sales rose 5% to £228m, while industrial specialties sales jumped 14% to £50m. However, life sciences sales rose by just 3% to £129m, with Croda noting weakness in pharmaceutical sales for consumer health applications.