- Sales softened 1% to £1.62 billion
- Pre-tax profit fell 12.1% to £207.8 million
- Shares down 35% over past year
Shares in Croda International (CRDA) initially fell in early morning trading before recovering as the chemicals maker reported a 12.1% fall in pre-tax profit to £207.8 million for the year ended 31 December 2024.
Group sales were ‘impacted by the absence of Covid-19 lipids and weak sales into consumer health markets’, said CEO Steve Foots.
DIVIDEND INCREASE
It was not all ‘doom and gloom’ however, as the company’s Consumer Care, Fragrance and Flavours, Crop Protection and New and Protected Products segments experienced growth.
And despite lower earnings, shareholders were greeted by good news with a 1% dividend increase to 110p per share compared to 109p in 2023.
Croda also reported FCF (free cash flow) up 9% to £181.1 million as well as a welcome reduction in net debt to £532.3 million compared to £537.6 million as of 31 December 2023.
The company said it is targeting £25 million of permanent cost saving benefits in 2025 as part of an initial two-year £40 million programme.
WHAT DID THE CEO SAY?
Steve Foots said: ‘Our multi-year programme of actions to make Croda more focused and more efficient is beginning to bear fruit with our adjusted operating margin improving half-on-half and strong free cash flow generation.
‘We are accelerating our efforts with an enhanced focus on costs and efficiency which, combined with increased innovation and the growth potential of recent investments, underpin our confidence in delivering earnings growth and improving returns in the future.’
Overall, for 2025, the chemicals maker expects adjusted pre-tax profit to be between £265 million and £295 million on a constant currency basis, falling short of the £309 million consensus estimate.
