Croda International Downgrades Profit Expectations for 2023
Croda International, a specialty chemicals company based in London, has revised its profit expectations for 2023 following a weaker-than-expected third-quarter performance.
Adjusted Pretax Profit Projection
The company now anticipates the adjusted pretax profit for 2023 to be between £300 million and £320 million. This is a downgrade from the previous forecasted range of £370 million to £400 million.
Factors Impacting Performance
Croda attributed the underperformance in the third quarter to customers reducing their ingredient inventories in the consumer care, crop, and industrial end markets. This reduction was due to a combination of destocking and a weaker demand environment.
As a result, sales volumes have been depressed, leading to overall weaker performance compared to initial expectations.
Outlook for Beauty-Care Business
While the sales volumes of the beauty-care business were lower than expected in July and August, the company is optimistic about a recovery in the remaining months of the year. However, the recovery will be from a lower base.
Challenges in Industrial Specialties Segment
The industrial specialties segment of Croda continues to be impacted by weak global industrial demand. It is not expected to be profitable in the second half of this year.
Weakness in Life Sciences Sales
Sales in the life sciences sector have also experienced a decline. However, improvements are anticipated in the first half of next year.
Financial Results Announcement
Croda International is set to announce its 2023 financial results on Feb. 27.
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