Croda misses forecasts with 2025 guidance as annual profits fall

(Sharecast News) - Specialty chemicals group Croda managed to meet its profit targets in 2024, but pointed to earnings slightly short of consensus estimates for 2025. The company reported an adjusted pre-tax profit of £273.1m at constant currency for the 12 months to 31 December, down 11.6% on the year before but in line with the £260m-280m guidance range.

The adjusted operating margin fell to 17.2% from 18.9%, with the prior year benefitting from high-margin sales of lipids for Covid-19 vaccine applications.

Annual sales were down 0.8% at constant FX at £1.63bn, with 7% growth in Consumer Care sales to £920m offset by a 14% plunge in Life Sciences to £504m as a result of the absence of Covid-19 lipids and weak sales into consumer health markets. The smaller Industrial Specialties division grew sales by 2% sales to £203.8m.

"Whilst sales growth was lower than we hoped in a subdued demand environment, proactive actions to rebase costs and drive efficiencies enabled us to deliver profits in line with our guidance," said chief executive Steve Foots.

Looking ahead, Croda pointed to an adjusted pre-tax profit of between £265m and £295m at constant currency this year, coming in short of the current consensus forecast of £309m.