Chemicals group Croda International PLC (LSE:CRDA) saw profits tumble in the year just ended as sales were hit by widespread destocking and a weak economic backdrop.
All three divisions posted lower revenues with the industrial specialities the worst hit by destocking, registering a 35% drop.
This arm of the business has continued to be weak going into 2024, said the FTSE 100 member, though consumer care has started to recover and non-Covid life sciences business should grow.
Total revenues in 2023 fell by 19% to £1.69 billion with pre-tax profit almost 70% lower at £236 million. On an adjusted basis profits were down 38%.
Steve Foots, chief executive, said the group is being cautious about the current year with recovery time across its various businesses “difficult to predict”.
Even so, Croda is guiding for sales growth of a mid to high single-digit percentage excluding Covid, though margins will be two to three percentage points lower than in 2023.
“We expect the group's performance to accelerate from 2025,” Foots added.
The dividend for the year rises by 0.9% to 109p.