Croda International PLC (LSE:CRDA) reported a further fall in revenue and profit following what it called "another transitional year", but sees growth returning in 2025.
For the past calendar year, sales totalled £1.63 billion, a decline of 0.8% that was broadly in-line with forecasts, as the FTSE 250 group's larger Consumer Care division increased the top line by 7% but Life Sciences sales fell 14%.
Underlying pre-tax profit fell 11.6% to £260 million, or £273 million if excluding currency swings, around the mid-point of guidance.
For 2025, both Consumer Care and Life Sciences are expected to grow sales, with operational efficiencies seen largely offseting inflation and investments.
Underlying profit is expected to be around £265-295 million, up 2.5% at the mid-point.
Chief executive Steve Foots said: "2024 was another transitional year, following two years of unprecedented demand in 2021 and 2022, with an industry-wide reset from 2023."
Within Consumer Care he hailed a "standout performance" in fragrances and flavours, with Life Sciences impacted by the absence of Covid-19 lipids and weak sales into consumer health markets, but better demand in crop protection that drove an improved performance in the second half year.
"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," he said.
Actions to make Croda more focused and more efficient over the past two years are "beginning to bear fruit", he said, with operating margins 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."
Shares in Croda, which recently fell to an eight-year low just above 3,025p, were volatile on Tuesday morning, rising 2% then falling 2% in early trade.