Croda International PLC (LSE:CRDA) shares rose 1.3% despite the chemicals group reporting slightly slower sales growth in the third quarter, as the trading environment remained challenging.
US trade tariffs contributed to volatility in quarterly performance by region, hitting customer export sales in certain regions, particularly in pharma and industrial markets in Asia, as well as agriculture markets in Latin America.
Revenue of £424.7 million in the quarter was up 4.4% compared to a year earlier, or up 6.5% at constant currency rates, compared to 7% underlying gorwth in the first half of the year.
Growth in the quarter was led by strength in beauty active ingredients, fragrances and flavours, and a continued recovery in crop protection.
Sales volumes grew by low double digits, though product and business mix effects remained a drag on margins, and pricing was flat year-on-year.
Croda said it remains on track with its transformation plan and expects to realise £25 million in cost savings this year, with a £100 million target set by the end of 2027 from measures include optimising capacity, simplifying operations, and targeting innovation-led growth.
Full-year guidance was reiterated for adjusted profit before tax of £265 million to £295 million, with management saying they expect "the more challenging trading environment and low order book visibility to continue for the remainder of the year".
"In line with previous years, absolute sales in Q4 are likely to be seasonally lower than in the first three quarters as customers typically manage their working capital into the year end.
"Despite this, the combination of good year-to-date sales growth and delivery of anticipated cost savings means that our full year 2025 outlook is unchanged."