- Shares gain 9% at £29.78 in morning trading
- Group adjusted first-quarter pre-tax profit in line
- Good progress with five-point plan
Shares in Croda International (CRDA) gained more than 9% after the speciality chemicals firm reported a 9% rise in constant currency group sales to £442 million for the three months ending 31 March.
The company said it had made an encouraging start to the year and has kept its full year 2025 outlook unchanged despite a less predictable economic environment. As things stand Croda expects to deliver adjusted pre-tax profit in the range of £265 million to £295 million.
Sales growth was particularly strong in the EMEA (Europe Middle East Africa) region which delivered 13% constant currency growth year-on-year.
Its consumer care division was also a bright spot, gaining 8% driven by higher sales volumes and continued strong demand from local customers.
The company said it has made good progress with delivering its five key priorities as outlined in February this year which includes driving value from investments, realigning its cost base and increasing sales volumes.
TARIFF SURCHARGE
Whilst the company acknowledged increased geopolitical tensions because of president Trump’s tariffs, it said it had managed to mitigate direct exposure due to ‘well-balanced local manufacturing and procurement model.’
Russ Mould investment director at AJ Bell said: ‘Chemicals group Croda was the top FTSE 100 riser following an upbeat trading update.
‘It is on the road to recovery and has a plan to cover any tariff-related incremental costs by applying a surcharge.
‘Croda has been royally out of favour for so long with the market that the confident tone in its latest update is a pleasant surprise. It might be the catalyst to make investors reappraise the company following four years of share price declines.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Martin Gamble) own shares in AJ Bell.
