Croda sales growth slows down, but still up on previous year

The FTSE 250 chemical company posted a trading update for the three months to 30 September.

Sales for the quarter rose by 2.3% compared to 2014, however the company saw a slowdown in growth as anticipated in its half year results.

The company’s consumer-facing Life Sciences and Personal Care sectors helped keep revenue up, with a 7.3% and 2.0% increase in sales respectively.

Performance Technologies took a 1.1% dip in sales, while sales of industrial chemicals rose 5.3% in the period.

However foreign exchange fluctuations, particularly the weak Euro more than offsetting a stronger US dollar, had an impact on the company’s reported figures.

Reported sales for the quarter only rose 1.4% to £262.5m while sale for the year-to-date sat at £827.1m, a 3.9% rise.

Looking forward, the company believed currency translation isn’t likely to have a major negative impact on the year’s sales and profit based on current rates, and said it remains confident of delivering its expectations for the full year.

Despite cautionary signs in some markets, the company said it was also encouraged by continued progress.

It noted its consumer-facing markets and successful new and protected products alongside investment in capacity and regional expansion are expected to drive future performance.

However, the market didn’t take the slowdown in sales lightly, with shares down 60p (2.09%) to 2,810p at 0908 GMT.