Speciality chemical group Croda has revised its annual profit outlook downwards due to destocking and weak demand in its key beauty care business in North America. The company, which supplies ingredients to global cosmetic giants including Estee Lauder, saw shares in FTSE 100 slide by as much as 11.5% to their lowest level since April 2020. The beauty retail sector has been grappling with sluggish demand throughout the year, particularly in China and duty-free and travel destinations, as well as reduced consumer spending on non-essential items due to high inflation. In response, Croda has implemented cost-cutting measures including production optimization and reduced shift patterns. The company’s consumer division, which caters to the beauty, fragrance, and home care markets, accounts for half of its annual revenues. Croda’s adjusted profit before tax for 2023 is now estimated to be between £300m ($366m) and £320m ($391m), compared to the previous estimate of £370m-£400m.
More detail via Reuters here… ( Image via Reuters )