Adjusted operating margin expected to decline in 2024
- Croda International’s pretax profit fell due to reduced sales and inventory levels
- Adjusted operating margin expected to decline by 2-3 percentage points in 2024
- No Covid-19 lipid contributions expected this year
- Sales volumes remain depressed in crop protection and industrial specialties business
- Pretax profit for 2023 was GBP236.3 million compared to GBP780.0 million in the previous year
- Adjusted pretax profit was GBP308.8 million compared to GBP496.1 million
- Revenue fell to GBP1.69 billion from GBP2.09 billion
- Final dividend raised to 109 pence a share
Croda International reported a decline in pretax profit for the fiscal year, attributed to reduced sales and customers reducing their inventory levels. The company expects its adjusted operating margin to decline by 2-3 percentage points in 2024, primarily due to different year-on-year business mix effects. Additionally, there will be no Covid-19 lipid contributions this year, and sales volumes in the crop protection and industrial specialties business remain depressed. The pretax profit for 2023 was GBP236.3 million, significantly lower than the previous year’s GBP780.0 million. Adjusted pretax profit was GBP308.8 million, compared to GBP496.1 million. Revenue also saw a decline, falling to GBP1.69 billion from GBP2.09 billion. Despite these challenges, the company raised its final dividend to 109 pence a share.
Factuality Level: 8
Factuality Justification: The article provides specific financial information about Croda International, including pretax profit, adjusted operating margin, sales volumes, and revenue. The information is based on the company’s official statements and consensus forecasts, which adds to the credibility of the report. There are no obvious signs of bias, sensationalism, or misleading information in the article.
Noise Level: 2
Noise Justification: The article provides specific and relevant information about Croda International’s financial performance, including details on pretax profit, adjusted operating margin, sales volumes, and revenue. It stays on topic and supports its claims with data and figures. The article does not contain irrelevant information or exaggerated reporting.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets that may be impacted by this news article are the specialty chemicals industry and the London-listed stock market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial performance of Croda International, a specialty chemicals company. It mentions a decline in pretax profit due to reduced sales and lower profit margin expectations for the year. However, there is no mention of any extreme events or their impact.
Public Companies: Croda International (CRDA.L)
Key People: Anthony O. Goriainoff (Author)
Reported publicly:
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