Croda edges past Q3 forecasts, flags tariff headwinds; shares jump

Published 16/10/2025, 09:38
© Reuters.

Investing.com -- Shares in Croda climbed more than 6% Thursday after the chemicals supplier reported better-than-expected third-quarter sales and reiterated its full-year guidance.

The company posted Q3 group sales of £425 million, slightly ahead of the £417 million expected by analysts. Revenue rose 4.4% year-on-year, with constant currency growth of 6.5%, reflecting continued solid demand.

The F&F division delivered another period of double-digit growth at constant exchange rates, extending the momentum seen in the previous quarter.

Full-year 2025 earnings guidance was maintained, with the company still targeting profit before tax of £265 million to £295 million in constant currency terms. Jefferies analysts estimate this translates to £255 million to £285 million after FX effects, compared with a current market consensus of £271 million.

The analysts said they expected “a muted share price response,” though the numbers were clearly better received by investors.

Croda cautioned that fourth-quarter sales are expected to soften compared with the first nine months of the year as customer spending typically slows towards the year-end.

The chemicals supplier, which produces ingredients used across beauty, agriculture and healthcare, also warned that market conditions remain difficult.

It said U.S. tariffs are weighing on demand from pharmaceutical and industrial clients in Asia, as well as agricultural customers in Latin America. 

"The imposition of US trade tariffs has contributed to volatility in quarterly performance by region, adversely impacting customers’ export sales in certain regions, particularly in pharma and industrial markets in Asia, and in agriculture markets in Latin America," Croda said in a statement. 

Order visibility remains limited, with the company noting that the imposition of trade levies by the U.S. government has added to volatility across its end markets.

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