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(Sharecast News) - Chemicals manufacturer Croda International reported stronger-than-expected third-quarter sales growth on Thursday, driven by a standout performance in its consumer care division, while reiterating its full-year guidance despite ongoing macroeconomic uncertainty.
Croda said group sales rose 5.9% year-on-year to £449.9m in the three months ended 30 September, with organic growth of 6.6%, ahead of its medium-term target range.
Consumer care remained the key growth driver, delivering organic sales growth of 10.8%. Beauty sales were particularly strong, with beauty actives up 19% and beauty care rising 13%, supported by increased innovation activity and strong demand from global beauty brands. Home care sales increased 10%.
Life sciences generated 1.8% organic growth, with pharma sales up 5% and seed enhancement revenues rising 12%. However, crop protection sales fell 9% as weak agricultural market conditions and pressure on farm incomes continued to weigh on demand. Industrial specialties sales declined 1.2% on an organic basis, reflecting a continued reduction in supply agreement revenues.
Regionally, Asia was Croda's strongest-performing market, with 12% organic sales growth, while EMEA and North America recorded growth of 6% and 4%, respectively.
Looking ahead, Croda said it remains on track to deliver full-year organic sales growth of 3% to 6% alongside a further improvement in adjusted operating margins, supported by ongoing transformation initiatives and cost-saving measures.
As of 1010 GMT, Croda shares were up 3.52% at 3,740p.
Reporting by Iain Gilbert at Sharecast.com
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