Chemicals supplier Croda sees annual profit hit on weaker volumes, higher costs

(Reuters) -British chemicals supplier Croda International forecasted lower 2024 profits on Tuesday, hit by persistently weak volumes at its Crop Protection and Industrial Specialities units and higher costs compared to year-ago levels.

"Destocking will continue in Crop Protection. Demand in Industrial Specialties is expected to remain weak," the FTSE 100 firm said.

The chemicals supplier to Unilever and Procter & Gamble, among others, said it expected an adjusted pre-tax profit between 260 million pounds ($329.8 million) and 300 million pounds in 2024, down from 308.8 million pounds in 2023.

Analysts on average expect Croda to report between 268.0 million pounds and 314.1 million pounds in 2024 profits, according to a company-compiled consensus.

The Yorkshire-headquartered company, which supplies chemicals to makeup giant Estee Lauder, said it was "cautiously optimistic" about recovery in demand at its Consumer Care Unit at the beginning of the New Year. ($1 = 0.7885 pounds)

(Reporting by Prerna Bedi in Bengaluru; Editing by Rashmi Aich)