Organisational changes to drive better market focus and customer alignment is unlikely to be enough to arrest a fall in full-year profit at Croda (CRDA). Tough market conditions and the effect of a strong pound are expected to wreak havoc on the chemical group's reported figures, particularly in the industrial chemicals division.
In a trading update in November, management confirmed that weak commodity prices and adverse currency translations had eaten away at the unit's profit and revenue. And while strong sales of pharmaceutical grade Omega-3 bode well for healthcare, struggles within the rest of Croda's core consumer care division could weigh further on margins.
The picture is altogether brighter, however, for its performance technologies segment. Management's decision to invest in faster-growing emerging markets should pay off here, with this part of the business expected to post strong sales growth off success in Asia.
