Croda International has reported an 8% jump in Q1 sales to £442m, after posting growth in all three of its life sciences, consumer care and industrial specialities divisions.

The speciality chemicals company, which trades on the FTSE 100, reported an 8% rise in its consumer care business to £255m, 10% increase in life sciences to £134m, and 6% rise in industrial specialties to £53m.

Croda said the sales growth was driven by higher sales volumes with the price/mix headwinds it saw in 2024 starting to diminish.

Overall, Croda’s adjusted profit before tax in the first quarter was in line with its expectations. As things stand, the company said it would continue to expect to deliver £265m to £295m group adjusted profit before tax at constant currency.

Head of equity research at Hargreaves Lansdown, Derren Nathan, commented that amid “prevailing macroeconomic confusion” investors would be more focused on Croda’s outlook.

“After a robust start to the year, the outlook remains unchanged, which is likely to come as a relief to shareholders who have seen the stock price fall 19% so far this year,” Nathan said.

“But it’s a little too early to give the all-clear. Croda’s game plan rests heavily on improved utilisation within its plants, so things could unravel quickly if demand takes a dip.

“Some end products, such as those in the life-sciences division, are less sensitive than others to economic conditions, but in the consumer segment things could still become challenging. The weakness in the valuation offers an opportunity to gain exposure to a quality company with a focused strategy, but in the short-term, the ride could get more bumpy yet.”

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