April 22 (Reuters) - British specialty chemicals maker Croda International said on Wednesday it is raising prices to offset input cost inflation since the start of the Middle East conflict, as it
UK chemicals maker Croda hikes prices in some markets to counter Iran war-driven costs
Croda International's Response to Global Supply Chain Disruptions
By Prerna Bedi
April 22 (Reuters) - British specialty chemicals maker Croda International said on Wednesday it is raising prices to offset increases in input costs since the start of the Iran war, which has curtailed global supply chains and driven energy prices sharply higher.
Company Background and Strategic Adjustments
The chemicals company, which makes peptides for anti-aging creams and ingredients for the beauty, agriculture and pharmaceutical industries, had already been streamlining operations and tightening procurement in the wake of U.S. tariffs.
CEO Commentary on Pricing Strategy
CEO Steve Foots said on an investor call that the company hiked prices this month across Asia and certain European markets, without taking a "blanket approach" and raising prices differently for different customers. He did not provide more details.
Regional Revenue Breakdown
The Europe, Middle East and Africa region is Croda's biggest market, accounting for roughly 40% of total revenue, including 5% from the Middle East, followed by Asia with about 25%. North America and Latin America contribute the rest.
Impact of Iran Conflict and Financial Performance
Croda said that while the Iran conflict had no impact during the first quarter, it was monitoring the situation in the Middle East while passing on costs to clients, as it did last year when tariffs pressured its business.
Croda maintained its annual and medium-term targets. Its shares were up 1.3% in early trade.
Quarterly Revenue and Unit Performance
The company said revenue for the three months ended March 31 was largely unchanged from last year on a constant currency basis at 431 million pounds ($583 million), missing at least three brokerages' estimates.
Consumer Care and Life Sciences Units
While Croda's consumer care unit reported organic sales growth of 4%, helped by strong demand for skincare and makeup ingredients like fragrances and flavours, sales at its life sciences unit dropped 3%.
Currency Exchange Rate and Reporting Credits
($1 = 0.7400 pounds)
(Reporting by Prerna Bedi in Bengaluru; Writing by Pushkala Aripaka; Editing by Sherry Jacob-Phillips and Emelia Sithole-Matarise)
