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During the last couple of months, FTSE 100 stock Croda International (LSE:CRDA) is up 26%. But the share price is still well short of where it was at the start of 2023.
The company’s earnings have fallen sharply this year, largely due to excess inventory at its customers. But as this wears down, could the stock be set for a recovery in 2024?
Time for a recovery?
In general, 2023 hasn’t been a good year for Croda. All of the company’s operating units have struggled with the surge in demand during the pandemic falling away.
This has most notably been the case in its life sciences division, which makes lipids used in vaccines. According to Pfizer, demand for boosters has fallen from 70% in the US to around 20%.
Croda’s customers have therefore found themselves with excess inventory. As a result, sales have slowed and profits have fallen from £2.71 in 2022 to an…
