Croda, the world's second-largest supplier of cosmetic ingredients, has seen its share price drop more than eight per cent in early trading this morning following a profit warning.
The FTSE 250-listed global chemicals manufacturer, which counts Procter & Gamble, Unilever, L’Oreal and Estee Lauder among its customers, has warned that second quarter pre-tax profits will be about eight per cent lower than the first quarter, blaming the strong pound and "subdued" demand in Europe.
"For the full year, if sterling remains at current levels, the currency translation and transaction effects we are seeing would have reduced the £251.4m pre-tax profit reported in 2013 by approximately £19m," Croda said in a statement.
The Yorkshire-based company said it is confident in its long-term strategy and medium targets remain unchanged.
Earlier this month, Croda announced that its finance chief Sean Christie, who has worked at the firm since 2006, will be stepping down in April 2015.