Bernstein sees normalising consumer chemicals growth in 2024
18/03/2024 13:07
** Bernstein says end of destocking suggests more normalised
2024 growth for consumer chemical makers that supply the home
and personal care (HPC) and food and beverages (F&B) sectors
** After destocking weighed on organic sales growth in 2023,
the brokerage expects volumes to recover this and next year,
with only low single-digit percent price increases
** It expects higher volumes from Q4 2023 to continue in
2024 with a rapid recovery of +3.5% in Q1, which should grow
gradually up to 4.7% in Q4 2024
** The broker sees some price declines in Q1, which will
turn positive in Q2 and remain positive until the end of 2024
** Bernstein expects +4.5% organic sales growth in 2024
supported by growth in both HPC and F&B end-markets
** The broker keeps "outperform" on International Flavors &
Fragrances IFF.N , DSM-Firmenich DSFIR.AS , Evonik EVKn.DE ,
and Novozymes NSISb.CO
** It maintains "market perform" on Croda CRDA.L , Givaudan
GIVN.S and Symrise SY1G.DE , and "underperform" on BASF
BASFn.DE
(Reporting by Marta Frąckowiak)
((marta.frackowiak@thomsonreuters.com))