Croda PLC sees profits rise despite sales dip
By Hull Daily Mail | Posted: 26 Jul 2018
Specialist chemical giant Croda PLC has seen profits rise in the first half of the year, but blamed a stronger pound for a slight dip in sales.
The FTSE-100-listed company sae profits rise from £174.1m to £174.3m year-on-year – an increase of 0.1 per cent.
Sales were down 0.6 per cent from the first six months of 2017, but Croda’s CEO said the company had enjoyed “a strong first half performance.”
Steve Foots, CEO, said: “We are delivering our strategy of ‘Growing the Core’, driving top line organic growth at industry leading margins to achieve superior returns.
“Alongside this, we are ‘Stretching the Growth’, accelerating delivery across our markets by investing in disruptive technologies and exciting new growth opportunities.
“We have encouraging momentum in our consumer businesses and Performance Technologies has delivered double digit percentage profit growth for the third successive year, strong progress that is supported by improving cash generation, underpinning confidence for the full year.”
Pre-tax profits at Croda rose by 1.7 per cent in the first half of the year.
The chemical company said it had enjoyed “excellent sales growth” in its personal care sector, up more than nine per cent.
Croda is headquartered near Snaith, and has major bases in Hull and Rawcliffe Bridge, near Goole.
The company has invested heavily in Hull in recent months, after it confirmed it was pumping £27m into a new manufacturing plant.
The major investment will enable Croda – who operate across the world – to meet demand for its raw material products through to 2030.
Read more: Big businesses give the economy £400m boost
Speaking at the time of the announcement in January, Mr Foots said the news “underlined Croda’s commitment to the UK economy.”
“The project will combine cutting edge technology with optimised production and process efficiencies, ensuring that Croda can continue to supply the highest performing and most innovative products to our customers across the world,” he said.
The Half One report for Croda also revealed growth in a number of other key markets.
The life sciences business saw sales rise by 2.3 per cent, as performance technologies saw its profits soar by more than 15 per cent.
Croda manufactures and sells speciality chemicals across a range of markets, including health and beauty, engine lubricants and plastics.