Profits up at Croda as FTSE giant boosted by £64m Biosector deal

By Hull Daily Mail | Posted: 26 Feb 2019

Profits rose at FTSE 100 giant Croda in 2018 in what was hailed a "year of strong progress" for the chemicals specialist.

The business, which has bases in Hull and in Rawcliffe Bridge, near Goole, saw operating profits pass the £340m mark, up three per cent on 2017.

Croda also recorded growth in all three of its core sectors, and last year completed the acquisition of Danish firm Brenntag Biosector in a deal worth more than £60m.

Croda currently employs over 4,500 people across the world, with 1,000 based in the UK.

Steve Foots, CEO at Croda, said: “2018 was another year of strong progress for Croda. We are ‘Growing the Core’ – once again delivering top line growth at industry-leading margins to achieve superior returns.

Croda is a FTSE 100 chemicals business with bases in Hull and Rawcliffe Bridge, near Goole (Karl Andre Photography 2008)

“We are ‘Stretching the Growth’, accelerating delivery across our markets through relentless innovation and by investing in disruptive technologies and exciting new growth opportunities.

“All core sectors contributed to this performance, demonstrating Croda’s three legs of growth.”

 Sales at Croda during 2018 were also up, but grew at a slower rate than profits.

Read more: Croda gets go ahead for £7m distribution centre in Goole

Croda’s personal care sector was the biggest riser, with sales up 6.8 per cent.

Its other two core areas – life sciences and performance technologies – rose by 2.8 per cent and 1.4 per cent respectively.

What Croda's £7m new Goole warehouse could look like (Croda)

Croda recently had plans for its new £7m distribution centre in Goole approved by East Riding Council.

The new warehouse space, in the Goole 36 enterprise zone, will act as a worldwide distribution hub for chemical products made at its sites in Hull and Rawcliffe Bridge.

Speaking about Croda’s 2018 performance, Mr Foots said: “Cash generation strengthened and we have proposed the return of a further £150m through a special dividend to shareholders, in addition to an increased ordinary dividend.

Read more: Croda increases stake in award-winning health tech company

“Looking ahead, whilst global market conditions remain challenging, we continue to invest for the future and are confident that our strategy of Growing the Core and Stretching the Growth will deliver further progress in 2019.”

Croda is a FTSE 100 chemicals business with bases in Hull and Rawcliffe Bridge, near Goole (Karl Andre Photography 2008)

Croda performed well in markets across the world.

Sales in Latin America were up nine per cent, as Asia also saw a seven per cent boost, driven by strong growth in Japan.

Croda last year completed the £64m purchase of Danish pharmaceutical company Brenntag Biosector.

Read more: Chemicals firm Croda agrees £10m deal to buy agricultural business

Biosector was founded in 1939, and is a specialist manufacturer and supplier to the human and veterinary vaccine market.

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