Profits continue to rise at Croda
MAINTAINING a focus on innovation and developing the business in existing and emerging markets has helped Croda continue its track record of boosting profits.
In its preliminary results for the year to the end of December 2013, the Goole-based speciality chemicals business announced that adjusted pre-tax profit increased 5.4% to £251.4m and adjusted operating profit grew by 3.7% to £264.6m, while turnover from continuing operations increased by 2.4% to £1,077m.
Chairman Martin Flower said: “In another year of demanding market conditions, Croda continued its track record of pre-tax profit and earnings per share growth. From a strategic perspective, we have made real progress, maintaining our focus on innovation and developing our business in both existing and emerging markets. With record sales of new and protected products across the business, acquisitions in North America and China, three more R&D laboratories, two more customer training centres and further investment in our global sales force, our platform for sustainable, organic growth is much stronger.”
Croda, which made two acquisitions during the year – a specialty product business from Arizona Chemical in May and a 65% stake in Sichuan Sipo (China) in August – said that while the current year has started in line with its expectations, global trends are unpredictable and the group’s forward visibility remains limited.
Flower added: “Currency translation is expected to have an adverse impact on profit growth in 2014. If last year’s results had been translated using closing rates as at December 2013, pre-tax profits for 2013 would have been approximately £9m lower. However, we still expect to achieve constant currency sales and profit growth in 2014 characterised by improvement in margins in Performance Technologies, progressing towards our target of 20% return on sales, NPP sales growth and strong cash generation.
“The board is confident that Croda has the right strategy in place to deliver its medium term growth targets.”
