Strong half year for chemicals firm

Chemicals firm Croda International made strong progress on delivering its organic growth strategy, with momentum seen in 2017 continuing through the first half of this year.

Croda International, based in Goole, creates high performance ingredients and technologies globally.

Reporting on the six months to the end of June, Croda said the strengthening of Sterling adversely impacted sales and profit on a reported currency basis. Although sales at reported rates reduced slightly to £702.8m (2017: £707.3m), pre-tax profit increased by 1.7% to £170.8m (2017: £168m).

The company reported “excellent sales” growth in its personal care division, up 3.9%, while the life sciences division put in a resilient performance despite headwinds, with sales falling 2.3%.  Croda said its performance technologies arm delivered impressive profit growth.

Chief executive Steve Foots said: “This is a strong first half performance. 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.”