Profits rise at chemicals business
East Yorkshire-based chemicals business, Croda International, has reported a record first half performance.
The business saw sales up over a fifth with profit increasing by 26% compared to the same period last year.
The success comes off the back of a record 2021 and follows a transition by the business to be pure consumer care and life sciences business, after it divested the majority of Performance Technologies and Industrial Chemicals.
Looking at its sector performance, the growth was driven by a 24% sales increase resulting in a 34% increase in operating profit in its consumer care division, while life sciences also increased both sales and profit by 14% and 4% respectively.Steve Foots, chief executive officer at Croda said: “This is an excellent first half performance, with record sales, margin and profit driven by the strength of our operating model, which enabled continued recovery of unprecedented cost inflation, and the ongoing successful implementation of our strategy.
“A strong Consumer Care performance saw expanded sales of our sustainable technologies, increased geographic coverage in fragrances and margin expansion. The increasing depth and diversity of our Life Sciences portfolio was evident in a strong result in Crop Protection, whilst Health Care built on an exceptional 2021 performance and is developing an exciting pipeline of non-COVID applications.
“With the successful divestment of the majority of our industrials business, our transition to a pure-play Consumer Care and Life Sciences business continues. Croda is becoming a stronger margin, higher return, less cyclical and lower carbon intensive business. Our focused platform and strategy are enhancing both our full year expectations and our medium-term growth prospects.”
Looking ahead the business expects its full year results to be “modestly ahead of previous expectations”. The business noted that “the improved full year outlook reflects the enhanced strength and breadth” of its portfolio, and that beyond 2022 growth will be supported by a strong innovation pipeline, notably in non-Covid Health Care applications, and its targeted capital investment programme.