Record set of results for chemicals giant
East Yorkshire-based chemicals business, Croda International, has delivered a record performance in its full year results for the year ended 31 December 2022.
The company’s sales rose 11% to over £2bn, with adjusted operating profit up 10%, surpassing the £500m mark for the first time. Adjusted pre-tax profits reached £496.1m (2021: £445.2m).
Steve Foots, chief executive officer, said: “2022 has been a milestone year for Croda as we continued our transition to a pure play Consumer Care and Life Sciences business, evolving our portfolio to be more closely aligned to the emerging megatrends driving our markets.
“For the first time, we delivered over £2bn in sales and £500m in adjusted operating profit, reflecting progress across all areas of our business.
“These record results have been achieved whilst managing a challenging environment. This demonstrates the power of our business model, our consistent execution, an increased resilience, following our recent portfolio changes, and the increasing importance of our products in our markets.”
The tough environment faced by Croda during the period included a significant impact from inflation and average prices within its raw material basket, with prices rising by 23% in 2022, adding to a 17% increase in 2021.
Commodity markets remained tight during the year but prices peaked in the third quarter, with signs of modest declines as the year ended.
Operating cost inflation increased during 2022, with labour and energy most impacted.
Despite this, Croda says the Consumer Care arm of its operations is increasingly resilient, while Life Sciences has built on an exceptional prior year, with an exciting project pipeline in Pharma and a stand-out performance in Crop Protection.
On a geographic basis, all of Croda’s regions saw continuing good growth in sales and profit, other than North America.
Asia achieved a record year with strong demand, particularly in Life Sciences, and modest growth in China, despite pandemic lockdowns. Demand in Western Europe remained robust, despite higher prices and energy costs.
In an outlook statement, Croda says it expects its differentiated business model, enhanced investment programme and innovation pipelines in sustainable ingredients and drug delivery “will continue to deliver consistent, superior returns.”
