Progress for chemicals business as it returns to year-on-year growth
East Yorkshire-based chemicals giant, Croda International, says it has taken advantage of more stable market conditions as it releases its half year results for the six months ended 30 June 2024.
The business reported of £815.9m (H1 2023: £880.9m) and pre-tax profits of £106.1m (H1 2023: £128.7m).
Croda says its performance was driven by strong Consumer Care sales volumes and a steady sequential improvement in Industrial Specialties sales, offset by continued weakness in Life Sciences.
Steve Foots, chief executive officer, said: “The group returned to year-on-year growth in the second quarter, helped by more stable market conditions, price discipline and continued operational progress.
“Our sales of innovative products increased to record levels and robust cost control is enabling us to deliver improving operating margins.
“We’ve seen continued momentum in higher growth areas where we have focused recent investment, testament to our strategy to realign the portfolio towards the megatrends shaping our industry.
“In particular our strong relationships with local and regional customers is driving growth as they innovate and grow quickly.”
The company notes that raw material costs have continued to fall in the period, ending the half about 4% lower on average than on 1 January 2024, following around a 12% reduction in 2023.
It adds raw material costs now appear to have “bottomed out”, with the significant fall over the last 18 months facilitating lower prices to customers in certain markets, in turn helping to drive recovery in sales volumes.
Croda says its innovation pipelines are expanding, with customers continuing to invest in new product development. Sales of new and protected products (NPP) grew to 36% of total sales (H1 2023: 34%).
In its outlook statement, the business says it we now expects group adjusted profit before tax to be between £260m and £280m in full year 2024 at constant currency.
