Croda’s profits dip despite an increase in sales
NATURAL chemicals producer Croda International has seen a fall in profits over the past year despite an increase in sales.
The Goole-based firm supplies some of the world’s best known skincare and cosmetics companies such as L’Oreal, Chanel, Clarins, Estee Lauder and Procter & Gamble.
The company’s preliminary results for the year to the end of December 2009 show that it saw its turnover increase to £916.2m from £911.1m last time.
But its profits before tax dropped to £89.2m from £96.3m in 2008.
The dividend paid on each share has risen from 19.75p to 21.5p.
The company has reported “robust demand” in its core consumer care segment which is continuing to drive its growth.
It has also reduced its debt levels by £109.6m to £288.5m and has seen benefits from its cost reduction programme.
Chairman Martin Flower said: “The fourth quarter was even stronger year-on-year than the third quarter, taking the full year’s pre-tax profit growth to 10.5% despite a difficult year for industrial specialities.
“Our core product areas performed well throughout the year, especially personal care and health care.
“Industrial specialities were affected in the first half by severe destocking in the ultimate end user markets for our products but demand recovered in the second half.
“The operating result was complemented by very strong cash generation resulting in a £109.6m reduction in net debt, including currency translation benefits.
“The encouraging trading performance seen during the second half has continued into 2010 and we are confident of achieving significant progress in the current year.”
