Croda sees pre-tax profits rise
PRE-tax profits have climbed up at Croda.
In its interim management statement for the period since July 1 2013, the East Yorkshire speciality chemicals business said pre-tax profits increased by 5.4% to £58.6m (2012: £55.6m) in the quarter.
Croda said turnover was up 4.4% to £267.9m (2012: £256.5m) with underlying sales up 0.8%.
Chairman Martin Flower said: “Croda has continued to generate a steadily improving underlying sales performance through every quarter of this year despite challenging market conditions.
“We continue to benefit from the strong demand for innovation and remain particularly encouraged by the progress that Croda is making in Asia and South America.
“However, with currencies continuing to weaken and market conditions expected to remain subdued, fourth quarter profits are likely to be similar to quarter three. Looking ahead, the board remains confident that Croda’s strategy will continue to deliver progress into 2014 and beyond.”
The Goole-based business said sales trends improved again during the third quarter with growth across all regions despite subdued underlying market conditions, similar to those experienced during the first half of the year. The significant devaluation of the Japanese Yen and Indian Rupee reduced the benefit of currency translation compared to the first half.
The business said innovation led sales were “very strong” in all segments with double digit growth seen in new and patented products. However, it saw near double digit declines in relatively low margin but high volume commodity and toll manufacturing sales.
Operating margins remained solid at 23.1% (2012: 23.2%) despite slight dilution due to the acquisition of Sichuan Sipo Chemical Co with continuing operating profit up 4% to £62m (2012: £59.6m). Earlier this year, Croda announced a £38m deal to acquire a majority stake in the Chinese chemicals manufacturer.
