05.11.2008
Croda sales increase by more than 25 per cent
NATURAL chemicals company Croda said global demand for its core products remains robust as it announced sales had increased by more than 25 per cent over the last quarter.
The Goole-based firm, which supplies raw ingredients to most of the big cosmetics manufacturers including L'Oreal, Chanel, Clarins, Estee Lauder and Procter and Gamble, said its personal care and crop care sectors had shown particularly strong growth
For the three months ended September 30, sales were £246.7m (2007: £197.1m), up 25.2 per cent compared to the corresponding period last year.
Continuing pre-tax profit was 73.2 per cent higher at £24.6m (2007: £14.2m) due to the sales increase, synergies realised from the acquisition of Uniqema, favourable currency translation and a reduced interest charge.
Martin Flower, chairman of Croda International, said: "I am pleased to report that the very strong trading performance seen in the first half has continued in the third quarter."
Mr Flower said it had coped with the continued rising cost of raw materials by increasing prices. He said its average selling price per tonne increased 20.5 per cent compared to the corresponding period last year.
He added: "This reflects not only price increases but also favourable mix from shedding low quality business and the higher sales value of the turnover formerly carried out by third party distributors. In addition, favourable currency translation boosted turnover by 12.7 per cent."
The firm said that consumer care volumes were ahead of last year but overall volumes were down as a result of its continuing strategy to shed low margin commodity business together with slight weakness in plastics additives and polymer and coatings sales which reduced industrial specialities volumes.
Net debt was £364.7m with £16m of the year to date increase due to the effects of volatile exchange rates on the translation of our opening Euro and Dollar debt at closing exchange rates.
"Whilst we recognise the uncertainty relating to global trade at present, demand remains robust in all our core markets and we are confident of making further progress, both in the fourth quarter and in 2009."
Continuing pre-tax profit was 73.2 per cent higher at £24.6m (2007: £14.2m) due to the sales increase, synergies realised from the acquisition of Uniqema, favourable currency translation and a reduced interest charge.
Martin Flower, chairman of Croda International, said: "I am pleased to report that the very strong trading performance seen in the first half has continued in the third quarter."
Mr Flower said it had coped with the continued rising cost of raw materials by increasing prices. He said its average selling price per tonne increased 20.5 per cent compared to the corresponding period last year.
He added: "This reflects not only price increases but also favourable mix from shedding low quality business and the higher sales value of the turnover formerly carried out by third party distributors. In addition, favourable currency translation boosted turnover by 12.7 per cent."
The firm said that consumer care volumes were ahead of last year but overall volumes were down as a result of its continuing strategy to shed low margin commodity business together with slight weakness in plastics additives and polymer and coatings sales which reduced industrial specialities volumes.
Net debt was £364.7m with £16m of the year to date increase due to the effects of volatile exchange rates on the translation of our opening Euro and Dollar debt at closing exchange rates.
"Whilst we recognise the uncertainty relating to global trade at present, demand remains robust in all our core markets and we are confident of making further progress, both in the fourth quarter and in 2009."