Croda hails record start to 2012

published 26 April 2012

Speciality chemicals manufacturer Croda International has achieved record results in the first quarter of 2012, driven by the group's highest ever quarterly sales and profits at its two-largest divisions, Consumer Care and Performance Technologies.

The statement, due to be given by Chairman Martin Flower at today's annual general meeting (AGM), revealed that group sales from continuing operations increased by 4.7% to £291m in the three months to March 31st, compared with £277.9m in the first quarter of 2011.

"We achieved sales growth in all the major geographical areas in which we operate and volumes were much improved versus the run rates seen during the second half of 2011," Flower said.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Consumer Care sales jumped 9.2% to £139.7m, while Performance Technologies sales increased by 2.9% to £106.9m despite a strong comparative the year before. However, Industrial Chemicals, saw sales fall by 11.9% to £24.4m due to slow demand in Europe.

Meanwhile, group pre-tax profit from continuing operations increased by 7.2% from £60.7m to £65.1m.

"Raw material costs have started to rise and we began to introduce price increases across a number of product areas from April."

Net debt fell from £231.1m at the end of 2011 to £185.9m by the end of March helped by strong cash generation and the final £15.9m payment from the 2008 sale of its Chicago business.

"The board believes that these results represent a strong start to the year and we remain confident that 2012 will be another year of progress for Croda," Flower concluded.