Croda sees weak December but profits rise

Croda International, the speciality chemical producer, achieved profit before tax of £60m in the final quarter of 2011, a rise of 22.7% compared to the same period of 2010.

For the full year, the company saw pre-tax profits rise 25.9% against 2010, hitting £242.2m by the end of December.

Total sales for the year were £1.068bn compared to £1.002bn in 2010, a 6.6% rise.

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Croda is split into two divisions: Consumer Care, which makes ingredients for use in products like sun tan lotion, saw a rise in sales of 11.2% over 2011; while Industrial Specialities, which makes a raft of chemicals, saw sales gain 1.8% during the year.

Over the final quarter sales at Industrial Specialties actually fell 4.8%, with the company blaming very strong comparatives in 2010 and a "marked" slow down in the European division in December. Consumer Care sales in the quarter gained 9.1%.

Croda says it will increase the final dividend by 19.8% to 30.25p, making a total dividend for the year of 55.0p, an increase of 57.1% over 2010.

At board level, the company has seen the departure of Mike Humphrey, who served as Chief Executive for 13 years and had been with the firm for 42 years. At the beginning of this year he was succeeded by Steve Foot, who joined Croda as a graduate trainee in 1990.

According to today's update, trading in January has been "encouraging".

Croda has had an impressive last 12 months, with the stock gaining 36%. Over the last five years the company's shares are ahead by 231%.

BS