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The Preliminary Results Announcement on the 28th February 2017 is now available in PDF format.
Croda announces its AGM trading statement for 2014.
AGM and Interim Management Statement
PROFITABILITY IMPROVED DESPITE ADVERSE CURRENCY TRANSLATION
Croda International Plc today announces its Interim Management Statement for the period since 31 December 2013.
Trading
The modest but improving growth trend in underlying sales seen in the second half of 2013 continued through the first quarter of 2014, despite the disruption caused by the severe weather in North America and difficult economic conditions in South America. On a constant currency basis, Group turnover was up 2.9% with acquisitions contributing 1.6% to this total. However, adverse currency translation of 6.1% meant that reported sales in sterling were down 3.2% to £274.0m (2013: £283.1m).
Group operating profit increased 1.0% to £68.7m (2013: £68.0m). Operating margins increased to 25.1% (2013: 24.0%), reflecting favourable product mix. Return on sales increased to 33.3% (2013: 31.1%) in Consumer Care and to 19.0% (2013: 17.0%) in Performance Technologies as both divisions continued to benefit from strong underlying demand for high value products. Industrial Chemicals’ return on sales reduced to 4.7% (2013: 9.1%), reflecting the integration of Sipo and weaker commodity margins generally.
Pre-tax profits increased slightly to £65.2m (2013: £65.1m) with a stronger underlying performance offset by a £3.5m impact from adverse currency translation.
On a divisional basis, underlying Consumer Care sales decreased by 0.6%. Crop Care was impacted by heavy snow in North America during January and February and weak sales into Eastern Europe. Weak sales in North America and challenging economic conditions in South America were the main reasons behind modest underlying sales declines in Personal Care. Health Care growth was strong in almost all geographies. A further 0.5% contribution to sales growth came from acquisitions.
Underlying sales in Performance Technologies were up 3.7%, continuing the improved trend seen in the final quarter of 2013. Business in Asia was particularly strong. All business areas apart from Home Care saw good sales growth. The Sipo acquisition added an additional 1.7% to turnover.
Underlying Industrial Chemicals sales were up 2.7% and again, Sipo added a further 7.2% to the growth.
Financial Position
There has been no significant change in Croda’s financial position during the period. Interest costs in the quarter were slightly higher than 2013 due to the consolidation of 100% of Sipo’s debt.
Underlying cash generation was again strong in the quarter, with net debt falling £13.6m to £188.6m even after paying over £20m into the UK pension fund in January.
Outlook
We expect the modest improvement in underlying sales growth seen in the first quarter to continue. However, adverse currency translation is expected to remain an issue and consequently, second quarter performance is likely to be similar to that seen in the first quarter. The Board is confident that the Group has the right strategy in place to continue to drive profitable underlying growth.
|
For further information please contact: Steve Foots/Sean Christie Croda International Plc Charlie Armitstead/ Rosie Oddy Pendomer Communications |
Tel: 01405 860551
Tel: 020 3603 5220 |
The company will host a conference call for analysts at 8.00am (BST) today:
Dial-In: +44 (0) 203 426 2888 Please quote “Croda International” to gain access to the call
Croda International Plc Unaudited income statement for continuing operations 31 March 2014
|
|
3 months to |
3 months to |
|
|
|
31 March |
31 March |
|
|
|
2014 |
2013 |
Change |
|
Revenue |
|
|
|
|
Consumer Care |
148.4 |
158.4 |
-6.3% |
|
Performance Technologies |
93.8 |
93.9 |
-0.1% |
|
Industrial Chemicals |
31.8 |
30.8 |
+3.2% |
|
|
274.0 |
283.1 |
-3.2% |
|
Adjusted operating profit1 |
|
|
|
|
Consumer Care |
49.4 |
49.2 |
+0.4% |
|
Performance Technologies |
17.8 |
16.0 |
+11.3% |
|
Industrial Chemicals |
1.5 |
2.8 |
-46.4% |
|
|
68.7 |
68.0 |
+1.0% |
|
|
|
|
|
|
Net bank and loan interest payable |
(2.3) |
(1.7) |
|
|
Net retirement benefit scheme financing |
(1.2) |
(1.2) |
|
|
Adjusted profit before tax1 |
65.2 |
65.1 |
+0.2% |
|
|
|
|
|
|
Operating margin |
25.1% |
24.0% |
|
|
Analysis of turnover uplift for continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Constant |
Currency |
|
|
|
Underlying |
Acquisitions |
Currency |
translation |
Total |
|
Consumer Care |
-0.6% |
+0.5% |
-0.1% |
-6.2% |
-6.3% |
|
Performance Technologies |
+3.7% |
+1.7% |
+5.4% |
-5.5% |
-0.1% |
|
Industrial Chemicals |
+2.7% |
+7.2% |
+9.9% |
-6.7% |
+3.2% |
|
Total |
+1.3% |
+1.6% |
+2.9% |
-6.1% |
-3.2% |
1 Continuing operations before exceptional items, acquisition costs and amortisation/write off of intangible assets arising on acquisition.
AGM and Interim Management Statement
SOLID START TO 2013; OUTLOOK MAINTAINED
Croda International Plc today announces its Interim Management Statement for the period since 31 December 2012.
Pre-tax profits for the first quarter of 2013 were up 6.5% to £65.1m (2012: £61.1m). This was achieved against a particularly strong performance in the same period in 2012 and despite the adverse impact of an earlier Easter this year.
Group turnover grew marginally by 0.4% to £283.1m (2012: £281.9m). Consumer Care sales were broadly stable at £158.4m (2012: £159.1m), with Crop Care weaker due to the poor weather experienced in a number of regions throughout the period. Personal Care and Health Care sales were flat. Performance Technologies sales were also stable, down only 0.3% to £102.4m (2012: £102.7m) with continuing weakness in Lubricants being the major factor. Industrial Chemicals sales were up 10.4% at £22.3m (2012: £20.2m).
Group operating profits were up 4.0% to £68.0m (2012: £65.4m) increasing return on sales by a further 0.8 percentage points to 24.0% for the quarter. Profits and margins improved in all three of our reporting segments. Consumer Care profits increased 2.3% to £49.2m (2012: £48.1m) with return on sales up at 31.1% (2012: 30.2%). Performance Technologies profits increased 1.9% to £16.1m (2012: £15.8m) with return on sales up at 15.7% (2012: 15.4%). In Industrial Chemicals, profit increased to £2.7m (2012: £1.5m) as a result of the strong sales uplift and favourable commodity prices.
Interest costs decreased due to the reduced pension fund deficit, helping achieve the 6.5% increase in pre-tax profits referred to earlier.
There has been no significant change in Croda’s financial position during the period. Underlying cash generation in the quarter continued to be good and at the end of March 2013 net debt was £211.1m, an increase of only £3.4m versus the year end despite a payment of £38m into the UK pension fund in January.
The Board believes that the Q1 result represents a solid start to the year. The outlook provided in February is unchanged and we expect to report further progress in 2013.
For further information, please contact:
|
Steve Foots, Group Chief Executive |
Tel: 01405 860551 |
|
Sean Christie, Group Finance Director |
|
|
Charlie Armitstead/ Rosie Oddy |
Tel: 020 3603 5220 |
The company will host a conference call for analysts at 8.00am (BST) today:
Please quote “Croda International” to gain access to the call
Croda International Plc Unaudited income statement before tax and exceptional items 31 March 2013
|
|
3 months to |
3 months to |
|
|
|
31 March |
31 March |
|
|
|
2013 |
2012 |
Change |
|
|
|
|
|
|
Consumer Care |
158.4 |
159.1 |
-0.4% |
|
Performance Technologies |
102.4 |
102.7 |
-0.3% |
|
Industrial Chemicals |
22.3 |
20.1 |
+10.9% |
|
Revenues from continuing operations |
283.1 |
281.9 |
+0.4% |
|
|
|
|
|
|
Consumer Care |
49.2 |
48.1 |
+2.3% |
|
Performance Technologies |
16.1 |
15.8 |
+1.9% |
|
Industrial Chemicals |
2.7 |
1.5 |
+80.0% |
|
Operating profit from continuing operations |
68.0 |
65.4 |
+4.0% |
|
|
|
|
|
|
Net bank and loan interest payable |
(1.7) |
(2.0) |
|
|
Net retirement benefit scheme financing |
(1.2) |
(2.3) |
|
|
Profit before tax from continuing operations |
65.1 |
61.1 |
+6.5% |
|
|
|
|
|
|
Operating margin |
24.0% |
23.2% |
|
|
|
|
|
|
|
Analysis of turnover uplift for continuing operations |
|
|
|
|
|
|
|
|
|
Volume |
|
|
+0.1% |
|
Mix and price |
|
|
-0.9% |
|
Underlying |
|
|
-0.8% |
|
Acquisitions |
|
|
+0.1% |
|
Currency translation |
|
|
+1.1% |
|
|
|
|
+0.4% |
This statement has been prepared in accordance with the revised IAS19 rules regarding the accounting for post-retirement benefits. 2012 results have been restated so the figures are comparable.
Interim Management Statement and announcement of disposal
Croda International Plc (“Croda”) today announces its interim management statement for the period since 1 July 2012 and the disposal of its Italian business based in Cremona. All figures in this statement, including those for the comparative periods, exclude this business which will be treated as discontinued in the full year accounts.
Trading
Trading in the third quarter was robust considering the depressed market conditions, particularly in Europe. Underlying* Group sales were up 3.2% compared to 2011.
Month to month trading has been volatile: sales were in line with expectations in July and August but trading weakened in September, usually a strong month. Adverse currency translation averaged 2.8% but the exit rate for the quarter was 6.2%. Including the adverse currency impact, continuing sales were up 0.5% at £256.5m (2011: £255.2m). As in previous quarters, we saw turnover decline in Europe but experienced growth in all other major regions. Volumes were up 8.9% overall but the strongest growth came in lower value products in Performance Technologies and Industrial Chemicals (which were weak in the third quarter of 2011). This meant that average selling prices fell by 5.7%. We fully recovered raw material inflation.
Despite an adverse mix, operating margins increased to 23.3% (2011: 22.3%). As a result, continuing operating profit increased 4.7% to £59.7m (2011: £57.0m) and continuing pre-tax profit increased 4.4% to £59.3m (2011: £56.8m). Against a very strong third quarter in 2011, Consumer Care sales were down 2.7% due to slow Personal Care sales, particularly in Europe. Health Care and Crop Care both saw sales increase in the quarter. Return on sales grew 2.5 percentage points to 31.4% driven primarily by a number of successful product launches but also due to a lower allocation of central costs as a consequence of the reduced turnover. This resulted in operating profit growth of 5.7% to £44.2m (2011: £41.8m).
Performance Technologies sales were up 2.5% at £94.7m (2011: £92.4m). We saw growth in all business sectors apart from Lubricant Additives. Again, we successfully launched a significant number of new products but the strongest growth in the quarter came from existing, lower margin, less differentiated products. The higher volumes relative to Consumer Care led to an increased allocation of central costs to this segment. These factors reduced overall return on sales to 14.1% (2011: 14.8%) and resulted in a profit reduction of 2.2% to £13.4m (2011: £13.7m).
Industrial Chemicals performed strongly with sales up 16.1% to £20.9m (2011: £18.0m). Profits in this sector increased 40.0% to £2.1m (2011: £1.5m).
Despite the soft trading environment in Europe and the currency headwinds, our operating profit for the year to date at £193.5m is 8.2% ahead of a strong 2011 comparative period. This continues to vindicate our strategy of concentrating on high value, niche markets with innovative technologies, supplying to customers both large and small around the world.
* Excluding acquisitions, disposals and currency
Financial Position
Net debt reduced by £5.8m to £202.2m in the quarter despite a £10.2m payment to the pension fund as part of the funding plan announced with the interim results.
There were no significant events or transactions during the period which resulted in a material impact on the financial position of the Group.
Disposal
We are announcing today the sale of our Italian business based in Cremona to a private company located in Italy for a consideration equivalent to the working capital value. Completion is subject to a number of minor conditions but is expected to take place before the year end. The business was acquired with Uniqema in 2006 and is focused on the manufacture of basic products for the Performance Technologies and Industrial Chemicals sectors. In the first nine months of the year it had a turnover of £25.4m (2011: £32.2m) and made an operating loss of £0.1m (2011: operating profit £4.1m). In the third quarter it had sales of £7.8m (2011: £10.4m) and broke even (2011: £0.6m profit).
Commenting on the outlook, Martin Flower, Chairman of Croda said:
“Quarter four has started well. However, with the market remaining weak, particularly in Europe, and currency headwinds, we expect a similar performance in quarter four to that seen in the third quarter. Looking further forward, the Board remains confident that Croda has the right strategy for continued growth.”
For further information please contact:
|
Steve Foots |
Group Chief Executive |
01405 860 551 |
|
Sean Christie |
Group Finance Director |
01405 860 551 |
|
Charlie Armitstead |
Pendomer Communications |
020 3603 5224 |
The company will host a conference call for analysts at 8.00am today.
Please dial +44 (0) 20 3140 0722 and quote “Croda International” to gain access to the call.
Additional Information
| £m | Q3 | 9 months | ||||
| 2012 | 2011 | 2012 | 2011 | |||
| Consumer Care | 140.9 | 144.8 | -2.7% | 450.1 | 437.0 | +3.0% |
| Performance Technologies | 94.7 | 92.4 | +2.5% | 298.9 | 291.9 | +2.4% |
| Industrial Chemicals | 20.9 | 18.0 | +16.1% | 62.8 | 64.1 | -2.0% |
| Continuing turnover | 256.5 | 255.2 | +0.5% | 811.8 | 793.0 | +2.4% |
| Consumer Care | 44.2 | 41.8 | +5.7% | 140.9 | 128.6 | +9.6% |
| Performance Technologies | 13.4 | 13.7 | -2.2% | 46.3 | 42.5 | +8.9% |
| Industrial Chemicals | 2.1 | 1.5 | +40.0% | 6.3 | 7.7 | -18.2% |
| Continuing operating profit | 59.7 | 57.0 | +4.7% | 193.5 | 178.8 | +8.2% |
| Operating margin | 23.3% | 22.3% | 23.8% | 22.6% | ||
| Interest | (0.4) | (0.2) | (1.5) | (0.7) | ||
| Continuing pre tax profit | 59.3 | 56.8 | +4.4% | 192.0 | 178.1 | +7.8% |
| Analysis of Q3 turnover uplift | ||||||
| Price/mix | -5.7% | +0.7% | ||||
| Volume | +8.9% | +3.5% | ||||
| Underlying | +3.2% | +4.2% | ||||
| Acquisition | +0.1% | - | ||||
| Currency | -2.8% | -1.8% | ||||
| Increase in continuing turnover | +0.5% | +2.4% | ||||
Supplementary analysis for continuing operations 30 September 2012
Unaudited £m
|
2012 |
2012 |
2012 |
||||||||
|
Q1 |
Q2 |
Q3 |
||||||||
| Turnover | ||||||||||
| Consumer Care | 159.1 | 150.1 | 140.9 | |||||||
| Performance Technologies | 102.7 | 101.5 | 94.7 | |||||||
| Industrial Chemicals | 20.1 | 21.8 | 20.9 | |||||||
 |
|
|
||||||||
| 281.9 | 273.4 | 256.5 | ||||||||
| Profits | ||||||||||
| Consumer Care | 48.2 | 48.5 | 44.2 | |||||||
| Performance Technologies | 15.8 | 17.1 | 13.4 | |||||||
| Industrial Chemicals | 1.5 | 2.7 | 2.1 | |||||||
|
|
|
||||||||
| 65.5 | 68.3 | 59.7 | ||||||||
| Interest | (0.7) | (0.4) | (0.4) | |||||||
| 64.8 | 67.9 | 59.3 | ||||||||
| 2011 | 2011 | 2011 | 2011 | 2011 | ||||||
| Q1 | Q2 | Q3 | Q4 | Year | ||||||
| Turnover | ||||||||||
| Consumer Care | 145.7 | 146.5 | 144.8 | 135.1 | 572.1 | |||||
| Performance Technologies | 99.2 | 100.3 | 92.4 | 84.5 | 376.4 | |||||
| Industrial Chemicals | 22.6 | 23.5 | 18.0 | 23.6 | 87.7 | |||||
|
|
|
|
|
||||||
| 267.5 | 270.3 | 255.2 | 243.2 | 1,036.2 | ||||||
|
Profits |
||||||||||
| Consumer Care | 41.8 | 45.0 | 41.8 | 42.6 | 171.2 | |||||
| Performance Technologies | 14.6 | 14.2 | 13.7 | 12.8 | 55.3 | |||||
| Industrial Chemicals | 2.7 | 3.5 | 1.5 | 3.5 | 11.2 | |||||
|
|
|
|
|
||||||
| 59.1 | 62.7 | 57.0 | 58.9 | 237.7 | ||||||
| Interest | (0.2) | (0.3) | (0.2) | 0.5 | (0.2) | |||||
|
|
|
|
|
||||||
| 58.9 | 62.4 | 56.8 | 59.4 | 237.5 |
AGM Trading Statement - 26 April 2012
Strong start to 2012
Martin Flower, Chairman of Croda International Plc, is due to provide the following update on first quarter trading for the period ended 31 March 2012 at today’s Annual General Meeting:
"I am pleased to report that we achieved record Group results in the first three months of 2012, driven by our highest ever quarterly sales and profits in both Consumer Care and Performance Technologies.
Group sales from continuing operations increased 4.7% to £291.0m (2011: £277.9m). 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. Group operating profit from continuing operations was up 8.0% to £65.8m (2011: £60.9m).
Group pre-tax profit from continuing operations increased 7.2% to £65.1m (2011: £60.7m).
All business areas within Consumer Care saw very good growth, resulting in a sales uplift of 9.2% to £159.7m (2011: £146.3m) and a 13.7% increase in operating profit to £48.2m (2011: £42.4m). Return on sales was 30.2%.
Performance Technologies sales increased by 2.9% to £106.9m (2011: £103.9m), in line with expectations, and operating profit increased by 1.2% to £16.3m (2011: £16.1m). Return on sales was 15.2%. This was an encouraging result against very strong comparatives in the first quarter of 2011 when we experienced profit growth of 56.3%.
In Industrial Chemicals, which represents less than 2% of Group operating profit, sales fell by 11.9% to £24.4m (2011: £27.7m) due to slow demand in Europe. This led to a 45.8% fall in operating profit to £1.3m (2011: £2.4m).
Raw material costs have started to rise and we began to introduce price increases across a number of product areas from April.
Strong cash generation and a final receipt of £15.9m from the 2008 sale of our Chicago business reduced net debt by £45.2m to £185.9m (year end 2011: £231.1m).
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."
Unaudited income statement before tax and exceptional items31 March 2012
| £m | |||
| 3 months to 31 March 2012 |
3 months to 31 March 2012 |
Change | |
| Consumer Care | 159.7 | 146.3 | +9.2% |
| Performance Technologies | 106.9 | 103.9 | +2.9% |
| Industrial Chemicals | 24.4 | 27.7 | -11.9% |
|
|
|
|
| Revenues from continuing operations | 291.0 | 277.9 | +4.7% |
| Consumer Care | 48.2 | 42.4 | +13.7% |
| Performance Technologies | 16.3 | 16.1 | +1.2% |
| Industrial Chemicals | 1.3 | 2.4 | -45.8% |
|
|
|
|
| Operating profit from continuing operations | 65.8 | 60.9 | +8.0% |
| Net bank and loan interest payable | (1.9) | (2.0) | |
| Net retirement benefit scheme financing | 1.2 |
1.8 |
|
| Profit before tax from continuing operations | 65.1 | 60.7 | +7.2% |
| Operating margin | 22.6% | 21.9% | |
| Analysis of turnover uplift for continuing operations | |||
| Volume | -1.5% | ||
| Currency impact | -0.2% | ||
| Price/mix | +6.4% | ||
|
|||
| +4.7% | |||
|
Commenting on trading for the quarter ended 30 September 2011, Martin Flower, Chairman of Croda International Plc, said:
"I am pleased to report good turnover and profit progress in the third quarter, driven by sales growth and margin improvement in our core businesses.
For the three months ended 30 September 2011, Group sales from continuing operations increased 5.1% to £265.6m (2010: £252.6m). In most business areas we saw an improving trend during the quarter.
Operating profit from continuing operations increased 18.3% to £57.6m (2009: £48.7m). Interest costs fell, resulting in continuing pre-tax profit increasing 20.8% to £57.4m (2010: £47.5m). Year-to-date, the pre-tax profit from continuing operations is up 27.1% at £182.2m (2010: £143.4m).
Consumer Care continued to trade strongly in the third quarter, reporting a significant increase in sales (+13.6%) and operating profit (+30.8%) and improved margins versus the corresponding quarter in 2010. Sales and operating profits in all business areas within Consumer Care were well ahead of 2010.
Industrial Specialities turnover declined 3.5% against the tough comparatives of a particularly strong third quarter in 2010. The shortfall was in July, with sales in the rest of the period ahead of 2010. Operating profit was down 6.8% with a decrease in commodity and by-product profitability being partially mitigated by stronger performances elsewhere in the sector.
Net debt reduced by £15.5m to £237.8m in the quarter (2010: £240.7m) despite completing the £50m buyback programme in the period.
Croda continues to trade well and we expect to report further progress in the final quarter and into 2012."
£m
Q3
9 months
2011
2010
2011
2010
Consumer Care
145.6
128.2
+13.6%
439.2
392.6
+11.9%
Industrial Specialities
120.0
124.4
-3.5%
386.0
371.9
+3.8%
Continuing turnover
265.6
252.6
+5.1%
825.2
764.5
+7.9%
Consumer Care
42.5
32.5
+30.8%
130.5
103.6
+26.0%
Industrial Specialities
15.1
16.2
-6.8%
52.4
45.6
+14.9%
Continuing operating profit
57.6
48.7
+18.3%
182.9
149.2
+22.6%
Operating margin
21.6%
19.3%
22.2%
19.5%
Interest
(0.2)
(1.2)
(0.7)
(5.8)
Continuing pre tax profit
57.4
47.5
+20.8%
182.2
143.4
+27.1%
Analysis of Q3 turnover uplift
Price/mix
+18.4%
Volume
-14.8%
Currency translation
+1.5%
Continuing turnover increase
+5.1%
Martin Flower, Chairman of Croda International Plc, is due to provide the following update on first quarter trading for the period ended 31 March 2011 at today's Annual General Meeting:
"I am pleased to report a strong start to 2011 with record sales and profits in both Consumer Care and Industrial Specialities with robust demand continuing across all major geographies. Group sales increased 13.2% to £277.9m (2010: £245.5m) despite adverse currency translation of 2.4%. Overall volumes were slightly down as we continue to reposition our Industrial Specialities operations away from lower price/higher volume products towards more speciality business. Average prices rose during the quarter as we passed on significant raw material cost increases into the market. We have implemented further price increases where necessary in April.
Group pre-tax profit from continuing operations increased 40.2% to £60.7m (2010: £43.3m).
On a segmental basis, Consumer Care operating profit was up 22.2% to £42.4m (2010: £34.7m) with Personal Care, Health Care and Crop Care all seeing significant sales and profit growth.
Industrial Specialities again achieved extremely robust profit growth of 63.7% to £18.5m (2010: £11.3m) despite the volume decline described above and adverse currency movements. Net debt reduced by £5.3m since the year-end to £215.1m despite an unfavourable currency movement of £1.5m.
We are pleased with the performance to date and are confident of reporting further progress throughout 2011."
Unaudited income statement before tax and exceptional items
31 March 2011
| £m | |||
| 3 months to 31 March 2011 |
3 months to 31 March 2010 |
Change | |
| Consumer Care | 146.3 | 128.1 | +14.2% |
| Industrial Specialities | 131.6 | 117.4 | +12.1% |
|
|
||
| Revenues from continuing operations | 277.9 | 245.5 | +13.2% |
|
|
||
| Consumer Care | 42.4 | 34.7 | +22.2% |
| Industrial Specialities | 18.5 | 11.3 | +63.7% |
|
|
||
| Operating profit from continuing operations | 60.9 | 46.0 | +32.4% |
|
|
||
| Net bank and loan interest payable | (2.0) | (2.8) | |
| Net retirement benefit scheme financing |
1.8 |
0.1 | |
|
|
||
| Profit before tax from continuing operations | 60.7 | 43.3 | +40.2% |
|
|
||
| Operating margin | 21.9% | 18.7% | |
| Analysis of turnover uplift for continuing operations | |||
| Volume | -0.5% | ||
| Currency impact | -2.4% | ||
| Price/mix | +16.1% | ||
|
|||
| +13.2% | |||
Commenting on trading for the quarter ended 30 September 2010, Martin Flower, Chairman of Croda International Plc, said:
“I am pleased to report continued strong progress in the third quarter, driven by significant sales growth building on a robust 2009 performance.
For the three months ended 30 September 2010, Group sales from continuing operations increased 18.6% to £255.3m (2009: £215.2m). Sales volumes increased by 12.1% compared to 2009. More importantly the two year volume trend versus 2008 (which takes out most of the effect of the recession) is showing increasing momentum:
| 2010 v 2009 | 2009 v 2008 | 2 year growth | |
|---|---|---|---|
| Q1: | +30% | -28% | -6% |
| Q2: | +26% | -24% | -4% |
| Q3: | +12% | -6% | +5% |
Quarter three is normally a quieter trading period than either of the first two quarters. Operating profit from continuing operations increased 47.1% to £48.7m (2009: £33.1m). Interest costs fell, due to lower borrowings, resulting in continuing pre-tax profit increasing 56.8% to £47.5m (2009: £30.3m).
Year-to-date, the pre-tax profit from continuing operations is up 87.6% at £143.7m (2009: £76.6m).
In quarter three Consumer Care has continued to trade robustly with big increases in sales (+15.4%) and operating profit (+32.5%) and improved margins versus the corresponding quarter in 2009. All business areas were ahead of 2009 with Crop Care delivering a particularly strong performance.
In Industrial Specialities the third quarter trading improvement versus 2009 is more marked with sales and profits up 22.1% and 89.4% respectively. Again, all business areas were ahead of 2009 in both sales and profits.
The quarter also saw a significant reduction in net debt with a cash inflow of £32.2m before adverse currency translation of £3.2m, bringing the year-to-date figure to £47.4m with favourable currency translation taking the total net debt reduction to £47.8m for the nine months. At the end of September, net debt stood at £240.7m.
Croda continues to trade strongly and we expect to report further year on year progress in the final quarter of 2010 and into 2011.
| £m | Q3 | 9 months | ||||
| 2010 | 2009 | 2010 | 2009 | |||
| Consumer Care | 128.2 | 111.1 | 392.5 | 343.5 | ||
| Industrial Specialities | 127.1 | 104.1 | 379.9 | 280.1 | ||
| Continuing turnover | 255.3 | 215.2 | +18.6% | 772.4 | 623.6 | +23.9% |
| Consumer Care | 32.6 | 24.6 | 103.8 | 77.4 | ||
| Industrial Specialities | 16.1 | 8.5 | 45.7 | 9.4 | ||
| Continuing operating profit | 48.7 | 33.1 | +47.1% | 149.5 | 86.8 | +72.2% |
| Operating margin | 19.1% | 15.4% | 19.4% | 13.9% | ||
| Interest | (1.2) | (2.8) | (5.8) | (10.2) | ||
| Continuing pre tax profit | 47.5 | 30.3 | +56.8% | 143.7 | 76.6 | +87.6% |
| Analysis of Q3 turnover uplift | ||||||
| Price/mix | +4.4% | |||||
| Volume | +12.1% | |||||
| Currency translation | +2.1% | |||||
| Continuing turnover increase | +18.6% | |||||
Industrial Specialities turnover for 2009 and 2010 restated to include final adjustments relating to the discontinued Emmerich business.
Martin Flower, Chairman of Croda International Plc, is due to provide the following update on first quarter trading at today’s Annual General Meeting:
“At the time of our preliminary results in February we reported that the strong trading performance seen in the second half of 2009 had continued into 2010. We are now able to report record quarterly sales and profits in both Consumer Care and Industrial Specialities.
Group sales increased 14.7% to £264.7m (2009: £230.8m) despite adverse currency translation of 4.1%, with overall volumes increasing 26.0%.
Group pre-tax profit from continuing operations almost doubled to £42.4m (2009: £21.7m).
On a segmental basis, Consumer Care operating profit was up 20.6% to £34.6m (2009: £28.7m) despite challenging 2009 comparatives. Underlying sales increased strongly in both Personal Care and Health Care but Crop Care sales were down in line with the market. Overall sales increased to £130.0m, up 1.4% on last year’s figure of £128.2m, despite the adverse currency translation.
Industrial Specialities reversed last year’s £2.4m loss to record an operating profit of £10.5m with almost all areas seeing significant revenue and profit increases. Volumes increased dramatically and this is driving the 31% increase in revenues to £134.7m (2009: £102.6m).
As a consequence of the cash restructuring costs from the closures of both Bromborough and Wilton and adverse currency translation of £5.8m, net debt was little changed from the year end at £292.7m.
This is a very strong performance across the business and reflects both robust demand for our products globally and the benefits of the cost cutting activity we have undertaken since the acquisition of Uniqema. However, the buoyant trading conditions we have experienced have been seen across the chemical sector, suggesting an element of restocking. Furthermore, prior year comparatives do get tougher in the second half. We also expect to see raw material inflation begin to increase in many areas.
Notwithstanding the above, the robust trading has continued into quarter two and we remain confident of achieving significant progress throughout the remainder of 2010.”
Unaudited income statement before tax and exceptional items31 March 2010
| £m | |||||
| 3 months to 31 March 2010 |
3 months to 31 March 2009 |
Change | |||
| Consumer Care | 130.0 | 128.2 | +1.4% | ||
| Industrial Specialities | 134.7 | 102.6 | +31.3% | ||
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| Revenues from continuing operations | 264.7 | 230.8 | +14.7% | ||
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| Consumer Care | 34.6 | 28.7 | +20.6% | ||
| Industrial Specialities | 10.5 | (2.4) | n/a | ||
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| Operating profit from continuing operations | 45.1 | 26.3 | +71.5% | ||
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| Net bank and loan interest payable | (2.8) | (4.5) | |||
| Net retirement benefit scheme financing |
0.1 |
(0.1) | |||
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| Profit before tax from continuing operations | 42.4 | 21.7 | +95.4% | ||
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| Continuing operations operating margin | 17.0% | 11.4% | |||
| Analysis of turnover uplift for continuing operations | |||||
| Continuing operations sales volumes | +26.0% | ||||
| Currency impact | -4.1% | ||||
| Price/mix | -7.2% | ||||
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|||||
| +14.7% | |||||