Interim Results

Croda International PLC
2 August 2001


                           Croda International Plc


Croda International Plc announces its interim results for the six months to 30
June 2001:


Highlights


                                                    2001        2000
Turnover from continuing operations              £159.5m     £154.4m       + 3%
Profit from continuing operations                 £18.3m      £18.0m       + 2%
Pre-tax profit (including exceptional credit)     £23.0m      £19.2m      + 20%
Earnings per share                                 10.3p        9.7p       + 6%
Dividends per share                                3.85p       3.75p     + 2.7%


*           Oleochemicals' sales up 4%

*           Pre-tax profit up 20%

*           Net cash inflow of £31m

*           Continued investment for growth

*           Interim dividend increased to 3.85p


Commenting on the results, Chairman, Keith Hopkins, said:


'The strength of our Oleochemicals' business in the first six months, against
an uncertain economic background, confirms our long held strategy of
concentrating on this sector which has shown such a good performance for more
than a decade.


We have many promising new product launches planned to maintain the excellent
margins we earn in this business and this will offset some of the pressure
caused by the current economic downturn.'


For further information, please contact:


Mike Humphrey, Chief Executive                       Tel:  [phone]

Barbara Richmond, Group Finance Director             Tel:  [phone]

Charles Armitstead, Financial Dynamics               Tel:  [phone]



Or visit our web site at:  www.croda.co.uk where the presentation given to
analysts will be available by midday today



                             Chairman's Statement

                         6 months ending 30 June 2001


Trading was more difficult in the second quarter of 2001 as activity in both
Europe and North America slowed.  Profit before tax and exceptional credit in
the first six months fell 4% to £18.5m (2000 £19.2m) though the resilience of
our Oleochemical business showed through as profit from continuing operations
rose to £18.3m compared to £18m last year.



Sales turnover from continuing operations was up 3% at £159m though overall
volumes were similar to last year.  Sales in Europe were a little lower but in
the Americas and Far East strong sales growth continued.



With a higher effective tax rate earnings per share before exceptional credit
were 9.1p (2000 9.7p).  The Board has declared an increased interim dividend
of 3.85p (2000 3.75p) payable to shareholders on 7 January 2002.



Trading


The key feature of the six months was a slowing of demand in Europe and North
America, particularly in the Industrial sector.  Demand for Personal Care and
Health Care products was more stable.



Oleochemicals saw sales up 4% in the first six months and profits similar to
last year while the remaining businesses saw sales turnover static and profits
down 23%.  Prices of our vegetable oil raw materials remained at a low level
though we suffered strong increases in both energy costs and some
petrochemical raw material prices.



In the Americas, sales were up 6% with a continuing strong performance in both
North and South America. A major investment programme at our plant in Mill
Hall, Pennsylvania is now well underway and should underpin our continued
growth in the Americas over the next few years.



Sales in the Far East rose by 12% as we continued to build up output from our
new plant in Singapore.  The business is now operating profitably and should
be the source of strong growth in years to come.  With a concentration on low
volume high-value specialities, our

operation in Japan turned in a record performance with good sales increases
both in the domestic market as well as in export markets in the USA and
Europe.



Sales in the UK and Europe were down slightly on last year which, given the
continued weakness of the Euro, was a reasonable performance.  Again the
concentration in these markets is on speciality products and we have withdrawn
from some more commodity areas. Our other operations had a difficult six
months with pressure on margins, and trading in the second quarter was
particularly weak.



Corporate Development



Earlier in the year we sold our Resins operations and our Automotive Paints
joint venture, Croda Herberts, and their results are included in discontinued
operations.  In Mexico we acquired our partner's share in our joint venture,
creating a wholly owned subsidiary in this growing market.



The strength of our Oleochemical business in the first six months against an
uncertain economic background confirms our long held strategy of concentrating
on this sector which has shown such a good performance for more than a decade.
  We still have a few small disposals to make and will continue to invest the
proceeds in our Oleochemical business.  Investment in R & D has kept the
pipeline of new products full and we see a particularly promising future for
our lipids related business over the next few years.



Finance



Capital expenditure in the first half of 2001 was £9.9m compared to £14.5m
last year.  Nearly all this expenditure was in our Oleochemicals sector and
the major spend was our North American plant redevelopment.  Our employment
trusts purchased a further 750,000 shares to cover share option liabilities
and now hold 5.4m shares which cover 78% of the potential liability.  With the
proceeds from the disposals and tight control on working capital, net debt
fell to £71.3m (2000 £130.9m) which gives a gearing of 37% and interest cover
of a very comfortable 6.8 times.  Goodwill of £0.2m (2000 £0.2m) was amortised
through the profit and loss account.  The exceptional credit of £4.5m to the
profit and loss account in the first half arose from the sale of our Resins
and Automotive Paints businesses and the disposal of a site in Luton.



The Board



In May we were pleased to welcome Mike Ward to the Board of Croda as a
non-executive director.  Mike is the Chief Executive of Gehe Plc, the UK's
leading pharmaceutical distributor.  As we announced earlier this year, I will
retire on 31 December 2001 and be succeeded as Chairman by Antony Beevor who
has been on the Board of Croda as a non-executive director since 1996.



Outlook



These are difficult times for manufacturing industry and the outlook for the
second half is more difficult than usual to predict given the uncertainty
about demand in the major economies of the world.  The carefully thought out
programme to bear down on our operational costs has continued to help us.



We have many promising new product launches planned which are so necessary to
maintain the excellent margins we earn in our oleochemical businesses and this
will offset some of the pressure caused by the current economic downturn.  For
the rest of this year given no further reduction in demand we would expect a
continuing resilient performance.



                           Croda International Plc
                Results for the six months ended 30 June 2001
                        Group profit and loss account


Unaudited £m   Continuing Discontinued         2001               2000     2000
               operations   operations   First half         First half     Year
                                              Total
                                                           
Turnover
Continuing operations         159.5      -     159.5        154.4         307.9
Discontinued operations           -    3.6       3.6         31.8          58.0
                              159.5    3.6     163.1        186.2         365.9

Operating profit


Continuing operations          21.4      -      21.4         22.3          44.1
Discontinued operations           -    0.3       0.3          1.3           2.8
                               21.4    0.3      21.7         23.6          46.9
Exceptional items               3.1    1.4       4.5            -          10.3
Net interest payable          (3.1)  (0.1)     (3.2)        (4.4)         (8.8)
Profit before taxation         21.4    1.6      23.0         19.2          48.4
UK taxation                                    (1.1)        (1.2)         (1.7)
Overseas taxation                              (5.4)        (5.2)        (11.2)
Tax on exceptional items                       (3.0)            -         (3.2)
Profit after taxation                           13.5         12.8          32.3


Minority interests and                       (0.1)        (0.1)           (0.2)

preference dividends
Profit attributable to                        13.4         12.7            32.1

ordinary Shareholders
Ordinary dividends                           (5.1)        (4.9)          (14.5)
Reserves transfer                              8.3          7.8            17.6



                                        pence per      pence per      pence per
                                            share          share          share

Earnings per share of 10p
Basic                                        10.3            9.7           24.4
Basic before exceptional items                9.1            9.7           19.0
Diluted                                      10.3            9.7           24.4
Diluted before exceptional
items                                         9.1            9.7           19.0


Ordinary dividends


Interim                                      3.85           3.75           3.75
Final                                                                      7.25



Note

Net interest payable includes charges of £0.1m and £0.3m for the six months
ended 30 June 2000 and the year ended 31 December 2000 respectively arising in
a discontinued associated operation.



                 Segmental analysis of continuing operations


Unaudited £m                                    2001          2000         2000
                                          First half    First half         Year


Turnover
Oleochemicals                                 134.2         128.9         256.4
Other                                          25.3          25.5          51.5
                                              159.5         154.4         307.9
Trading profit
Oleochemicals                                  21.6          21.7          43.4
Other                                           2.0           2.6           4.7
                                               23.6          24.3          48.1
Central costs                                 (2.2)         (2.0)         (4.0)
Operating profit                               21.4          22.3          44.1


Turnover by geographical

destination
United Kingdom                                 32.2          32.4          64.4
Rest of Europe                                 43.2          44.0          82.9
Americas                                       50.2          47.2          97.5
Asia                                           19.3          17.2          36.1
Rest of World                                  14.6          13.6          27.0
                                              159.5         154.4         307.9



                             Summarised Cash Flow


                                                   2001        2000        2000
Unaudited £m                                 First half  First half        Year



Operating profit                                  21.7        23.6        46.9
Depreciation and amortisation                      7.8         7.4        15.3
Working capital movement                           0.3       (9.1)      (11.8)
Other                                            (3.4)       (2.1)       (5.6)
Operating cash flow                               26.4        19.8        44.8
Interest                                         (3.1)       (4.3)       (8.6)
Dividends                                        (4.9)       (4.9)      (14.2)
Taxation                                         (2.5)       (6.8)      (13.8)
Fixed assets purchased                           (9.9)      (14.5)      (29.2)
Net purchase of own shares                       (1.5)       (1.8)       (1.8)
Acquisitions                                     (1.4)           -           -
Disposals                                         29.0           -        41.4
Other                                            (1.3)         1.2         1.7
Movement in net debt from cash flows              30.8      (11.3)        20.3
New finance lease contracts                      (0.1)           -       (0.4)
Exchange differences                             (2.2)       (2.7)       (2.8)
Movement in net debt in the period                28.5      (14.0)        17.1




                           Summarised balance sheet


                                        At 30 June    At 30 June          At 31
Unaudited £m                                  2001          2000       Dec 2000


Fixed assets                                191.4          204.6          196.9
Stock                                        64.7           70.8           68.7
Debtors                                     103.1          116.6          105.8
Creditors and provisions                   (97.1)         (97.1)         (91.3)
                                            262.1          294.9          280.1

Shareholders' funds                         189.8          162.3          178.6
Minority interests                            1.0            1.7            1.7
                                            190.8          164.0          180.3
Net debt                                     71.3          130.9           99.8
                                            262.1          294.9          280.1



Movement in shareholders' funds


                                 2001                  2000           2000 Year
Unaudited £m               First half            First half


Profit attributable to                          13.4         12.7          32.1

ordinary shareholders
Ordinary dividends                             (5.1)        (4.9)        (14.5)
Goodwill written back                            4.3            -           7.9
Currency translation
differences                                    (1.4)          1.1         (0.3)
Net movement in

shareholders' funds                             11.2          8.9          25.2
Opening shareholders'
funds                                          178.6        153.4         153.4
Closing shareholders' funds                    189.8        162.3         178.6



Note


There were no recognised gains or losses other than those detailed above.



Exceptional Items


Unaudited £m                                2001         2000         2000
                                      First half   First half         Year


Profit on disposal of 
 discontinued operations
Profit on disposal                          5.7            -         18.2
Goodwill written back                      (4.3)           -         (7.9)
                                            1.4            -         10.3
Profit on disposal of fixed 
 assets in continuing operations            3.1         
                                            4.5            -         10.3



Notes to interim statement:


1.   The interim dividend of 3.85p will be paid on 7 January 2002 to 
     shareholders registered on 7 December 2001.


2.   The interim financial information has been prepared on the basis of the 
     accounting policies set out in the Group's 2000 statutory accounts.


3.   The financial information for the year ended 31 December 2000 is abridged. 

     Full accounts for that year, on which the Auditors of the Company made an 
     unqualified report, have been delivered to the Registrar of Companies.


4.   This statement has been sent to all shareholders and can be obtained by the

     public from the Company's registered office, Cowick Hall, Snaith, Goole, 
     East Yorkshire DN14 9AA.