Q1 2010 Trading Statement

RNS Number : 9062K

Croda International PLC

28 April 2010

 



28 April 2010

Croda International Plc

First quarter trading statement

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."

For further information, please contact:

Mike Humphrey, Group Chief Executive	Tel:   [phone]
Sean Christie, Group Finance Director
Charlie Armitstead, Financial Dynamics	Tel:   [phone]

The company will host a conference call for analysts at 8.00am (BST) today:

Dial-In: [phone]

Please quote "Croda International"to gain access to the call

Croda International Plc
Unaudited income statement before tax and exceptional items
31 March 2010
£m
		3 months to	3 months to
		31 March	31 March
		2010	2009	Change
	Consumer Care	130.0	128.2	+1.4%
	Industrial Specialities	134.7	102.6	+31.3%
	Revenues from continuing operations	264.7	230.8	+14.7%
	Consumer Care	34.6	28.7	+20.6%
	Industrial Specialities	10.5	(2.4)	n/a
	Operating profit from continuing operations	45.1	26.3	+71.5%
	Net bank and loan interest payable	(2.8)	(4.5)
	Net retirement benefit scheme financing	0.1	(0.1)
	Profit before tax from continuing operations	42.4	21.7	+95.4%
	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%
				+14.7%

 

END

 

 

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