28 October 2010
Croda International Plc
Third Quarter Trading Statement
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."
For further information please contact:
Mike Humphrey |
Group Chief Executive |
01405 860551 |
Sean Christie |
Group Finance Director |
01405 860551 |
Charlie Armitstead |
Financial Dynamics |
020 7269 7176 |
The company will host a conference call for analysts at 8.00am today.
Please dial +44 (0)1452 542 303 and quote "Croda International" to gain access to the call.
£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.