(Alliance News) - Croda International PLC on Tuesday recorded a "resilient" financial performance for 2020 and acquires French beauty industry ingredients supplier Alban Muller.
The speciality chemical company reported 2020 pretax profit of GBP269.5 million, a decrease from GBP302.3 million in 2019. This was reflected in steady month-on-month sales improvement in the second year-half in Covid-impacted sectors, it said.
2020 sales increased 0.9% to GBP1.39 billion from GBP1.38 billion the year prior, driven by growth in Health Care and Seed Enhancement. Life Sciences sector sales rose 15%, Industrial Chemicals sales were down 13% and Personal Care sales fell 1.8%.
As a result, Croda raised its annual dividend 1.1% to 91.0 pence from 90.0p in 2019.
Shares in Croda were up 1.2% at 6,380.00p in London on Tuesday.
Looking ahead, Croda said continued Covid-19 restrictions make the near-term outlook for its Consumer Care and Performance Technologies sectors difficult to predict. However, 2020 sales exit rates were "encouraging", with consumer and industrial end markets showing signs of recovery. Life Sciences sales are expected to remain strong in 2021.
"Whilst customer demand in certain end markets has inevitably been impacted by the pandemic, Croda's financial performance has been resilient. Our strong financial platform has allowed us to make further progress positioning the business to focus on the fast growth markets of the future, capitalising on emerging trends in existing and adjacent markets. We have made significant investments to accelerate delivery of our strategy, notably the acquisitions of Avanti and Iberchem, so that life science and consumer markets now represent over 80% of Croda's profit generation," said Chief Executive Steve Foots.
Additionally, Croda has acquired Alban Muller for EUR25 million, expanding its portfolio of sustainable active ingredients for customers in personal care markets.
The French natural and botanical ingredients supplier achieved EUR18 million revenue in its financial year ended June 30, 2020.
The transaction is expected to close by the end of the first quarter of 2021, subject to closing conditions.
"The acquisition of Alban Muller enhances Croda's position as a world leader in natural and botanical actives, helping us meet the increasing demand from customers looking for ingredients of natural origin to improve the sustainability profile of their products," said Foots.
By Zoe Wickens; zoewickens@alliancenews.com
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Croda International (CRDA)