Last checked at 28 Apr 2010 07:00
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: 01405 860551 |
| Sean Christie, Group Finance Director |
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| Charlie Armitstead, Financial Dynamics | Tel: 07703 330 269 |
The company will host a conference call for analysts at 8.00am (BST) today:
Dial-In: +44 (0)1452 542 303
Please quote "Croda International"to gain access to the call
| Croda International Plc | ||||
| Unaudited income statement before tax and exceptional items | ||||
| 31 March 2010 | ||||
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| 3 months to | 3 months to |
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| 31 March | 31 March |
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| 2010 | 2009 | Change |
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| Consumer Care | 130.0 | 128.2 | +1.4% |
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| 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% |
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| 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) |
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| 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% |
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| Analysis of turnover uplift for continuing operations | ||||
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| Continuing operations sales volumes |
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| +26.0% |
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| Currency impact |
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| -4.1% |
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| Price/mix |
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| -7.2% |
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| +14.7% |