Last checked at 28 Oct 2010 07:00
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.