Croda International (LON:CRDA) have given shareholders a steady set of annual results, which have been released on Tuesday morning.
The FTSE 100 listed firm said that profits had dipped across 2019, and this was largely due to flat sales.
Steve Foots, Chief Executive Officer commented:
“In 2019, we delivered a resilient performance with a strong margin maintained and increased cash flow, despite subdued market conditions. This is testament to Croda’s focused strategy and strong business model.”
Despite the dip in profits and stagnating sales, Croda managed to lift their dividend payout – which will come as a pleasing note for shareholders.
The chemicals company recorded pretax profit of £302.3 million, which dipped 4.9% on the £317.9 million figure recorded in 2018.
In terms of revenue, which also slipped slightly the 2019 figure was £1.38 billion seeing a minute drop from £1.39 billion one year ago.
On a better note, the multinational declared a total ordinary dividend of 90p across 2019, seeing a 3.4% jump from 87p in 2018.
The Life Sciences Unit for Croda performed particularly strongly, as the firm saw sales rise 8% year on year to £350.2 million.
However, the Performance Technologies division saw a slump of 5.7% in sales to £430.2 million.
Foots concluded: “An excellent performance in Life Sciences was reflected in sales growth and margin improvement. Sales in Personal Care were significantly impacted by a slower US market and by new legislation in China, but conditions improved in line with our expectations in the final quarter, and sector profitability increased further. Performance Technologies slowed in line with the wider sector, due to weak industrial demand.
“In the year ahead, subject to trading conditions remaining similar, we expect to make further progress in our consumer markets, whilst demand in industrial markets is expected to remain weak but stable. Our growth will be second half weighted.
“With our new Purpose, Smart Science to Improve LivesTM, we will continue to increase the positive impact our products deliver for our customers and their consumers. We will also reduce the negative impact our activities have on our fragile world. The combination of a healthy innovation pipeline, recent investments, cost saving benefits and a robust business model is expected to underpin performance.”
Going forward the firm said that they remained confident to deliver expectations across 2020, and that progress will be made subject to steady trading conditions.
“In 2019, we delivered a resilient performance with a strong margin maintained and increased cash flow, despite subdued market conditions. This is testament to Croda’s focused strategy and strong business model.
In the year ahead, subject to trading conditions remaining similar, we expect to make further progress in our consumer markets, whilst demand in industrial markets is expected to remain weak but stable. Growth will be second half weighted.
With our new Purpose, Smart Science to Improve LivesTM, we will continue to increase the positive impact our products deliver for our customers and their consumers.
We will also reduce the negative impact our activities have on our fragile world. The combination of a healthy innovation pipeline, recent investments, cost saving benefits and a robust business model is expected to underpin performance.”
Shares in Croda International trade at 4,764p (-3.17%). 25/2/20 9:54BST.
