Croda posts small rise in interim profit, lifts dividend

Speciality chemical company Croda posted a small rise in reported half-year profit on Wednesday as sales dipped on the back of a stronger pound.

In the six months to the end of June, pre-tax profit edged up 1.7% to £170.8m as sales slipped 0.6% to £702.8m, after an adverse 4.6% impact from currency translation.

On an adjusted basis, however, pre-tax profit was up 7.7% to a record £175m, and the company lifted its interim dividend by 8.6% to 38p per share.

The group said it saw "excellent" sales growth in the personal care division of 9.3% at constant currency, while operating profit was 6.1% higher. In the life sciences business, sales were up 2.3% while operating profit was 1.8% firmer, at constant currency. In performance technologies, meanwhile, operating profit grew 15.2% and sales were 1.7% higher.

Chief executive Steve Foots said: "This is a strong first half performance. We are delivering our strategy of 'Growing the Core', driving top line organic growth at industry leading margins to achieve superior returns. Alongside this, we are 'Stretching the Growth', accelerating delivery across our markets by investing in disruptive technologies and exciting new growth opportunities.

"We have encouraging momentum in our consumer businesses and performance technologies has delivered double digit percentage profit growth for the third successive year, strong progress that is supported by improving cash generation, underpinning confidence for the full year."