Croda H1 profits surge amid sales growth, margin expansion

Chemicals company Croda International said on Friday that profits had surged in the six months ended 30 June, driven by improved interim sales and margins.

Croda said interim pre-tax profits were up 211% at £636.5m, operating profits were 32.1% higher at £288.6m, and basic earnings per share had grown 254% to 389.6p, driven by a 20.7% increase in revenues to £1.12bn.

The FTSE 100-listed group said margins expanded from 24.6% to 26.6% in its consumer care division, while margins grew just under 3% in its performance technologies wing but slipped more than three percentage points in its life sciences unit, coming in at 18.3% and 36.0%, respectively.

Croda added that it now expects full-year adjusted pre-tax profits to be "modestly ahead" of previous expectations, with growth in the second half projected to moderate in consumer markets, together with lower sales in lipid systems on reduced Covid vaccine demand.

"The improved full-year outlook reflects the enhanced strength and breadth of Croda's portfolio, including a more resilient consumer care growth platform, strong ongoing demand in crop care, albeit against a tougher second half comparator, and healthcare enjoying good growth overall. Growth beyond 2022 is further supported by a strong innovation pipeline, notably in non-Covid healthcare applications, and our targeted capital investment programme," said Croda.

As of 0810 BST, Croda shares were up 0.64% at 7,184.0p.

Reporting by Iain Gilbert at Sharecast.com