Croda International H1 profit up, on track for full year

Croda International posted a 7% rise in pre-tax profit for the half year ended 30 June as sales grew and the company said it was on track to meet full-year expectations.

Pre-tax profit came in at £145.1m from £135.6m in the same period last year, on sales of £608.7m, up from £564.6m.

The company declared an interim dividend per share of 32.75p, up from 31p.

Chief executive Steve Foots said: "Despite subdued demand in the first half of 2016, we have delivered a strong bottom line performance, improving our operating margin through a richer product mix, whilst also increasing profit and the dividend. Our strategy is driving more protected innovation, closer customer intimacy and a greater focus on key technologies for future growth.

"Although we remain cautious given the continued economic uncertainty, we expect to deliver further top and bottom line progress in the second half of 2016. The group is on track to deliver our expectations for the full year, in constant currency terms, while sterling weakness will benefit our reported results."

As far as Brexit is concerned, Croda pointed out that with over 95% of sales and 80% of production outside of the UK, it is “a truly international” group.

Although it remains cautious given the continued economic uncertainty, it expects to deliver further top and bottom line progress in the second half of 2016.

At 0826 BST, Croda shares were down 0.2% to 3,319p.