Croda pre-tax profits slip amid weak performance in personal care unit

Speciality chemical company Croda said full-year adjusted pre-tax profits had slipped in 2020 due to a weak performance in its core personal care unit.

Croda said adjusted pre-tax profits had dropped 6.7% to £300.6m, with 2.2% sales growth in the group's core business unit being partially offset by a narrowing in its return on sales from 24.7% to 23.0%.

Profits from Croda's life sciences unit rose 20.8%, while its personal care and performance technologies division registered declines of 16% and 22.2%, respectively.

"While continued Covid-19 restrictions make the near-term outlook for elements of our consumer care and performance technologies sectors difficult to predict, 2020 sales exit rates were encouraging with consumer and industrial end markets showing signs of recovery," said Croda.

Croda anticipates that its deal to supply additives for Pfizer's Covid-19 vaccine will help support future growth in its life sciences business.

Elsewhere, Croda has agreed to acquire the worldwide business activities of Alban Muller for a total consideration of €25.0m.

As of 0910 GMT, Croda shares were up 0.29% at 6,322.0p.