Croda reports record FY results, hikes dividend 10%

Speciality chemicals company Croda reported a "record" full-year performance in terms of sales and profits on Tuesday and lifted its dividend as it said all of its business traded ahead of pre-pandemic levels.

In the year to the end of December 2021, adjusted pre-tax profit rose 48% to £445.2m on revenue of £1.9bn, up 36% on the previous year. Meanwhile, the full-year dividend was upped by 10% to 100p a share.

Croda said it delivered a stronger performance from its Consumer Care division, with total sales up 45% and underlying sales 18% higher. The Life Science segment was the standout performer, however, with total sales up 46% and underlying sales excluding lipid systems up 18%.

Croda said all businesses traded ahead of pre-pandemic levels, with underlying sales up 26% on 2020 and 18% ahead of 2019.

Chief executive officer Steve Foots said 2021 had been an "outstanding" year for the group, with record financial results and "excellent" strategic progress.

"All parts of the business have delivered underlying growth, ahead of 2019 pre-pandemic levels, with strong cost recovery in a high inflation environment," he said. "Our Health Care business delivered an exceptional performance as a result of the work we have done to support the global roll out of Covid-19 mRNA vaccines and therapeutic drugs, and a rapidly building pipeline of non-Covid applications. This progress has been supported by further organic and inorganic investment to increase innovation and strengthen our platform for future growth."

Croda struck an upbeat note on the outlook, saying that growth is expected to continue in 2022 in line with its medium-term expectations. "This should be supported by robust consumer demand, inflation cost recovery and the benefit of our recent investments more than offsetting moderation in customer restocking," it said.

Lipid systems sales are expected to be at a similar level to 2021 and with an increasing proportion of group sales coming from higher value add solutions, profit margins in Consumer Care and Life Sciences are expected to remain strong, it added.