Croda witnesses 'accelerating growth' in consumer care wing

Chemicals company Croda will host a seminar on Tuesday for both investors and analysts on accelerating growth in its consumer care sector.

Croda said the event will focus on how consumer care had "evolved significantly in recent years" to become a highly differentiated sector for the firm, comprising four business units, each with leading market positions in fast growth niches.

The FTSE 100-listed firm stated consumer care sales were targeted to reach £1.0bn by 2025, up from £763.0m in 2021, while in the coming years, Croda expects the unit to deliver a minimum of 5% annual sales growth, with synergies from recent acquisitions being in addition to this.

"In 2022, there is likely to be an additional benefit to sales from the successful recovery of cost inflation. Return on sales is expected to improve over the medium term, from 24.7% in 2021, principally through improved business mix and innovation," said Croda.

Chief executive Steve Foots also said trading in the first three months of 2022 had been "robust", including a "strong start" for the consumer care division, and added that the company was continuing to "successfully recover" input cost inflation.

As of 0840 BST, Croda shares were up 2.37% at 7,702.0p.