Strong sales growth continues in Q1 at Croda

High-performance ingredients and technology speciality chemicals company Croda International updated the market on its trading during the first quarter to 31 March on Wednesday, reporting that the improving sales trend seen in the fourth quarter of 2016 hax continued.

The FTSE 100 firm said constant currency sales increased by 4.9%, driven by strong organic growth.

Reported currency sales increased by 19.1% to £365.5m, reflecting sterling's continued weakness, and the board said the later timing of Easter was estimated to have benefited sales by approximately 1.5%.

Constant currency sales across the company’s three core business sectors rose by 5.3%.

The board said Personal Care delivered an “encouraging” return to sales growth, Life Sciences grew excluding APIs and Performance Technologies produced an exceptionally strong performance.

Innovation continued to drive growth of New and Protected Products, with Croda’s Open Innovation programme increasing to nearly 300 partners and new external funding secured alongside the company’s own investment, the board explained.

Return on sales in the core business was strong and stable, it added, with profit growing in line with the board's expectations.

“As set out at our full year results in February, our priorities for 2017 are to drive profitability through a greater focus on premium, faster growth niches; improve performance in less differentiated markets; and progress towards our return on sales targets in Performance Technologies and Incotec,” the board said.

“We are encouraged by the group's performance in the first quarter and, whilst we expect the exceptional sales growth seen in Performance Technologies to moderate, we remain on track to deliver continued profitable progress through 2017.”