Croda results show profits up on rising demand for consumer
Sales from continuing operations rose by 6.6 percent for the full year to £1.07bn ($1.69bn), compared to a figure of £1.02bn for 2010. This meant that pre-tax profits rose an impressive 25.9 percent to £242.2bn, compared to a figure of £192.3bn in 2010.
Sales for the fourth and final quarter were not quite as strong as the full year, growing by 2.4 percent to £243.2m, a figure that was primarily impacted by a fall in sales for the industrial specialities arm of the business.
Consumer Care sales boom
Breaking the figures down, the performance of the consumer care division, which houses the company’s widespread activities in the cosmetics and personal care area, was the shining light.
For the full year consumer sales were up 11.2 percent to £574.3m, while profits for the division from continuing operations rose by 27.0 percent to £173.4m.
For the fourth quarter consumer care sales rose by 9.1 percent to £135.1m, while operating profit for the division rose by 30.4 percent to £42.9m.
2012 gets off to a strong start
“This continued success is testimony to the effectiveness of our strategic focus on market led innovation in fast growing sectors and economies worldwide, and an unrivalled understanding of our customers,“ said Croda CEO Martin Flower.
Meanwhile, the company, which is headquartered in the UK, but also has a significant presence in the US market where the business is run from New Jersey, the company also pointed to the fact that its preliminary results for January of this year indicated that 2012 had got off to a strong start.
“Trading in January was encouraging and this positive trend has continued, despite the obvious economic uncertainties in Europe. While it is still early in the year and our visibility is limited, we expect 2012 to be another year of progress for Croda,” said Flower.
The company is also banking on the fact that its increasing exposure in the fast-growing Asian and Latin American markets will help to counterbalance the difficulties it forsees in the European market.