Q3 Trading Statement

RNS Number : 1272V

Croda International PLC

28 October 2010

 



28 October 2010

Croda International Plc

Third Quarter Trading Statement

Commenting on trading for the quarter ended 30 September 2010, Martin Flower, Chairman of Croda International Plc, said:

"I am pleased to report continued strong progress in the third quarter, driven by significant sales growth building on a robust 2009 performance.

For the three months ended 30 September 2010, Group sales from continuing operations increased 18.6% to £255.3m (2009: £215.2m). Sales volumes increased by 12.1% compared to 2009. More importantly the two year volume trend versus 2008 (which takes out most of the effect of the recession) is showing increasing momentum:

	2010 v 2009	2009 v 2008	2 year growth
Q1:	+30%	-28%	-6%
Q2:	+26%	-24%	-4%
Q3:	+12%	-6%	+5%

Quarter three is normally a quieter trading period than either of the first two quarters. Operating profit from continuing operations increased 47.1% to £48.7m (2009: £33.1m). Interest costs fell, due to lower borrowings, resulting in continuing pre-tax profit increasing 56.8% to £47.5m (2009: £30.3m).

Year-to-date, the pre-tax profit from continuing operations is up 87.6% at £143.7m (2009: £76.6m).

In quarter three Consumer Care has continued to trade robustly with big increases in sales (+15.4%) and operating profit (+32.5%) and improved margins versus the corresponding quarter in 2009. All business areas were ahead of 2009 with Crop Care delivering a particularly strong performance.

In Industrial Specialities the third quarter trading improvement versus 2009 is more marked with sales and profits up 22.1% and 89.4% respectively. Again, all business areas were ahead of 2009 in both sales and profits.

The quarter also saw a significant reduction in net debt with a cash inflow of £32.2m before adverse currency translation of £3.2m, bringing the year-to-date figure to £47.4m with favourable currency translation taking the total net debt reduction to £47.8m for the nine months. At the end of September, net debt stood at £240.7m.

Croda continues to trade strongly and we expect to report further year on year progress in the final quarter of 2010 and into 2011."

For further information please contact:

Mike Humphrey	Group Chief Executive	01405 860551
Sean Christie	Group Finance Director	01405 860551
Charlie Armitstead	Financial Dynamics	020 7269 7176

The company will host a conference call for analysts at 8.00am today.

Please dial [phone] and quote "Croda International" to gain access to the call.

£m		Q3			9 months
	2010	2009		2010	2009
Consumer Care	128.2	111.1		392.5	343.5
Industrial Specialities	127.1	104.1		379.9	280.1
Continuing turnover	255.3	215.2	+18.6%	772.4	623.6	+23.9%
Consumer Care	32.6	24.6		103.8	77.4
Industrial Specialities	16.1	8.5		45.7	9.4
Continuing operating profit	48.7	33.1	+47.1%	149.5	86.8	+72.2%
Operating margin	19.1%	15.4%		19.4%	13.9%
Interest	(1.2)	(2.8)		(5.8)	(10.2)
Continuing pre tax profit	47.5	30.3	+56.8%	143.7	76.6	+87.6%

Analysis of Q3 turnover uplift
Price/mix	+4.4%
Volume	+12.1%
Currency translation	+2.1%
Continuing turnover increase	+18.6%

Industrial Specialities turnover for 2009 and 2010 restated to include final adjustments relating to the discontinued Emmerich business.

 

END

 

 

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