Information  X 
Enter a valid email address

Croda International (CRDA)

  Print      Mail a friend

Wednesday 30 April, 2008

Croda International

AGM and trading statement

Croda International PLC
30 April 2008

30 April 2008


                            Croda International Plc

                             AGM trading statement

Martin Flower, Chairman of Croda International Plc, is due to make the following
statement at today's Annual General Meeting:

'I am pleased to report that the exceptionally strong trading momentum seen in
the second half of 2007 was sustained throughout the first quarter as we
continued to experience robust demand for our products around the world.

For the 3 months ended 31 March 2008, continuing turnover increased to £265.3m,
up 16.4% from £227.9m in the same period last year. Continuing pre-tax profit
was up 84.8% to £27.9m compared to £15.1m in the first quarter of 2007. Our exit
from low margin commodity business reduced volumes but we made further progress
in sales, margins and profits in both our Consumer Care and Industrial
Specialities divisions.

During the quarter we increased our average selling prices by 16.5% over the
same period last year as we continue to fully recover input cost inflation. The
integration of Uniqema is going well and we remain on track to deliver synergies
of at least £30m per annum by the end of 2008.

Our robust underlying performance was further enhanced by the significant
increase in glycerine prices, which have more than doubled from the same period
last year, contributing an additional £4.5 million to Group profits. However, it
is likely that glycerine prices will weaken during the rest of the year. In
addition, the strong euro meant that we had favourable currency translation
overall during the first quarter.

Continuing our strategy to focus on core businesses, we sold our 46.5% interest
in Baxenden Chemicals for a total cash consideration of £13m on 29 February
2008. Assisted by our strong trading performance, this disposal helped to reduce
net debt from £366.0m at the year end to £356.8m by the end of the first
quarter.

This year we are moving to more detailed quarterly reporting in line with best
practice. A breakdown of the results for the first quarter, including sales
analysis, divisional sales and profit trends together with a quarterly split of
last year's results, is attached to this statement.

Overall, the outlook for 2008 remains favourable and the Board continues to be 
confident of delivering further progress in line with its current expectations 
for the full year.

Finally, Croda will be announcing its interim results on 29 July 2008.'

For further information, please contact:

Mike Humphrey, Group Chief Executive                         Tel:   01405 860551
Sean Christie, Group Finance Director

Charlie Armitstead, Financial Dynamics                       Tel:   020 7269 7275


The company will host a conference call for analysts at 8.00am today:
Dial-In: +44 (0) 1452 542 303
Please quote 44 66 80 70 to gain access to the call



Croda International Plc
Unaudited income statement before exceptional items
31 March 2008
£m
                                                                           3 months to      3 months to
                                                                              31 March         31 March
                                                                                  2008             2007       Change

          Consumer Care                                                          112.5             99.8
          Industrial Specialities                                                152.8            128.1
          Revenues from continuing operations                                    265.3            227.9        16.4%

          Consumer Care                                                           23.7             18.5
          Industrial Specialities                                                  8.4              2.3
          Operating profit from continuing operations                             32.1             20.8        54.3%

          Continuing operations operating margin                                 12.1%             9.1%

          Net bank and loan interest payable                                     (5.8)            (6.9)
          Net retirement benefit scheme interest receivable                        1.6              1.2

          Profit before tax from continuing operations                            27.9             15.1        84.8%

          Profit after tax from discontinued operations                            0.3              1.6

Analysis of turnover uplift

          Continuing operations sales volumes                                                                  -5.6%
          Currency impact                                                                                       5.5%
          Price/mix                                                                                            16.5%
                                                                                                               16.4%


2007 trading by Quarter
                                                                           Q1         Q2        Q3        Q4        Year
   Consumer Care                                                         99.8       93.4      95.6      86.2       375.0
   Industrial Specialities                                              128.1      119.8     122.7     140.5       511.1
   Revenues from continuing operations                                  227.9      213.2     218.3     226.7       886.1

   Consumer Care                                                         18.5       18.5      18.3      19.6        74.9
   Industrial Specialities                                                2.3        2.3       2.3       5.8        12.7
   Operating profit from continuing operations                           20.8       20.8      20.6      25.4        87.6

   Interest                                                             (5.7)      (5.8)     (5.9)     (4.8)      (22.2)

   Profit before tax from continuing operations                          15.1       15.0      14.7      20.6       65.4

   Profit after tax from discontinued operations                          1.6        2.2       2.0       1.2         7.0




                      This information is provided by RNS
            The company news service from the London Stock Exchange