23rd Apr 2020 09:13
(Alliance News) - Croda International PLC on Thursday confirmed it will proceed with its planned final payout and added that demand has "remained solid" despite the Covid-19 pandemic.
The Yorkshire-based speciality chemicals company said business sales and profitability were "broadly in line with the board's expectations and the prior year" during the three months to March 31, its first quarter.
"Asia was adversely impacted by the earlier shutdown in China but, encouragingly, North Asia delivered broadly flat sales across the quarter. North America returned to sales growth in the quarter whilst Latin America was below a strong comparator. Europe saw some demand weakness in Personal Care and Performance Technologies but good growth in Life Sciences," Croda said.
"As the second quarter commences, whilst conditions in some markets are more variable than usual, the value of our customer order book remains solid and in line with normal circumstances. However, visibility is limited and there is uncertainty as to how the Covid-19 crisis will affect future sales."
Croda said its financial position is "strong", leaving it well-placed to "absorb an extended period of uncertainty".
"The group has a strong balance sheet, having completed its debt refinancing in 2019, with no material debt maturities falling due before 2023," Croda said.
At March 31, Croda had committed funding of GBP1.08 billion in place.
The company added: "Croda has operated for many years with a prudent leverage and dividend distribution policy. After careful consideration of the position of all stakeholders and treating all groups consistently and fairly, the board has decided to pay the final 2019 ordinary dividend of 50.5 pence per share,"
Shares in the company were 0.4% lower at 4,743.00p each in London on Thursday morning.
By Eric Cunha; [email protected]
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