7th Nov 2014 07:43
LONDON (Alliance News) - Croda International PLC on Friday said its pretax profit and revenue in the third quarter was hit hard by the strength of sterling, despite a rise in underlying sales for the business.
The FTSE 250-listed specialty chemicals company said its pretax profit for the period was broadly flat on a constant currency basis, but was down to GBP55.1 million from GBP58.7 million on a reported basis. Operating profit was hit by currency translation to the tune of GBP3.5 million, with an estimated GBP2 million currency transaction cost in the quarter pushing operating profit down 6.4% to GBP58.1 million from GBP62.1 million last year.
Group sales rose 4% in the period, on the back of solid performances in its Consumer Care and Performance Technologies arms. But reported revenue in the period was down 3.3% to GBP259 million, from GBP267.9 million last year, as currency translation caused a 7.3% impact to its sales figures.
"This is an encouraging performance given the improved underlying sales trends across our eight core markets. Whilst market conditions are challenging and the fourth quarter is always the smallest in terms of sales, we remain confident that Croda will continue to make further progress," said Croda Chairman Martin Flower.
By Sam Unsted; [email protected]; @SamUAtAlliance
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