26th Jul 2016 06:57
LONDON (Alliance News) - Specialty chemicals company Croda International PLC on Tuesday posted higher pretax profit and sales for the first half of 2016 and said it remains on track to meet its expectations for the full year.
Croda - which manufactures engine lubricants, plastics, and chemicals for the health and beauty industry - said pretax profit in the half to the end of June grew 7.0% year-on-year to GBP145.1 million from GBP135.6 million.
Revenue rose to GBP608.7 million from GBP564.5 million, benefiting from sterling weakness in the period. The firm's life Sciences unit had the strongest performance, with robust sales also delivered in its Personal Car and Performance Technologies arms, both of which benefited from currency effects.
Croda declared an interim dividend of 32.75 pence, up from 31.0p the year before.
"Despite subdued demand in the first half of 2016, we have delivered a strong bottom line performance, improving our operating margin through a richer product mix, whilst also increasing profit and the dividend," said Chief Executive Steve Foots.
"Although we remain cautious given the continued economic uncertainty, we expect to deliver further top and bottom line progress in the second half of 2016. The group is on track to deliver our expectations for the full year, in constant currency terms, while sterling weakness will benefit our reported results," Foots added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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