5th Nov 2015 08:16
LONDON (Alliance News) - Specialty chemicals company Croda International PLC said its sales rose in the third quarter, despite a slowdown in growth in the period, and said it remains on track to meet its full-year expectations despite anticipating a currency hit to its sales and profit numbers.
Croda, which makes surfactants used in ingredients for cosmetic creams and lotions and for dietary supplements such as Omega-3 oils, along with lubricants and polymer-based products, said its sales for the third quarter to the end of September rose 1.4% to GBP262.5 million, a slowdown on its first half growth and leaving nine-month sales up 3.9% to GBP827.1 million. The results have been hit by the weak euro offsetting the stronger dollar and constant currency sales growth was higher.
Personal Care sales rose 1.6% in the quarter, with good skin actives sales, though the group saw big slowdown in sales in Latin America, where consumer spending has been hit hard by deteriorating macroeconomic conditions. Life sciences sales in the quarter rose 8.1%, with double-digit growth in its health care business somewhat offset by more challenging markets for its crop care products.
Performance Technologies sales were down 2.8% due to lower coatings and polymers demand and market uncertainty, particularly in Europe, though its lubricants and polymer additives sales held up well. Industrial chemicals sales rose 1.8%, with improved pricing also helping margins in the division.
Despite some caution entering its markets, Croda said it remains confident on meeting expectations for the full year, despite an anticipated hit to its sales and profit for the full year from currency translation effects.
Croda shares were down 4.1% to 2,752.00 pence early Thursday, one of the worst performers in the FTSE 250.
By Sam Unsted; [email protected]; @SamUAtAlliance
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