22nd Apr 2015 07:11
LONDON (Alliance News) - Specialty chemicals company Croda International PLC on Wednesday said 2015 has started in line with its expectations and said it expects growth to continue through the year on the back of strong performances in its Personal Care and Life Sciences businesses.
Croda said its revenue in the first quarter was GBP284.9 million, compared to GBP274 million a year earlier, with the 4% growth the same in reported and constant currencies, as currency translation had no impact on its results due to a stronger US dollar offsetting a weaker euro against sterling.
Personal Care sales were up 1.8% in the quarter, boosted by new contracts wins and robust sales of Croda's New and Protected Products range. Sustainable palm oil derivatives sales also rose in the quarter, and the group said its growth in the Latin American and Asian markets, while conditions in its Western Europe markets stabilised.
Life Sciences sales grew 16% in the quarter year-on-year, with a strong growth in its Health Care segment, driven by higher-than-anticipated sales of pharmaceutical grade Omega-3 and NPP sales in high-purity excipients. Crop care sales were broadly flat in the quarter, but fungicide sales in North America remain weak owing to lower corn prices.
Growth in its Performance Technologies division slowed to 0.4% in the quarter, primarily due to weaker demand for lubricants in Europe, particularly from destocking in the marine industry and issues for its Geo Technologies business driven by market conditions in the oil and gas industry. Polymer additives sales were strong, however, boosted by new product launches.
Industrial Chemicals revenue grew 2% in the quarter, having fall in a year earlier by 0.9%, on the back of generally stronger demand.
"We have made an encouraging start to the year, with sales growing across all our core sectors. This has been supported by increased innovation and investment.We expect to continue to deliver profitable growth through 2015," said Croda Chairman Martin Flower.
Shares in Croda opened up 2.4% to 2,975.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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