25th Feb 2020 08:04
(Alliance News) - Croda International PLC on Tuesday reported a dip in profit for 2019, on flat sales, but was able to up its dividend payout.
In 2019, the Yorkshire-based speciality chemicals company recorded pretax profit of GBP302.3 million, down 4.9% on the GBP317.9 million seen in 2018.
Revenue was marginally lower year-on-year at GBP1.38 billion from GBP1.39 billion the year before.
Croda declared a total ordinary dividend of 90.00 pence in 2019, up 3.4% in the 87.00p distributed in 2018. The company declared a 115p special dividend in 2018.
"In 2019, we delivered a resilient performance with a strong margin maintained and increased cash flow, despite subdued market conditions. This is testament to Croda's focused strategy and strong business model," Chief Executive Steve Foots said.
Croda's Life Sciences unit saw sales rise 8.0% year on year to GBP350.2 million, but this was partially offset by a 5.7% slip in Performance Technologies sales to GBP430.2 million. Personal Care sales were flat at GBP485.2 million.
Foots continued: "An excellent performance in Life Sciences was reflected in sales growth and margin improvement. Sales in Personal Care were significantly impacted by a slower US market and by new legislation in China, but conditions improved in line with our expectations in the final quarter, and sector profitability increased further. Performance Technologies slowed in line with the wider sector, due to weak industrial demand."
Looking towards 2020, Croda expects its future performance to be underpinned by its "healthy" innovation pipeline. The company also noted the new capacity at its biosurfactant plant in North America as reason for optimism in the year ahead.
In late 2018, its US biosurfactants factory - construction of which was its largest capital investment ever - was taken off line after a gasket issue from its construction.
"In the year ahead, subject to trading conditions remaining similar, we expect to make further progress in our consumer markets, whilst demand in industrial markets is expected to remain weak but stable. Our growth will be second half weighted," Foots added.
The stock was down 1.7% at 4,838.00 pence in early trade in London on Tuesday.
By Paul McGowan; [email protected]
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