23rd Jul 2020 09:25
(Alliance News) - Croda International PLC on Thursday said earnings for the first half of 2020 were hurt by the Covid-19 outbreak, but it declared an unchanged dividend payout.
Shares in the speciality chemicals company were trading 0.5% lower at 5,590.00 pence each on Thursday morning in London.
For the six months ended June 30, Croda posted revenue of GBP672.9 million, down 5.8% from GBP714.7 million a year prior. Pretax profit was GBP144.9 million, down from GBP166.2 million.
The Yorkshire-based company blamed the deterioration in its performance on a decline in sales due to the Covid-19 lockdowns, with sales in its Personal Care business falling 8% and Life Sciences sales falling by 1%. Sales at Performance Technologies were down 5%, due to lower industrial demand, particularly in the automotive market.
Croda said it will pay an interim dividend of 39.5 pence, unchanged from a year prior.
Looking ahead, Croda said: "Following a challenging second quarter, trading has stabilised but visibility is limited and the timing of recovery remains unclear. Life Sciences will benefit from the phasing of Crop Care sales and continued opportunities in Health Care. We anticipate consumer markets significantly impacted by lockdowns to recover more quickly than industrial end markets. We expect group margin and cash generation to remain robust."
As at the end of June, Croda had cash of GBP61.1 million.
By Ife Taiwo; [email protected]
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