The Yorkshire-based company announced first half pre-tax profit of £124.8m (€142.4m), a 30.1 per cent increase on the same period in 2010.
“Croda has continued to make excellent progress in 2011 with quarter two representing a further improvement on the first three months of the year,” commented Croda chairman, Martin Flower.
Second quarter provides further improvement
As mentioned, second quarter trading was also strong, with sales and profits both higher than those seen in the first three months of the year.
Sales were up 5.7 per cent to £281.7m (€321.5m), while pre-tax profit was recorded at £64.1m (€73.2m), an increase of 21.9 per cent on the previous year’s results.
“This record performance has been achieved against tough comparatives, adverse currency translation and significant raw material cost inflation,” continued Flower.
“Our innovation pipeline remains robust, which together with increased investment to satisfy demand for our products and support entry into new markets, will ensure Croda’s continued strong organic growth,” he added.
The strong growth was aided in large part by the company’s Consumer Care group which posted particularly strong growth in the personal care and health care sectors, according to Croda.
Overall sales for the Consumer Care group increased 11 per cent to £293.6m (€335.1m), with operating profit put at £88m (€100.4m), an increase of 23.8 per cent.
“We are pleased to announce another very strong quarterly performance, resulting in a record first half pre-tax profit… Both Personal Care and Health Care made good progress throughout the period,” said Mike Humphrey, chief executive.
Management change
A further announcement was also made that this will be Humphrey’s final year with the company.
After 42 years with Croda he will retire at the year end, but will remain involved with the business as a senior advisor.
“Mike Humphrey’s decision to retire at the end of the year concludes an extraordinary 13 years as Croda’s Chief Executive. As the principal architect of the Group’s strategy, Mike has played an instrumental role in Croda’s success, and I am delighted that he has agreed to remain involved with the business as Senior Adviser,” commented Flower.
Steve Foots, currently president of the company, will take over as chief executive in the New Year.