Personal care leaves Croda sitting pretty after Q3
The Consumer Care segment of the business, which incorporates these categories, continued to trade strongly in the third quarter with a significant double-digit increase in sales.
Time to be optimistic
Operating profit saw a 30.8 per cent increase, as well as improved margins versus the corresponding quarter last year with all business areas of the segment reportedly performing well ahead of 2010, leaving the Yorkshire-based company in an optimistic mood.
"I am pleased to report good turnover and profit progress in the third quarter, driven by sales growth and margin improvement in our core businesses,” commented Flower.
For the three months ended 30 September 2011, Group sales from continuing operations increased 5.1 per cent to £265.6m (EUR 302.9m), with most business areas seeing an increase throughout the quarter, leaving the ingredients suppler confident that this will continue in the near future.
“Croda continues to trade well and we expect to report further progress in the final quarter and into 2012,” added Flower.
What's happening elsewhere in the company?
The only business area to show a decline in the third quarter was Industrial Specialities, as turnover declined 3.5 per cent against the tough comparatives of a particularly strong third quarter in 2010.
Flower commented that the shortfall was in July, with sales in the rest of the period ahead of 2010. Operating profit was also down 6.8 per cent with a decrease in commodity and by-product profitability being partially mitigated by stronger performances elsewhere in the sector.
Overall operating profit from continuing operations increased 18.3 per cent to £57.6m. Interest costs fell, resulting in continuing pre-tax profit increasing, and year-to-date, the pre-tax profit from continuing operations is up 27.1 per cent at £182.2m.