Croda International posts 30% profit hike

28th Jul 2011 07:18

Speciality chemicals group Croda International posted a 30% surge in half year profit, bolstered its dividend and expects to make further progress through the remainder of the year. Consumer Care and Industrial Specialities underpinned the robust profit and sales growth, Croda said. The results were also boosted after it passed on higher costs of raw materials to customers.Pre-tax profit from continuing operations jumped to £124.8m for the six months to 30 June 2011 £95.9m before. Sales for the period rose to £559.6m from £511.9m. Lubricant Additives and Coatings and Polymers also experienced very strong sales growth. Chairman Martin Flower said, "The second half of the year has started well and we expect to make further progress compared with 2010 through the remainder of the year." The group also announced a new dividend policy with the annual pay-out increasing to between 40% and 50% of earnings. The interim dividend has been increased to 24.75p, up 153.8% on last year's interim payment reflecting robust first half trading and its new dividend policy. Looking ahead the Croda added, "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." Croda announced chief executive Mike Humphrey will retire at the end of the year and will remain involved with the business as Senior Adviser. Steve Foots, president of Croda Europe, will become chief executive on 1 January 2012.