Croda moves ahead of last year

29th Oct 2009 08:03

Yorkshire-based speciality chemicals firm Croda Group enjoyed record sales and profits in the third quarter, on the back of a pick-up in performance by its Industrial Specialities division.Despite the effects the depression has had on industrial activity, pre-tax profit in the first nine months has improved on last year's levels, despite the company enjoying a £7.88m windfall last year from abnormally high glycerine prices.Pre-tax profit in the nine months to 30 September from continuing operations was £75.5m, compared to £74.9m a year earlier.Third quarter sales were up to £238.1m from £235.4m a year earlier, while operating profit improved by 23.5% to £34.7m from £28.1m in the third quarter of 2008. Third quarter pre-tax profit showed an even bigger increase, rising 31.3% to £31.9m from £24.3m a year earlier, reflecting lower interest payments.The Industrial Specialities division appears to be on the rebound, and has been trading profitably for the last four months as customers are generally no longer running down stocks.The Consumer Care division, meanwhile, saw double digit percentage increases in sales and operating profit versus 2008 levels, with margins also on the mend.Net debt at the end of September stood at £331.6m, down £66.5m from the level at the end of the year, with favourable exchange rate movements accounting for around £13.3m of that reduction.