Croda Q1 results beat forecasts

28th Apr 2010 07:11

Speciality chemicals supplier Croda reported better than expected first quarter results as robust trading continued and is confident of significant progress for the remainder of the year.The group, which supplies ingredients for sun-block to companies such as Procter & Gamble, said group sales increased 14.7% to £264.7m despite adverse currency translation of 4.1%, with overall volumes increasing 26.0%.Group pre-tax profit from continuing operations almost doubled to £42.4m from £21.7m in 2009. The figures came in above broker Charles Stanley's forecast of pre-tax profit of £37.5m on group revenue of £245m. "This is a very strong performance across the business and reflects both robust demand for our products globally and the benefits of the cost cutting activity we have undertaken since the acquisition of Uniqema," Croda said in a company statement.However on a more cautionary note, Croda added, "The buoyant trading conditions we have experienced have been seen across the chemical sector, suggesting an element of restocking. Furthermore, prior year comparatives do get tougher in the second half. We also expect to see raw material inflation begin to increase in many areas."Operating profit at its Consumer Care business rose 20.6% to £34.6m. Underlying sales increased strongly in both Personal Care and Health Care but Crop Care sales were down, in line with the market, the group said. Overall sales increased to £130.0m, up 1.4% on last year's figure of £128.2m.