Croda focus on added value driving profits
cosmetics and supplement customers rose 8 per cent last year,
helped by expanded capacity in fish oil concentrates and new
product launches.
The firm, which now makes more than 60 per cent of its turnover to these two sectors (£178.2m, €257.5m), saw operating profit climb 13.2 per cent over fiscal 2004 to £47.1 million on a 4 per cent sales increase from continuing operations.
"The record margin of 17.9 per cent proves that it is a true speciality business with pricing power," said Croda in a statement today. "This margin was achieved despite a number of raw material and utilities cost increases, together with a particularly unfavourable currency environment."
The group said it continues to outperform in the personal care market, with sales of new products from its Sederma business growing strongly.
Healthcare, supplying fish oil concentrates to the supplements market and emollients and surfactants to the pharma sector, is also seeing sustained growth driven by consumer demand for healthy products.
Croda is focussing on driving the organic growth of the business and this year launched a new initiative, run by a member of the executive committee, to bring new technologies to the company.
Chairman Anthony Beevor added however that "we will not ignore opportunities for acquisitions in areas of business where we have expertise and which bring real and ongoing synergies".
