Croda, Yorkshire chemical giant, slips to £673m in H1

Croda International HQ in Snaith, East Yorkshire

East Yorkshire-based chemicals giant Croda International said on Thursday its sales for the six months ended June 30, 2020, slipped 5.8% to £672.9 million and pre-tax profit fell 12.8% to £144.9 million.

Croda will pay an unchanged interim dividend of 39.5p.

“We have not furloughed employees, reduced pay or utilised government liquidity facilities,” said Croda.

“All our 19 principal manufacturing sites have remained in operation and raw material supply chains secure.”

Croda said that following a challenging second quarter, trading has stabilised but visibility is limited and the timing of recovery remains unclear.

Croda CEO Steve Foots said: “Whilst customer demand has inevitably been impacted by the crisis, the strength and breadth of our portfolio, global footprint and flexible manufacturing have all helped to reduce its impact.

“This has enabled us to deliver a resilient performance with only a modest reduction in sales, a resilient margin and healthy cash generation.

“With a strong balance sheet, low leverage and robust liquidity, we have continued to pay our regular dividends, invest in future organic growth and secure a technology-rich acquisition in our fast-growing Life Sciences business.

“Despite current trading conditions remaining volatile, our strategy is unchanged and, by focusing on the future during these challenging times, we can accelerate delivery to enhance future growth and profitability.”