Shares of Croda International, the Snaith, East Yorkshire-based FTSE 100 speciality chemicals giant, rose 5% on Tuesday as it hosted a seminar for investors and analysts on “accelerating growth” in its consumer care business.
“The event will focus on how Consumer Care has evolved significantly in recent years to become a highly differentiated sector for Croda, comprising four business units, each with leading market positions in fast growth niches,” said Croda.
“Leadership in sustainability and innovation, as well as increased proximity to customers, is accelerating growth, with Consumer Care sales targeted to reach £1 billion by 2025 (from £763m in 2021).
“In the coming years, Consumer Care expects to deliver a minimum of 5% annual sales growth, with synergies from the recent Fragrances and Flavours (‘F&F’) acquisitions in addition to this.
“In 2022, there is likely to be an additional benefit to sales from the successful recovery of cost inflation.
“Return on sales is expected to improve over the medium term, from 24.7% in 2021, principally through improved business mix and innovation.”
Croda CEO Steve Foots said: “Trading in the first three months of 2022 has been robust, including a strong start for Consumer Care, and we continue to successfully recover input cost inflation.”
On March 1, Croda said it will pay out £139.4 million in dividends after its adjusted profit before tax soared 48% to a record £445.2 million in the year to December 31, 2021.
Croda said its sales rose 35.9% to a record £1.889 billion.