Business
Results for the six months ended 30 June 2019
Results for the six months ended 30 June 2019.
About this update from Croda International Plc
[{"type":"text","content":"\n \nRNS Number : 4898G Croda International PLC 24 July 2019 \n\n24 July 2019 \nResults for the six months ended 30 June 2019\nResilient performance despite subdued market conditions\nCroda International Plc (\"Croda\" or the \"Group\"), the speciality chemical company that creates high performance ingredients and technologies relied upon by industries and consumers globally, today announces its half year results for the six months ended 30 June 2019. \n\n\n\n\nAdjusted1 results\n\n\nHalf year ended 30 June\n\n\n\n\n \n\n\n \n\n\n2019\n\n\n2018\n\n\n% change\nreported rate\n\n\n% change\nconstant rate2\n\n\n\n\nSales - Core Business3\n\n\n£m\n\n\n657.9\n\n\n642.2\n\n\n+2.4%\n\n\n(0.4)%\n\n\n\n\nOperating profit\n\n\n£m\n\n\n179.4\n\n\n178.5\n\n\n+0.5%\n\n\n(0.6)%\n\n\n\n\nProfit before tax\n\n\n£m\n\n\n170.6\n\n\n175.0\n\n\n(2.5)%\n\n\n(3.5)%\n\n\n\n\nBasic EPS\n\n\npence\n\n\n98.2\n\n\n100.2\n\n\n(2.0)%\n\n\n(3.0)%\n\n\n\n\nReturn on sales4\n\n\n%\n\n\n25.1%\n\n\n25.4%\n\n\n(0.3)%pts\n\n\nn/a\n\n\n\n\nFree cash flow5\n\n\n£m\n\n\n94.5\n\n\n62.2\n\n\n+51.9%\n\n\nn/a\n\n\n\n\n \nGroup highlights (adjusted, constant currency):\n\nCore Business sales in line with prior year, despite subdued market conditions and strong prior year comparators \nOperating profit unchanged, with stronger gross margin\nProfit before tax slightly lower, due to higher interest charge, following special dividend and previous investments\nImproving cash generation - free cash flow up more than 50%, capital investment reducing\nHealthy innovation pipeline - New & Protected Product (NPP) sales increased to 28.3% (2018: 27.7%)\nSignificant new capacity on stream over next 12 months to support organic growth - North America biosurfactant plant to add significant capacity later in Q3\nRecent technology acquisitions progressing well.\n\n \nSector performance (adjusted, constant currency):\n\nExcellent performance in Life Sciences, driven by strength of Health and Crop Care platforms - sales up 13.0% and return on sales improved to 30.6% (2018: 29.9%)\nPersonal Care weakness in US and North Asia, primarily due to the trade dispute, with continued growth across rest of sector. Sales 3.6% lower with modest decline in return on sales to 33.3% (2018: 34.1%)\nPerformance Technologies lower due to soft markets in automotive...