Business
Trading update for the first quarter of 2016
Trading update for the first quarter of 2016.
About this update from Croda International Plc
[{"type":"text","content":"\n \nRNS Number : 4313W Croda International PLC 27 April 2016 \n\n27 April 2016\n \nCroda International Plc\nTrading update for the first quarter of 2016\n \n \nStrong innovation supporting continued growth\n \nCroda International Plc (\"Croda\" or the \"Group\"), a world leader in speciality chemical ingredients, today updates on its trading during the first quarter of 2016, ended 31 March 2016 (\"Q1\" or \"the quarter\").\n \nReported sales up 7.7%\nReported sales in Q1 rose by 7.7% to £306.8 million (Q1 2015: £284.9m). Incotec, our seed treatment business, added 4.7% to Group sales in its first full quarter since acquisition. Favourable currency translation increased reported sales by 3.9%, reflecting the impact of the stronger Euro and US dollar.\n \nContinued growth in the core business\nUnderlying sales from our three core sectors grew by 0.4%. Innovation remained strong, with underlying sales of New and Protected Products ('NPP') growing well ahead of overall sales, up by 8.0%. We continue to improve the quality of our product mix and further increase the intellectual property in the business, driving profit ahead of sales.\n \nImproved margin driven by innovation\nProfit growth in the first quarter was in line with our expectations. This was achieved through a good performance in consumer markets, successful innovation reflected in NPP growth in all sectors, growth with regional and local customers, and improved mix within our product portfolio. As a result, despite the dilutive effect of Incotec, Group operating margin increased by 60 basis points in the quarter.\n \nFurther growth in Asia\nIn the core business, Asia continued to grow strongly, with underlying sales up 7.2%. Sales to regional and local customers performed well and the transfer from local distributors to direct sales is underway. Europe also continued to deliver steady growth, with underlying sales up 2.7%. Underlying sales in North America declined 1.8%. Export customers have been impacted by the strong dollar and we have seen US customers relocate manufacturing overseas. Volume in Latin America remained weak due to difficult macroeconomic conditions, and sales, whilst up strongly in local currency, were down 11.5% on an underlying basis.\n \nStrong margin growth in Personal Care\nOperating margin in Pe...