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Annual Results

Innovation drives Croda record profits

28 February 2017 09:37

Croda International posts record profits for the year to the end of December driven by 'relentless innovation'.

Sales increased by 15.0% to £1,243.6m (2015: £1,081.7m).

This included an 11.9% benefit from currency translation due to weaker sterling.

Sales in constant currency increased by 3.1%, with acquisitions contributing 4.7%. Adjusted profit before tax increased by 13.2% to £288.3m (2015: £254.7m). This was 4.8% higher in constant currency. Profit before tax on an IFRS basis was also up strongly at £275.7m (2015: £252.3m). Return on sales increased by 40 basis points in constant currency, reflecting a richer product mix of 'high end' products and innovation.

Reported return on sales was slightly lower at 24.0% (2015: 24.4%), due to the dilution impact of the Incotec acquisition and lower profit from the API contract in North America.

Adjusted EPS rose 15.4% to 155.8p (2015: 135.0p) and the proposed final dividend has been increased by 8.6% to 41.25p (2015: 38.0p).

Chief executive Steve Footssaid: "Croda has delivered a record profit in 2016.

"We have grown sales through selective acquisitions and organic growth in premium market niches, driving bottom line performance through high value products and relentless innovation.

"Our innovation pipeline is exciting, with sales of New and Protected Products increasing for the fourth consecutive year.

"We continue to expand in higher growth markets, with Asia the stand out performer, and we are growing with regional and smaller customers. "Our priorities for 2017 are to drive profitability through a greater focus on premium, faster growth niches; improve performance in less differentiated markets; and continue to grow margins in Performance Technologies and Incotec.

"We have seen some encouraging signs of improving sales trends, which have continued into 2017.

"We are supporting this through innovation and investment. Croda is a strongly cash generative business with substantial balance sheet capacity.

"We will remain disciplined in both our capital allocation and in driving returns for shareholders.

"We are confident of delivering continued progress in our performance in 2017."

At 9:37am: (LON:CRDA) Croda International PLC share price was +82.5p at 3427.5p

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