Personal care the stand-out performer for Croda

SPECIALITY CHEMICALS maker Croda International posted an 11 per cent jump in full-year profit, helped by a strong performance at its personal care business, which makes ingredients for skin, hair and cosmetic products for multinational firms such as L’Oreal, Estee Lauder and Boots.

The Snaith-based firm is busy creating new wonder products that firms use to develop antiwrinkle creams, hair straightening/curl retaining hair care products and moisturisers, shampoos and conditioners that help prevent sun damage.

Other new products include products to reduce the greyness in hair or even increase it if people want to have a uniform hair colour.

Croda recently formed a new partnership with Leeds-based firm Glassflake to produce makeup and lipsticks that provide a consistent and longer lasting colour.

Croda’s chief executive Steve Foots described the deal as “an exclusive partnership that brings two Yorkshire companies together”.

The chemicals firm reported a record adjusted pre-tax profit of £320m in 2017, up from £288m a year earlier.

Croda said sales grew by 10.4 per cent to £1.37bn in 2017.

The company has focused on organic growth in premium markets and acquisitions.

Sales at Croda’s largest personal care business, which makes ingredients for skin, hair, sun protection and colour cosmetic products, rose 11 per cent to £467m. Total sales at its core businesses, which include life sciences and performance technologies, rose 11.4 per cent to £1.25bn.

Analyst Adam Collins at Liberum said: “Croda’s 2017 results were bang in line with expectations at the sales, EBIT and pre-tax profit level.

“As always the outlook is fairly non-committal – progress is expected but no quantitative guidance predicted.”