Croda International has delivered record sales, margin and profit in the first six months of 2022.
Sales for the East Yorkshire-headquartered FTSE-listed smart science specialist were up 20 per cent, from £934 million to £1.1 billion. Operating profits increased 32 per cent from £218 million to £288 million.
It comes as the business has moved away from industrial markets to focus on consumer care, with major expansions in its vaccination-aiding lipid production on both sides of the Atlantic. It has been a key part of the protection against Covid, though the market is described as moderating, and also used in therapeutic drugs, carrying the active ingredient into the body.
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Steve Foots, chief executive, said: “This is an excellent first half performance, with record sales, margin and profit driven by the strength of our operating model, which enabled continued recovery of unprecedented cost inflation, and the ongoing successful implementation of our strategy.
"A strong Consumer Care performance saw expanded sales of our sustainable technologies, increased geographic coverage in fragrances and margin expansion. The increasing depth and diversity of our Life Sciences portfolio was evident in a strong result in Crop Protection, whilst Health Care built on an exceptional 2021 performance and is developing an exciting pipeline of non-Covid applications.
"With the successful divestment of the majority of our industrials business, our transition to a pure-play Consumer Care and Life Sciences business continues. Croda is becoming a stronger margin, higher return, less cyclical and lower carbon intensive business. Our focused platform and strategy are enhancing both our full year expectations and our medium-term growth prospects."
US agri-tech giant Cargill recently completed the £667 million buy-out of the majority of the industrials element, including the huge plant in Hull.
The company said it anticipates profits to be modestly ahead of previous expectations, with growth in the second half expected to moderate.
Shares closed on Friday up 4.1 per cent to 7,433.71p.
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