Croda International PLC (LON:CRDA) chief executive Steve Foots described a “resilient performance despite subdued market conditions” as the British chemicals firm reported a reduced profit for 2019.
It made a £322.1mln profit before tax on £1.26bn of sales in the twelve months ended 31 December 2019, versus 2018 comparatives of £331.5mln and £1.26bn.
Stated in ‘constant currency’ sales for the year actually reduced by 2.3% while the profit decline widened to 3.7% compared to 2.8% on the reported currency figure for 2019.
READ: Croda knocked to ‘hold’ amid ‘muted’ short-term growth
Free cash flow amounted to £201.7mln, up 30.2% from the £154.9mln generated in the preceding year.
Croda highlighted an “excellent” performance for its life sciences division, and, supported by health care and crop protection platforms. In personal care, Croda’s businesses maintain profit but the performance technologies business was hit by slower industrial activity.
Foots, in Tuesday’s statement, said: “we delivered a resilient performance with a strong margin maintained and increased cash flow, despite subdued market conditions. This is testament to Croda's focused strategy and strong business model.”
"In the year ahead, subject to trading conditions remaining similar, we expect to make further progress in our consumer markets, whilst demand in industrial markets is expected to remain weak but stable. Our growth will be second half weighted.”