Consumer growth drives sales at Croda

'‹Speciality chemicals firm Croda International has reported growth across all of its regions and a strong performance in its consumer businesses.

Croda is turning its attention to the indie sector
Croda is turning its attention to the indie sector

The Snaith-based FTSE 100 firm is working closely with a number of "indie" cosmetic firms to produce best selling shampoos, conditioners, lip glosses and other beauty products.

Previously, Croda has made ingredients for skin, hair and cosmetic products for multinational giants such as L'Oreal, Estee Lauder and Boots, but now it is turning its attention to the indie sector.

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The group said the sales momentum seen in the first half of the year continued in its third quarter to September 30.

Croda said constant currency sales rose by 3.4 per cent, with the core business up 4.5 per cent, driven by the strong performance in its consumer businesses.

Core business year to date growth was 4.7 per cent and sales of New and Protected Products (NPP) reached 28.4 per cent of total sales, with double digit percentage growth in Personal Care and a robust pipeline of new opportunities and technologies.

Constant currency sales in Personal Care rose 4.9 per cent in the third quarter and by 7.8 per cent in the year to date.

The firm said demand was robust in all three business units, led by the innovation-rich Beauty Actives business. Sales to multinational customers improved, with Croda ingredients selected for several major product launches, supporting ongoing growth with regional and local customers.

All regions saw progress, led by healthy demand in Asia and North America, and a steady recovery in Latin America.

In Life Sciences, constant currency sales rose 8.5 per cent.

The third quarter performance reflected strong sales in Health Care, driven by increased global demand for complex drug delivery systems and expansion into regional drug markets, such as India.

Following good growth in the first half of the year, sales in Crop Protection slowed in the third quarter, but saw progress with smaller customers.

Croda's CEO Steve Foots said: "This has been another strong, consistent quarter of growth for Croda.

"It is encouraging to see ongoing momentum in our consumer businesses, underpinned by innovation and our unique customer intimacy, supported by our 'value over volume' progress in Performance Technologies.

"We are delivering our strategy of 'Growing the Core', driving top line growth at industry leading margins to achieve superior returns, and 'Stretching the Growth', accelerating delivery across our markets. We are on track to deliver our expectations for the year."