How emerging from the pandemic is having a Roaring Twenties effect for Croda

The Snaith-based company’s reported sales were up 39 per cent, driven by organic growth and acquisitions, for the six months ended June 30, 2021.

Croda saw underlying growth across all its sectors with consumer care delivering a strong performance.

Steve Foots, CEO of Croda, told The Yorkshire Post: “We’re seeing a pent-up demand in personal care that I haven’t seen for many years.

“In many ways it is reminiscent of the Roaring Twenties. The biggest selling products between the war years were lipstick and make-up because there’s a feel good factor.

“What we’re seeing is that playing out. People are coming out, they’re socialising, they’re starting to travel a bit more and they are going on holidays a little bit more. They’re all spending on cosmetics and toiletries.”

Sales are now well above 2019 levels, up over 10 per cent in underlying terms, excluding sales from Covid-19 contracts.

The FTSE 100 firm experienced accelerated growth in healthcare, particularly from its three major technologies – lipid systems, vaccine adjuvants and high-purity excipients.

Croda is playing a key role in the Covid-19 vaccine rollout and has over 100 live projects in over 20 countries, Mr Foots says.

It also has a “significant” principal contract with Pizer BioNTech, which is “going from strength to strength”.

Mr Foots added: “We’re increasing our capital spend in this area as well.

“We spent £40m in the first half of this year. That is to cater to that Covid-19 vaccine rollout. We’re in the early stages of good growth there.”

The CEO of Croda sees the firm playing a part in booster jabs in the future as the world looks to get a grip on the pandemic.

Mr Foots said: “The big thing to think about for the next few years is how often we’re going to get the vaccine. Is this going to be an annual jab for us all around the world? How long does the immunity last for? It’s still to be determined.

“There’s a fair chance we’ll likely have this on an annualised basis. Then of course on top of that you have potential for a winter jab. We will play a part in those as well.”

Croda is helping developing powdered vaccines which can be inhaled rather than injected.

“We’re working with clients on research and collaborative projects,” Mr Foots said. “The main area of revenue stream for the near term is in the Covid-19 vaccine rollout.”

Mr Foots said that the results were down to the “hard work and commitment” of everyone at Croda over the past 18 months,

He added: “It’s been very testing for any organisation. This is testament to the hard work, resolve and resilience of the organisation that we can come out with numbers like this.

“We’re really pleased with them. It’s broad-based growth in all areas that is driving the performance. Existing business has come back very strongly. On top of that we acquired Avanti and Iberchem. Both of them are fast growing.

“They’ve given us a lot of excitement because of how they do things.”

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James Mitchinson