Croda maintains critical supplier position with all sites open

Speciality chemicals maker Croda International said all 19 of its principal manufacturing sites are operating, reflecting its critical supplier position to a number of industries during the Covid-19 crisis.
All Croda's key sites remain openAll Croda's key sites remain open
All Croda's key sites remain open

The Snaith-based FTSE 100 company, which counts Unilever, Procter & Gamble and L’Oreal as customers, said these industries include health care, crop care, cleaning and sanitisers.

The firm has put in place appropriate working practices, including colleagues working from home where possible and the adoption of flexible and separated working arrangements in manufacturing sites and warehouses.

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It is adhering to government advice in all the different countries where it has operations.

It said raw material supply chains also remain broadly secure, with limitations on the availability of a small number of materials.

The group has no plans to furlough or reduce pay for employees.

The firm said demand has remained solid, with customers primarily focused on securing their own supply chains through Croda at this time.

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Profitability in the first quarter of the year was broadly in line with the board's expectations and the prior year.

Asia was adversely impacted by the earlier shutdown in China but North Asia delivered broadly flat sales across the quarter.

North America returned to sales growth in the quarter and Europe saw some demand weakness in Personal Care and Performance Technologies, but good growth in Life Sciences.

The group said that whilst conditions in some markets are more variable than usual, the value of its customer order book remains solid and in line with normal circumstances. However, it warned that visibility is limited and there is uncertainty as to how the Covid-19 crisis will affect future sales.

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The firm said it has a strong balance sheet, having completed its debt refinancing in 2019, with no material debt maturities falling due before 2023.

After careful consideration, the board has decided to pay the final 2019 ordinary dividend of 50.5p per share (£65m), announced in the group's annual results in February, subject to approval by shareholders at today's Annual General Meeting.

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