Croda international posts strong H1 sales in healthcare

Sales in chemicals maker Croda International increased during the first-half of the year thanks to strong growth at its healthcare division.

The group’s sales were up 4% to £294.9m, with a strong dollar offsetting the weak euro against the pound.

Its personal care division saw revenues rise by 1.8% and by 3.4% in reported currency terms driven by growth in Asia and Latin America.

Sales in its life sciences division increased by 15.8% and by 16.3% in reported currency thanks to better-than-expected sales of its pharmaceutical grade Omega-3 and new and protected products sales in high purity excipients.

However, fungicide sales in the US were weak due to reduced corn prices.

Furthermore, growth in performance technologies was slower at 0.4% and, in reported currency, declined by 0.7% due to lower demand for lubricants in Europe and headwinds in geo technologies.

Chairman Martin Flower said: “We have made an encouraging start to the year, with sales growing across all our core sectors.

This has been supported by increased innovation and investment. We expect to continue to deliver profitable growth through 2015."

N+1 Singer analysts maintained their ‘hold’ recommendation but said it was “encouraging to see growth coming through after the currency impacted decline last year”.

Shares were up 3.7% to 3014p on Wednesday at 09:32.