Croda International Plc Delivered top line growth at industry leading margins to achieve superior returns

Croda International Plc (LON:CRDA), the speciality chemical company that creates high performance ingredients and technologies relied upon by industries and consumers globally, today announced its full year results for the year ended 31 December 2018.

Highlights

Adjusted results (constant currency):

· Growing the Core – delivering strong performance

o Consistent growth in the Core Business at industry-leading margins, generating enhanced shareholder returns

§ Top line momentum – Core Business sales up 3.8%

§ Profit growing faster than sales – PBT up 6.2%, basic EPS up 8.8%

§ Margin expansion – return on sales up 50 basis points to 24.7%

§ Improved cash generation – free cash flow up nearly 60%, capital investment reducing

§ Special dividend of 115 pence per share – return of excess capital of £150m

o Sales and profit growth in all three core sectors:

§ Personal Care sales up 6.8% at robust margin (32.9%)

§ Life Sciences sales up 2.8% (6.7% excluding API exit)

§ Performance Technologies operating profit up 15.0% through growth in higher value applications

· Stretching the Growth – investing for the future

o Continued investment to drive future growth opportunities:

§ Greater innovation: Proportion of New & Protected Product (NPP) sales increased for sixth consecutive year to 28.2% of total sales

§ Biosector vaccine adjuvant acquisition expands position in high value Health Care delivery portfolio

§ Four technology investments, accelerating growth through disruptive technologies

§ Digital and Sustainability programmes underway

Reported results (IFRS, reported currency):

· Sales up 1.0% – organic growth more than offset adverse currency translation

· PBT up 1.2% – good profit growth more than offset adverse currency translation

· Proposed full year ordinary dividend increased by 7.4% to 87.0 pence per share

Steve Foots, Croda’s Chief Executive Officer, commented:

“2018 was another year of strong progress for Croda. We are ‘Growing the Core’ – once again delivering top line growth at industry leading margins to achieve superior returns. We are ‘Stretching the Growth’, accelerating delivery across our markets through relentless innovation and by investing in disruptive technologies and exciting new growth opportunities. All core sectors contributed to this performance, demonstrating Croda’s three legs of growth. Cash generation strengthened and we have proposed the return of a further £150m through a special dividend to shareholders, in addition to an increased ordinary dividend.

“Looking ahead, whilst global market conditions remain challenging, we continue to invest for the future and are confident that our strategy of Growing the Core and Stretching the Growth will deliver further progress in 2019.”