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Croda puts profits before sales

Investors rewarded the speciality chemical maker's superior product mix by sending the shares up 3 per cent on the day
Croda puts profits before sales

Against a tricky backdrop of sluggish global economic growth, Croda (CRDA) has wowed markets with its ability to consistently churn out profit and cash. That continued to be the case here, and went some way to supporting the headline of the chemical producer's full-year statement: "relentless innovation driving record profit".

IC TIP: Hold at 3570p

Admittedly, this record adjusted pre-tax profit of £288m was flattered by currency movements: 95 per cent of Croda's sales are made overseas. Even so, strip out the positive impact of a weaker pound and the maker of ingredients used in skincare, perfumes, energy and automotive industries still achieved respectable pre-tax profit growth of 4.8 per cent.

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