Croda International (CRDA) is doubly exposed to Covid-19 with its industrial sales and the cosmetics side of its personal care division. The chemicals company, which also has pharmaceutical and agricultural divisions, saw earnings drop in the six months to 30 June, consistent with changed behaviours in lockdown and industrial slowdown.
But despite the hit from the pandemic, Croda has kept its dividend and increased capital spending in the first half.
The personal care segment – its biggest earner – saw revenue fall 10 per cent on a constant currency basis, to £227m. Cosmetics sales were weak because of people staying home, but the company said sales of skincare products and other ‘staying in’ items were more resilient. Chief executive Steve Foots was confident of a return to regular trading in the cosmetics industry as people will want to “look good and feel good” when they start leaving the house more regularly.
Personal care sales in North Asia were flat year-on-year, but they were down significantly in Europe and South America where many end sales come from door-to-door retailers.
Over in ‘performance technologies’, sales initially strengthened as customers looked to build up their inventories as the pandemic unfolded. But they dropped off in the second quarter as factories closed, leaving revenue 5 per cent lower year-on-year at £216m.
The consensus compiled by FactSet is for EPS at 175p, against 173p in 2019.
| CRODA INTERNATIONAL (CRDA) | ||||
| ORD PRICE: | 5,566p | MARKET VALUE: | £ 7.2bn | |
| TOUCH: | 5,564-5,567p | 12-MONTH HIGH: | 5,650p | LOW: 3,814p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 34 | |
| NET ASSET VALUE: | 751p* | NET DEBT: | 59%** | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 (Restated) | 715 | 166 | 95.6 | 39.5 |
| 2020 | 673 | 145 | 84.1 | 39.5 |
| % change | -6 | -13 | -12 | |
| Ex-div: | 20 Aug | |||
| Payment: | 01 Oct | |||
| *Includes intangible assets of £457m, or 352p a share, **Includes £59m in lease liabilities | ||||
