Croda plans share buyback of £50m

City A.M. Reporter
BRITISH chemicals firm Croda International yesterday posted a higher full-year profit, boosted by strong demand for consumer and industrial products, raised its dividend and said it plans to buy back shares.

The company, which has a market cap of over £2bn, said it expected to buy back shares worth about £50m this year.

Croda, which makes chemicals for cosmetics, healthcare and homecare industries, had 137.3m shares outstanding as of 21 December 2010.

The company said trading in the current year had started well, but that it had to increase its prices in 2011 to protect its profitability due to a major inflation in raw materials.

Adjusted pre-tax profit from continuing operations was £192.3m for the year ended 31 December, compared with £108.0m last year. Sales rose 21 per cent to over £1bn.

Consumer care turnover was up 14 per cent at £485.5m, while industrial specialities turnover rose 29.7 per cent.