Croda has operated for many years with a prudent leverage and dividend distribution policy. This enabled the Board, after careful consideration of all stakeholders and treating all groups consistently and fairly, to pay the final 2019 ordinary dividend of 50.5 pence per share (£65.0m). In addition, given the resilience of the business model during the COVID-19 pandemic to date, Croda will pay an unchanged interimdividend of 39.5p (2019: 39.5p) in October 2020.
Modest reduction in sales
o Core Business sales 4.9% lower (-6.0% constant currency (CC))
o Ongoing delivery of innovation: New & Protected Product (NPP) sales at 27.2% of total (2019: 28.3%)
Resilient margin despite lower volume and adverse product mix
o Adjusted operating profit 9.9% lower (-9.4% CC)
o Return on sales 110 basis points (bps) lower at 24.0%
o IFRS profit before tax 12.8% lower at £144.9m
Strong balance sheet and healthy cash generation supporting continued investment
o Capital investment in capacity expansion, digital platform for customers and expanded R&D
o Technology-rich Health Care acquisition signed in July - important addition to speciality drug delivery capability
