Croda International PLC management proposed a final dividend of 62.0p per share amounting to a total of £86.5m in respect of the financial year ended 31 December 2023. Subject to shareholder approval, the dividend will be paid on 29 May 2024 to shareholders registered on 19 April 2024. The total proposed dividend for the year ended 31 December 2023 will be 109.0p per share amounting to £152.1m.
Other financial highlights include:
- Overall Performance Decline: 2023 witnessed an 11% decrease in sales on a pro forma basis, driven by prolonged destocking and a weak macroeconomic environment, with customer inventory reductions across multiple markets.
- Segment-specific Impacts: Consumer Care sales down by 1%, with declines in Beauty Care. Life Sciences saw a 5% drop excluding Covid-19 lipid sales, with varied performance across its sub-segments. Industrial Specialities faced a 35% sales drop due to destocking and reduced demand.
- Profitability and Margin Pressures: Adjusted profit before tax decreased by 33% to £308.8m, with adjusted operating margin falling to 18.9% due to lower sales volumes and the negative mix impact of F&F sales, amidst efforts to protect profits through cost controls.
- Financial Health and Shareholder Returns: Despite the challenges, the company maintained a strong balance sheet with a £236.3m IFRS profit before tax and improved working capital, enabling continued investment and a slight dividend increase.
- £162.9m improvement in working capital; free cash flow up 5% to £165.5m (2022 restated: £157.4m)
- £537.6m net debt (2022: £295.2m) post Solus Biotech acquisition; leverage at 1.3x
- 1p increase in full year dividend with 32 years of unbroken dividend progression
