First half year highlights
Our strategy is continuing to deliver:
More protected innovation: New & Protected Products (NPP) sales increased to 27.5% of constant currency sales† (2015: 26.1%)
Key technology platforms growing: constant currency sales up 2.1% including Incotec acquisition
Improved operating margin: up 0.8 percentage points to 25.7% (2015: 24.9%) at constant currency, reflecting increased innovation and technology-driven growth
Strong bottom line performance: adjusted profit before tax up 6.3% in constant currency - adjusted earnings per share (EPS) up 10.0% in reported currency
Robust cash flow from operating activities: funding over £56m of capital investment for future growth
Continued dividend growth: interim dividend increased by 5.6%, following payment of 100p special dividend in June 2016
Steve Foots, Croda's Chief Executive, commented:
"Despite subdued demand in the first half of 2016, we have delivered a strong bottom line performance, improving our operating margin through a richer product mix, whilst also increasing profit and the dividend. Our strategy is driving more protected innovation, closer customer intimacy and a greater focus on key technologies for future growth.
"Although we remain cautious given the continued economic uncertainty, we expect to deliver further top and bottom line progress in the second half of 2016. The Group is on track to deliver our expectations for the full year, in constant currency terms, while Sterling weakness will benefit our reported results."