Croda gives dividend despite COVID-19 impacted fall for skincare and cosmetics

Croda gives dividend despite COVID-19 impacted fall for skincare and cosmetics

THE WHAT? Croda has maintained its dividend payout despite falling demand for its skincare and cosmetics arm due to COVID-19. 

THE DETAILS The speciality ingredients company reported a first half revenue drop of 5.8 percent, down from £714.7 million to £672.9 million year on year, while group tax before profit was down 12.8 percent to £144.9 million. 

The personal care arm reported a sales fall of 8 percent and a profit drop of 18 percent. 

However, the impact of the GVC was lessened by a soft drop of 5 percent of the company’s Performance Technologies unit, while Life Sciences only fell a respectable 0.8 percent. 

THE WHY? Croda is maintaining its interim dividend payout of 39.5p, as per last year, lauding the ‘strength’ of its portfolio for maintaining a solid stance despite the impact of the coronavirus. 

CEO Steve Foots said, “Whilst customer demand has inevitably been impacted by the crisis, the strength and breadth of our portfolio, global footprint and flexible manufacturing have all helped to reduce its impact.

Talking about the group’s ongoing strategy in the uncertain conditions, Foots continued, “by focusing on the future during these challenging times, we can accelerate delivery to enhance future growth and profitability.”

Leave a reply

Your email address will not be published. Required fields are marked *