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Skin Care Boosts Croda’s Results

A record quarterly profit for the world's No. 2 cosmetic ingredient maker.

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By: TOM BRANNA

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Croda International Plc reported record quarterly profit from skin care results and company officials said the world’s second-largest cosmetic ingredient maker (behind BASF) is gaining share as it wins smaller customers and expands in Latin America and Asia.


Fourth quarter pretax profit rose 3% to 61.2 million pounds ($93 million) to beat estimates. According to Chief Executive Officer Steve Foots, Croda is pursuing smaller clients who buy “test-tube sized volumes” of products in addition to bigger purchasers such as L’Oréal. Foots, in his post for a year, has been conserving cash for reinvestment rather than offering a special dividend to investors.


The consumer-care division posted an 8.3% increase in earnings to 185.4 million pounds last year on a 2.6% increase in sales. Croda predicted “further progress in 2013” after an “encouraging” start to the year, with expansion in North America, Latin America and Asia.


The global market for beauty products expanded 4.6% in 2012, led by L’Oreal, P&G and Unilever and the ranks of emerging and wealthy middle classes are expected to almost triple to 2.7 billion consumers by 2020, according to Bloomberg analyst Deborah Aitken.

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