Speciality chemicals company Croda (CRDA) is riding high as its improving sales in the fourth quarter of 2016 gained further momentum in the first three months of 2017.
Croda manufactures chemicals for everyday health and beauty products, as well as engine lubricants and plastics.
Strong organic growth has driven a sales increase of 4.5% when currency fluctuations are stripped out.
Investors are encouraged by the update, with the stock up 4.7% to £38.31.
In its Personal Care division, the company has returned to modest growth thanks to an improvement in its Specialities business, which has focused investment on its skin health products.
One of the strongest divisions was Performance Technologies, which had an ‘exception start’ to 2017 with 11.7% revenue growth, driven by healthy market demand.
In February, UBS analyst Andrew Stott was upbeat on Croda’s outlook, highlighting its organic investment in renewable products, decent balance sheet and the beneficial impact of a weaker pound on sales.
