Smart science giant Croda International has revealed how it is targeting sales of £1 billion in its consumer care division in the next three years.
The ambitious growth would represent a 31 per cent increase on 2021’s £763 million, with recent acquisitions in natural fragrances and flavours boosting the bottom line.
Investors and analysts have been briefed on how the area has “evolved significantly in recent years to become a highly differentiated sector for Croda, comprising four business units, each with leading market positions in fast growth niches”.
Read more: Croda posts record results as Covid-19 vaccine role leads growth across the board
The East Yorkshire-based FTSE-listed firm has united businesses providing innovative and sustainable solutions to manufacturers in home care, beauty, personal care and fragrance.
A special seminar was held at The Royal Society of Chemistry in London to outline the progress.
Group chief executive Steve Foots flagged leadership in sustainability and innovation, as well as increased proximity to customers, as pillars for accelerating growth.
A minimum of 5 per cent annual sales growth is the expectation, with synergies from the recent buy-outs of Alban Muller and Parfex - chiefly focused on the French fragrance market - in addition to this.
Croda, which turned over £1.9 billion as a group in 2021, also anticipates an additional benefit to sales from the successful recovery of cost inflation this year.
The company said return on sales is expected to improve over the medium term, from 24.7 per cent in 2021, principally through improved business mix and innovation.
Mr Foots said: "Trading in the first three months of 2022 has been robust, including a strong start for Consumer Care, and we continue to successfully recover input cost inflation."
Shares closed up 4.6 per cent at 7,874p, providing a market capitalisation of more than £11 billion for the Cowick Hall headquartered firm.
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