Croda International PLC

Latest Results (14.05.2026):

Croda International PLC — results for the full year ended 31 December 2025 (and Q4 2025). Croda reported group sales of £1,699.4m for FY2025, up 6.6% at constant currency. Adjusted operating profit rose to £295.3m (+7.9% at constant currency) with adjusted profit before tax of £276.2m (+8.4%). IFRS results were depressed by significant one‑off charges (notably £107.3m of impairments), producing statutory operating profit of £110.1m and basic IFRS EPS of 44.4p; adjusted EPS was 146.2p. Free cash flow was £161.6m, net debt £523.8m (leverage ~1.3x at year end) and the ordinary dividend was increased 1p to 111p. Management set a three‑year financial framework to 2028 with targets for consistent sales growth, margin and cash conversion.

Sales and growth

Group sales £1,699.4m (+6.6% at constant currency). Consumer Care and Life Sciences each grew ~+8% (Beauty Actives +6%, Beauty Care +4%, F&F +15%, Pharma +4%, Crop Protection +14%). Q4 2025 sales growth reported +5%.

Adjusted profit and margins

Adjusted operating profit £295.3m (+7.9% cc) and adjusted operating margin 17.4% (2024: 17.2%). Adjusted profit before tax £276.2m (+8.4% cc). Management targets Group adjusted operating margin >20% by full year 2028.

IFRS results and one‑offs

Statutory (IFRS) operating profit £110.1m (2024: £227.5m) reflecting £107.3m of impairment charges (including £44.6m on lipid capacity) and a £15.9m onerous contract provision. These adjustments explain the large gap between statutory and adjusted results.

EPS, dividend and cash

Basic IFRS EPS 44.4p; adjusted EPS 146.2p. Free cash flow £161.6m (H2 improvement: £133.6m), free cash flow‑to‑sales ~9.5% (2025). Net debt £523.8m (slightly down year‑on‑year) and leverage c.1.3x (down from 1.5x at 30 June 2025). Ordinary dividend increased to 111p (up 1p).

Transformation, efficiency and R&D

£28m gross transformation benefits realised in 2025 (target £25m; programme target ~£100m annualised by FY28). R&D refocus and reallocation underway; New & Protected Product (NPP) sales +5%, patented sales +9% and new ingredient sales +10%.

Financial framework and 2026 outlook

Targets for 2026–28 (constant currency): organic sales CAGR 3–6%, adjusted operating margin >20% by 2028, free cash flow‑to‑sales >12% and ROIC >10% by 2028. For FY2026 management expects group organic sales growth within 3–6% and adjusted operating profit in line with market expectations; Q1 2026 sales expected similar to Q1 2025 (strong comparator).