Croda International Inc. Overview
Croda is a UK-headquartered specialty ingredients company. It describes itself as using "smart science to create high-performance ingredients and solutions that improve lives." Croda supplies about 6,000 specialty ingredients to more than 17,000 customers, mainly through a direct sales force. It makes them from predominantly natural, renewable raw materials, which it refines and purifies with proprietary downstream processes.
After divesting most of its industrial portfolio to Cargill in 2022, Croda is now concentrated in three areas: Consumer Care (beauty actives, beauty care, fragrances and flavours, home care), Life Sciences (pharma excipients, adjuvants and lipids, crop protection adjuvants, seed enhancement) and a residual Industrial Specialties business. In 2025, 89% of sales went to consumer, pharma and agriculture end-markets.
The investment debate centres on recovery. Margins have fallen from about 25% in 2021–22 to 17.4% in 2025. Management has a self-help programme (~£100m of efficiency savings) and a framework targeting a margin above 20%, FCF/sales above 12% and ROIC above 10% by FY2028. An activist investor, Standard Investments, has held a stake of more than 5% since September 2025.
What the company does
Croda manufactures and sells specialty chemical ingredients. Customers formulate these into finished products, where they drive performance, sensory feel, efficacy, delivery or sustainability claims. Examples include anti-ageing peptides in a skin serum, an emulsifier that stabilises a sunscreen, a high-purity polysorbate excipient in an injectable biologic, a lipid in a drug-delivery nanoparticle, an adjuvant that improves herbicide uptake, and a coating that improves seed germination.
According to the FY2025 results statement, Croda's model rests on four elements:
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mainly natural raw materials;
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proprietary downstream processes in derivatisation, refinement and purification;
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direct selling, with sales and R&D teams working together;
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formulation and claims-testing support, which turns single ingredients into multi-ingredient "solutions."
Company's own description (FY2025 results, 24 Feb 2026)
Croda describes its business model as "highly differentiated," creating value "through direct selling and customer-focused innovation." It operates eight business units on shared core capabilities:
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Consumer Care: Beauty Actives, Beauty Care, Fragrances & Flavours (F&F), Home Care.
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Life Sciences: Pharma, Crop Protection, Seed Enhancement.
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Industrial Specialties.
Ingredients for Beauty Care, Home Care, Crop Protection, Industrial Specialties and some Pharma are made at 11 shared manufacturing sites. These sites account for about 60% of sales and about 70% of sales volumes.
Revenue model
| Revenue type | Characterisation | Evidence |
|---|---|---|
| Product sales (ingredients) | Dominant. The great majority of revenue comes from sales of manufactured ingredients, priced per kg/unit with value-based pricing on differentiated grades | FY2025 results |
| Services | Seed Enhancement operates a "predominantly services business model" (treating, coating and priming customers' seed) | FY2025 Life Sciences review |
| Project / development revenue | Pharma Solutions (lipids, adjuvants) earns lumpier, project-driven revenue linked to customers' clinical programmes | H1 2026 results |
| Government-funded capacity | Pandemic-preparedness funding from US and UK governments supported lipid capacity (Lamar, Leek). This is capex funding, not a recurring revenue stream | FY2025 results |
| Licensing / subscription | Not material; n/d | — |
Value-chain position
Croda sits mid-stream. Upstream it buys oleochemical feedstocks (vegetable oils and fats, lanolin, fatty acids and alcohols), bio-based and petrochemical ethylene oxide, botanicals and fermentation inputs. Downstream it sells to formulators and brand owners: global beauty multinationals, local and regional (L&R) beauty brands, pharma and biotech companies, generic drug makers, crop-protection formulators and seed companies.
Its principal costs in 2025 were raw materials (~34% of sales), people (~22%), and freight plus energy (~5%) (H1 2026 results).
Customers and end-markets
| Metric (FY2025) | Value | Source |
|---|---|---|
| Number of customers | >17,000 | FY2025 results |
| Number of specialty ingredients | ~6,000 | FY2025 results |
| Share of sales to consumer, pharma and agri markets | 89% (2019: 73%) | FY2025 results |
| L&R customers as % of Consumer Care sales | 82% (2024: 80%; 2019: 73%) | FY2025 results |
| L&R customers as % of Crop Protection sales | 56% (2019: 44%) | FY2025 results |
| Sales outside Europe and North America | 48% (2019: 37%) | FY2025 results |
| Retention of larger customers, 2019–24 | ~90% | FY2025 results |
| Customer NPS | +43 (2024: +32) | FY2025 results |
Independent characterisation
Croda is best understood as a portfolio of high-value-in-use niches (peptides, super-refined excipients, adjuvants, seed coatings) attached to a volume-oriented oleochemical manufacturing base. The niches carry high gross margins. The shared base creates operating leverage in both directions.
The 2021–22 peak margins were inflated by two factors: COVID-19 vaccine lipid sales (£48m in 2023, earlier years higher) and customer over-ordering. The 2023–24 trough reflected destocking, fixed-cost under-absorption and a cost base built for growth. The current plan is essentially an operational restructuring layered on a portfolio that is already repositioned.
Strategy
Stated strategy (FY2025 results and AR2025, "Transforming for growth")
Management frames its plan as "driving growth and transforming the Business" to deliver "consistent sales growth, enhanced profitability and increased cashflows." It builds on a 2025 "five-point plan." The pillars are:
Driving consistent growth
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Refocusing innovation. A new group-wide prioritisation framework reallocates R&D towards customer co-creation, new markets for existing ingredients and new ingredients.
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Improving customer experience. Customers are segmented into L&Rs, regional "giants" and MNCs, with tailored service packages.
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Maximising returns from recent investments. "The period of heightened investment has come to an end."
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Driving growth in key markets:
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"Reinvigorating Beauty": internationalising Actives beyond Paris, targeting masstige and affordable beauty, scaling the biotech pipeline.
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"Rebalancing Pharma": Pharma Ingredients first.
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Enabling continued fast growth in F&F.
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Driving differentiation in Agriculture.
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Delivering transformation
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Optimising the product and customer portfolio (minimum order values, CrodaOn, SKU reduction; ~30% of the portfolio reviewed by H1 2026).
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Optimising the supply chain (global procurement, production rationalisation at the 11 shared sites, distribution network).
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Simplifying the organisation (enabling functions, management layers, shared services, outsourcing).
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Digitalisation and AI.
Initiatives announced in the last 24 months
| Initiative | Announced | Targets / status |
|---|---|---|
| Operational efficiency programme (initial £40m over two years) | Feb 2025 | £25m targeted in 2025; £28m delivered |
| Expanded transformation programme | 2025, formalised Feb 2026 | ~£100m annualised pre-tax benefits by end-2027 (full annualisation FY2028) vs 2024 baseline; total cash cost ~£80m (exceptional). Split: supply chain ~£65m, organisation ~£35m. £18m incremental delivered in H1 2026 |
| Working-capital programme | Feb 2026 | ~£50m reduction for FY2028 |
| Capex discipline | 2025–26 | Capex ~6% of sales (4.9% in H1 2026) |
| Lamar lipid plant standby | Feb 2026 | Cost avoidance; maintains US pandemic-preparedness commitments |
| Pharma reorganisation into Ingredients and Solutions | 2,025 | Ingredients +7% in H1 2026 |
| Asia footprint: Dahej, Guangzhou | Commissioned 2025–26 | Completed H1 2026 |
| Biotech centre of excellence, Daresbury | Opened 17 Sep 2026 | Biocatalysis, synthetic biology |
| Sustainability strategy refocus to 2030 | FY2025 | Fewer, deeper targets (GHG incl. scope 3/FLAG, water, >75% renewable carbon, zero deforestation) |
| Q2 2026 price increases | Q2 2026 | Recovered Middle East-driven input inflation |
Medium-term financial framework to FY2028 (constant currency, 24 Feb 2026)
| KPI | FY2025 actual | FY2028 target | H1 2026 progress |
|---|---|---|---|
| Group organic sales growth (CAGR 2026–28) | 6.6% (2025) | 3–6% | 4.6% |
| Consumer Care organic CAGR | 7.9% | 3–6% | 8.3% |
| Life Sciences organic CAGR (excl. Pharma breakout) | 7.7% | 4–7% | 0.2% |
| Industrial Specialties organic CAGR | (2.4)% | (3)% to 3% | (1.9)% |
| Group adjusted operating margin | 17.4% | >20% (≈ EBITDA margin >25%) | 17.7% |
| FCF-to-sales (post-exceptionals) | 9.5% | >12% | n/m at half year |
| ROIC | 8.2% | ≥10% | 8.4% |
| Leverage | 1.3x | 1–2x range | 1.4x |
| Dividend policy | 76% payout | 40–50% through the cycle; dividend at least maintained | Interim held at 48p |
FY2026 guidance (unchanged at H1 2026)
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Group organic sales growth within the 3–6% range.
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Further adjusted operating margin expansion.
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Adjusted operating profit in line with market expectations at constant currency.
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FX translation headwind of about £4m on reported FY2026 operating profit at June 2026 rates.
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Effective tax rate on adjusted profit of about 26%.
Products & Services
Croda does not publish a full catalogue with prices. Pricing is negotiated B2B and is not publicly disclosed. Brands below are those named in Croda's filings and corporate communications. Long-standing brand families are noted where they are well established in Croda's portfolio. Launch years are given only where disclosed.
Consumer Care — Beauty Actives
| Product / brand | Description & capability | Target customer | Launch / latest | Notes |
|---|---|---|---|---|
| Matrixyl (peptide family) | Croda describes peptides as "the most effective ingredient for preventing skin ageing"; market-leading anti-ageing peptide franchise (Sederma) | Prestige and masstige skin-care brands | Long-standing | Flagship actives franchise |
| Matrixyl Neolide | Patented, encapsulated, slow-release version of the market-leading peptide; benefits for up to 15 days after application | Global and regional beauty brands | Launched H1 2026 | H1 2026 results |
| Volufiline | Skin-plumping ingredient, repositioned to address facial hollowing associated with GLP-1 drug use | Mass/masstige and dermo-cosmetic brands | Repositioned 2026 | Deciem (The Ordinary) uses "Volufiline" as a product trade name, at up to 92% inclusion (H1 2026 results) |
| Silverfree | Peptide that reduces grey hair; performance enhanced, opening an FMCG multinational opportunity | Hair-care brands | Enhanced 2025 | FY2025 results |
| Zenakine | Active that enhances skin's resistance to physical and emotional stress, reducing skin fatigue and premature ageing | Skin-care brands (Europe and Asia launches) | 2,025 | FY2025 results |
| Ceramides (Solus Biotech) | Biotech-derived ceramides for skin-barrier protection and rapid moisturisation; new scalp/hair ceramides | Skin, hair and dermatology brands | Acquired 2023; sales +36% (2025), +44% (H1 2026) | FY2025 and H1 2026 results |
| Botanical actives (Alban Muller, Crodarom) | Plant-extracted actives; plant stem-cell biotech (France, Italy) | Natural/clean beauty brands | 2021 acquisition (Alban Muller) | H1 2026 results mention plant stem-cell capabilities |
| Marine biotech actives (Nautilus) | Actives from marine micro-organisms (Canada) | Beauty brands | Acquired 2017 | H1 2026 results |
Consumer Care — Beauty Care
| Product / brand | Description & capability | Target customer | Launch / latest | Notes |
|---|---|---|---|---|
| Kerabio / Kerabio K31 | Patented biomimetic bond-builder for hair repair; first of several ingredients from Croda's recombinant protein platform | Prestige brands, professional salon specialists, challenger brands | K31 launched Mar 2025; sampled by 500 customers | Hair-repair market growing ~9% p.a. (FY2025); high selling price, "more in line with an active" |
| Emollients and emulsifiers ("formulation ingredients") | Structural chassis of formulations; long-standing ranges include Crodamol (emollients) and Brij/Tween/Span/Arlacel (emulsifiers, ex-Uniqema) | All beauty customers | Long-standing; ongoing PEG-free reformulation | Carbon-footprint data available for >1,500 Beauty Care product codes |
| Hair-care proteins | "Effect" ingredients for conditioning and repair | Hair-care brands | Long-standing | FY2025 business description |
| Mineral sunscreens | Mineral UV-filter dispersions (Solaveil range); Entekno Materials particle-technology partnership for sun care | Sun-care brands | Ongoing | FY2025 description; Croda acquisitions page |
| PEG-free rheology modifier | Bespoke ingredient co-created with a global beauty brand | Global beauty MNC | 2,025 | FY2025 results |
Consumer Care — Fragrances & Flavours
| Brand | Description | Target customer | Notes |
|---|---|---|---|
| Iberchem | Wide range of fragrances; niche positioning with L&R customers mainly in emerging markets | L&R personal-care and home-care brands | Acquired 2020; HQ/production in Murcia, Spain |
| Parfex | Fine fragrances, premium skin-care and natural fragrances; innovation and production in Grasse, France (expanded 2025–26) | Prestige/fine-fragrance houses | 95.6% stake acquired |
| Scentium | Flavours | Food and beverage, oral-care customers | Flavours sales +24% in 2025 |
| Capability bets | Micro-encapsulation, odour-neutralising fragrances, water-based fragrances, AI-assisted formulation using 40+ years of data | — | FY2025 and H1 2026 results |
F&F sales grew 15% at constant currency in 2025 (fragrances +13%, flavours +24%). The Middle East accounts for more than 20% of F&F sales.
Consumer Care — Home Care
| Platform | Description | Notes |
|---|---|---|
| Fabric care | Proteins that increase the lifetime of clothes | FY2025 description |
| Household care | Sustainable surfactants, including bio-based ranges from the Atlas Point bio-EO plant (ECO range) | Carbon footprint data for >750 Home Care product codes |
Life Sciences — Pharma
| Sub-portfolio | Products | Description | Notes |
|---|---|---|---|
| Pharma Ingredients (>70% of Pharma sales) | Super Refined excipients (e.g. polysorbates, PEGs, Super Refined Poloxamer 188) | High-purity excipients for small molecules, biologics and injectables. Poloxamer 188 serves as both a cell-growth aid in upstream bioprocessing and an excipient | Super-refining process commissioned at Leek, UK |
| Pharma Ingredients | Consumer-health "flagship" ingredients | Topical and animal-health ingredients relaunched in 2025–26 | H1 2026 results |
| Pharma Ingredients | High-purity amino acids | Launched 2026 for injectables and bioprocessing | H1 2026 results |
| Pharma Ingredients | Virodex | Croda's first range of bioprocessing ingredients; multiple joint projects with MNC pharma; follow-on order | H1 2026 results |
| Pharma Ingredients | Phospholipids (Solus Biotech) | Delivery systems and intravenous nutrition | Korea production |
| Pharma Solutions (<30% of Pharma sales) | Avanti lipids | >2,000 lipids for drug research; mRNA/LNP lipids; generics segment | Avanti site, Alabama |
| Pharma Solutions | GMP lipid manufacturing | Four GMP lipid sites: two in the USA (incl. Lamar, now on standby), one in the UK (Leek) and one in South Korea | FY2025 results |
| Pharma Solutions | Vaccine adjuvants (ex-Biosector) | Aluminium-salt and emulsion adjuvants; biotech-derived (non-shark) squalene with extended stability | Washington Convention change tightens shark-squalene trade |
| Pharma Solutions | NovoArc partnership lipids | Lipids potentially enabling oral delivery of complex therapeutics | Announced 15 Jun 2026 |
Market context: Pharma has ~15% share of a ~$2bn advanced excipients, adjuvants and delivery systems market (FY2025 results).
Life Sciences — Crop Protection
| Product family | Description | Notes |
|---|---|---|
| Adjuvants and formulation aids (long-standing Atlas/Atlox/Atplus ranges) | Improve performance and delivery of crop-protection actives: wetting, spreading, rain-fastness, drift control | Highly differentiated top-end grades have grown ~10% CAGR since 2019 |
| Drone-delivery adjuvant | New product developed in Asia for Chinese drone application | Launched 2026 |
| Biostimulants (ex-Plant Impact) | Crop enhancement under stress | Acquired 2018 |
Life Sciences — Seed Enhancement (Incotec)
| Offering | Description | Notes |
|---|---|---|
| Seed coatings (incl. microplastic-free film coats) | Positioned ahead of the EU ban on microplastics in seeds in 2028 | Demand building, notably in Latin America |
| Priming, pelleting, X-ray processes | Improve germination, vigour and abiotic-stress tolerance | AI model built on 20+ years of data cuts tomato seed treatment times |
| Service model | Predominantly services (treating customers' seed) | Consistent growth: +8% in 2025, +4% in H1 2026 |
Agriculture context: ~9% share of a ~$4bn addressable market (FY2025 results).
Industrial Specialties
| Offering | Description | Notes |
|---|---|---|
| Phase-change materials (CrodaTherm) | Thermal-management materials | Core growth driver in H1 2026 |
| Coatings and electrification ingredients | Selective growth targets | FY2028 framework |
| By-products, co-streams and supply agreements | Volume outlets from shared sites; supply-agreement sales declining | Explains price/mix volatility |
Digital / service channel
CrodaOn is a low cost-to-serve online ordering portal for lower-value orders. It was used by ~10% of the customer base at end-2025 and ~18% by H1 2026.
Financial Narrative
Note on comparability: FY2021 includes a full year of PTIC; FY2022 includes PTIC up to disposal; FY2023 onwards excludes PTIC.
Income statement: notes and sources
Sources: - FY2021: results RNS 1 Mar 2022 (sales ≈ £1.89bn; adjusted operating profit £468.6m per interactive investor; adjusted PBT £445.2m; IFRS PBT £411.5m; IFRS operating profit £438.2m; DPS 100p).
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FY2022: FY2023 results (sales £2,089.3m, adjusted PBT £496.1m, IFRS PBT £780.0m including £356.0m divestment profit); interactive investor (DPS 108p).
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FY2023–FY2025: the respective results statements.
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FY2021 and FY2022 margins are derived.
Margins and EPS (FY2023–FY2025)
FY2021 adjusted EPS was about 250p (FY2021 results call transcript).
Revenue CAGR FY2021–FY2025: about −2.6% p.a. (derived: 1,699.4 ÷ 1,890 over 4 years). This is distorted by the 2022 PTIC disposal, which carried roughly £554m of 2021 sales per the FY2021 presentation. On a 2023 base (post-disposal), the 2023–25 CAGR is +0.1% reported, and organic growth was +6.6% in 2025.
Commentary. The five-year arc has three phases:
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Boom (2021–22). Pandemic demand, COVID-19 lipid sales and pre-buying drove adjusted operating margins of about 25%.
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Reset (2023–24). Destocking across beauty, crop and consumer health, plus the disappearance of high-margin COVID-19 lipid sales (£48m in 2023, nil in 2024), cut adjusted PBT by 48% from the 2022 reported level. Under-absorption at the shared sites compounded this, as did a cost base built for a higher sales run-rate.
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Early recovery (2025–H1 2026). Volume-led sales growth (+9.6% volume in 2025), modest margin repair (+0.2ppt) and £28m of transformation savings.
The 2025 price/mix of −3.0% is notable. Management deliberately pushed lower-value volume through the shared plants to raise utilisation, which diluted gross margin (−1.2ppt). H1 2026 shows the healthier mix management wants: +3.4% price/mix and +1.2% volume.
Balance sheet: notes and sources
Source: FY2025 Group balance sheet. Total assets and total debt are derived sums.
Net debt history (GBP m)
Interim balance sheet, 30 June 2026:
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Intangibles £1,251.2m; inventories £413.6m; receivables £437.9m; cash £205.3m.
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Borrowings £54.8m current and £649.0m non-current.
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Equity £2,188.5m; leverage 1.4x.
Cash flow: notes and sources
Sources: FY2025 results. Own-share figures come from the statement of changes in equity.
Free cash flow series (definitional break flagged)
Commentary.
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Cash generation is the most improved metric. Capex fell to 6% of sales in 2025 (from 8.5% in 2024) and to 4.9% in H1 2026, as the "period of heightened investment" ended.
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H2 2025 FCF was £133.6m.
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The FY2025 dividend payout was 76% of adjusted EPS, above the 40–50% policy. That explains why the H1 2026 interim was held flat at 48p.
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There is no buyback programme. Own-share purchases relate to employee share plans only.
Ratios
Commentary.
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The balance sheet is conservative: leverage is 1.3–1.4x against a 1–2x target range, interest cover is about 15x, and the UK pension scheme is in surplus (120.6% funded on a technical-provisions basis at the Sep 2023 valuation).
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The weak spot is returns. A capital base of about £3.4bn built through M&A and capex (goodwill and intangibles £1.28bn; ~£150m on lipid capacity alone) earns only 8.2% ROIC, below most estimates of cost of capital.
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The 2025 impairments (£107.3m) partially recognise this.
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An inventory of roughly 140–150 days is high for a specialty chemicals company and is the target of the ~£50m working-capital programme.
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Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (GBP Mn; FY2021 rounded to nearest 10m) | 1,890 | 2,089.3 | 1,694.5 | 1,628.1 | 1,699.4 |
Adjusted operating profit (GBP Mn) | 468.6 | 515.1 | 320.0 | 279.7 | 295.3 |
Adjusted profit before tax (GBP Mn) | 445.2 | 496.1 | 308.8 | 260.0 | 276.2 |
IFRS profit before tax (GBP Mn) | 411.5 | 780.0 | 236.3 | 207.8 | 91.0 |
Ordinary dividend per share (pence) | 100.0 | 108.0 | 109.0 | 110.0 | 111.0 |
Adjusted operating margin (%) | 24.8 | 24.7 | 18.9 | 17.2 | 17.4 |
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View Subscription PlansIncome Statement
| Line item (GBP Mn) | FY2024 | FY2025 |
|---|---|---|
Revenue | 1,628.1 | 1,699.4 |
Cost of sales | 894.2 | 953.7 |
Gross profit | 733.9 | 745.7 |
Adjusted operating costs | 454.2 | 450.4 |
Adjusted EBITDA | 378.3 | 396.6 |
Depreciation & amortisation (excl. acquired intangibles) | 98.6 | 101.3 |
Adjusted operating profit | 279.7 | 295.3 |
Exceptional items | 15.0 | 149.5 |
Amortisation of acquired intangibles | 37.2 | 35.7 |
IFRS operating profit | 227.5 | 110.1 |
Net finance cost | 19.7 | 19.1 |
IFRS profit after tax | 159.6 | 64.7 |
Adjusted profit after tax | 200.2 | 206.7 |
IFRS profit attributable to owners | 158.5 | 62.0 |
Margin Analysis (%)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Gross margin (%) | — | 45.1 | 43.9 |
Adjusted EBITDA margin (%) | — | 23.2 | 23.3 |
Adjusted operating margin (%) | 18.9 | 17.2 | 17.4 |
IFRS net margin (%) | — | 9.8 | 3.8 |
Basic EPS, IFRS (p) | — | 113.5 | 44.4 |
Diluted EPS, IFRS (p) | — | 113.5 | 44.4 |
Basic EPS, adjusted (p) | — | 142.6 | 146.2 |
Diluted EPS, adjusted (p) | — | 142.5 | 146.1 |
Effective tax rate on adjusted profit (%) | — | 23.0 | 25.2 |
Balance Sheet
| Metric (GBP Mn) | FY2024 | FY2025 |
|---|---|---|
Total assets | 3,509.3 | 3,411.0 |
Intangible assets (incl. goodwill) | 1,310.6 | 1,284.2 |
Property, plant & equipment | 1,082.9 | 985.8 |
Inventories | 367.9 | 370.5 |
Trade & other receivables | 349.5 | 363.8 |
Cash & cash equivalents | 166.8 | 172.8 |
Short-term borrowings & other financial liabilities | 35.0 | 148.1 |
Long-term borrowings & other financial liabilities | 580.2 | 470.3 |
Lease liabilities (total) | 83.9 | 78.2 |
Total debt incl. leases | 699.1 | 696.6 |
Net debt (company definition) | 532.3 | 523.8 |
Total equity | 2,296.9 | 2,202.1 |
Trade working capital (inventory + receivables − payables) | 443.4 | 453.8 |
Net current assets | 547.7 | 450.5 |
Retirement benefit assets (gross) | 130.0 | 137.7 |
Year End Details
| Year end | Net debt (GBP Mn) | Basis |
|---|---|---|
FY2021 | ~820 | Derived from the 64% fall to £295m in FY2022 (interactive investor) |
FY2022 | ~295 | Approx., interactive investor |
FY2023 | ~538 | Approx., derived from the 1% fall to £532m in FY2024 |
FY2024 | 532.3 | Reported |
FY2025 | 523.8 | Reported |
H1 2026 (30 Jun) | 577.9 | Reported |
Cash Flow
| Metric (GBP Mn) | FY2024 | FY2025 |
|---|---|---|
Net cash from operating activities | 319.4 | 286.5 |
Net capital expenditure | 137.9 | 108.2 |
Free cash flow (post-exceptionals, new definition) | 169.6 | 161.6 |
Dividends paid | 152.2 | 154.9 |
Share buybacks (ESOP purchases / own shares) | 9.8 | 7.3 |
Working-capital movement (outflow negative) | 20.9 | -7.7 |
Business transformation cash costs | 9.9 | 24.9 |
FCF by Year
| Year | FCF (GBP Mn) | Definition |
|---|---|---|
FY2022 | 157.4 | Old definition (restated in FY2023 report) |
FY2023 | 165.5 | Old definition |
FY2024 | 181.1 / 169.6 | Old / new (restated) |
FY2025 | 161.6 | New (post-exceptionals) |
H1 2026 | 38.3 | New; H1 2025 restated 28.0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2024 | FY2025 | Basis |
|---|---|---|---|
ROE, IFRS (%) | 6.8 | 2.8 | Derived: owners' profit ÷ average owners' equity |
ROE, adjusted (%) | 8.5 | 9.1 | Derived: adjusted profit to owners ÷ average equity |
ROA, IFRS (%) | 4.5 | 1.9 | Derived: IFRS PAT ÷ average total assets (FY2024 uses year-end only) |
ROIC, company definition (%) | 7.7 | 8.2 | Reported; 2024 restated. H1 2026 LTM 8.4% |
Current ratio (x) | 2.63 | 1.99 | Derived |
Debt/equity, incl. leases (x) | 0.30 | 0.32 | Derived |
Net debt / EBITDA, leverage (x) | 1.4 | 1.3 | Reported |
Interest cover, adjusted EBIT ÷ net interest (x) | 14.2 | 15.5 | Derived |
Asset turnover (x) | 0.46 | 0.49 | Derived |
Days inventory outstanding | 150 | 142 | Derived (on cost of sales) |
Days sales outstanding | 78 | 78 | Derived (receivables include other receivables) |
Days payables outstanding | 112 | 107 | Derived (on cost of sales) |
Cash conversion cycle (days) | 117 | 112 | Derived |
Region share of Group sales (%)
| Region share of Group sales (%) | FY2024 | FY2025 |
|---|---|---|
EMEA | 39 | 40 |
North America | 27 | 26 |
Asia | 23 | 22 |
Latin America | 11 | 11 |
Geographic Revenue
| Region | FY2025 constant currency | FY2025 reported | Q4 2025 constant currency | H1 2026 organic | Q1 2026 organic | Q2 2026 organic |
|---|---|---|---|---|---|---|
EMEA | 9% | 9% | 7% | 3% | 2% | 4% |
North America | 5% | 2% | 5% | (1)% | (7)% | 7% |
Latin America | 7% | 4% | 2% | 11% | 11% | 11% |
Asia | 4% | 0% | 3% | 10% | 2% | 17% |
Group | 7% | 4% | 5% | 4.6% | 0.8% | 8.8% |
Region Overview
| Region | Status | Reason |
|---|---|---|
Latin America | Fastest growth in H1 2026 (+11%) | Agriculture momentum plus robust Consumer Care |
Asia | Sharpest acceleration (Q2 2026 +17%) | Consumer Care and Industrial Specialties; easy Q2 2025 comparator that included tariff impacts. Supported by new sites at Dahej and Guangzhou |
EMEA | Led FY2025 (+9%), slowed in H1 2026 (+3%) | Beauty and F&F demand in Europe and the Middle East in 2025; Iran-related disruption to F&F in 2026 |
North America | Weakest in H1 2026 (−1%) | Pharma Solutions phasing and crop restocking comparator. Q2 2026 recovered (+7%) |
Capital Markets
| Item | Value | Source / basis |
|---|---|---|
Share price | 3,235p (28 Sep 2026) | Ad-hoc-news / MarketBeat |
52-week range | 2,488p – 3,520p | Ad-hoc-news (28 Sep 2026) |
YTD 2026 performance | ~+17% (from 2,695p at the start of 2026 to 3,163p on 18 Sep) | MarketBeat via Ad-hoc-news |
1-year performance | ~+20–25% (from ~2,650p in autumn 2025) | Approx., derived from the Barclays-note price of 2,664p |
3-year performance | Negative (n/d precise; shares well above 3,500p in late 2023) | — |
5-year performance | Approximately −65% to −70% from the 2021 peak | Barclays cited ~70% below the 2021 peak at ~2,664p |
Market cap | ≈ £4.5bn | 3,235p × 139.64m shares |
Enterprise value | ≈ £5.1bn | Market cap plus £577.9m net debt (30 Jun 2026); derived |
MarketBeat consensus | "Moderate Buy" (3 Buy, 2 Hold, 0 Sell); average target ~3,490p | Ad-hoc-news citing MarketBeat (Sep 2026) |
Published target range | 3,200p – 4,000p | Ad-hoc-news |
Jefferies | Buy, 4,000p (25 Sep 2026) | MarketBeat |
JPMorgan | Overweight (24 Sep 2026), first since Aug 2018 | Investing.com via Ad-hoc-news |
Barclays | Overweight, 3,100p (late 2025) | Proactive Investors |
UBS | Buy reiterated (Feb 2026) | interactive investor |
Company-compiled consensus | Published at croda.com/investors/analyst-consensus | Croda (figures n/d this session) |
Valuation Multiples
| Multiple | Croda | Basis |
|---|---|---|
P/E, FY2025 adjusted EPS (146.2p) | 22.1x | Derived |
P/E, FY2025 IFRS EPS (44.4p) | ~73x | Derived |
EV / EBITDA, FY2025 (£396.6m) | 12.8x | Derived |
EV / EBITDA, LTM to Jun 2026 (£406.0m) | 12.6x | Derived |
EV / Sales, LTM (£1,724.1m) | 3.0x | Derived |
P / Book (equity £2,172.1m attributable, Jun 2026) | 2.1x | Derived |
Dividend yield (111p) | 3.4% | Derived |
Dividend (pence per share)
| Dividend (pence per share) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Ordinary dividend per share | 100.0 | 108.0 | 109.0 | 110.0 | 111.0 |
Capital Markets — Moody's / S&P / Fitch
| Item | Detail |
|---|---|
Moody's / S&P / Fitch | No public credit rating identified (n/d). Croda funds through the US Private Placement market and bank facilities |
Committed funding (30 Jun 2026) | £1,075.0m |
Undrawn committed facilities | £362.9m |
Cash | £205.3m |
Recent issuance | £50m and €100m fixed-rate USPP notes (H1 2026) |
Maturity profile | 2016 EUR and GBP fixed-rate notes matured June 2026 and were refinanced. Full ladder n/d (see AR2025 borrowings note) |
Covenant metric | Leverage (net debt / EBITDA) 1.4x vs 1–2x target |
Analyst Conclusions
Management guidance (H1 2026, unchanged)
-
FY2026 organic sales growth of 3–6%.
-
Further adjusted operating margin expansion, with a sequential H2 increase expected.
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Adjusted operating profit in line with market expectations at constant currency.
-
About £4m FX headwind to reported FY2026 operating profit.
-
Pharma Solutions project revenues expected to improve in H2 on the order book; Crop stabilising.
FY2028 framework: margin above 20%, FCF/sales above 12%, ROIC of at least 10%, and organic CAGR of 3–6%.
Consensus expectations
The company-compiled FY2026 consensus is not reproduced here (n/d). The sell-side target average of about 3,490p implies roughly 8% upside from 3,235p.
Bull case
-
Self-help margin bridge. About £54m of the ~£100m savings remain to be delivered in H2 2026–2027. Combined with 3–6% growth, this can plausibly lift the margin from 17.7% towards 20%+. At about £1.85bn of FY2028 sales, a 20% margin implies adjusted operating profit of roughly £370m+, versus £295m in FY2025 (derived).
-
Innovation-led mix reversal. H1 2026 delivered positive price/mix (+3.4%) and positive volume together, NPP growth of 6.9%, Beauty Actives growth of 19%, and the return of global-brand innovation demand. These are signs of the quality growth that historically supported Croda's premium multiple.
-
Cash and capital catalysts. Capex has normalised to ~6% of sales, a ~£50m working-capital release is targeted, and leverage of 1.4x gives scope for capital returns. An active shareholder (Standard Investments, 5.48%) may accelerate portfolio rationalisation. A rerating from ~12.6x LTM EV/EBITDA is possible.
Bear case
-
Structural margin reset. Margins have stayed in a 17–19% range for three years despite volume recovery. The 2025 volume growth was partly "targeted" low-value sales, and the 2028 target may depend on benign end-markets and FX.
-
Returns trap. ROIC of 8.2% on more than £3.4bn of assets, recurring impairments (£107.3m in 2025, £5.1m in H1 2026, more flagged as "may" follow), and stranded lipid capacity point to continued value-destructive capital intensity.
-
Cyclical and geopolitical exposure. Crop (Q1 2026 −8%), F&F's Middle East concentration (>20% of unit sales), US tariffs and vaccine policy, and FX sensitivity leave earnings exposed. A 76% payout leaves little dividend headroom if earnings disappoint.
Catalysts and monitorables (next 12 months)
| Date / timing | Catalyst |
|---|---|
| 5 Nov 2026 | Q3 2026 sales update: does Q2 momentum (+8.8%) persist; Pharma Solutions H2 recovery |
| Feb 2027 | FY2026 results: margin above 17.4%? Cumulative transformation savings; dividend decision; any new impairments |
| Apr 2027 | Q1 2027 update and AGM: NED tenure and chair commitments; remuneration votes |
| Ongoing | Standard Investments' engagement: any public letter, board seat or portfolio-review demand |
| Ongoing | Middle East situation and F&F demand; crop destocking and restocking cycle; US tariff regime |
| Ongoing | Lamar restart triggers; NovoArc and lipid commercial milestones; Virodex orders |
| Mid-2027 | H1 2027: working-capital release progress; FCF/sales trajectory towards 12% |
| H2 2026 | UK pension triennial valuation |
Analyst verdict
Croda is a high-quality specialty ingredients franchise that is mid-way through repairing an earnings base which over-extended in the pandemic boom. The evidence of repair is real but early.
H1 2026 delivered a profile Croda had not shown since 2022: organic sales up 4.6% with both positive price/mix and positive volume, profits growing faster than sales, a 50-basis-point margin gain, a 37% rise in free cash flow, and leverage held at 1.4x. Transformation savings are running ahead of plan (£46m cumulative), and the innovation metrics are pointing the right way: NPP is outgrowing the group, Beauty Actives is accelerating and ceramides are finally scaling.
Against that, the starting point is poor and the burden of proof is high. Returns on invested capital remain around 8%, below a reasonable cost of capital. The 2025 write-downs of £107m confirm that some of the 2020–25 investment wave, notably large-scale lipid capacity, will not earn its keep in the medium term. The dividend is covered only about 1.3 times by adjusted earnings. Life Sciences, structurally the highest-margin segment, was flat in H1 2026 and is exposed to lumpy pharma projects, US policy and agricultural cycles. F&F, the group's growth star, is concentrated in a geopolitically volatile region.
At about 12.6x LTM EV/EBITDA and about 22x trailing adjusted earnings, the shares discount a partial, not full, recovery to the FY2028 framework. An activist owner and recent upgrades (JPMorgan, Jefferies, Barclays) add a catalyst that management's own plan lacked a year ago.
Our synthesis: a constructive, execution-dependent view. Delivery of an adjusted operating margin above 18.5% in FY2026, with no further significant impairments, would materially de-risk the 20% target and support a rerating. Any slippage in Q3 or FY2026 would likely re-open the "structural reset" bear thesis. Monitor margin, ROIC and working capital more than headline sales.
End of dossier. Figures are as reported by Croda unless marked derived, approx. or n/d. Market-price data comes from secondary aggregators and should be confirmed against LSE data before use.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Board tenure | Background (per disclosures) |
|---|---|---|---|
Danuta Gray | Chair | Since Feb 2024 | Former CEO of Telefónica O2 Ireland; former Chair of Direct Line (2020–25) and St Modwen; NED and Remuneration Committee Chair at Burberry; joined Lloyds Banking Group board and became Chair of Scottish Widows from 1 Jul 2026 |
Steve Foots CBE | Group Chief Executive | Board since Jul 2010; CEO since 2012 | Long-serving Croda executive |
Stephen Oxley | Chief Financial Officer | Since Apr 2025 | Former CFO of Johnson Matthey; former KPMG partner; qualified accountant |
Jacqui Ferguson | Senior Independent Director | Since Sep 2018 | n/d in sources reviewed |
Keith Layden | Non-Executive Director | Board since 2012; NED since May 2017 | Former Croda executive director (implied by board history) |
Roberto Cirillo | Non-Executive Director | Since Apr 2018 | n/d in sources reviewed |
Nawal Ouzren | Non-Executive Director | Since Feb 2022 | n/d in sources reviewed |
Chris Good | Non-Executive Director | Since Apr 2023 | n/d in sources reviewed |
Ian Bull | Non-Executive Director | Since Jun 2024 | n/d in sources reviewed |
Jill Anderson | Non-Executive Director | Since 12 Jan 2026 | More than 30 years in healthcare; former CFO of GSK's R&D division (retired 2024); NED and Audit Chair at Spire Healthcare; sits on the Audit, Nomination and Remuneration Committees |
Executive Leadership Team
| Name | Title | Appointed to ExCo |
|---|---|---|
Steve Foots | Group Chief Executive | — |
Stephen Oxley | CFO | Apr 2025 |
Sandra Breene | President Consumer Care | Feb 2012 |
Thomas Riermeier | President Life Sciences | Apr 2025 |
Anthony Fitzpatrick | President Strategy, Corporate Development & Industrial Specialties (interim CFO late 2024 to early 2025; former investment banker of 20+ years) | Mar 2014 |
Tom Brophy | Group General Counsel, Company Secretary & President Sustainability | Company Secretary since Dec 2012 |
Thiru Selvan | President, Supply Chain Operations | Jul 2025 |
Michelle Lydon | President Human Resources | Jan 2023 |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
Feb 2024 | Danuta Gray joins Board; later becomes Chair | — |
Jun 2024 | Ian Bull joins as NED | Board refresh |
| 2024 | — | Finance transition |
Oct 2024 | Stephen Oxley announced as CFO | Joined no later than 1 Apr 2025 |
Apr 2025 | Thomas Riermeier becomes President Life Sciences | Pharma rebalancing |
Jul 2025 | Thiru Selvan becomes President Supply Chain Operations | Transformation execution |
12 Jan 2026 | Jill Anderson joins as NED | Healthcare and finance expertise |
1 Jul 2026 | Danuta Gray takes Lloyds / Scottish Widows roles | Increases her external commitments (overboarding monitorable) |
Major Shareholders
| Holder | Latest disclosed stake | Date | Notes |
|---|---|---|---|
Norges Bank | 8.97% (12,521,949 voting rights) | 2 Mar 2026 | Down from 9.26% (Aug 2025) |
Standard Latitude Master Fund (Standard Investments) | 5.48% total: 2.54% shares plus 2.94% cash-settled swaps | 15 Sep 2025 | Activist; co-CEOs David Winter and David Millstone. Previously ran a campaign at Johnson Matthey |
BlackRock, Inc. | Notifiable holding (exact % n/d) | Aug 2025 | TR-1 filed |
Massachusetts Financial Services | Notifiable holding (exact % n/d) | Multiple filings | Long-standing holder |
Competitive Landscape
Competitors by Segment
| Segment / niche | Competitors |
|---|---|
Beauty Actives | DSM-Firmenich; Givaudan Active Beauty; Symrise (Cosmetic Ingredients); Lucas Meyer Cosmetics; Ashland (skin care actives); BASF Care Creations; Lubrizol Life Science Beauty |
Beauty Care (emollients, emulsifiers, conditioning) | BASF Care Chemicals; Evonik Care Solutions; Clariant (Care Chemicals); Dow Personal Care; Lubrizol; Ashland; Seppic (Air Liquide); Stepan; Oleon |
Fragrances & Flavours | Givaudan; DSM-Firmenich; IFF; Symrise; mid-tier players (e.g. Robertet, Mane, Expressions Parfumées). Croda is a small player in a ~$25bn addressable market |
Home Care | BASF; Clariant; Evonik; Novonesis (enzymes); Stepan |
Pharma excipients and solutions | BASF Pharma Solutions; Evonik Health Care (lipids, excipients); Merck KGaA; Ashland Pharma; Lubrizol Life Science Health; DFE Pharma; NOF Corporation (lipids, PEGs); Lonza (CDMO adjacency); Seppic (adjuvants) |
Crop Protection adjuvants | Nouryon; Huntsman; Clariant; Stepan; Syensqo/Solvay; BASF Agricultural Specialties |
Seed Enhancement | BASF; Bayer; Syngenta Seedcare; Germains (ABF); Centor; Precision Laboratories |
Industrial Specialties | Cargill (ex-Croda PTIC); Oleon; KLK Oleo; Emery Oleochemicals |
Peer Comparison FY2024
| Company | FY2024 revenue | Revenue growth FY2024 | Margin indicator | R&D intensity |
|---|---|---|---|---|
Croda | £1,628m (FY2025: £1,699m) | (0.8)% constant currency (FY2025: +6.6%) | Adjusted EBIT 17.2% / EBITDA 23.2% (FY2025: 17.4% / 23.3%) | — |
Givaudan | ~CHF 7.4bn | ~+12% like-for-like | EBITDA ~23–24% | ~6–7% of sales (indicative) |
Symrise | ~€5.0bn | ~+8% organic | EBITDA ~21% | ~5–6% (indicative) |
Clariant | ~CHF 4.2bn | ~+3% local currency | EBITDA ~17% | ~3–4% (indicative) |
Recent Developments
Market-data items (26–28) come from Ad-hoc-news and MarketBeat summaries, which are secondary and low-transparency sources.*
