Croda International Plc (LON:CRDA), the company that uses smart science to create high-performance ingredients and solutions that improve lives, has announced its full year results for the year ended 31 December 2025 and sets out a financial framework for the next three years.
Highlights
| Statutory results (IFRS) | Adjusted results | ||||||
| Full year ended 31 December | 2025 | 2024 | change | 2025 | 2024 | Constant currency change | change |
| Sales (£m) | 1,699.4 | 1,628.1 | 4.4% | 1,699.4 | 1,628.1 | 6.6% | 4.4% |
| EBITDA (£m) | 396.6 | 378.3 | 7.1% | 4.8% | |||
| EBITDA as a % of sales | 23.3% | 23.2% | – | 0.1ppts | |||
| Operating profit (£m) | 110.1 | 227.5 | (51.6)% | 295.3 | 279.7 | 7.9% | 5.6% |
| Operating profit margin (%) | 17.4% | 17.2% | – | 0.2ppts | |||
| Profit before tax (£m) | 91.0 | 207.8 | (56.2)% | 276.2 | 260.0 | 8.4% | 6.2% |
| Basic earnings per share (p) | 44.4 | 113.5 | (60.9)% | 146.2 | 142.6 | – | 2.5% |
| Ordinary dividend per share (p) | 111.0 | 110.0 | 0.9% | ||||
| Free cash flow (£m) | 161.6 | 169.6* | – | (4.7)% | |||
| Net debt (£m) | 523.8 | 532.3 | – | (1.6)% | |||
*Restated to include cash costs of exceptional items in free cash flow, see page 4
Steve Foots, Croda International Chief Executive Officer, commented:
“I am encouraged by the early progress we have made in 2025 delivering on our plan to grow earnings and improve returns in an uncertain trading environment. Our differentiated business model and higher-growth portfolio have underpinned progress with Consumer Care and Life Sciences both growing sales, adjusted margins and profits. Our efforts to drive more consistent growth and transform the business are beginning to deliver results and whilst there is much more to do, our confidence in realising further improvements in performance is highlighted by the three-year financial framework we have set out today.”
Continued progress in an uncertain market
· Group sales +6.6% at constant currency comprising:
| o | Consumer Care sales +8% | |
| Beauty Actives +6%, Beauty Care +4%, F&F +15%, Home Care +2% | ||
| o | Life Sciences sales +8% | |
| Pharma +4%, Crop Protection +14%, Seed Enhancement +8% | ||
| o | Industrial Specialties sales (2)% | |
| o | Q425 sales +5% | |
· Adjusted operating profit +7.9% at constant currency
| o | Adjusted operating margin 17.4% (2024: 17.2%); Consumer Care and Life Sciences margin improving |
| o | Adjusted profit before tax +8.4% to £276.2m (2024: £260.0m); equivalent to £282.0m at constant currency |
| o | IFRS operating profit of £110.1m (2024: £227.5m); adjustments included £107.3m impairment charges, £44.6m related to optimising lipids capacity, with an associated onerous contract provision of £15.9m |
· Cash flow improved in the second half year
| o | £161.6m free cash flow (2024: £169.6m restated*), £133.6m in H2 with lower working capital and capex |
| o | Leverage ratio fell to 1.3x from 1.5x at 30 June 2025 |
| o | Full year dividend increased 1p to 111p (2024: 110p) |
Confident of delivering further improvements to financial performance over the next three years
· Driving more consistent sales growth (2025 % sales increases at constant currency)
| o | Refocusing innovation with rigorous new framework and reallocation of R&D resources | |
| New & Protected Product (NPP) sales +5%: patented sales +9%, new ingredient sales +10% | ||
| 12% increase in average pipeline value of customer co-creation projects | ||
| o | Improving customer experience; customer net promoter score +43 (2024: +32) | |
| o | Maximising returns from recent investments; period of heightened investment has come to an end | |
| o | Driving consistent sales growth in key markets | |
| Reinvigorating Beauty – internationalising Beauty Actives capabilities and delivering benefits to masstige brands; refocusing innovation in Beauty Care | ||
| Rebalancing Pharma – renewed focus on Pharma Ingredients (ingredients for consumer health and excipients representing ~70% Pharma sales) | ||
· Delivering our transformation programme to enhance growth and efficiency
| o | £28m gross benefits realised in 2025 (target: £25m) of ~£100m total annualised benefits for FY28 |
| o | Commenced working capital improvement programme targeting ~£50m reduction for FY28 |
· New financial framework to full year 2028 (at constant currency) based on current market conditions
| o | Consistent sales growth: 3-6% organic sales growth CAGR 2026-28 |
| o | Enhanced profitability: Group adjusted operating margin >20% (2025: 17.4%) for full year 2028 |
| o | Growing cashflows: free cash flow-to-sales ratio >12% (2025: 9.5%) for full year 2028 |
| o | Improving Return on Invested Capital (ROIC): >10% (2025: 8.2%) for full year 2028 |
2026 outlook
· For full year 2026 we expect:
| o | Group organic sales growth within our 3-6% range | |
| n | Versus a strong Q125 comparator, when sales were up 9% at constant currency, we expect sales in Q126 to be similar to the prior year at constant currency | |
| o | A further increase in Group adjusted operating margin driven by improving profitability in Consumer Care and Life Sciences and the benefits of our transformation programme | |
| o | Group full year 2026 adjusted operating profit in line with current market expectations1 at constant currency | |
1Current market expectations based on company-compiled consensus available at Croda website.
Technical foreign exchange guidance
The financial framework to 2028 and guidance for Group performance in 2026 are provided on a constant currency basis. Constant currency expectations are based on the Group’s average exchange rates through 2025 which were US$1.32 and €1.17. The US Dollar and the Euro together represent approximately 65% of the Group’s currency translation exposure. We estimate that the average annual currency translation impact on adjusted operating profit is £1m per Dollar cent movement per annum and £1m per Euro cent movement per annum. The impact from movements in remaining smaller currencies is broadly aligned with the impact from movements in the US Dollar. If foreign exchange rates in the period from February 2026 to December 2026 were to reflect the same levels as January 2026 closing rates, it is anticipated that there would be a negative impact of approximately £8m on reported operating profit.
Further information:
An investor presentation will be available via webcast at 0900 GMT on 24 February 2026 at www.croda.com/investors. Croda will provide an update on first quarter sales performance at the AGM on 22 April 2026.
