Croda International Reports Q3 Sales Increase, Maintains Full-Year Outlook

Croda International Plc (LON: CRDA) announced a 6.5% increase in group sales at constant currency for the third quarter of 2025, reaching £424.7 million.

This performance aligns with the company's objectives to enhance earnings and improve returns, despite a challenging market environment.

The sales growth was spearheaded by robust performances in Beauty Actives, Fragrances and Flavours (F&F), and Crop Protection.

Consumer Care saw a notable increase of 8.1% at constant currency, with sales reaching £241.6 million. Life Sciences also experienced growth, up 5.9% at constant currency to £133.8 million, while Industrial Specialties saw a marginal increase of 1.2% at constant currency, totaling £49.3 million.

Croda's transformation plan remains on track, with ongoing efforts to optimize capacity across production and distribution networks. The company is also focused on realigning costs and simplifying operations through a multi-year efficiency program.

The company is actively implementing measures to achieve £25 million in cost savings this year. Croda anticipates annualised cost savings of £100 million by the end of 2027, which is expected to contribute to margin recovery.

The regional performance showed growth in EMEA (7%), North America (10%) and Latin America (11%) at constant currency, while Asia remained flat. U.S. trade tariffs continue to introduce volatility across regions, impacting customer export sales, especially in pharma, industrial, and agriculture markets.

Growth in Beauty Actives was primarily driven by stronger sales in North America, with sales up 12% at constant currency. F&F continued its double-digit growth trajectory with a 13% increase at constant currency, driven by demand for Parfex's premium fragrances and Flavours. Conversely, Home Care sales experienced a decline due to fluctuating demand.

Life Sciences saw Crop Protection sales rise by 19% at constant currency. This increase was attributed to recovery in demand from major crop science clients following a destocking period, supported by Croda's proactive strategies. Pharma sales were flat at constant currency.

Despite anticipating a continued challenging trading environment and low order book visibility for the remainder of the year, Croda maintains its full-year 2025 outlook. The company expects to deliver a Group adjusted profit before tax between £265 million and £295 million at constant currency.

Foreign exchange fluctuations continue to impact the Group's financials. H1 2025 adjusted operating profit was adversely affected by £4.8 million due to currency translation.

Further adverse impacts are expected in the second half of the year. The company seeks to mitigate transactional currency exposures through hedging, pricing strategies, and supply chain optimization.

Driver Breakdown:

• Portfolio Maximization: Leveraging previous peak investments to enhance returns across business segments.
• Regional Proximity: Strengthening relationships with local and regional customers to drive sales.
• Innovation Boost: Increasing innovation efforts to meet renewed customer demand and improve margins.