Croda International issues results for half-year to June 30

Croda International reported a pre-tax profit of £107.4 million for the six months to June 30, up 25.6 per cent from £85.5 million for the same period last year.

The company, based at Cowick Hall, Snaith, also saw improved EBITDA of £207.9 million and free cash flow of £38.3 million, up from £28 million, supported by lower capital expenditure.

The positive performance was largely driven by strong growth in the Consumer Care division, with year-on-year revenue increases reflecting success in the group’s transformation programme.

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Steve Foots, chief executive officer of Croda International, said: “We have delivered a good first half performance in line with our expectations with strong growth in Consumer Care.

“Group profits continue to grow ahead of sales, reflecting both increased customer demand for innovation and the benefits of our transformation programme.

“We are rigorously executing our plan to grow earnings and returns, successfully reinvigorating beauty and seeing the early benefits of rebalancing pharma.

“Despite the ongoing macro uncertainty, our outlook for full year 2026 is unchanged and we remain on track to deliver our financial framework for full year 2028.”

The group has recorded organic sales growth of 4.6 per cent, led by an eight per cent rise in the Consumer Care segment. Within this division, Beauty Actives grew by 19 per cent, Home Care by nine per cent, and Fragrances & Flavours by eight per cent.

Adjusted operating margins improved to 17.7 per cent, supported by a 6.1 per cent rise in adjusted operating profit to £155.8 million.

The company also reported a 36.8 per cent increase in free cash flow and a reduction in capital expenditure.

Croda’s three-year transformation plan continues to deliver results, including £18 million of incremental savings in the first half of 2026.

These are part of a broader target to achieve around £100 million in efficiency benefits and £50 million in working capital improvements by 2028.

The company’s full-year outlook for 2026 remains unchanged, despite ongoing geopolitical and macroeconomic headwinds.

Croda expects group organic sales growth within its target range of three to six per cent, a further rise in adjusted operating margin, and continued profitability improvements in both Consumer Care and Life Sciences divisions.

The company will provide an update on third-quarter sales performance on Thursday, November 5, 2026.