Croda International (LON:CRDA) Posts Quarterly Earnings Results

Key Points

• Croda delivered a solid first half: Constant-currency sales rose 5% to £881 million, adjusted operating profit increased 7% to £156 million, and EPS grew 9% to £0.78, with the operating margin expanding to 17.7%.
• Consumer Care and Asia led growth, while the transformation program generated £18 million in first-half savings. Management maintained its 2026 outlook for 3%–6% organic sales growth and further margin expansion.
• Execution remains uneven across the portfolio: Pharma Solutions was affected by project timing, Crop Protection by higher farm-input costs, and Fragrances & Flavours by Middle East disruption. Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average target of GBX 3,390.

Croda International (LON:CRDA - Get Free Report) announced its earnings results on Tuesday. The company reported GBX 72.20 earnings per share for the quarter, Digital Look Earnings reports. Croda International had a return on equity of 3.65% and a net margin of 4.61%.

Here are the key takeaways from Croda International's conference call:

• First-half results were ahead of the prior year and in line with expectations: constant-currency sales rose 5% to £881 million, adjusted operating profit increased 7% to £156 million, and EPS grew 9% to £0.78. Operating margin expanded to 17.7%, while leverage remained conservative at 1.4x EBITDA.
• Consumer Care led the acceleration, with sales up 8% and Beauty Actives up 27%, supported by customer innovation, product launches, and strong demand for premium offerings. Pharma Ingredients also grew 7%, while Asia delivered 10% growth.
• The transformation program generated £18 million of savings in the first half, taking cumulative benefits to £46 million, with further margin improvement expected in the second half. Portfolio simplification, lower headcount, procurement savings, digitalization, and increased use of the CrodaON platform remain key efficiency initiatives.
• Management reiterated its full-year 2026 outlook for 3%–6% organic sales growth and further adjusted operating-margin expansion, citing the strong second-quarter exit rate and expected improvement in Life Sciences, including Pharma Solutions and Crop Protection.
• Performance remained uneven across the portfolio: Pharma Solutions was below expectations because of project phasing, Crop Protection was pressured by higher farm-input costs, and Fragrances & Flavours faced Middle East-related disruption. Management expects Pharma Solutions revenue to improve in the second half, but acknowledged the business is project-based and inherently lumpy.

Croda International Stock Performance

Shares of CRDA traded up GBX 51 during midday trading on Thursday, reaching GBX 3,271. 357,799 shares of the stock were exchanged, compared to its average volume of 4,137,245. The business's 50-day moving average price is GBX 3,005.16 and its 200 day moving average price is GBX 2,908.67. The company has a debt-to-equity ratio of 36.06, a current ratio of 2.57 and a quick ratio of 2.25. Croda International has a twelve month low of GBX 2,426.77 and a twelve month high of GBX 3,317. The company has a market capitalization of £4.56 billion, a price-to-earnings ratio of 73.67, a PEG ratio of 1.40 and a beta of 0.92.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on CRDA. Citigroup boosted their target price on Croda International from GBX 3,050 to GBX 3,200 and gave the stock a "neutral" rating in a research note on Wednesday. Jefferies Financial Group reiterated a "buy" rating and issued a GBX 3,500 price target on shares of Croda International in a research note on Wednesday. Berenberg Bank reissued a "buy" rating and set a GBX 3,600 price objective on shares of Croda International in a report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a GBX 3,300 price objective on shares of Croda International in a research report on Wednesday. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of GBX 3,390.

Croda International News Roundup

Here are the key news stories impacting Croda International this week:

• Positive Sentiment: Broker support remains favorable: Jefferies reaffirmed its “buy” rating and set a GBX 3,500 price target, while Berenberg maintained its “buy” rating with a higher GBX 3,600 target. These targets imply further upside from recent trading levels. Broker rating updates
• Positive Sentiment: Quarterly earnings were reported at GBX 72.20 per share: The results provide investors with a fresh earnings update and may be supporting confidence in the company’s outlook, although no year-over-year comparison or guidance change was provided. Croda International quarterly earnings
• Neutral Sentiment: Citigroup raised its price target from GBX 3,050 to GBX 3,200 but retained a “neutral” rating, indicating improved valuation expectations without a strong conviction that the shares will outperform. Citigroup price target update
• Neutral Sentiment: Deutsche Bank reaffirmed its “hold” rating and assigned a GBX 3,300 price target. The mixed recommendations suggest analysts remain divided on how much upside is left after the recent share-price recovery. Deutsche Bank rating update

Insider Buying and Selling at Croda International

In related news, insider Steve Foots sold 73 shares of the company's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of GBX 2,840, for a total value of £2,073.20. Over the last ninety days, insiders bought 25 shares of company stock valued at $72,490. 0.83% of the stock is currently owned by insiders.

Croda International Company Profile

Founded in 1925 with the aim of turning bio-based raw materials into innovative ingredients, Croda International is a speciality chemicals company focused on consumer care and life sciences markets. The company is focused on creating, making and selling innovative ingredients that deliver real benefits to a diverse range of customers and employs more than 6,000 people around the world. Sustainability is a core part of the Groups strategy with a commitment to be Climate, Land and People positive by 2030.

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