Croda ups prices as costs rise, reaffirms outlook

(Sharecast News) - Croda International reiterated its full-year outlook on Wednesday, after the speciality chemicals group upped prices in response to rising cost inflation. Updating on first-quarter trading, the blue chip confirmed group sales had edged up 1% on a constant currency basis, to £431m, driven by a 4% uplift in consumer care, its largest division. Continued growth in beauty actives and fragrances and flavours helped offset lower sales in crop protection.

The US-Iran war has impacted trade in the Gulf and sent global energy prices soaring, reigniting input inflation concerns.

However, Croda said the conflict had so far not had a "material" effect, with the Middle East accounting for only around 5% of group sales.

It continued: "We are actively and responsibly managing the impact of the conflict, increasing prices to fully recover input cost inflation.

"While we recognise the elevated uncertainty caused by the Middle East conflict, the full-year 2026 outlook...is unchanged." Croda is targeting full-year organic sales growth of between 3% and 6%.

As at 1000 BST, the stock was up 1% at 3,029.10p.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "Croda's trading update paints a picture of stability rather than volatility, and a tough comparison in early 2025 means that 1% sales growth is a respectable result.

"With growth expectations weighted towards the remainder of the year, the potential for disappointments is higher than it was a few months ago. While the board has no influence on geopolitical events, the same isn't true of company strategy. On that front, the transformation plan, which focuses on cost efficiency and innovation, remains on track."

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