Sales, profits spark at Croda despite 'uncertain' market conditions

(Sharecast News) - Croda International posted a jump in annual sales and earnings on Tuesday, despite the ongoing impact of US tariffs and wider geopolitical uncertainty. The speciality chemicals group posted a 6.6% rise in sales in the year to December end to £1.7bn, on a constant currency basis, while adjusted earnings before interest, tax, depreciation and amortisation were 7.1% stronger at £396.6m.

The blue chip said the trading in environment had been "uncertain", hit by geopolitical tensions, US trade tariffs and foreign exchange volatility.

Sales rose by more than 7% in its consumer care and life sciences divisions, but fell 2.4% in industrial specialities.

However, chief executive Steve Foots said: "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 efforts to drive more consistent growth and transform the business are beginning to deliver results, and while there is more to do, our confidence in realising further improvements in performance is highlighted by the three-year financial framework we have set out today."

Croda is targeting a compound annual growth rate for organic sales of 3% to 6% between 2026 and 2028, and an adjusted operating margin over 20% for the 2028 full year.

Shorter term, and for the current year Croda reiterated guidance for organic sales growth within the 3% and 6% range. However, it noted that first-quarter sales would likely be broadly flat, due to tough comparisons with the first three months of 2025.

It also confirmed it remained on track to meet consensus forecasts for adjusted operating profits of £320.5m in the current year.