Croda International (CRDA) H1 2025 earnings summary

Executive summary

• Sales increased 7% year-over-year to £855.8m, with volumes up 11% and price/mix down 4%, and full-year outlook unchanged.

• Adjusted operating profit rose 12% year-over-year at constant currency to £146.9m, while IFRS operating profit declined due to exceptional items and impairments.

• The company is executing a five-point plan focused on earnings growth, margin improvement, and operational efficiency, with a transformation program targeting £100 million in annualized cost savings by 2027.

• Interim dividend increased 2.1% to 48.0p per share, maintaining a record of progressive payouts.

• Free cash flow declined to £34.2m from £122.7m, impacted by working capital outflows.

Financial highlights

• Group sales reached £855.8m, up 7% at constant FX, with adjusted operating profit £146.9m and adjusted profit before tax £138.0m, all up 7–12% year-over-year.

• Adjusted EPS increased 5% to 72.2p; interim dividend per share up 2% to 48.0p.

• IFRS profit before tax was £85.5m, impacted by £7m in restructuring charges, £18m in amortization of acquired intangibles, and a £27m impairment charge.

• Free cash flow was £34.2m, with net debt at £580.1m (1.5x EBITDA) after dividend payments.

• Basic EPS down 23.4% to 43.8p; adjusted basic EPS up to 72.2p.

Outlook and guidance

• Full-year 2025 adjusted profit before tax expected between £265m and £295m at constant currency.

• Currency translation is expected to have a £10m negative impact for the full year.

• CapEx guidance for the year is £135m, with expectations for CapEx as a percentage of sales to decline from 2026.

• Near-term acquisitions limited to small-scale, next-generation technologies.

• Q3 sales update scheduled for 16 October 2025.