Croda International (CRDA) H1 2026 earnings summary

Executive summary

• Profit growth outpaced sales and volume, led by Consumer Care and innovation-driven demand, with performance meeting expectations and transformation benefits building.

• Transformation program is delivering results, enhancing current and long-term performance, with cost savings and efficiency gains.

• New and Protected Products grew faster than total sales, supporting transformation and efficiency.

• H1 2026 delivered 4.6% organic sales growth, with strong Consumer Care performance and innovation-led demand.

Financial highlights

• Sales reached £880.5m (up 5% constant currency, 4.6% organic); adjusted operating profit rose 7% to £155.8m; adjusted EPS up 9% to 78.6p.

• Free cash flow increased to £38.3m (up 36.8%); interim dividend maintained at 48.0p.

• Net debt at £577.9m; leverage at 1.4x EBITDA.

• Margin improved to 17.7%, driven by higher volumes, positive price/mix, and transformation savings.

• IFRS operating profit increased to £115.5m from £94.4m year-over-year.

Outlook and guidance

• Full-year and FY26 guidance reaffirmed, expecting 3-6% organic sales growth and further margin expansion.

• Adjusted operating profit expectations unchanged; sequential margin improvement anticipated in H2.

• FY28 financial framework targets: >20% adjusted operating margin, >12% free cash flow to sales, >10% ROIC.

• Currency translation expected to negatively impact FY26 operating profit by ~£4m if rates persist.