Croda International (CRDA) Trading Update summary

Q1 sales performance and business trends

• Q1 2025 sales reached £442m, up 8% year-on-year and 9% at constant currency, driven by strong volume growth across all business units as price/mix headwinds eased.

• Consumer Care sales rose 8%, led by Fragrances & Flavours (+19%), with steady growth in Beauty Care and Home Care; Beauty Actives were slightly down year-on-year but up versus Q4.

• Life Sciences grew 10% (11% at constant currency), with strong gains in Crop Protection (+18%), Seed Enhancement (+15%), and Pharma up 7%; biopharma momentum offset softness in consumer health and veterinary markets.

• Industrial Specialties grew 6% (7% constant currency), driven by higher sales volumes and contributing to overall group growth.

• Asset utilization at 11 shared manufacturing sites improved, supporting the GBP 25 million annualized cost savings plan and further efficiency opportunities.

Pricing, tariffs, and customer engagement

• Volume growth was the main driver, with slightly negative pricing in low single digits due to stable raw material costs, not competition.

• Tariff exposure is mainly from UK/Europe to the US (now less than GBP 97 million due to exemptions) and US to China (GBP 15 million, mostly substitutable by local production); surcharges to cover tariff costs are being applied immediately.

• Local manufacturing and procurement model helps mitigate direct tariff exposure.

• No evidence of pre-buying or unusual order patterns; most Consumer Care revenue comes from small/local customers, with multinationals closely monitored.

• Surcharges to cover tariff costs are being applied, with active customer engagement to clarify impacts and support production relocation.

Market outlook and operational priorities

• Order book visibility remains short at about four weeks, with no clear signs of deterioration; Q2 may be below Q1 but continued sales growth is expected.

• Full-year 2025 outlook unchanged, expecting £265m–£295m adjusted profit before tax at constant currency.

• Utilization rates are on track to return to normalized levels, supported by volume growth in Beauty Care, Industrial Specialties, and Crop.

• The new CFO prioritizes customer focus, efficiency, and working capital discipline, aiming to improve returns and margins through the Five-Point Plan.

• Five-point plan progressing: leveraging customer proximity, innovation, recent investments, increasing volumes, and realigning costs.