Croda’s underlying sales grew by 7% to £1.7bn in 2025, when ignoring currency moves. Growth of 8% in Consumer Care and Life Sciences more than offset a 2% decline in Industrial Specialities.
Underlying operating profit of £295mn (consensus: £292mn) was up 8%, helped by improved profitability in Croda’s largest divisions.
Free cash flow fell 5% to £162mn, with last year benefitting from a £48mn receipt relating to earlier sales of Covid 19 vaccine ingredients. Net debt fell slightly to £524mn.
Croda expects organic sales growth of 3-6% this year, with underlying operating profit in-line with market expectations of £321mn. The Board expects similar sales growth through to 2028, where it’s targeting an underlying operating margin of over 20% (2025: 17.4%).
The annual dividend was raised by 1p to 110p per share.
The shares rose 4.5% in early trading.
Our view
HL view to follow.
Croda International key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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