- 2025 sales increased by 6.6% at constant currency, with Consumer Care and Life Sciences both up 8%.
- Operating profit margin improved to 17.4% in 2025, with a target of over 20% by 2028.
- Free cash flow was £161.6m in 2025, with a leverage ratio reduction to 1.3x.
- 2026 aims for 3-6% organic sales growth and enhanced profitability.
Financial Performance
In 2025, Croda reported a 6.6% increase in sales at constant currency, with Consumer Care and Life Sciences both achieving 8% growth. The adjusted operating profit rose by 7.9%, and the operating profit margin improved slightly to 17.4% from 17.2% in 2024. Free cash flow was recorded at £161.6 million, with a leverage ratio reduction to 1.3x.
Strategic Initiatives
Croda is focusing on driving consistent sales growth and enhancing profitability. The company aims for a 3-6% organic sales growth CAGR from 2026 to 2028, with a target to exceed a 20% operating margin by 2028. The transformation program delivered £28 million in gross benefits in 2025, surpassing the target of £25 million, with a goal of achieving £100 million in annualized benefits by FY28.
2026 Outlook
For 2026, Croda expects group organic sales growth within the 3-6% range. The company anticipates a further increase in the adjusted operating margin, driven by improved profitability in Consumer Care and Life Sciences, alongside benefits from the transformation program. The adjusted operating profit for the full year 2026 is expected to align with current market expectations at constant currency.
Currency Impact
The financial framework to 2028 and guidance for 2026 are based on constant currency, with the US Dollar and Euro representing approximately 65% of the Group’s currency translation exposure. A potential negative impact of approximately £8 million on reported operating profit is anticipated if foreign exchange rates remain at January 2026 levels.
