- Sales increased 7% at constant currency, driven by higher volumes in Beauty Care, Crop Protection, and F&F.
- Cost savings target raised to £100m by 2027, focusing on production, procurement, and enabling functions.
- Adjusted operating profit grew 12% at constant currency, supported by higher volumes and cost-saving initiatives.
- Full-year adjusted profit before tax expected between £265m and £295m in 2025 at constant currency.
Financial Performance
For the first half of 2025, Croda reported a 7% increase in sales at constant currency, driven by higher volumes in Beauty Care, Crop Protection, and Fragrances & Flavours (F&F). Adjusted operating profit rose by 12% at constant currency, supported by increased volumes and cost-saving initiatives.
Cost Savings and Efficiency
The company has increased its cost savings target to £100 million by the end of 2027, focusing on enhancing efficiencies in production, procurement, and enabling functions. An operational efficiency program contributed approximately £10 million in benefits during the first half of the year.
Investment and Returns
Investment intensity and capital expenditure are moderating as growth projects are commissioned. Croda is improving working capital management by targeting reductions in receivables and inventory days. The company is also applying a capital allocation framework to enhance investment discipline and returns on capital.
Outlook
Despite the unpredictable political and economic environment, Croda's performance aligned with expectations for the first half of the year. The company anticipates delivering a full-year adjusted profit before tax between £265 million and £295 million in 2025 at constant currency.
