REG - Croda International - First quarter 2026 sales in line with expectations

Croda InternationalAnnouncement

22/04/2026 07:00

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RNS Number : 3838B  Croda International PLC  22 April 2026

Press Release

22 April 2026

 

First quarter 2026 sales in line with expectations

Croda International Plc ("Croda" or the "Group") today provides an update on
its sales performance in the first quarter of 2026 (the three months ended 31
March 2026).

·      Group sales of £431m, up 1% at constant currency, in line with
guidance versus a strong Q125 comparator

·      Continued growth in Beauty Actives and F&F offsetting lower
sales in Crop Protection

·      Transformation programme on track

·      No change to expectations for Full Year 2026

Group performance
                                                                Change versus
                               prior year
                         Q126  Q125                         Constant currency change     Change

                         £m    £m
 Consumer Care           255   255                          4%                           0%
 Life Sciences           126   134                          (3)%                         (6)%
 Industrial Specialties  50    53                           (2)%                         (5)%
 Group                   431   442                          1%                           (2)%

 

First quarter sales of £431m (Q125: £442m) were up 1% at constant currency,
consistent with our guidance that constant currency sales in the quarter would
be similar to the strong prior comparator when sales were up 9% at constant
currency. Continued growth in Beauty Actives and Fragrances and Flavours
(F&F) offset lower sales in Crop Protection which, as we previously
guided, is not benefitting from the customer inventory rebuild that positively
impacted our performance in 2025.

The conflict in the Middle East did not have a material effect on our business
in the first quarter. Sales in the Middle East accounted for ~5% of Group
sales in 2025, most of which were in F&F. We are actively and responsibly
managing the impact of the conflict, increasing prices to fully recover input
cost inflation. Our priorities remain the safety of our employees and
maintaining our trusted long-term relationships with our customers.

Whilst we recognise the elevated uncertainty caused by the Middle East
conflict, the full year 2026 outlook
(https://www.croda.com/en-gb/media-hub/news/general/2025-full-year-results)
that we communicated on 24 February 2026 ( )is unchanged.

In line with the financial framework to full year 2028 outlined in February,
we are confident of delivering an improving performance over the next three
years comprising more consistent sales growth, enhanced profitability, growing
cashflows and improving returns on capital. Implementation of our
transformation programme remains on track and means that a significant
proportion of future margin improvement is in our control and not dependent on
market recovery.

Regional performance
 % change in sales versus the prior year  Constant currency change  Change
 EMEA                                     2%                        3%
 North America                            (7)%                      (13)%
 Latin America                            11%                       4%
 Asia                                     2%                        (4)%
 Group                                    1%                        (2)%

Sales growth was strongest in Latin America, the only region where momentum in
agriculture markets continued into the first quarter, augmented by robust
demand in Consumer Care. By contrast, performance in North America was
adversely impacted by a normalisation in demand in Crop Protection, compounded
by weather impacts on some regional customers and continued pressure on
consumers with lower disposable incomes. EMEA and Asia sales were broadly as
expected.

 
Business performance
 
Consumer Care
 % change in sales versus the prior year  Constant currency change  Change
 Beauty Actives                           12%                       10%
 Beauty Care                              (4)%                      (8)%
 F&F                                      10%                       6%
 Home Care                                6%                        2%
 Total Consumer Care                      4%                        0%

Sales in Consumer Care were up 4% on a constant currency basis. Beauty Actives
continued to deliver a strong performance, with growth in all regions at
constant currency driven by renewed customer appetite for innovation and
continued spending by higher-income households. This helped offset lower sales
in Beauty Care in North America and Asia, the prior period having benefitted
from some pre-tariff buying. Despite generating over 20% of its sales in the
Middle East, F&F sales were up 10% at constant currency driven by
continued strength in Flavours and an excellent performance in Western Europe
and Africa. Home Care grew sales in all regions at constant currency,
recovering from a weaker Q425.

Life Sciences
 % change in sales versus the prior year  Constant currency change  Change
 Pharma                                   (2)%                      (5)%
 Crop Protection                          (8)%                      (11)%
 Seed Enhancement                         2%                        0%
 Total Life Sciences                      (3)%                      (6)%

Sales in Life Sciences were 3% lower at constant currency against a strong
comparator that benefitted from restocking in Crop Protection. Whilst Crop
Protection sales fell 8% at constant currency, Seed Enhancement sales grew 2%
as its mainly services business model continued to deliver more consistent
growth, less impacted by customer inventory management.  Pharma sales were
down 2% at constant currency, with Pharma Solutions sales lower, again versus
a strong comparator, and Pharma Ingredients sales higher, as we re-allocate
resources to accelerate growth of our longer-standing ingredients and enhance
their differentiation in core markets.

Industrial Specialties

Sales in Industrial Specialties were down 2% at constant currency against a
strong prior year comparator.

 
Technical foreign exchange guidance

The guidance for Group performance in 2026 and financial framework to 2028 are
provided on a constant currency basis. Constant currency expectations are
based on the Group's average exchange rates through 2025 which were US$1.32
and €1.17. The US Dollar and the Euro together represent approximately 65%
of the Group's currency translation exposure. We estimate that the average
annual currency translation impact on adjusted operating profit is £1m per
Dollar cent movement per annum and £1m per Euro cent movement per annum. The
impact from movements in remaining smaller currencies is broadly aligned with
the impact from movements in the US Dollar.  If foreign exchange rates in the
period from April 2026 to December 2026 were to reflect the same levels as
March 2026 closing rates, it is anticipated that there would be a negative
impact of approximately £4m on reported FY26 operating profit inclusive of
the anticipated impact from hyperinflation accounting.

 
Quarterly sales performance
 Quarterly sales (reported) £m   Consumer  Life       Industrial    Group

                                 Care      Sciences   Specialties
 Q1 2024                         236.8     121.8      49.9          408.5
 Q2 2024                         231.6     124.4      51.4          407.4
 Q3 2024                         228.1     128.8      49.7          406.6
 Q4 2024                         223.5     129.3      52.8          405.6
 Q1 2025                         255.1     134.5      52.7          442.3
 Q2 2025                         236.7     126.5      50.3          413.5
 Q3 2025                         241.6     133.8      49.3          424.7
 Q4 2025                         239.3     137.4      42.2          418.9
 Q1 2026                         255.0     126.2      50.0          431.2

 

 
 
Further information

Croda is hosting a conference call for analysts and investors at 7.30am BST
this morning. Please register in advance at: www.croda.com/investors
(http://www.croda.com/investors) .

Our Annual General Meeting (AGM) is taking place at 12 noon today at The
Milner York, Station Road, York, England, YO24 1AA.

Croda will report half year 2026 results on 28 July 2026.

For enquiries contact

 

 Investors:  David Bishop                         +44 7823 874428
             Reece De Gruchy                      +44 7826 548908
 Media:      Charlie Armitstead (FTI Consulting)  +44 7703 330269
             Mariana Wood                         +44 7780 987136

 

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