Croda International (LON:CRDA) Announces Quarterly Earnings Results

Croda International (LON:CRDA) posted its quarterly earnings results on Tuesday. The company reported GBX 72.20 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Croda International had a net margin of 4.61% and a return on equity of 3.65%.

Here are the key takeaways from Croda International’s conference call:

• First-half results were ahead of the prior year and in line with expectations: constant-currency sales rose 5% to £881 million, adjusted operating profit increased 7% to £156 million, and EPS grew 9% to £0.78. Operating margin expanded to 17.7%, while leverage remained conservative at 1.4x EBITDA.
• Consumer Care led the acceleration, with sales up 8% and Beauty Actives up 27%, supported by customer innovation, product launches, and strong demand for premium offerings. Pharma Ingredients also grew 7%, while Asia delivered 10% growth.
• The transformation program generated £18 million of savings in the first half, taking cumulative benefits to £46 million, with further margin improvement expected in the second half. Portfolio simplification, lower headcount, procurement savings, digitalization, and increased use of the CrodaON platform remain key efficiency initiatives.
• Management reiterated its full-year 2026 outlook for 3%–6% organic sales growth and further adjusted operating-margin expansion, citing the strong second-quarter exit rate and expected improvement in Life Sciences, including Pharma Solutions and Crop Protection.
• Performance remained uneven across the portfolio: Pharma Solutions was below expectations because of project phasing, Crop Protection was pressured by higher farm-input costs, and Fragrances & Flavours faced Middle East-related disruption. Management expects Pharma Solutions revenue to improve in the second half, but acknowledged the business is project-based and inherently lumpy.

Croda International Price Performance

Shares of LON CRDA traded up GBX 51 during mid-day trading on Thursday, hitting GBX 3,271. 357,799 shares of the stock were exchanged, compared to its average volume of 4,137,245. The company has a market cap of £4.56 billion, a P/E ratio of 73.67, a PEG ratio of 1.40 and a beta of 0.92. The stock’s fifty day simple moving average is GBX 3,005.16 and its two-hundred day simple moving average is GBX 2,908.67. The company has a debt-to-equity ratio of 36.06, a quick ratio of 2.25 and a current ratio of 2.57. Croda International has a twelve month low of GBX 2,426.77 and a twelve month high of GBX 3,317.

Croda International News Summary

Here are the key news stories impacting Croda International this week:

• Positive Sentiment: Broker support remains favorable: Jefferies reaffirmed its “buy” rating and set a GBX 3,500 price target, while Berenberg maintained its “buy” rating with a higher GBX 3,600 target. These targets imply further upside from recent trading levels. Broker rating updates
• Positive Sentiment: Quarterly earnings were reported at GBX 72.20 per share: The results provide investors with a fresh earnings update and may be supporting confidence in the company’s outlook, although no year-over-year comparison or guidance change was provided. Croda International quarterly earnings
• Neutral Sentiment: Citigroup raised its price target from GBX 3,050 to GBX 3,200 but retained a “neutral” rating, indicating improved valuation expectations without a strong conviction that the shares will outperform. Citigroup price target update
• Neutral Sentiment: Deutsche Bank reaffirmed its “hold” rating and assigned a GBX 3,300 price target. The mixed recommendations suggest analysts remain divided on how much upside is left after the recent share-price recovery. Deutsche Bank rating update

Insider Activity at Croda International

In other news, insider Steve Foots sold 73 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of GBX 2,840, for a total value of £2,073.20. Over the last 90 days, insiders purchased 25 shares of company stock valued at $72,490. 0.83% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

CRDA has been the topic of several recent research reports. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a GBX 3,300 target price on shares of Croda International in a research report on Wednesday. Jefferies Financial Group reissued a “buy” rating and issued a GBX 3,500 price target on shares of Croda International in a research report on Wednesday. Berenberg Bank reaffirmed a “buy” rating and set a GBX 3,600 price objective on shares of Croda International in a report on Wednesday. Finally, Citigroup lifted their price objective on Croda International from GBX 3,050 to GBX 3,200 and gave the company a “neutral” rating in a report on Wednesday. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Croda International has a consensus rating of “Moderate Buy” and an average target price of GBX 3,390.

Croda International Company Profile

Founded in 1925 with the aim of turning bio-based raw materials into innovative ingredients, Croda International is a speciality chemicals company focused on consumer care and life sciences markets. The company is focused on creating, making and selling innovative ingredients that deliver real benefits to a diverse range of customers and employs more than 6,000 people around the world. Sustainability is a core part of the Groups strategy with a commitment to be Climate, Land and People positive by 2030.