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Chemicals

Croda bounces from decade low as growth returns, plans US tariff 'surcharge'

Shares in Croda International PLC (LSE:CRDA) topped the FTSE 100 leaderboard on Wednesday morning after the chemicals group reported an encouraging start to 2025 after a tough previous year.

The shares jumped 9% to 2,979p, after falling more than 45% over the previous 12 months and hitting their lowest in over a decade.

On the US tariff regime, the Humberside-based group said its "well-balanced local manufacturing and procurement model helps to mitigate our direct exposure" but the full likely impact is still being assessed, with a tariff surcharge intended to be imposed to cover any associated incremental costs.

Sales in the first quarter rose 8% year-on-year to £442 million, supported by increased volumes across all business units and regions, while profit before tax was said to be in line with expectations.

Analysts at UBS noted that group sales were 3% above the City consensus forecast.

All three divisions (Consumer Care, Life Sciences and Industrial Specialties) recorded higher revenue, led by Life Sciences at 10% as crop protection and seed enhancement sales did well.

Consumer Care sales increased 8% to £255 million, with demand strongest in fragrances and flavours, while beauty active ingredients declined slightly against a strong prior year.

Industrial Specialties rose 6% to £53 million, driven by higher volumes, while manufacturing efficiency gains were also made.

Croda confirmed it is on track to deliver £25 million in cost savings this year and said further efficiency opportunities have been identified, maintaining its full-year 2025 guidance for adjusted profit before tax of between £265 million and £295 million.

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