Croda International PLC has reported higher adjusted profits and set out how it plans to improve profit margins over the next three years, as the chemicals and ingredients group said early progress on its turnaround was encouraging.
Sales for 2025 rose 4.4% to £1.7 billion, or 6.6% on a constant currency basis, while adjusted operating profit increased 7.9% to £295.3 million, at the top end of its previous guidance as the margin edged up to 17.4% from 17.2%.
Statutory operating profit fell 51.6% to £110.1 million after £107.3 million of impairment charges, including £44.6 million linked to optimising lipid capacity.
Chief executive Steve Foots said he was “encouraged by the early progress we have made in 2025, delivering on our plan to grow earnings and improve returns in an uncertain trading environment”.
He added that efforts to drive more consistent growth and transform the business are "beginning to deliver results and whilst there is much more to do, our confidence in realising further performance improvements is highlighted by the three-year financial framework we have set out today."
Croda is targeting organic sales growth of 3-6% a year to 2028, along with adjusted operating margins above 20%, a free cash flow-to-sales ratio above 12% and return on invested capital above 10%.
For 2026, the FTSE 100 group expects organic sales growth within that 3-6% range and adjusted operating profit in line with market expectations.