Croda International has reported a strong first-half performance for 2026, with earnings growth ahead of sales as the specialty ingredients group continues to benefit from innovation-led demand and its ongoing transformation programme.

 

The company, which uses smart science to create high-performance ingredients and solutions, said results for the six months ended 30 June 2026 were in line with expectations, with its full-year outlook unchanged despite continued geopolitical and macroeconomic uncertainty.

 

Group organic sales rose 4.6%, reaching £880.5 million, while adjusted operating profit increased 6.7% to £155.8 million. Adjusted operating margin improved to 17.7%, compared with 17.2% in the same period last year, reflecting stronger customer demand for innovative products and the impact of efficiency initiatives.

 

Chief Executive Officer Steve Foots said: "We have delivered a good first half performance in line with our expectations with strong growth in Consumer Care. Group profits continue to grow ahead of sales, reflecting both increased customer demand for innovation and the benefits of our transformation programme. 

 

"We are rigorously executing our plan to grow earnings and returns, successfully reinvigorating Beauty and seeing the early benefits of rebalancing Pharma. Despite the ongoing macro uncertainty, our outlook for full year 2026 is unchanged and we remain on track to deliver our financial framework for full year 2028.”

 

Croda’s Consumer Care division was the key driver of performance, delivering 8% organic sales growth. Beauty Actives surged 19%, while Beauty Care increased 4%, Home Care rose 9%, and Fragrances & Flavours grew 8%.

 

Life Sciences sales were broadly flat, with Pharma up 1%, Seed up 4%, and Crop down 2%. Industrial Specialties declined 2%.

 

The company highlighted a particularly strong second quarter, with sales growth accelerating to 9%, despite only limited disruption from the situation in the Middle East.

 

Demand for innovation continued to strengthen, with New & Protected Products delivering a 6.9% organic sales increase — ahead of overall sales growth — driven by positive volume and price/mix trends.

 

Croda said its three-year transformation plan remains on track, with the business continuing to focus on improving earnings, returns and efficiency.

 

The company has already delivered £18 million of incremental savings in the first half of 2026, following £10 million of benefits achieved in the first-half 2025 comparator period and £18 million delivered in the second half of 2025.

 

Croda remains on course to achieve approximately £100 million in efficiency benefits and around £50 million in working capital improvements by 2028.

 

The company is also seeing progress from strategic investments, with ceramide sales increasing 44% following a slow start after acquisition. Its Asia expansion was completed with the opening of two new production sites in India and China.

 

Croda said actions to rebalance its Pharma business were beginning to deliver results, with Ingredients sales rising 7% and representing more than 70% of total Pharma sales.

 

Solutions sales declined 17%, impacted by project timing, although although the company expects project revenues to improve in the second half of the year.

 

Croda said it expects no change to its full-year 2026 outlook, continuing to forecast: Group organic sales growth within its 3–6% range; further improvement in adjusted operating margin, supported by stronger profitability in Consumer Care and Life Sciences and benefits from the transformation programme.