Croda International, the company that uses smart science to create high performance ingredients and solutions that improve lives, has reported first-quarter sales broadly in line with expectations.
All thanks to strong demand in beauty and fragrances that helped counter a downturn in agricultural markets.
The group posted sales of £431m for the three months to 31 March 2026, up 1% at constant currency against a tough prior-year comparison, when sales surged 9%.
Growth in high-margin segments proved critical. Continued momentum in Beauty Actives and Fragrances and Flavours (F&F) offset weaker performance in Crop Protection, where demand cooled following last year’s inventory rebuild.
Consumer Care remained stable at £255m, while Life Sciences slipped to £126m and Industrial Specialties edged down to £50m. Overall reported sales declined 2% year-on-year.
Despite geopolitical tensions, Croda said operations remained resilient. “The conflict in the Middle East did not have a material effect on our business in the first quarter.”
The region accounts for roughly 5% of group sales, largely tied to fragrances and flavours. The company said it is managing cost pressures by raising prices while prioritising staff safety and customer relationships.
“We are actively and responsibly managing the impact of the conflict, increasing prices to fully recover input cost inflation.”
Regional performance was mixed. Latin America led growth, buoyed by agriculture and consumer demand, while North America lagged due to softer crop protection markets, weather disruption, and pressure on household spending. EMEA and Asia met expectations.
Within divisions, Beauty Actives stood out with double-digit growth, driven by innovation demand and spending from higher-income consumers. F&F also delivered strong gains despite significant exposure to the Middle East, while Home Care recovered across all regions.
Life Sciences declined against a strong comparator, with Crop Protection down sharply and Pharma slightly weaker. Seed Enhancement provided a rare bright spot, supported by its more stable services-led model.
Industrial Specialties also dipped against a strong prior-year base. Croda maintained its full-year outlook, despite heightened global uncertainty.
The company reiterated confidence in its medium-term strategy, highlighting a transformation programme aimed at boosting margins and cash flow.
Looking ahead, Croda expects performance to strengthen over the next three years, with improved profitability and returns increasingly driven by internal efficiencies rather than market recovery.
“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 cash flows and improving returns on capital.”
