Croda interim profits grow on rising innovation demand
By Iain Gilbert
Date: Tuesday 28 Jul 2026
(Sharecast News) - Chemicals firm Croda posted a sharp increase in interim profits on Tuesday, with growth driven by stronger innovation demand and a solid performance across key consumer‑facing divisions.
Adjusted operating profits rose 6.7% to £155.8m, supported by 4.6% organic sales growth and a strong second quarter, where sales were up 9%. Consumer care led the way, delivering 8% growth, including gains of 19% in its beauty actives wing, 9% in home care and 8% in fragrances and flavours. Life Sciences was broadly flat, while industrial specialties dipped 2%. New and protected products grew 6.9%, outpacing the wider group.
Croda said margins also improved, with adjusted operating margins rising to 17.7%, and the company said it expects further expansion in the second half as transformation benefits build. Free cash flow increased 36.8% to £38.3m, while net debt edged down to £577.9m.
The FTSE 100-listed firm, which kept its interim dividend at 48p, said it continues to execute its three‑year plan, highlighting progress in beauty, a rebalanced pharma division and stronger returns from recent investments, including a 44% jump in ceramide sales and new production sites in India and China. Croda also added that it remains on track to deliver around £100m of efficiency gains and £50m of working‑capital improvements by FY28.
Looking ahead, Croda's outlook for FY26 was left unchanged, with the firm expecting organic sales growth within its 3% to 6% target range and a further increase in adjusted operating margins.
As of 0820 BST, Croda shares were were up 3.08% at 3,015.01p.
Reporting by Iain Gilbert at Sharecast.com
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