29th Jul 2025 09:21
(Alliance News) - Croda International PLC on Tuesday reported an improvement in first half revenue, though chunky impairments kept a lid on its bottom line.
The Yorkshire-based speciality chemicals maker added that it has spotted further cost savings and its outlook for the full year was unchanged.
Croda's pretax profit in the first half of 2025 fell 19% to GBP85.5 million from GBP106.1 million, despite revenue improving 4.9% to GBP855.8 million from GBP815.9 million. Adjusted pretax profit rose 8.4%, however, to GBP138.0 million from GBP127.3 million.
Croda's revenue fell slightly short of the company-compiled consensus of GBP857.0 million. It beat on profit, however, as the adjusted pretax profit consensus stood at GBP136.6 million.
Croda reported impairment charges of GBP27.3 million, against not a year earlier, with the bulk stemming from a GBP22.0 million hit from its move to "rationalise our European distribution network". That followed a review of its production and distribution assets.
"We are reviewing our global manufacturing footprint to optimise production capacity, processes and distribution, ensuring we maximise profitability whilst retaining capacity for growth. This will include a review of the group's production and distribution assets, an early outcome of which was the decision to rationalise our European distribution network," Croda explained.
Croda upped its interim dividend by 2.1% to 48.0 pence from 47.0p.
Chief Executive Officer Steve Foots said: "Our performance in the first half was in line with our expectations at the start of the year. Higher sales in all businesses and regions reflect improved volumes in Beauty Care and Crop Protection, as well as another period of strong growth in F&F. Our actions are helping us navigate a challenging environment, simplifying and modernising our business, and supporting our efforts to enhance margins.
"We have identified a further GBP60 million of cost savings, taking the total to GBP100 million of annualised savings by the end of 2027. There is much more to do but our strategic and operational focus is creating a stronger platform for further progress and our outlook for the full year is unchanged."
The company expects adjusted profit before tax between GBP265 million and GBP295 million at constant currency. In 2024, its adjusted pretax profit fell 12% at constant currency to GBP260.0 million.
Croda shares fell 0.4% to 2,888.00 pence each in London on Tuesday morning. The stock is down 30% over the past 12 months.
By Eric Cunha, Alliance News news editor
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