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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 £85.5 million from £106.1 million, despite revenue improving 4.9% to £855.8 million from £815.9 million. Adjusted pretax profit rose 8.4%, however, to £138.0 million from £127.3 million. Croda’s revenue fell slightly short of the company-compiled consensus of £857.0 million. It beat on profit, however, as the adjusted pretax profit consensus stood at £136.6 million. Croda reported impairment charges of £27.3 million, against not a year earlier, with the bulk stemming from a £22.0 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 £60 million of cost savings, taking the total to £100 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 £265 million and £295 million at constant currency. In 2024, its adjusted pretax profit fell 12% at constant currency to £260.0 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. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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