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Croda International PLC (GB:49GP)
LSE:49GP
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Croda International
(LSE:49GP)
Rating:71Outperform
Price Target:
97.00p
▲(10.86% Upside)
Croda International (49GP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.56B
Dividend Yield7.54%
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)>-0.01
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees6,027
SectorBasic Materials
Sector Strength65
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)N/A
Shares Outstanding499,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£97.00Price Target Upside10.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Croda International Business Overview & Revenue Model
Company DescriptionCroda International Plc is a global specialty chemicals company headquartered in the UK, focusing on the production of innovative and sustainable solutions across various sectors, including personal care, health care, crop care, and industrial applications. The company is renowned for its high-performance ingredients and technologies, which are used in a wide range of products, from cosmetics and pharmaceuticals to agricultural solutions and lubricants. Croda's commitment to sustainability drives its product development, aligning with industry trends towards environmentally friendly formulations.
How the Company Makes MoneyCroda International generates revenue primarily through the sale of specialty chemicals and ingredients across its diverse business sectors. The company's revenue model is built on providing high-value, customized solutions to its clients, which include major brands in the personal care and health care industries. Key revenue streams include the sale of surfactants, emulsifiers, and active ingredients, as well as performance-enhancing additives for various applications. Additionally, Croda has established significant partnerships with leading companies in its focus sectors, which not only enhance its product offerings but also ensure a steady demand for its innovative solutions. The emphasis on sustainability and innovation allows Croda to command premium pricing for its products, further contributing to its profitability.
Croda International Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong group sales growth and profitability improvements, alongside a robust cost savings initiative. However, challenges in North America, pressures in the Pharma segment, and rationalization costs were notable concerns. The sentiment reflects a balanced perspective with growth offset by significant challenges.Q2-2025 Updates
Positive Updates
Group Sales Increase
Group sales increased by 7% for the first half of the year, with growth in all three business segments and all regions.
Adjusted Operating Profit Growth
Adjusted operating profit increased by 12% to GBP 147 million, demonstrating a strong financial performance.
Cost Savings Plan
Identified an additional GBP 60 million of cost savings, bringing the total to GBP 100 million in annualized savings by the end of 2027.
Consumer Care Performance
Consumer Care sales grew by 7%, with Fragrances & Flavors growing by 17% and Beauty Care volumes increasing by 8%.
Life Sciences Growth
Life Sciences sales increased by 9%, driven by strong demand in Agriculture, with volumes up 16%.
Strong Performance in Europe
European sales led with a 12% increase, reflecting strong performance in Consumer Care and Life Sciences.
Negative Updates
Challenges in North America
Political uncertainty in the U.S. negatively impacted consumer confidence, leading to some trading down in Beauty Actives.
Pharma Challenges
Pharma sales growth of 5% was impacted by U.S. policy decisions, slowing approval processes, and limited public funding.
Warehouse Rationalization
GBP 22 million impairment charge due to a decision to rationalize warehousing in Europe.
Free Cash Flow Impact
Free cash flow was GBP 34 million, impacted by higher working capital needs and net debt increased to GBP 580 million.
Pricing Pressure
Price/mix was 4% lower as prices were selectively reduced to regain market share in Agriculture and Beauty Care.
Company Guidance
In the call, Croda provided guidance for the fiscal year, emphasizing their financial performance and strategic initiatives. Sales increased by 7% for the first half of the year, with all three business units and regions contributing to the growth. Adjusted operating profit and profit before tax both rose by 12%, reaching £147 million and £138 million, respectively. Despite a challenging environment, Croda maintained their full-year guidance, expecting adjusted profit before tax to be between £265 million and £295 million. The company also announced an accelerated cost savings target, increasing from £40 million to £100 million in annualized savings by the end of 2027. This is part of their broader transformation program aimed at improving operational efficiency and customer experience. Additionally, Croda reported a free cash flow of £34 million and a net debt of £580 million, with leverage at 1.5x EBITDA. The company declared an interim dividend of 48p, reflecting their commitment to returning value to shareholders. Croda's strategic focus includes maximizing returns from recent investments, leveraging their proximity to local and regional customers, and enhancing innovation capabilities across their portfolio.Croda International Financial Statement Overview
Summary
Croda International demonstrates a stable financial position with strong margins and a conservative balance sheet. The company maintains healthy cash flow generation relative to net income, although declining revenue and net profit margins indicate challenges in sustaining growth. The balance sheet's solid equity ratio and low leverage are positive indicators of financial health.Income Statement
Croda International has experienced declining revenue over the past two years, with a 3.92% decrease from 2022 to 2023 and a further 3.92% decrease into 2024. The gross profit margin for 2024 stands at 45.08%, indicating strong control over cost of goods sold. However, the net profit margin has declined to 9.73% from 10.09% in 2023, reflecting challenges in maintaining profitability. The EBIT margin for 2024 is 13.97%, a decrease from 14.60% in 2023, while the EBITDA margin is 22.99%, down from 22.93% in 2023. The company shows resilience in maintaining decent margins despite revenue pressures.65
Positive
Balance Sheet
The company's balance sheet reflects stability with a debt-to-equity ratio of 0.31 in 2024, showing a conservative leverage position. The return on equity (ROE) is 6.94%, down from 7.27% in 2023, suggesting a slight decline in efficiency at generating profits from equity. Croda's equity ratio stands at 65.03%, indicating a robust equity position relative to total assets, which is a positive indicator of financial health.75
Positive
Cash Flow
Free cash flow decreased by 12.23% from 2023 to 2024, reflecting challenges in cash generation. The operating cash flow to net income ratio is 2.01, showing strong cash flow generation relative to net income. The free cash flow to net income ratio is 0.87, indicating a healthy conversion of net income into free cash flow. While cash flow metrics show strength in terms of cash generation, the decline in free cash flow growth highlights potential pressure on liquidity.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.63B | 1.69B | 2.09B | 1.89B | 1.39B |
| Gross Profit | 733.90M | 730.00M | 864.90M | 825.60M | 550.30M |
| EBITDA | 374.50M | 388.50M | 924.80M | 549.40M | 369.60M |
| Net Income | 158.50M | 171.00M | 649.30M | 320.80M | 201.60M |
Balance Sheet | |||||
| Total Assets | 3.51B | 3.58B | 3.61B | 3.29B | 3.03B |
| Cash, Cash Equivalents and Short-Term Investments | 166.80M | 172.50M | 320.60M | 112.80M | 106.50M |
| Total Debt | 699.10M | 710.10M | 615.80M | 936.00M | 907.00M |
| Total Liabilities | 1.21B | 1.21B | 1.18B | 1.53B | 1.43B |
| Stockholders Equity | 2.28B | 2.35B | 2.42B | 1.75B | 1.59B |
Cash Flow | |||||
| Free Cash Flow | 137.60M | 156.80M | 160.90M | 190.50M | 166.30M |
| Operating Cash Flow | 319.40M | 337.50M | 313.30M | 349.20M | 287.50M |
| Investing Cash Flow | -139.10M | -409.80M | 418.10M | -218.40M | -992.40M |
| Financing Cash Flow | -182.60M | -52.40M | -550.90M | -111.90M | 722.40M |
Croda International Technical Analysis
Neutral
87.50
Price Trends
87.77
Negative
86.30
Positive
86.16
Positive
Market Momentum
-0.02
Negative
42.49
Neutral
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:49GP, the sentiment is Neutral. The current price of 87.5 is below the 20-day moving average (MA) of 87.50, below the 50-day MA of 87.77, and above the 200-day MA of 86.16, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:49GP.
Croda International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £3.18B | 9.00 | 15.96% | 4.00% | -9.10% | 239.75% | |
71 Outperform | £3.56B | ― | 7.54% | ― | ― | ||
67 Neutral | £619.27M | 20.67 | 6.65% | 8.37% | 4.75% | -3.29% | |
64 Neutral | £132.06M | 12.14 | 8.02% | 3.78% | 1.12% | -0.70% | |
64 Neutral | £957.89M | ― | 3.37% | 1.37% | -11.78% | -92.61% | |
61 Neutral | $10.31B | 6.18 | 0.76% | 2.94% | 3.30% | -36.34% | |
45 Neutral | £107.95M | ― | -7.26% | ― | -4.41% | 2.29% |
* Basic Materials Sector Average
Performance Comparison
GB:49GP
Croda International
87.50
2.18
2.56%
GB:ELM
Elementis
163.00
5.26
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GB:JMAT
Johnson Matthey
1,923.00
371.41
23.94%
GB:SYNT
Synthomer
63.00
-178.00
-73.86%
GB:TET
Treatt plc
222.50
-262.69
-54.14%
GB:VCT
Victrex
709.00
-255.64
-26.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.