Why invest in Croda?
Building on our strengths. Delivering on our plan. Improving performance.
We aim to drive improved returns, with a plan built on our core strengths and underpinned by our growth and transformation initiatives.
In recent years we have repositioned our portfolio and operate in attractive niches in Beauty, Agriculture and Pharma markets, which collectively represent 89% of our sales. We are increasingly focused on higher-growth growth regions too, with 48% of sales outside of Europe and North America in 2025.
We are executing a transformation plan, to drive structural improvements in how we operate and deliver annualised cost savings of £100m for 2028. This will be done by optimising our product portfolio, optimising the supply chain, simplifying our organisation and making better use of data and AI.
We have a 34-year track record of consistent dividend progression and are committed to at least maintaining the dividend. This is supported by a strong balance sheet with modest leverage of 1.3x EBITDA. As earnings grow and capital expenditure moderates, following significant investment in recent years, we expect free cash flow to improve.
Building on our strengths
Our business model is differentiated, combining innovative ingredients and unrivalled customer intimacy to deliver unique solutions to customers. We leverage our core capabilities, including shared chemistries, production and R&D, across multiple markets, with leadership positions in sustainability and innovation in our key markets.In recent years we have repositioned our portfolio and operate in attractive niches in Beauty, Agriculture and Pharma markets, which collectively represent 89% of our sales. We are increasingly focused on higher-growth growth regions too, with 48% of sales outside of Europe and North America in 2025.
Delivering on our plan
To drive more consistent growth we are refocusing innovation, including new ingredient development, identifying new markets for existing ingredients and collaborating with customers to co-create new solutions. We are also improving the customer experience, building on our strong customer NPS scores (+43 in 2025).We are executing a transformation plan, to drive structural improvements in how we operate and deliver annualised cost savings of £100m for 2028. This will be done by optimising our product portfolio, optimising the supply chain, simplifying our organisation and making better use of data and AI.
Driving improved performance
By leveraging our core strengths and executing our growth and transformation programme we will deliver improved performance. We have set out financial targets to 2028, targeting organic sales growth of 3-6%, an operating margin above 20%, free cash flow relative to sales above 12% and a return on invested capital above 10%.We have a 34-year track record of consistent dividend progression and are committed to at least maintaining the dividend. This is supported by a strong balance sheet with modest leverage of 1.3x EBITDA. As earnings grow and capital expenditure moderates, following significant investment in recent years, we expect free cash flow to improve.
Building on our Strengths
Differentiated business model
- Unrivalled customer intimacy
- Enable unique customer product claims
Leveraging core capabilities
- Innovation-led approach
- Sustainability at the core
Higher-growth portfolio
- Niche positioning in attractive markets
- Global reach with local presence
...by...
Delivering on our Plan
Driving consistent growth
- Refocusing innovation
- Improving customer experience
- Maximising returns from investments
- Driving consistent growth in key markets
Delivering on our transformation programme
- Optimising product portfolio
- Optimising supply chain
- Simplifying organisation
- Leveraging Al, data and digitalisation
...to...
Improve Performance
Financial framework for full year 20281
- 3-6% organic sales growth
- >20% adjusted operating margin
- >12% free cash flow to sales
- >10% Return on Invested Capital
Maximising shareholder value
- Strong balance sheet (leverage ratio: 1.3x)
- 34-year record of dividend progression
- Growing earnings and cash per share
- Opportunity for additional shareholder returns
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Annual Report
Explore Croda’s annual reports, financial results and sustainability performance. Access the latest report, key highlights and downloadable documents from recent years.
Sustainability
Sustainability spans every area of our business and is a crucial way we add value to our customers.
Innovation
Through our product portfolio we have access to the broadest range of formulation ingredients and formulation know-how, which allows our customers to get the best performance out of their products.
Our markets
We develop and supply innovative high-value ingredients that are typically included at low inclusion levels and offer critical functionality to our customers formulations. We are united by our Purpose of using Smart science to improve lives™, with our ingredients delivering a positive impact in all our markets.