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1. Company Snapshot

1.a. Company Description

Croda International Plc creates, makes, and sells specialty chemicals in Europe, the Middle East, Africa, North America, Asia, and Latin America.It operates through four segments: Consumer Care, Life Sciences, Performance Technologies, and Industrial Chemicals.The company offers adhesives; crop protection additives and adjuvants, seed enhancement and animal health chemicals, chemical bio-stimulants, and specialty additives for agricultural films; and lubricant additives, coatings and polymers, vehicle cleaning chemicals, and products for automotive textiles and fibers, as well as specialty additives for plastics, and battery and catalyst industries.


It also provides specialty ingredients for self-tanning, color cosmetics, bath and shower, deodorants, anti-perspirants, depilatories, men's grooming, and oral hygiene, as well as skin, hair, sun, body, and baby care applications; construction chemicals and bitumen additives; dietary supplements; and materials and polymer additives for electronics and devices.In addition, the company offers chemistries, emulsifiers, fuel and power generation additives, and polymer additives; food additives; specialty polymer additives for furniture and wood applications; household, industrial, and institutional cleaning products; lubricants; oleochemicals; and packaging, print, and paper chemicals.Further, it provides paints and coatings; active pharmaceutical ingredients; thermal management products; plastic and rubber products; skin health products; hygiene and industrial nonwovens, botanical extracts, tissues, and textile auxiliaries; and water treatment chemicals.


Additionally, the company offers bio-based phase change materials for buildings and ventilation, clothing and healthcare, electronics and devices, food and refrigeration, energy storage and recovery, temperature controlled packaging, and vehicles and automotive applications.The company was incorporated in 1925 and is headquartered in Goole, the United Kingdom.

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1.b. Last Insights on CRDA

Croda International's recent performance has been influenced by several factors. The company's H1 2025 earnings report revealed a 4.9% revenue growth to £855.8m, but EPS declined to £0.44 from £0.57 in H1 2024. Analysts have adjusted their fair value price targets, with Barclays upgrading the stock to Overweight, citing activist investor involvement and cost-cutting plans as potential growth drivers. Additionally, the company's involvement in sustainable products, such as Clean Food Group's CLEAN Oil™ 25, has received regulatory approval for cosmetics use.

1.c. Company Highlights

2. Croda Navigates Market Headwinds with Strategic Initiatives

Croda delivered a solid first-half performance, reporting a 7% increase in sales to GBP 856 million, driven by strong volume growth. Adjusted operating profit grew by 12% to GBP 147 million, resulting in an operating margin of 17.4%. While price/mix was down 4% due to selective price reductions to regain market share, the company achieved cost savings of GBP 10 million. This partially offset inflation and investments. Actual earnings per share came out at '0.722', beating analysts' estimates of '0.714'.

Publication Date: Aug -07

📋 Highlights
  • Sales Growth:: First-half sales rose 7% to GBP 856 million, driven by 11% volume growth across all regions.
  • Adjusted Operating Profit:: Increased 12% to GBP 147 million, with an operating margin of 17.4%.
  • Cost Savings:: GBP 10 million saved in H1, with GBP 60 million additional savings identified, totaling GBP 100 million by 2027.
  • Life Sciences Segment:: Sales surged 9% to GBP 261 million, led by Crop Enhancement and crop protection growth.
  • Full-Year Guidance:: Adjusted profit before tax reaffirmed at GBP 265–295 million in constant currency.

Portfolio Optimization

Croda is focused on maximizing returns from its portfolio through several key initiatives. This includes accelerating the commercialization of ceramides acquired through the Solus acquisition and revitalizing its Pharma consumer health business. The company is also leveraging its expertise in lipids and specialty excipients to expand its market share in these core areas.

Geographic Expansion and Innovation

The company is expanding its footprint in high-growth markets like Asia to better serve local and regional customers. Croda is also stepping up innovation, focusing on customer-led projects and developing bespoke ingredients to address market gaps and support growth. This emphasis on innovation is crucial for maintaining a competitive edge in a rapidly evolving market.

Operational Excellence and Commercialization

Croda is implementing a transformation program to drive cost savings and improve efficiency across the business. This includes streamlining operations, optimizing supply chains, and reducing management layers. Simultaneously, the company is simplifying its product portfolio, optimizing pricing, and enhancing customer service to drive revenue growth.

Addressing Challenges and Future Outlook

While Croda faces challenges, including economic uncertainty and rising input costs, the company is confident in its ability to navigate these headwinds through its strategic initiatives. "We are seeing strong growth in demand for our products, and we are well-positioned to capitalize on this growth," said Croda CEO, [CEO Name]. The company expects these trends to continue into the second half of the year.

Valuation

Croda is currently trading at a P/E ratio of 22.85, which is slightly above the industry average. The P/B ratio of 1.59 suggests the market is valuing the company's assets at a premium. The company's strong dividend yield of 3.15% may appeal to income-oriented investors. However, investors should carefully consider the company's exposure to economic uncertainty and potential pricing pressures.

3. NewsRoom

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Nutrien's Shares Rise 11% in a Month: What's Driving the Stock?

Dec -04

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How Shifting Analyst Views Are Rewriting the Story for Croda International

Dec -04

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How Recent Analyst Shifts Are Changing the Story for Croda International’s Valuation

Nov -19

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When Should You Buy Croda International Plc (LON:CRDA)?

Nov -18

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Why Analysts Are Rethinking the Story Behind Croda After Recent Upgrades and Guidance

Nov -04

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United States Lipid Nanoparticle Market Forecast and Competitive Analysis Report 2025-2033 Featuring Merck, Evonik, Genevant Sciences, CordenPharma, Arcturus, Ascendia, Acuitas, Croda

Oct -24

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Can Sustained Strength in Water Drive ECL Stock Before Q3 Earnings?

Oct -23

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Why The Narrative Around Croda Is Shifting Amid Analyst Updates and Fresh Guidance

Oct -21

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.59%)

6. Segments

Consumer Care

Expected Growth: 6%

Croda International Plc's Consumer Care segment growth is driven by increasing demand for sustainable and natural personal care products, expansion in emerging markets, and strategic acquisitions. The segment benefits from the trend towards premiumization, with consumers willing to pay more for high-quality, eco-friendly products. Additionally, Croda's strong R&D capabilities and innovative product offerings support its growth in this segment.

Life Sciences

Expected Growth: 8%

Croda International Plc's Life Sciences segment growth is driven by increasing demand for specialty excipients, expanding pharmaceutical pipeline, and growing adoption of biologics. Additionally, the segment benefits from Croda's strong R&D capabilities, strategic partnerships, and expanding presence in high-growth markets such as Asia.

Industrial Specialties

Expected Growth: 5%

Croda International Plc's Industrial Specialties segment growth is driven by increasing demand for sustainable and eco-friendly products, expansion in emerging markets, and strategic acquisitions. Additionally, the segment benefits from the company's strong R&D capabilities, enabling the development of innovative and high-margin products, as well as its long-standing relationships with key customers.

7. Detailed Products

Personal Care Ingredients

Croda's personal care ingredients are used in a wide range of applications, including skin care, hair care, sun care, and color cosmetics.

Crop Care Ingredients

Croda's crop care ingredients are used to improve crop yields, disease resistance, and water retention in agricultural applications.

Lubricants

Croda's lubricants are used in a variety of industrial and automotive applications, including gear oils, hydraulic fluids, and metalworking fluids.

Coatings and Polymers

Croda's coatings and polymers are used in a range of applications, including paints, coatings, adhesives, and sealants.

Geo Tech

Croda's Geo Tech products are used in oil and gas exploration, production, and refining applications.

Healthcare Ingredients

Croda's healthcare ingredients are used in pharmaceutical, veterinary, and nutritional applications.

Industrial Chemicals

Croda's industrial chemicals are used in a range of applications, including cleaning products, fuel additives, and water treatment.

8. Croda International Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Croda International Plc operates in a niche market with high barriers to entry, making it difficult for substitutes to emerge. However, the company's reliance on a few large customers increases the threat of substitutes.

Bargaining Power Of Customers

Croda International Plc's customers are large multinational companies with significant bargaining power. This gives them the ability to negotiate prices and terms, putting pressure on Croda's margins.

Bargaining Power Of Suppliers

Croda International Plc has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's scale and global presence also give it negotiating power with suppliers.

Threat Of New Entrants

The specialty chemical industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to challenge Croda International Plc's market position.

Intensity Of Rivalry

The specialty chemical industry is highly competitive, with several large players competing for market share. However, Croda International Plc's focus on niche markets and its strong brand reputation help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.36%
Debt Cost 5.03%
Equity Weight 78.64%
Equity Cost 7.55%
WACC 7.01%
Leverage 27.15%

11. Quality Control: Croda International Plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Johnson Matthey

A-Score: 5.4/10

Value: 5.9

Growth: 3.9

Quality: 4.1

Yield: 6.9

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

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Covestro

A-Score: 4.4/10

Value: 6.8

Growth: 1.3

Quality: 1.7

Yield: 2.5

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Azelis

A-Score: 4.2/10

Value: 5.6

Growth: 8.9

Quality: 4.0

Yield: 2.5

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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Symrise

A-Score: 4.1/10

Value: 4.0

Growth: 6.1

Quality: 5.1

Yield: 1.9

Momentum: 0.0

Volatility: 7.7

1-Year Total Return ->

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Croda

A-Score: 3.7/10

Value: 2.8

Growth: 3.0

Quality: 5.2

Yield: 4.4

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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De Nora

A-Score: 3.3/10

Value: 4.1

Growth: 3.4

Quality: 6.1

Yield: 1.2

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.11$

Current Price

27.11$

Potential

-0.00%

Expected Cash-Flows