Highlights

  • Croda International received a Buy rating from a leading broker, with a target price of AUD 86.82, implying a 46.14% upside from current levels.
  • Q3 2025 sales reached £424.7 million, up 4.4% on a reported basis.
  • Croda maintains its FY25 adjusted profit before tax guidance of £265–£295 million at constant currency.

Croda International Plc (LSE:CRDA) has been assigned a Buy rating by Rothschild & Co Redburn, with a target price of AUD 86.82. The rating reflects a potential increase of 46.14% from current trading levels.

Q3 2025 Sales Performance

For the third quarter of 2025, Croda reported Group sales of £424.7 million, representing a 4.4% increase on a reported basis compared with the same quarter last year and a 6.5% increase at constant currency. Growth was led by continued demand in Beauty Actives, Crop Protection and Fragrances & Flavours (F&F).

Customer demand during Q3 remained consistent with the prior quarter despite a challenging trading environment. While product and business mix remained negative, like-for-like prices largely held steady compared with the previous year.

Operational Efficiency and Cost-Saving Initiatives

Croda continues to implement its transformation plan, targeting £25 million in cost savings in 2025 and aiming for £100 million annualised savings by the end of 2027.

The Company’s strategic initiatives include maximising portfolio returns following peak investment, leveraging proximity to local and regional customers, and stepping up innovation to meet renewed demand.

Currency Considerations

Croda’s results are influenced by foreign exchange, with the US Dollar and Euro representing approximately 65% of the company’s currency translation exposure. H1 2025 adjusted operating profit was negatively impacted by £4.8 million due to currency translation and £6.7 million from transactional currency exposures. The Group expects a further £5 million translation impact and £2–3 million transactional impact in H2 2025. Mitigation strategies include currency hedging, pricing adjustments, and supply chain optimisation.

FY25 Outlook

Despite a challenging trading environment and lower visibility in customer orders, Croda maintains its FY25 guidance. The Group expects adjusted profit before tax at constant currency to range between £265 million and £295 million. Seasonal trends indicate Q4 sales are likely to be lower than prior quarters, but cumulative growth and cost savings support the full-year outlook.