Croda International Plc · LSE:CRDA

Croda International — H1 2025 Earnings Presentation

33 slides from Croda International's earnings presentation, Jul 29, 2025

  1. Slide 1: Croda H125 results presentation

    Croda H125 results presentation DELIVERING ON OUR PLAN TO GROW EARNINGS AND IMPROVE RETURNS 29 July 2025 © Copyright 2025 Croda International Plc

  2. Slide 2: Disclaimer

    Disclaimer C A U T I O N A R Y S TAT E M E N T A LT E R N AT I V E P E R F O R M A N C E M E A S U R E S (APMS) This review is intended to focus on matters which are relevant to the interests of We use a number of APMs to assist in presenting information in this statement shareholders in the Company

  3. Slide 3: Executive summary

    Executive summary Steve Foots Chief Executive Officer © Copyright 2025 Croda International Plc ⎸ 3

  4. Slide 4: Agenda

    Agenda 1 Executive summary 2 Financial performance 3 Progress on 5-point plan 4 Q&A 5 Appendices © Copyright 2025 Croda International Plc ⎸ 4

  5. Slide 5: Good sales growth; FY25 outlook unchanged

    Good sales growth; FY25 outlook unchanged • Sales +7%; sales volumes +11%, price/mix -4% • Adjusted operating profit +12% • Adjusted PBT £138.0m or £142.5m at constant currency • Expectations for the year remain unchanged • Delivering on our 5-point plan to grow earnings and improve returns • Identi

  6. Slide 6: Trading environment

    Trading environment BEAUTY PHARMA A G R I C U LT U R E US consumer confidence1 US FDA approvals2 Field crop prices3 Indexed to 100 Field crop prices3 300 250 200 150 100 50 01/02/19 01/02/20 01/02/21 01/02/22 01/02/23 01/02/24 01/02/25 2021 2025 Wheat Corn Soybeans • Fragile US consumer confidence •

  7. Slide 7: Financial performance

    Financial performance Stephen Oxley Chief Financial Officer © Copyright 2025 Croda International Plc ⎸ 7

  8. Slide 8: Group performance summary

    Group performance summary SALES ADJUSTED ADJUSTED PROFIT IFRS PROFIT O P E R AT I N G P R O F I T B E F O R E TAX B E F O R E TA X 1 £855.8m £146.9m £138.0m £85.5m Up 7% (constant FX) Up 12% (constant FX) Up 12% (constant FX) H124: £106.1m FREE ADJUSTED EPS NET DEBT INTERIM DIVIDEND CASH FLOW PER SH

  9. Slide 9: Good sales growth in all businesses and all regions

    Good sales growth in all businesses and all regions KEY CONSUMER LIFE INDUSTRIAL GROUP CARE SCIENCES S P E C I A LT I E S Sales growth (constant FX) +7% +7% +9% +4% Volume Volume Volume Volume Volume +11% +9% +16% +10% Price/mix Price/mix Price/mix Price/mix Price/mix (4)% (2)% (7)% (6)% EMEA ASIA N

  10. Slide 10: Q2 sales growth normalising after a strong Q1

    Q2 sales growth normalising after a strong Q1 CONSUMER LIFE INDUSTRIAL GROUP CARE SCIENCES S P E C I A LT I E S Q1 2025 442 Q1 2025 255 Q1 2025 134 Q1 2025 53 SALES Q2 2025 414 Q2 2025 237 Q2 2025 127 Q2 2025 50 (REPORTED) (£M) H1 2025 856 H1 2025 492 H1 2025 261 H1 2025 103 Q1 2025 9% Q1 2025 8% Q1

  11. Slide 11: Consumer Care

    Consumer Care CONSUMER CARE SALES HIGHLIGHTS +9% (2)% • 7% increase in sales1 driven by volumes • NPP sales grew 4%1; 41% of total sales (H124: 42%) (2)% • Sales to L&R customers increased 11%1 492 • Adjusted operating profit up 7%1 to 85.7m (H124: £82.5m) 468 • Operating margin of 17.4% (H124: 17.6

  12. Slide 12: Life Sciences

    Life Sciences LIFE SCIENCES SALES HIGHLIGHTS +16% (3)% • 9% increase in sales1 driven by Agriculture businesses (7)% • NPP sales fell to 28% of total sales (H124: 31%); reflects strong growth of non-NPP Crop Protection ingredients 261 • Adjusted operating profit £56.1m (H124: £45.0m), up 30%1 246 •

  13. Slide 13: Industrial Specialties

    Industrial Specialties I N D U S T R I A L S P E C I A LT I E S S A L E S HIGHLIGHTS +10% (2)% • Contributing to the efficiency of our shared manufacturing sites (6)% • 4% increase in sales; higher direct sales partially offset by lower supply agreement sales 101 103 • Adjusted operating profit of £

  14. Slide 14: Operating margin bridge

    Operating margin bridge A D J U S T E D O P E R AT I N G M A R G I N ( % ) 2 0 2 5 C O S T S AV I N G S ON TRACK 2025 benefits vs 2024 baseline 2025 3.8% (1.9)% Pre-tax benefit £25m Cash cost1 £(15)m (0.7)% Benefits derived from: (0.6)% • Payroll costs • Other opex (0.9)% 1.2% ~£10m pre-tax benefits

  15. Slide 15: Modest increase in net debt driven by working capital

    Modest increase in net debt driven by working capital NET DEBT (£M) 88 (1) (199) CASH FLOW £M Inventories (35.0) 60 Receivables (30.7) 580 Payables 5.0 61 Working capital (60.7) 532 39 Days cover 31-Dec-24 EBITDA Interest and tax Working capital Capital Dividend Other 30-Jun-25 Inventory Receivables

  16. Slide 16: Improving capital management

    Improving capital management C A P I TA L A L L O C AT I O N F R A M E W O R K I M P R O V E D C A P I TA L D I S C I P L I N E 1 Organic investments to support growth FY26+ capex falls as a % of sales 2 Dividend (40-50% of adj. earnings through cycle) H125 dividend 66% of earnings 3 Selective margi

  17. Slide 17: Reiterating guidance for 2025

    Reiterating guidance for 2025 F Y 2 5 O U T L O O K ( C O N S TA N T C U R R E N C Y ) • Overall Group performance in line with expectations in H125 • Unpredictable political and economic environment • Continue to expect to deliver Group adjusted profit before tax between £265m and £295m in FY25 at

  18. Slide 18: Progress on five-point plan

    Progress on five-point plan Steve Foots, Chief Executive Officer Stephen Oxley, Chief Financial Officer © Copyright 2025 Croda International Plc ⎸ 18

  19. Slide 19: Delivering our 5-point plan to improve earnings and returns

    Delivering our 5-point plan to improve earnings and returns G R O W T H A N D E F F I C I E N C Y T R A N S F O R M AT I O N P L A N GROWTH 1 2 3 Maximising returns from Leveraging proximity to Stepping up recent investments local and regional customers innovation EFFICIENCY 4 5 Reducing costs throu

  20. Slide 20: Delivering our 5-point plan to improve earnings and returns

    Delivering our 5-point plan to improve earnings and returns G R O W T H A N D E F F I C I E N C Y T R A N S F O R M AT I O N P L A N GROWTH 1 2 3 Maximising returns from Leveraging proximity to Stepping up recent investments local and regional customers innovation EFFICIENCY 4 5 Reducing costs throu

  21. Slide 21: Maximising returns from recent investments

    Maximising returns from recent investments 1 CERAMIDES FROM SOLUS – H E R I TA G E P H A R M A – MA NUFA CT URING FOOT P RINT – COMMERCIALISATION TAKEN LONGER LACK OF FOCUS EXPANDING IN HIGH-GROWTH REGIONS Actions: Actions: Actions: • Exited distributor agreements • Increasing resource in “heritage”

  22. Slide 22: Leveraging proximity to L&R customers

    Leveraging proximity to L&R customers 2 WINNING WITH REGIONAL PHARMA GROWING IN CHINA T I E R 3 E X PA N S I O N I N C R O P BEAUTY GIANTS Actions: Actions: Actions: • Local sales and R&D • Registration with Chinese Pharmacopoeia • Building relationships with tiers 2 and 3 • Regional production • Bu

  23. Slide 23: Stepping up innovation

    Stepping up innovation 3 BEAUTY PHARMA Actions: Actions: • Increasing customer-led projects • More focus on core capabilities • Reinvigorating mature markets • Broadening into other customer applications – eg generics • Internationalising R&D • Building claims data Progress: Progress: Closer custome

  24. Slide 24: Delivering our 5-point plan to improve earnings and returns

    Delivering our 5-point plan to improve earnings and returns G R O W T H A N D E F F I C I E N C Y T R A N S F O R M AT I O N P L A N GROWTH 1 2 3 Maximising returns from Leveraging proximity to Stepping up recent investments local and regional customers innovation EFFICIENCY 4 5 Reducing costs throu

  25. Slide 25: Multi-year operational efficiency programme

    Multi-year operational efficiency programme…. 4 COMMERCIAL O P E R AT I O N S PROCUREMENT PEOPLE FUNCTIONS • Product / customer tail Lower fixed costs in: • Direct • Management layers • Enabling functions • Pricing • Manufacturing • Indirect • Headcount • IT • Account management • Distribution © Cop

  26. Slide 26: …to drive increased efficiency and lower costs

    …to drive increased efficiency and lower costs 4 IN- BENEFIT1 TOTAL PERIOD 2025 ~£25m ~£25m 2026 ~£35m ~£60m 2027 ~£25m ~£85m WORKSTREAM End 2027 run rate ~£100m3 Commercial Optimising Enabling Procurement People 2025 ~£(15)m ~£(15)m excellence operations functions 2026 ~£(35)m ~£(50)m ANNUALISED BE

  27. Slide 27: Optimising production capacity

    Optimising production capacity 5 SALES VOLUME PERFORMANCE Gross margins remain stable* Y- O N - Y V O L U M E C H A N G E H125 100% Beauty Care +8% 50% Crop Protection +18% 0% Industrial Specialties +10% H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H2 2024 H1 2025 SHARED SITE VOLUMES INDEXED TO 2019 P R

  28. Slide 28: Conclusion

    Conclusion GROWTH EFFICIENCY RETURNS • Portfolio strength • Continue to simplify & modernise • Investment & capex moderating • L&R proximity • Increased efficiencies • Taking action to improve working capital • Expanding innovation • Optimising capacity • Greater discipline to enhance returns GROWIN

  29. Slide 29: Question and Answer

    QUESTION AND ANSWER © Copyright 2025 Croda International Plc ⎸ 29

  30. Slide 30: Appendices

    APPENDICES © Copyright 2025 Croda International Plc ⎸ 30

  31. Slide 31: Quarterly sales breakdown

    Quarterly sales breakdown LIFE Q U A RT E R LY CONSUMER LIFE INDUSTRIAL SCIENCES GROUP SALES £M CARE SCIENCES S P E C I A LT I E S GROUP (EX-CV19)* (EX-CV19)* Q1 2023 236.8 170.8 69.1 476.7 170.8 476.7 Q2 2023 218.8 132.4 53.0 404.2 132.4 404.2 Q3 2023 218.2 125.0 43.7 386.9 125.0 386.9 Q4 2023 212.

  32. Slide 32: Currency exposure

    Currency exposure The US Dollar and the Euro together represent approximately 65% of the Group’s currency translation exposure. H1 2025 average rates: Currency translation reduced sales by £20.1m, adjusted operating profit by £4.8m • US$1.298 (H1 2024: US$1.266) and adjusted profit before tax by £4.

  33. Slide 33: Smart science to improve lives

    SMART SCIENCE TO IMPROVE LIVES © Copyright 2025 Croda International Plc ⎸ 33

Croda International — H1 2025 Earnings Presentation on 6ix