Croda International Q1 2026: Sales Steady, Story Mixed – Guidance Intact
Croda’s first quarter update is a classic “as guided” print. Group sales came in at £431 million, up 1% at constant currency and down 2% reported versus a tough comparator in Q1 2025. Management says guidance is unchanged for full year 2026 and the transformation programme remains on track.
Quick refresher: constant currency strips out exchange rate movements to show underlying trading. On that basis, Croda is holding its own, with Consumer Care growing and Life Sciences softer as expected.
Key numbers at a glance
| Q1 2026 (£m) | Q1 2025 (£m) | Constant currency change | Reported change | |
|---|---|---|---|---|
| Consumer Care | 255 | 255 | +4% | 0% |
| Life Sciences | 126 | 134 | -3% | -6% |
| Industrial Specialties | 50 | 53 | -2% | -5% |
| Group | 431 | 442 | +1% | -2% |
Profit, margin and cash flow figures are not disclosed in this trading update.
Consumer Care: Beauty Actives and F&F do the heavy lifting
Consumer Care grew 4% at constant currency despite flat reported sales. The shape is important: premium innovation and flavours are pulling ahead while mass beauty is softer on tougher comps.
| Consumer Care sub-segment | Constant currency change | Reported change |
|---|---|---|
| Beauty Actives | +12% | +10% |
| Beauty Care | -4% | -8% |
| Fragrances & Flavours (F&F) | +10% | +6% |
| Home Care | +6% | +2% |
Standouts:
- Beauty Actives delivered double-digit growth across all regions, helped by renewed customer appetite for innovation and spend by higher-income households.
- F&F grew 10% at constant currency despite over 20% of its sales being in the Middle East in 2025, showing resilience and strength in Flavours plus a strong Western Europe and Africa performance.
- Beauty Care was weaker, particularly in North America and Asia, partly due to last year’s pre-tariff buying inflating Q1 2025.
- Home Care grew in every region at constant currency, bouncing back from a softer Q4 2025.
Life Sciences: Crop Protection normalises; Seed Enhancement steadies
Life Sciences was 3% lower at constant currency, reflecting the expected unwind of last year’s restocking in Crop Protection.
| Life Sciences sub-segment | Constant currency change | Reported change |
|---|---|---|
| Pharma | -2% | -5% |
| Crop Protection | -8% | -11% |
| Seed Enhancement | +2% | 0% |
Crop Protection is not benefitting from the customer inventory rebuild that helped 2025, which is the core drag. Seed Enhancement’s services-led model is providing steadier growth. In Pharma, Solutions was lower on a tough comp while Ingredients improved as Croda reallocates resources to its longer-standing products to sharpen differentiation.
Industrial Specialties: slightly lower on a tough comp
Industrial Specialties fell 2% at constant currency. No major surprises here given the strong prior year comparator and the inherently more cyclical demand profile.
Regional picture: Latin America leads; North America lags
| Region | Constant currency change | Reported change |
|---|---|---|
| EMEA | +2% | +3% |
| North America | -7% | -13% |
| Latin America | +11% | +4% |
| Asia | +2% | -4% |
| Group | +1% | -2% |
Latin America was the standout, with agriculture momentum carrying through into Q1 and robust Consumer Care demand. North America was soft due to the normalisation in Crop Protection, weather impacts on some customers, and ongoing consumer pressure. EMEA and Asia were broadly as expected.
FX, Middle East and guidance: context that matters
- Middle East: No material effect in Q1. The region represented around 5% of Group sales in 2025, mostly in F&F. Croda is raising prices to fully recover input cost inflation and prioritising employee safety and customer relationships.
- FX translation: Using 2025 average rates (US$1.32, €1.17) for constant currency guidance, Croda estimates about £1 million impact on adjusted operating profit per 1 cent move in the Dollar or Euro. If April-December 2026 matched March 2026 closing rates, reported FY26 operating profit would be c. £4 million lower, inclusive of hyperinflation accounting.
- Guidance: Full year 2026 outlook unchanged versus 24 February 2026. The transformation programme is on track, with a significant portion of future margin improvement under Croda’s control rather than dependent on market recovery.
Quarterly sales trend snapshot
| Quarter | Group sales (reported) |
|---|---|
| Q1 2025 | £442.3m |
| Q2 2025 | £413.5m |
| Q3 2025 | £424.7m |
| Q4 2025 | £418.9m |
| Q1 2026 | £431.2m |
The year-on-year decline from Q1 2025 reflects the unusually strong comparator rather than a fresh downswing. Momentum into Q1 2026 looks broadly stable versus late 2025.
My take: balanced, with clear bright spots
- Positives: Beauty Actives and F&F are doing exactly what you want in this phase – innovation-led and sticky with customers. Latin America strength suggests Croda’s portfolio can capture ag and consumer upswings when they appear. Pricing discipline in the Middle East reinforces perceived pricing power.
- Watch-outs: North America weakness plus Crop Protection normalisation keep a lid on Group growth near term. FX could be a modest headwind to reported profits if current rates persist. Profitability, cash flow and margin detail are not disclosed here, so investors will need to wait for the half-year.
- Strategy angle: Management’s claim that a “significant proportion” of margin improvement is in their control is important – it implies self-help from the transformation programme rather than waiting on the cycle. Hard benefit numbers are not disclosed in this update.
What’s next on the calendar
- Analyst and investor call: 7.30am BST today (registration details provided by the company).
- AGM: 12 noon today in York.
- Half year 2026 results: 28 July 2026.
Bottom line: In-line sales against a tough comp, consumer-led strengths offsetting ag normalisation, and guidance unchanged. For long-term holders, the mix shift towards higher-value Consumer Care and the self-help narrative are the key things to track into July.
