Croda International Plc
LSE-CRDA
Company Overview
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.
Name
Croda International Plc
CEO
Stephen Edward Foots
Website
www.croda.com
Sector
Chemicals
Year Founded
1925
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Bulls Say
Croda aims to consistently improve its portfolio mix toward the higher end of the quality spectrum in all the market niches in which it plays, which should bode well for a further reduction in cyclicality and margin improvement.
Croda generates a large amount of free cash flow and is willing to return excess capital to shareholders through special dividends.
Croda's sizable innovation pipeline in the healthcare subsegment should support accelerated revenue and profit growth over the next decade.
Bears Say
Croda was late to develop its business in emerging markets compared with peers, which may reduce its competitiveness in these higher-growth areas.
Croda's sizable portfolio of legacy ingredients, primarily in beautycare, is subject to more intense competition, which can still give rise to earnings volatility, as evidenced in 2023.
Future earnings growth for Croda is highly dependent on innovation, especially in the dynamic biological drug delivery space. This brings the risk of underperformance and volatility if a large share of opportunities didn't materialize.