Croda labs

Investor overview

Croda is the name behind some of the world’s most successful brands. We combine our knowledge, passion and entrepreneurial spirit to create, make and sell innovative ingredients that are relied on by industries and consumers around the world.

Our commitment to sustainability and innovation drives us to deliver solutions that not only enhance lives but also protect the planet. With a diverse portfolio spanning life sciences, consumer care, and industrial specialties, Croda continues to lead in creating high-performance ingredients that address the needs of today and anticipate the challenges of tomorrow.

Our strategic investments in cutting-edge technology, and unwavering dedication to our customers position us as a trusted partner for long-term growth. At Croda, we are not just creating value; we are shaping a better, more sustainable future for all.

2023 Annual Report

Annual report
15.2 MB

2023 Reporting datapack

Consumer Care

(c.15% of sector sales)
Beauty Actives operates in the highest premium part of the market, offering customers scientific expertise for unparalleled product efficacy. Croda leads the market with the largest actives portfolio, through three brands: Sederma, for differentiated skin actives derived from peptides and biotech; Alban Muller, for natural botanical actives; and Crodarom, for botanical extracts. The strategy is to be the ‘go to’ provider for performance claims, reinforcing our leadership by expanding our footprint, accessing sustainable technologies, leveraging the recent Alban Muller acquisition and targeting new acquisitions in adjacent technologies, such as the recently announced Solus acquisition.

Life Sciences

(c.60% of sector sales)
Pharma targets leadership in biologics drug delivery, delivering drug and vaccine systems through synthesis, system formulation and application technology know-how, and comprises three platforms:

Protein/Small Molecule Delivery has an established record of providing excipients (delivery systems) for complex protein drugs. These large, sensitive molecules are typically injected. Our differentiated range delivers the highest purity excipients to customers, including ‘Big Pharma’. Our strategy is to support established small molecule drugs and develop excipients for complex protein and monoclonal antibody (mAb) applications.

Adjuvant Systems was created by our 2018 acquisition of Biosector, creating the best invested third party supplier of adjuvants (immune response boosters) for vaccines. Our strategy is to accelerate use of innovative adjuvant systems, comprising multiple building blocks, supporting WHO vaccine programmes and the development of future preventative and therapeutic vaccines. 

Nucleic Acid Delivery was created by our 2020 acquisition of Avanti and delivered the world’s first commercial lipid system for mRNA vaccines for COVID-19. Nucleic acid therapeutic drugs and vaccines will be increasingly commercialised from 2025. Avanti brought an unmatched portfolio of R&D customer relationships, with over 3,000 customers and a diverse range of lipids and similar components. Our strategy is to be a global leader in nucleic acid delivery systems by expanding our portfolio of technologies and ingredients.

Our strategy delivers:

Sustainability

Sustainability

Consumers globally are looking to play their part in living more sustainably through the products that they buy. We enable customers to meet their sustainability goals through the sustainable benefits in use of our innovation and by improving the impact of our operations and supply chains. This includes removing fossil based ingredients, reducing emissions, restoring biodiversity and ensuring transparency through our supply chains. Our restorative sustainability strategy is built on 23 UN SDG targets, grouped around the themes of climate, nature and society, hence our commitment to be Climate, Land and People Positive by 2030.
innovation

Innovation

We grow by creating new market and technology niches, so our success is dependent on our ability to deliver innovative solutions to customers. The foundation of our innovation model is internal R&D investment, applying the expertise of our scientists to meet customer needs. This is complemented by our open innovation network, providing access to over 500 universities and SMEs to help develop new intellectual property. In addition, we look to acquire technologies with disruptive potential that can be scaled through organic investment, further bolstering our innovation pipeline.
Find out more about our Group and sector strategies

Focused on high value niches 

Croda is becoming a pure play company, focused on high value niches in consumer care and life science markets. This is creating a stronger margin, higher return, more knowledge intensive and lower carbon intensive business. This will translate into consistent top line growth and increased margins, delivering superior returns in the years ahead.

A differentiated business…

Focused on high growth niches 
We prioritise value over volume and focus on high growth niches. Operating with flexible manufacturing we can be responsive to demand. 
Underpinned by innovation 
Intellectual property and know-how underpin our success. Direct selling, unrivalled customer intimacy and local R&D facilities fuel our innovation engine. 
With a Purpose-led culture 
A culture built on customer intimacy, innovation, and entrepreneurial spirit, guided by our Purpose. This supports a decentralised operating model with decisions made ‘close to customers’. 
Leading sustainability Commitment 
Sustainability is a core pillar of our strategy. Not only is it the right thing to do, it will also drive growth in our business as consumers demand sustainable ingredients. 
And a diversified customer base 
With diversified exposure across markets, customers, and technology platforms we are not reliant on any single customer. 

...with attractive financial characteristics

Attractive operating margins 
A focus on small niches, where our innovation is valued by customers, means we achieve an attractive return on sales. 
With high returns on capital 
Our capital light and cash generative operations support high returns on capital, with a target of at least two times out cost of capital. 
A clear capital allocation policy 
We have a clear capital allocation policy prioritising organic investment in sustainability and innovation for growth. 
And strong balance sheet 
With net debt to EBITDA of 0.5x our balance sheet strength supports the execution of our strategy and potential inorganic investment. 
Delivering attractive shareholder returns 
A track record of delivering attractive returns to shareholders with consistent dividend progression for more than 30 years.
Hands holding vial in lab

Business model

A powerful and resilient business model
laboratory

Our Purpose

Using Smart science to improve lives
aerial shot of sustainable solar pannels

Market trends

Capturing new opportunities in our markets