Croda International Plc: history, ownership, mission, how it works & makes money

A Brief History of Croda International Plc

Croda International Plc, a global specialty chemicals company, was founded in 1925 in East Yorkshire, England. Initially focused on the manufacturing of soap and fatty acid derivatives, Croda has evolved significantly over the years, expanding its product offerings and geographical reach.

By the late 20th century, Croda began diversifying its portfolio, venturing into sectors such as personal care, pharmaceuticals, and agrochemicals. The company completed several acquisitions that bolstered its market position, including the purchase of Uniqema in 2006 for approximately £500 million, which enhanced Croda's capabilities in personal care and industrial applications.

In 2014, Croda announced its acquisition of the specialty chemicals business of Reiter, which aimed to strengthen its consumer care segment. This strategic move highlighted Croda's commitment to innovation and customer focus, with a particular emphasis on sustainability and performance.

Financially, Croda has demonstrated consistent growth. In 2022, the company reported revenues of £1.57 billion, up from £1.46 billion in 2021. The operating profit for the same period was £389 million, reflecting a healthy operating margin of approximately 24.7%.

As of October 2023, Croda International Plc's market capitalization stands at approximately £8.82 billion, with its shares trading at around £11.60 each. The company's focus on sustainability is reflected in its commitment to reduce carbon emissions by 42% by 2030, in line with its Science-Based Targets initiative.

Croda has also been proactive in addressing the challenges posed by the COVID-19 pandemic. The company experienced a strong demand for its products in personal care and health sectors, with the consumer care division accounting for over 50% of total revenue in 2022.

The company’s investment in innovation is evident as it allocated around £35 million in R&D for 2022, focusing on developing sustainable products and enhancing operational efficiencies. This dedication has positioned Croda as a leader in the specialty chemicals market, with a strong emphasis on environmentally friendly solutions.

Overall, Croda International Plc's transition from a regional soap manufacturer to a global player in specialty chemicals encapsulates its strategic vision, marked by significant investments and a commitment to sustainability, ensuring continued growth and resilience in the ever-evolving chemical industry.

A Who Owns Croda International Plc

Croda International Plc, a leading global supplier of specialty chemicals, is publicly traded on the London Stock Exchange under the ticker symbol CRDA. Ownership of the company is characterized by a mix of institutional and retail investors. As of October 2023, the total market capitalization of Croda stands at approximately £10.4 billion.

In terms of shareholder structure, the most significant stakeholders consist of various institutional investors, who collectively hold a substantial portion of the company's shares. Below is a breakdown of the top five institutional shareholders and their respective ownership percentages:

The majority of shares, about 70%, are held by institutional investors, while around 30% is held by retail investors. This ownership structure indicates strong institutional confidence in Croda’s performance and growth potential.

In the most recent fiscal year ending December 31, 2022, Croda reported revenue of £1.61 billion, representing an increase of 10% year-over-year. The company’s net profit was recorded at £372 million, with earnings per share (EPS) standing at £1.43.

Furthermore, Croda has been active in expanding its portfolio and sustainability initiatives, which are central to its long-term strategy. In 2023, the company allocated approximately £60 million towards research and development, focusing on bio-based products and more sustainable manufacturing processes.

As of late 2023, Croda’s share price has shown a growth trajectory, reaching approximately £50.12 per share, a 15% increase from the previous year. The company also maintains a dividend yield of around 2.0%, demonstrating its ongoing commitment to shareholder returns.

In summary, Croda International Plc is primarily owned by institutional investors with a robust financial performance and growth strategy that continues to attract significant interest from the market.

Croda International Plc Mission Statement

Croda International Plc, a global specialty chemicals manufacturer, operates with a mission statement that emphasizes sustainability, innovation, and service excellence. The company aims to “make a positive difference to the world by providing innovative and sustainable solutions.” This mission reflects Croda's commitment to leveraging science and technology to create products that meet the evolving needs of their customers while minimizing environmental impact.

As of October 2023, Croda reported revenue of £1.48 billion for the half-year period ending June 30. This figure represents a year-on-year increase of **8%**, driven by robust demand across their key sectors, including Personal Care, Home Care, and Industrial markets.

The company's mission is further translated into its sustainability goals, which are aligned with the United Nations Sustainable Development Goals (SDGs). Croda has committed to achieving **net zero emissions by 2030**. In 2022, they reported a **26% reduction** in Scope 1 and Scope 2 emissions relative to their 2019 baseline.

Key Financial Metrics

Croda's mission also emphasizes the importance of innovation. The company invests heavily in R&D, with **£41 million** allocated in 2022, representing approximately **2.8%** of total revenue. This investment supports the development of biodegradable surfactants and sustainable emulsifiers, enhancing their product offerings.

The company’s emphasis on sustainable solutions is demonstrated through its extensive portfolio of eco-friendly products. In 2022, **56%** of Croda's sales stemmed from products that are considered sustainable or have a positive environmental impact.

In terms of geographic revenue distribution, Croda International Plc reported the following for the first half of 2023:

Croda's mission statement encapsulates a vision not just for product innovation but also for positive societal impact, positioning the company as a leader in its field through sustainable practices and ethical responsibility.

How Croda International Plc Works

Croda International Plc is a leading global specialty chemicals company, with a focus on creating innovative products across various sectors, including personal care, health care, and industrial applications. The company operates through multiple segments, which allow it to diversify its offerings and mitigate market risks.

Business Segments

Croda's operations are divided into three main business segments:

• Consumer Care
• Performance Technologies
• Industrial Chemicals

Financial Performance

In the financial year ending December 31, 2022, Croda reported a revenue of £1.65 billion, representing an increase of 14% from the previous year. The operating profit stood at £446 million, with an operating margin of 27%.

The company's total assets at the end of 2022 were valued at £3.2 billion, while total liabilities amounted to £1.9 billion, indicating a solid asset base and sound leverage.

Key Financial Metrics

Market Position

Croda has a significant presence in the specialty chemicals market, with a market capitalization of approximately £6.5 billion as of October 2023. The company's stock has performed well, with a 5-year CAGR (Compound Annual Growth Rate) of approximately 12%.

Innovation and Development

Investment in research and development is a core aspect of Croda's business strategy. In 2022, the company invested £36 million into R&D initiatives, focusing on sustainable product development and innovation across its portfolio. Croda has committed to achieving 100% renewable raw materials usage by 2030.

Geographic Distribution

Croda operates globally, with key markets in Europe, North America, Asia, and South America. In 2022, the geographic breakdown of revenue was as follows:

Sustainability Initiatives

Croda has made substantial commitments towards sustainability. They aim for a 30% reduction in greenhouse gas emissions by 2030 and have focused efforts on the circular economy, enhancing product lifecycles, and ethically sourcing materials.

How Croda International Plc Makes Money

Croda International Plc operates as a specialty chemicals company, focusing on producing high-performance ingredients and technologies for a range of markets including personal care, health care, and industrial applications. In 2022, Croda reported revenues of approximately £1.6 billion, reflecting a growth of 15% from the previous year.

The company generates its revenue through several key segments:

• Personal Care: This segment, which focuses on cosmetic and personal care ingredients, accounted for around 37% of total sales in 2022.
• Health Care: Croda's health care offerings, including excipients and active ingredients, contributed about 23% to total revenue, showcasing a significant demand for pharmaceutical applications.
• Industrial: Industrial applications, including coatings and lubricants, made up approximately 20% of sales.
• Crop Care: The agriculture segment, which focuses on crop protection products, generated around 15% of the overall revenue.

The company has strategically differentiated itself through innovation, focusing on sustainable and environmentally friendly products. For instance, in 2022, Croda's investment in R&D was about £35 million, enhancing its product offerings and broadening its market reach.

An area of significant growth for Croda is its focus on sustainability and renewable raw materials. In 2022, approximately 70% of Croda's revenue derived from products that are sustainable, indicating a robust strategy aligned with global trends toward eco-friendly solutions.

Moreover, Croda has expanded its global footprint, with production facilities located in over 40 countries, assisting in optimizing supply chains and reducing costs. By strategically investing in emerging markets, Croda managed to tap into new customer bases and enhance its growth potential.

In terms of financial performance, Croda's operating profit for the fiscal year 2022 reached around £486 million, with an operating margin of 30%. The company’s net profit attributable to shareholders was approximately £384 million, further demonstrating strong profitability.

Looking at share performance, Croda’s stock price has shown resilience. As of October 2023, Croda shares traded at approximately £6,000 per share, reflecting a year-to-date increase of around 10%.

In summary, Croda International Plc leverages its diversified product portfolio, commitment to sustainability, and global presence in specialty chemicals to drive both revenue growth and profitability.