Croda International, the Snaith, East Yorkshire-based FTSE 100 specialty chemicals giant, said its first-half sales rose 4.9% to £855.8 million but statutory profit before tax fell 19.4% to £85.5 million in the six months to June 30, 2025.

Adjusted profit before tax tax rose 8.4% to £138 million.

Interim dividend per share rose 2.1% to 48p.

However, Croda shares fell about 8% as it warned of an “unpredictable political and economic environment” that continues to “create uncertainty across our markets.” Croda shares are down about 35% for the past year.

In its outlook, Croda said: “Whilst we are mindful that the unpredictable political and economic environment continues to create uncertainty across our markets, the group’s performance was in line with expectations in the first half of the year, and we continue to expect to deliver group adjusted profit before tax between £265m and £295m in full year 2025 at constant currency.”

The firm added: “Our direct exposure to trade tariffs is mitigated by our well-balanced local and procurement model but increased geopolitical tensions and the threat of a trade war have made the global economic outlook more uncertain.

“We have applied a tariff surcharge since June 2025 to cover any associated incremental costs, helping to mitigate adverse direct impacts of tariffs.”

Croda said its free cash flow fell to £34.2 million  from £122.7 million.

“There was a working capital outflow of £60.7m (H124: £43.5m inflow), with net working capital days declining in the period and the prior period having benefited from the payment of a CV19 lipid receivable from 2023,” said the firm.

“We are implementing improvements to working capital management, targeting reductions in receivables and inventory days. Net capital expenditure was £59.5m (H124: £69.7m).”

Croda International CEO Steve Foots said: “Our performance in the first half was in line with our expectations at the start of the year.

“Higher sales in all businesses and regions reflect improved volumes in Beauty Care and Crop Protection, as well as another period of strong growth in F&F.

“Our actions are helping us navigate a challenging environment, simplifying and modernising our business, and supporting our efforts to enhance margins.

“We have identified a further £60m of cost savings, taking the total to £100m of annualised savings by the end of 2027.

“There is much more to do but our strategic and operational focus is creating a stronger platform for further progress and our outlook for the Full Year is unchanged.”