# Croda formula holds as price hikes offset inflation

By Derren Nathan — 2026-04-22

Derren Nathan, head of equity research at Hargreaves Lansdown, said: “Speciality chemical developer Croda’s first quarter trading update paints a picture of stability rather than volatility, and a tough comparison in early 2025 means that one per cent sales growth is a respectable result.

“Crucially, the company notes no material impact from the Middle East conflict, as the region accounts for only around five per cent of sales.

“Croda’s bias towards bespoke solutions rather than commoditised additives helps with pricing power, which should help it pass on the broader inflationary impact to its customers.

“Management conceded that the outlook has become more uncertain but is sticking with full-year organic sales growth targets in the three-to-six per cent range.

“With growth expectations weighted towards the remainder of the year, the potential for disappointments is higher than it was a few months ago.

“While the board has no influence on geopolitical events, the same isn’t true of company strategy.

“On that front, the transformation plan, which focuses on cost efficiency and innovation, remains on track.”

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