REG - Itaconix PLC - H1 2024 Trading Update

ItaconixAnnouncement

16/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240716:nRSP4931Wa&default-theme=true

RNS Number : 4931W  Itaconix PLC  16 July 2024

For release: 07.00, 16 July
2024

 

Itaconix plc

("Itaconix" or the "Company")

H1 2024 Trading Update

Itaconix (AIM: ITX) (OTCQB: ITXXF), a leading innovator in sustainable
plant-based polymers used to decarbonise everyday consumer products, provides
the following trading update for the first half of 2024.

Strategic Focus and Commercial Progress

The Company is pleased to report that the Board's expectations for FY 2024
results remain in line with those set out in the announcement of 2 April 2024.

With the strategic decision to decline low-margin business, the Company
achieved unaudited revenues of $2.8 million for the first six months of 2024,
compared to $4.0 million for the first half of 2023.  Unaudited total gross
profit margin for the first six months exceeded 38%, compared to 28% for the
first six months of 2023 and 31% for FY 2023, reflecting the Company's
commitment to enhance profitability.

In addition to improving gross profit margins, the Company is diversifying its
revenue base with new accounts and growth from existing accounts. Initial
orders were received in the first six months for a new dish detergent
application in Europe, a new sustainable leather account, and a new
application in mineral processing. As previously disclosed, revenues and
volume growth from these new accounts are expected to occur predominantly in
H2 2024 and beyond.

The Company also continues to benefit from new orders and continuing revenues
at lower levels from the existing merchandizing customer that the Company had
previously taken the decision to decline low margin revenues from.

Financial Position

The Company's balance sheet remains strong, providing sufficient cash to focus
on the next generation of customers, applications, and products.  Net
unaudited cash and investments as at 30 June 2024 were $8.0 million ($10.0
million at 31 December 2023).  Cash use reflected higher finished goods
inventories, higher accounts receivable in Europe, and new investments in
upgrades to its facilities in Stratham, New Hampshire to support revenue
growth.

This financial position is allowing the Company to target higher revenue
growth and invest in new product development. The Company is seeing many
exciting opportunities to develop new ingredients and increase revenues,
positioning itself to better capture the commercial value of its performance
ingredients.

New Product Launches

The Company launched two new products on 29 April 2024. Itaconix TSI 422, an
advanced version of its leading Itaconix TSI 322 product, offers improved
performance, lower overall formulation costs, and more compact formulations in
cleaning applications. The Company had revenues in the first half from three
customers for the use of this new polymer in two North American dish detergent
brands and expects to add at least two more brands in H2 2024.

Itaconix ONZ 405, a powder version of the Company's current liquid odour
neutraliser, meets customer needs in powder formulations, particularly in
laundry and hygiene applications.  The Company expects new revenues from this
product in H2 2024.

Environmental and Regulatory Progress

The Company completed studies expanding the data on the biodegradability of
its water-soluble polymers and advanced global regulatory acceptance with new
approvals in China, Australia, and New Zealand. These approvals are expected
to generate new revenue opportunities for current and prospective customers.

Financial Outlook

With these results for the first six months of 2024, the Board reiterates its
revenue expectations of $6 million to $6.5 million and gross profit margin
expectations of 36% for FY 2024.

Further details on first half results will be provided in the 2024 interim
report, which the Company plans to release in early September 2024.

John R. Shaw, CEO of Itaconix, commented:

"Enhancing our revenue structure and increasing gross profit margins, while
diversifying our revenue streams, pave the way for our next stage of growth.
We are positioning ourselves to better capture the commercial value of our
performance ingredients with new orders, new volumes in non-detergent uses,
and important new product development initiatives. I believe the strategic
efforts we are taking now will advance our long-term revenue growth and
profitability objectives.

"We remain highly optimistic about our future and commercial progress. We are
securing new detergent customers in Europe and North America and expanding the
use of our performance ingredients into new applications. These efforts are
focused on building a more diverse, profitable, and sustainable revenue base
to achieve our goal of being a large and profitable specialty ingredient
company."

-Ends-

 

 Itaconix plc                                                                        +1 603 775-4400

 John R. Shaw / Laura Denner
 Belvedere Communications                                                     +44 (0)20 7653 8702

 John West / Llew Angus
 Canaccord Genuity - Nominated Adviser and Sole Broker                       +44 (0) 20 7523 8000

 Adam James / Harry Pardoe

 

About Itaconix 

Itaconix uses its proprietary plant-based polymer technology platform to
produce and sell specialty ingredients that improve the safety, performance,
and sustainability of consumer products.  The Company's current ingredients
are enabling and leading new generations of products in cleaning, hygiene, and
beauty.  

www.itaconix.com (http://www.itaconix.com)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFFFEIDVIELIS