For
release on RNS: 22 January
2025
Itaconix
plc
("Itaconix", the "Company" or the "Group")
Trading
Update
Itaconix plc (AIM: ITX) (OTCQB:
ITXXF), a leading innovator in plant-based specialty polymers used
to decarbonize everyday consumer products, is pleased to provide a
trading update for the year ended 31 December 2024 which is in line
with expectations.
Unaudited 2024 revenues of $6.5
million and an increase in unaudited gross profit margins to c. 35%
from 31% in 2023. reflect the Company's success at adjusting market
positioning in 2024. Revenue diversification has also improved
significantly, with increased contributions from a wider array of
products across a broader customer base. The Board believes the
Company is well positioned for future revenue growth as a higher
margin business, in furtherance of the Board's strategy to become a
profitable specialty ingredient company.
The Cleaning Sector remains a key
strength and leading source of revenue. European volumes continue
to grow significantly as more detergent formulators and producers
recognize the superior performance, cost efficiency, and
sustainability benefits of Itaconix's plant-based detergent
polymers. This growth partially offset the anticipated year-on-year
("y-o-y") decline in the North American Cleaning Sector as a result
of the previously announced strategic move away from a low margin
customer.
Increased volumes purchased by Croda
and Nouryon led to sizable y-o-y revenue growth in the Hygiene and
Beauty Sectors, respectively. The high relative value of Itaconix's
odour neutralizing and hair styling ingredients contributed to
improving the Company's overall gross profit margin.
The size and breadth of the
Formulated Solutions business segment continue to grow. The Company
is increasingly able to provide North American brands with new
generations of consumer products. The SPARX™ program, aimed at
fostering collaborative innovation with advanced specialty
ingredient companies and end-product manufacturers, is developing
well and is expected to introduce at least
10 new products and generate additional
revenue opportunities in 2025.
The balance sheet remains strong
with sufficient cash resources to fund future growth. Unaudited net
cash and investments as at 31 December 2024 were $6.7 million
(2023: $10.0 million), which reflects investments in new marketing
capabilities, new products, additional product studies and global
regulatory approvals as well as a step up in inventory levels to
support substantial current and expected increases in European
revenues.
Itaconix is proud of its
Environmental, Social, and Governance (ESG) impact and its 2023 ESG
report is available for investors to review on the Company website.
Visit www.itaconix.com to download the report.
Overall, the Board remains
optimistic about the Company's prospects for 2025, driven by
increasing customer and consumer awareness of the efficacy, cost
benefits, and sustainability of its products. The new year has
started strongly, although the Board remains mindful of current
macroeconomic and geopolitical risks, including a potential for
increased tariffs on key raw materials that the Company sources
from Asia.
Further details of 2024 trading and
the latest outlook for 2025 will be provided when the Company
announces FY24 results by early April.
John R. Shaw, CEO of Itaconix, commented:
"We have ended 2024 in a strong position, with trading in line
with expectations and continued progress in diversifying our
revenues. Our growth in Europe, customer diversification, and the
development of our SPARX™ program underpin our optimism for 2025.
We remain committed to delivering sustainable solutions that meet
evolving customer needs while carefully navigating external risks.
With a solid balance sheet and a growing customer base, we are
confident in our ability to sustain growth and create long-term
value."
- Ends -
Enquiries:
Itaconix plc
+1 603 775 4400
John R. Shaw / Laura
Denner
Rosewood
+44 (0) 207 653
8704
Financial PR
John West / Llew
Angus
Canaccord
Genuity
+44 (0) 7523
8000
Nominated Adviser and
Broker
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
detergents, hygiene, and hair care. Itaconix's products contribute
to the global low carbon economy.
www.itaconix.com
